Category: Crypto

Categories
Crypto News

Cryptocurrency Exchange Platforms Gathered To Create VCA To Self-Regulate Cryptocurrencies Market Across The US

A group of cryptocurrency exchange platforms operating across the United States created the Virtual Merchandise Association (VCA), with the objective of achieving self-regulation of the cryptocurrencies market in the country, as a consequence of the pressure exerted by regulatory bodies such as the CFTC and the SEC.

Virtual Merchandise Association (VCA) has the primary objective to prevent fraud and manipulation in the cryptocurrencies market

An inaugural meeting of the Association is scheduled for September, bringing together some of the important cryptocurrency exchange platforms in the US, including bitFlyer, Bittrex, Gemini, and Bitstamp. The latter is a company that currently operates in Europe and could enter the North American market through this association.

According to the official press release, the VCA will work with the United States Commodity Futures Trading Commission (CFTC) which, in June, announced that it would launch an investigation on cryptocurrency exchange companies, including Bitstamp, for possible market manipulation.

In this regard, the establishment of the VCA could respond to the growing governmental pressure on crypto trading companies and controversy surrounding the regulation of digital assets.

The VCA will seek to create a self-regulatory organization (SRO) to monitor the performance of the cryptocurrencies market to develop industry standards and promote transparency in the cryptocurrencies market.

Cryptocurrencies are considered commodities across the US, hence the VCA’s intention to operate in this country

Depending on the legislation of each country in part, specific crypto coins may or may not be considered commodities. It is usual that the main cryptos, such as Bitcoin (BTC) and Ethereum (ETH), to be considered merchandise. In other cases, some crypto tokens are deemed financial securities, because they promise a future profit.

After a long controversy to determine under what type of traditional assets cryptocurrencies should be classified and what kind of regulations should be applied across the US, in October 2017, the CTFC recognized cryptocurrencies as commodities, hence the VCA’s intention to operate in the United States.

To date, there is no global agreement on the matter, so the Virtual Merchandise Association (VCA) initiative would only apply in cases where cryptocurrencies are considered commodities.

Categories
Crypto News

CoinTree and Gobbill Teamed Up To Allow Australian Citizens Pay Their Bills With Cryptocurrency

Australian citizens who wish to pay their bills with cryptocurrency will have a new option to make these types of payments, thanks to an alliance between the CoinTree crypto exchange platform and Australia’s automatic payment and billing platform, Gobbill. According to the statement, the partnership will allow those interested in paying services and other household bills with cryptos to do so straightforwardly.

Australian citizens can pay their bills with cryptocurrency thanks to the alliance between CoinTree and Gobbill

Gobbill will perform the functions of an intermediary, using user funds and paying bills on their behalf, while CoinTree will allow the use of cryptos such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), among others.

“We anticipate an increase in the number of customers who would like to pay their bills in cryptocurrency in the coming years. Our partnership with CoinTree will serve this market and ensure that Gobbill remains at the forefront when it comes to allowing our users to pay their bills automatically, knowing that they are protected against fraud and scams,” stated Shendon Ewans, Gobbill CEO.

Gobbill users will be able to link their cryptocurrency wallet to their accounts to pay their bills, using crypto of their choice. The service is mainly aimed at small businesses and households.

Also noteworthy, this is not the first service of its kind in Australia, as, since 2014, the Australian startup Living Room of Satoshi has made it possible to pay bills with cryptos, and the list of its permitted tokens has grown over time.

Australia is going through a significant growth regarding cryptocurrencies uses and blockchain technology

In early August, Australian entrepreneur Fred Schebesta announced his intentions to create a cryptocurrency bank that could start operations in 18 months. The purpose would be to encourage cryptos ecosystem growth through loans.

Besides, in June, the Australian Tax Office (ATO) said it would identify investors in cryptocurrency to prevent them from evading paying taxes related to the purchase and sale of crypto assets.

Categories
Crypto News

US FINRA Released Some Tips For Investors To Avoid Fraudulent ICOs

The US Financial Industry Regulatory Authority (FINRA) published an update on its website on August 16th with a series of tips for investors on how to avoid fraudulent Initial Coin Offerings (ICOs). The aim of the publication, according to FINRA, is to generate an alert about the implications of investing in digital assets, such as tokens or cryptocurrencies, and to make clear the differences between this type of investment and those made in more traditional assets, such as stocks and bonds.

The agency says that investments in Initial Coin Offerings or ICOs can represent a challenge, due to the difficulties in verifying the information they offer. The dangers inherent in market volatility, speculative risk and the potential for fraud are also mentioned. However, it also recognizes the potential of these instruments to develop legitimate innovations. Thus, in addition to explaining what ICOs are and how they issue new cryptocurrencies, the publication provides advice to investors to help them make decisions.

FINRA’s publication has an intertitle entitled “7 things you should know now about ICOs” which speaks at first of the lack of ICOs regulation and the lack of legal protection for investors in such business models, which exposes them to fraudulent schemes and deceptive tactics, with little chance of recovering their money.

FINRA states that some ICOs are using Simple Agreements for Future Tokens (SAFTs) to offer new crypto tokens to the public

“SAFTs are investment contracts that appear to be modeled after SAFE (Simple Agreement for Future Equity), contracts that arose with value-based crowdfunding. Be aware that investing in a SAFT contract does not mean that the offer is “secure” or that it complies with applicable federal and state laws,” stated FINRA.

It is clarified that in a SAFT the issuer announces that the token will begin as a security token, subject to federal securities laws, but will then be transformed into a utility token, outside of these laws. FINRA notes that, regardless of what a company says, there is no guarantee.

On the other hand, FOMO (fear of missing out), meaning the fear of losing something or being left out of something, is a form of anxiety that has proliferated with the technological boom. It arises among social network addicts and also among ICO traders and investors. FINRA states that studies are confirming that many decisions are made by FOMO, regardless of market fundamentals, project development forecasts and the nature of the tokens.

Categories
Crypto News Tech

BitTorrent Founder, Bram Cohen, Left The Company Leaving It In The Hands Of Tron Foundation

Last month, in July, we received the news that Tron Foundation headed by Justin Sun, one of the largest startups in the cryptocurrency world today, had bought BitTorrent and all the tools that are part of the company, such as uTorrent and others. And now, Bram Cohen, the inventor of BitTorrent and co-founder of the company, has abandoned the ship, preferring to focus on working on his own cryptocurrency.

Bram Cohen has always been more interested in the technical side of everything than in business, and it seems that he had long ago given up on BitTorrent, a company that he could never really capitalize on despite his various attempts at monetization, other than advertising.

The founder of BitTorrent is now busy trying to make a cryptocurrency that’s not an energy disaster

Currently, he is investing all his time and efforts in ChiaNetwork, in particular, aiming to create a blockchain technology that is demanding less energy consumption than the current ones, as Bram has criticized a lot the fact that crypto mining for coins such as Bitcoin (BTC) is an energy and environmental disaster.

Now, with Chia, Bram Cohen basically wants to create a “green cryptocurrency.”

“I have no relationship with Tron,” said Bram Cohen when asked about his involvement in the new Tron’s project regarding BitTorrent.

BitTorrent ends up a cycle of its life and emerges into a new one along with Tron (TRX)

After the acquisition of BitTorrent by Tron Foundation, Justin Sun, founder of the startup and Tron (TRX), didn’t take long to comment on his future plans, which include not only “improving” the BitTorrent technology by integrating it with Tron’s, but also the future plans of encouraging seeders to pay with cryptocurrency, more specifically with Tron (TRX).

With Bram Cohen entirely out of the project, BitTorrent will undoubtedly end up a cycle of its life and emerges in a new one ruled by Tron. Only time will tell if it will succeed in the new direction it is going on, but ultimately, it will never be what it was for the Internet industry.

Categories
Crypto News

Three Crypto Hackers Arrested In China, Accused Of Stealing $87 Million In Bitcoin (BTC) And Other Cryptos

Three crypto hackers, suspected of committing the most massive theft related to cryptocurrency in China, were arrested by Chinese police after a coordinated operation in several cities, according to local press reports. The hackers stole Bitcoin (BTC) and other cryptos with a total value of 600 million yuan (about $87 million) after they hacked into people’s and companies’ computers.

According to the Chinese news agency Xinhua, the police investigation began in late March, when a citizen named Zhang went to the Xian City Public Safety Office to report that his computer had been hacked. The victim stated that in the attack he was robbed of 100 million yuan, about $15 million, in Bitcoin (BTC) and Ethereum (ETH).

With the help of several undisclosed internet companies, the investigators followed up on the transactions that led them to a suspect identified as Zhou. Subsequently, Zhou’s communications led to two alleged associates in the criminal operation.

The three cybercriminals reportedly used sophisticated computer techniques to access their victims’ computers remotely and then cover their tracks, leaving little trace of the cyber attacks. In this way, they were able to steal approximately 600 million yuan, equivalent to $87 million, in digital assets, including Bitcoin (BTC) and Ethereum (ETH), from multiple personal and business computers.

The crypto hackers arrested in China for stealing $87 million in Bitcoin (BTC) and other cryptos used sophisticated techniques to avoid detection

The local South China Morning Post noted that “the three suspects had been studying hacking technology since they were 12-13 years old and had worked for major Internet companies.

The Chinese police also reported that hackers divided the proceeds from the sale of stolen cryptocurrencies into smaller units and conducted multiple transactions in an attempt to avoid detection. This operation required the analysis of 30,000 pieces of evidence, according to the local news portal.

The suspects were arrested on August 5th during a joint and simultaneous police operation in Hunan, Changchun and Beijing provinces. The case will remain open until further investigations.

About a month ago, cybercriminals in China were hit by another blow, as the Chinese police arrested 20 people belonging to the technology firm Dalian Shengping Network Technology for spreading crypto mining malware on over one million computers. This activity brought hackers illicit profits of $2 million over the past two years.

Exit mobile version