Bitcoin Virus ‘Has Infected 30% Of Russian Devices’: Putin Advisor

Bitcoin Virus ‘Has Infected 30% Of Russian Devices’: Putin Advisor

 

Russia’s chief presidential advisor on the Internet

has stated a Bitcoin mining virus has infected up to 30 percent of Russian computers. Speaking in interviews with RNS and RBC, Herman Klimenko said that although infection rates varied by region and device, it involved at least 20 percent of machines. “In regions with lower bandwidth instances are reduced, but we’re looking at 20 to 30 percent of devices being infected – iPhones and Macs are less prone,” he commented.

The figures, if true, are alarming, yet Klimenko’s assessment has already come under public criticism. Speaking to RBC in light of the findings, Internet Ombudsman Dmitry Marinichev called them “rubbish.” “These viruses appear for example on devices of users who have given permission for them to start running,” he said, adding the issue was not about Bitcoin mining but stolen credit card details and similar characteristics. Klimenko, meanwhile, also chimed in on the motives of the hackers behind the recent international WannaCry cyberattack. “In the case of WannaCry, the perpetrators managed to accrue around $50-100,000,”

he told RNS.

“I’m therefore convinced the perpetrators of WannaCry were children because they do not understand where they can earn money in the Internet sector.”

Earlier this month, Russian research lab Group-IB warned of a domestic Android virus circulating consumer devices which would gain access to and empty any associated bank accounts.

Bitcoin, Altcoins Meet London Art As ‘Gray’ Artsy Nets $50 Million
 

 

London’s “tradition-bound” Cork Street art empire is getting an innovation injection

as customers meet Bitcoin and even Monero as payment options. As the BBC reports Tuesday, one gallery, Dadiani Fine Arts, has begun accepting cryptocurrency in what its owner describes as an “intuitive” move. "This is not a demand-driven decision at all, it's intuitive based on the way things are going," Elena Dadiani told the publication. With the global art market worth around $60 bln and average purchase amounts high, the benefits of additional payment channels are obvious. The gallery is not stopping at Bitcoin; Ethereum, Ethereum Classic, Dash, Litecoin, and soon Monero will also be featured. "For me, the Blockchain is going to be the biggest thing since the Internet,” nonetheless hinting she intends to convert at least part of the payments to fiat currency as a matter of course.

Like Blockchain, meanwhile, the art industry itself is undergoing rapid change. Artsy, the online art marketplace seeing huge expansion, this week announced the closure of a $50 mln funding round, something already causing suspicion in a manner strikingly similar to some recent Ethereum-based ICOs. “The news has left many in the industry with two questions,” industry news resource Artnet reports describing the platform as a “gray market.” “First, since Artsy has chosen to keep its actual valuation pitch-black to the public, how much is the company really worth? Second, and just as important, how is that valuation justifiable?”

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to Learn more about -Bitcoin.

Delaware Governor Signs Blockchain Legislation Into Law

 

The governor of the US state best known as the home

to a majority of the country's incorporated businesses has officially signed a bill making it explicitly legal for those entities to use blockchain for stock trading and record-keeping. After weeks of anticipation, Delaware governor John C. Carney Jr. signed the bill on Friday, effectively bringing closure to an effort that began in May 2016 when his predecessor, Jack Markell, launched an initiative to promote blockchain efficiencies in government.

First publicized in March this year and introduced formally in May, the bill, which amends Delaware's General Corporation Law, saw a swift passage by state lawmakers. The move further comes weeks after it passed a key vote in the state legislature, a milestone advocates sought to label as "historic" given the state's history and the increase in experimentation that could result from legal certainty. Just how impactful could the law be? Industry analysts suggest that by giving the greenlight to experimentation, the law could make it possible for the custodianship, issuance, redemption and trading to take place on a distributed ledger.

Equity Markets on a Blockchain: Delaware's Potential Impact

Noelle Acheson is a 10-year veteran of company analysis and the author of CoinDesk Weekly, a custom-curated newsletter delivered every Sunday, exclusively to CoinDesk subscribers.Last week, Delaware passed amendments to state legislation that, once signed into law by the end of July, will give corporations registered in the state the right to issue and trade shares on a blockchain platform.While this may on the surface sound like a small modification, it is a big deal. Companies and exchanges around the world have been investigating how distributed ledgers could help with issuance, execution and settlement (some have even issued shares on a blockchain). However, they have been doing so under a cloud of regulatory uncertainty, unsure of whether the stakeholders – including the relevant governing bodies – would allow the innovations to take hold.

For the first time, businesses will be able to experiment with new processes knowing they have the protection of the law. This is likely to pave the way for the entire life cycle of a share – the issuance, custodianship, trading, shareholder communication and redemption – to be enacted on a blockchain. The result could be a reframing of the global securities network, one of the cornerstones of our modern capitalist economy. The equity infrastructure used in most markets today evolved around paper-based issuance, and essentially has the same conceptual backbone as in the 17th century. Processes are complex, involving several steps, each with fees. Centralized clearing creates systemic risk by presenting a single point of failure, and since in most jurisdictions legal ownership rests with the transfer agents, true ownership can be obfuscated – in turn, this can violate rules that limit shareholdings. Furthermore, a paper-based system – even a digitized one – is vulnerable to fraud, and centralized databases can suffer security breaches.

Settle for less

With a blockchain system, investors and issuers can interact directly with each other, in theory cutting out brokers, custodians and clearing houses, thus reducing transaction costs. Settlement can happen within hours instead of days, releasing funds and lowering carrying fees. Legal ownership would be restored to investors and companies, and would be more transparent. Dividends and stock splits could be automated, reducing cost and error.

Also, a distributed ledger platform would remove the single point of failure risk, help make proxy voting more transparent and accurate and make it easier to manage cap tables as well as collateralisation. There are disadvantages. Transparency, for one: not all investors want their positions to be visible. Error resolution is another: mistakes happen, and on an immutable ledger, how do you fix them? What’s more, counterparty risk doesn’t go away, it just shifts. But as work on services and solutions picks up in the light of regulatory approval, so will the development of solutions.

Share the benefits

That this milestone was reached in Delaware is significant. The state is 49th in the nation in terms of size and 45th in population, but it boasts two-thirds of US listed companies and 85% of IPOs. It has more registered legal entities than it has residents. This is due to its relatively flexible business legislation and tax framework, and to its reputation for being a standards bearer in corporate law. What’s more, the recent amendment is part of a larger initiative to streamline corporate and governmental processes. The Delaware Blockchain Initiative, launched over a year ago, commits the state’s government to incorporating blockchain technology in the handling of official documents such as land titles, birth and death certificates, professional licenses, collateral claims and company filings.

So, here we have the US state with the largest concentration of registered corporations, and a reputation for supporting innovation, offering businesses the chance to test a new form of financing and governance. While adoption will probably be slow, at least at first, the pace is likely to pick up as the benefits become even more apparent. Other jurisdictions could follow suit to avoid losing a chunk of their domiciled businesses. And the structure of financial markets could start to gradually, but fundamentally, change. While the Delaware amendment won’t create a market revolution overnight, it does raise a question which highlights the systemic importance of the move: Will traditional equity markets still exist 10 years from now?

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to Learn more about -Bitcoin.

Bitcoin is booming because a split in the cryptocurrency has been narrowly averted

Bitcoin is booming because a split in the cryptocurrency has been narrowly averted

 

Bitcoin has risen as much as 28% over the past 24 hours,

driven by news that an imminent split in the cryptocurrency has been narrowly averted. The price of bitcoin nearly hit $3,000 late on July 20, within spitting distance of its all-time high, set last month. The remarkable rally took place as bitcoin’s miners coalesced around one of several competing proposals that would increase the number of transactions that can be processed on the network. The issue has gained urgency in recent months, because one of the measures, known as Bitcoin Improvement Proposal 148 (BIP 148), would lead to a split in the cryptocurrency on Aug. 1 if implemented.

The price rallied as bitcoin’s miners began broadcasting their support for a less radical proposal, BIP 91, in increasing numbers yesterday. This proposal avoids the so-called “hard fork” by stopping short of altering the hard-coded limit on transaction capacities that is the bone of contention within the bitcoin world, while offering slightly enlarged transaction capacity. The threshold for activating BIP 91 is 80% of all the processing power on the bitcoin network. That was achieved in the early hours of July 21. Currently 97% of the processing power on the network, which is largely controlled by miners, is voting in favor of BIP 91.

But it’s not settled yet. Although enough miners have signaled support for their preferred proposal—a process akin to broadcasting a preference over the network—enough of them must now run the software that implements this proposal within the next two and a half days. Failure to maintain a simple majority of the processing power, also called the hash rate, would mean BIP 91 does not activate. This would put the bitcoin world back at square one, with just a week to go before the potentially destabilizing hard fork on Aug. 1.

There are also still signs that the fundamental disagreement that led to this showdown—a “civil war,” as some call it—is far from resolved. The fight is between bitcoin’s miners and the influential programmers who contribute to bitcoin’s open-source code, known as the “core developers.” The core devs say bitcoin is at risk of being controlled by a cartel of miners who, by virtue of their huge investments in processing power, are able to dictate what changes are made to the code—anathema to bitcoin’s decentralized founding ethos. But the miners, and other heavy users, like payment processors, point out that the bitcoin network could be abandoned if it doesn’t enlarge its limited capacity soon.

The architect of BIP 91, James Hilliard, a miner himself, told industry publication CoinDesk: “This is where mining centralization makes things easier, because I can just message everybody on WeChat and help them if needed.” That may be so, but it won’t comfort the parts of the bitcoin world concerned with centralization of the cryptocurrency, even if the current fix to bitcoin’s problems goes according to plan.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to Learn more about -Bitcoin.

Thousands of Japanese Retailers, Restaurants May Halt Accepting Bitcoin

Thousands of Japanese Retailers, Restaurants May Halt Accepting Bitcoin

 

More than 5,000 retail stores and restaurants in Japan may stop accepting Bitcoin

as a form of payment starting Aug. 1, 2017. This possibility could push through if Bitcoin payment processors will halt their services.

Bitcoin payment processors plans

The retailers and restaurants accept Bitcoin through payment processors bitFlyer and Coincheck. The latter is also partnering with Recruit Lifestyle in order to expand its operation and accept more than 260,000 additional stores across Japan as clients. BitFlyer, however, has announced that it could stop Bitcoin deposits and withdrawals, along with its payment services from July 31 to Aug. 2. Coincheck has separately announced that it will temporarily halt Bitcoin deposit and withdrawal starting Aug. 1.

The company says:

“On Aug. 1, 2017, we may temporarily suspend Bitcoin deposit and withdrawal for Coincheck exchange and payment services to protect users assets…The resume date is unspecified, but we expect several hours to several days. Also, if we decide that a Bitcoin fork will not take place on Aug. 1, 2017, 12 am, the suspension of services will not happen.”

Japanese companies likely to be affected

The move by the government of Japan to recognize the cryptocurrency Bitcoin as a legal tender in the country has led to the increase in the number of stores and retailers which use it in their operations. Among them are restaurant chain Heichinrou, eyeglass retail chain Meganesuper and the electronics retail group Bic Camera.

Post-split

The plans by the payment processors and the various Japanese establishments were triggered by impending developments in Bitcoin platform. These include the planned scaling for Segregated Witness (SegWit) and the possible split of the platform. The plans to temporarily halt Bitcoin payments, however, are expected to have limited effects on the operations of the retailers and restaurants as their businesses are mainly transacted in cash or credit cards.

Tim Draper Acquires 10% of Anti-Email Spam Blockchain Project Credo

 

Bitcoin investor Tim Draper has purchased a 10 percent share of Credo,

a project that aims to eliminate spam emails. Draper invested ahead of Credo’s scheduled public initial coin offering (ICO). Credo is an initiative of the company BitBounce.

Draper’s credentials as an investor

Draper is widely-known in the cryptocurrency market as an aggressive investor in the leading digital currency Bitcoin. He has already bought a large amount of Bitcoins from different Silk Road auctions. He also actively participated in various ICO projects involving cryptocurrencies. The Bancor and Tezos ICOs were among the successful digital currency projects that were supported by Draper.

Draper’s decision to invest in digital currencies is mainly driven by his desire to diversify his portfolio of investments. Even though there are significant risks in investing in cryptocurrency ICOs, Draper has shown his willingness to take them as long as the projects’ proponents can successfully convince him on the feasibility of their proposals.

Operational concept

The concept of the Credo project is to use tokens as a payment method for an email service provided by BitBounce. The BitBounce email service allows users to send direct email messages to the leaders of various industries. The service also includes incentives to ensure that the recipients of the emails will answer them. This project appears to be a sound one as BitBounce already has more than 7,750 active users of its email service so far. The company also appears to be processing more than 42,000 emails per day.

On its way to yet another successful ICO?

It is not yet certain if the Credo project will be successfully launched, survive and turn profits in the near future. The support and endorsement of well-known investors like Draper, however, is a proof of its sound concept. Let us wait and see if Draper’s public support of Credo will result in the success of the project’s scheduled ICO.

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to Learn more about -Bitcoin.

Utility Settlement Coin Creator to Open-Source Modular Blockchain Software

 

The company behind the Utility Settlement Coin project,

one of the first designed to enable central banks to utilize distributed ledger tech, is preparing a coming-out party of sorts. After working in almost complete secret on what founder and CEO Robert Sams calls "foundational technology," venture-backed blockchain startup Clearmatics will soon begin a rather unusual roll-out of new offerings for the open-source community. In a new exclusive interview, Sams said he plans to share the first of several waves of software with the financial sector before the year’s end.

He told CoinDesk:

"We view the technology – the actual source code – in a very modular way, and we think that not only is this a space that definitely, firmly belongs in the open-source domain, the approach to the development of the software needs to be more modular."

While little is being revealed about the technology itself, Sams contrasted his platform with bitcoin, which relies on an unspent-transaction model, and ethereum, which uses an account-based system. Instead, Sams said the yet-to-be named software will be "tightly coupled" implementations of various components, distributed consensus algorithms and networking stacks. He compared the modular architecture to the various components of the Linux operating system, saying the software would be coupled with standards for how users implement the solution. "You'll see over time less and less discussion about this or that platform," said Sams. "And more and more discussion … on how to put these components together to conform to a set of standardizations."

Twin projects

While Sams acknowledged that his work with the Utility Settlement Coin, his most well-known project, "informs" the soon-to-be-revealed open-source code, he made explicit that they are distinct from each other. Last year, Clearmatics unveiled a Utility Settlement Coin consortium comprised of BNY Mellon, Deutsche Bank, Santander and ICAP – since rebranded as NEX. Sams said the group recently completed the second phase of its work to help central banks and other financial infrastructure providers capitalize on blockchain, but that the results would remain proprietary.

While the Utility Settlement Coin project is largely focused on the business logic required to help legacy financial infrastructures increase efficiency using blockchain technology, Sams said the open-source work itself will largely consist of technology and an early version of related standards.

Sams concluded:

"The open-sourcing of Clearmatics is not the open-sourcing of Utility Settlement Coin."

Chuck Reynolds


Marketing Dept
Contributor

Please click either Link to Learn more about -Bitcoin.

University of British Columbia Study: Compliance Trilemma’ Limits Potential of ICOs

University of British Columbia Study: ‘Compliance Trilemma’ Limits
Potential of ICOs

Initial Coin Offerings (ICO) are facing a regulatory
“compliance trilemma,”

according to a recent study released Nov. 19. The research, funded by regtech platform iComply and “supported by” Canadian non-profit national research organization Mitacs Canada, was carried out by the University of British Columbia (UBC).To prepare the report, UBC’s research team investigated the ICO space over the course of six months, focusing primarily on North America, but also delving into some other countries and jurisdictions. The team conducted 45 qualitative interviews with individuals in the ICO space, including representatives of the finance, law, and science sectors of the field.

Per the study, ICO issuers face a “trilemma,” wherein they can only address two of three objectives at a time, those being “having a compliant offering,” “reaching a distributed pool of investors,” in a manner that is “cost-effective.” The researchers define compliance as following regulations in the home jurisdiction of both the issuer and investor. While a broadly distributed pool of investors is said to be the principal benefit of an ICO as a funding mechanism, the cost of complying with financial regulators becomes “much greater” if the investor pool becomes more distributed.

“If issuers forgo these costs, the risk of being non-compliant rises significantly. The result is a trilemma, whereby issuers currently must forgo one of these goals to realize the other two, or to compromise on all three,” the study explains. The trilemma further reveals four basic approaches available to ICO issues, which are “the Maverick ICO,” “the Private ICO,” “the Hybrid ICO,” and no ICO at all. The first option refers to ignoring compliance for maximizing ICO reach and cost effectiveness, which reportedly runs a huge risk of regulatory enforcement.

The second approach focuses on targeting only accredited and institutional investors by sacrificing distribution, which may not affect cost-effectiveness but raise challenges in secondary market trading control. Regarding the Hybrid ICO, the report reads that it “compromise[s] on all three dimensions by issuing in select markets, resulting in bounded cost effectiveness, compliance and investor scope,” resulting in a combination of risks.

The researchers found that companies wishing to undergo an ICO sought relief from the trilemma through relevant regulatory authorities. Participants in the study reportedly called for amendments to regulation, including clarifications of existing regulation and development of “fundamentally new” regulatory definitions and frameworks. The study concludes that this “trilemma” has “substantially limited [the] potential” of ICOs,

noting:

“Many actors with legitimate ventures that could benefit from ICOs are likely holding back, due to combination of confusion over how exactly they might comply with financial regulations within and across jurisdictions, and the prohibitive costs of doing so manually.”

As Cointelegraph recently reported, ICO performance in the third quarter of 2018 was in part characterized by “overall disappointment," in comparison with previous quarters. Last week, Cointelegraph reported that in a self-described “first,” the U.S. Securities and Exchange Commission (SEC) had imposed civil penalties against two ICOs over their failure to register their token sales with the agency.

Article Produced By
Ana Alexandre

Total change in her career took Anastasia into the world of analytics and business information as a researcher and translator in 2010. Some time later she got into FinTech, a dynamically developing segment at the intersection of the financial services and technology. Ana joined Cointelegraph in September 2017.

https://cointelegraph.com/news/study-compliance-trilemma-limits-potential-of-icos

Crisis: After 30 Billion Invested Most Crypto ICOs Have Nothing to Show

Crisis: After $30 Billion Invested, Most Crypto ICOs Have Nothing to Show

Over the past two years,

initial coin offering (ICO) projects in the crypto market have raised more than $30 billion. Yet, most ICO projects have little to show, especially pertaining to user growth, blockchain adoption, and overall user activity on decentralized systems.

It Will Only Get Worse

A handful of tokens have demonstrated success in establishing clear vision, growth paths, and valid use cases of blockchain technology that benefits users. Binance Coin (BNB), for instance, which already operates as the base cryptocurrency of the Binance exchange, will be extensively utilized to process peer-to-peer trades upon the launch of the Binance decentralized exchange (DEX). Tens of thousands of merchants have also recently started to use BNB to accept crypto payments.

0x (ZRX), the native cryptocurrency of the 0x decentralized exchange protocol, is necessary to facilitate liquidity amongst many decentralized exchanges that operate on top of the 0x protocol. While there are several tokens in the market that represent viable applications of the blockchain, the vast majority of projects have ambiguous roadmaps and long-term strategies.

As Uber’s Sam Gellman said:

“After $30 billion invested in the past two years in ICOs there still isn’t a single crypto app with a real user base for anything other than speculating on crypto. The BTC price movement is tough, but the lack of real user base for anything they’re investing in is tougher.”

With regulatory hurdles set forth by the U.S. Securities and Exchange Commission (SEC), the ICO ecosystem will become even more difficult for both innovators and projects. This week, the U.S. SEC cracked down on two ICO projects called AirFox and Paragon, characterizing their token sales as unregistered security offerings and requesting the two tokens to refund all of their investors. “They have also agreed to compensate investors who purchased tokens in the illegal offerings if an investor elects to make a claim. The registration undertakings are designed to ensure that investors receive the type of information they would have received had these issuers complied with the registration provisions of the Securities Act of 1933 (“Securities Act”) prior to the offer and sale of tokens in their respective ICOs.”

The U.S. SEC emphasized that it is in support of the blockchain and the usage of newly emerging technologies. But, the commission said that market participants must acknowledge and adhere to local regulations. “We wish to emphasize, however, that market participants must still adhere to our well-established and well-functioning federal securities law framework when dealing with technological innovations, regardless of whether the securities are issued in certificated form or using new technologies, such as blockchain.

Importance of Bear Market

The bear market of 2018 will filter good projects from the bad, and those that survive will be projects that have a clear vision, roadmap, active user base, and a competitive model. As the capital in the market drops, investors who previously invested in every new project in the market will become more cautious and it will be challenging for token sales without competitive strategies to appeal to the public. Over time, as investors learn to conduct due dilligence and the market evolves into a more competitive sector, underperforming projects will naturally see a decline in investment opportunities, user activity, and demand.

Article Produced By
Blockchain News

https://www.ccn.com/crisis-after-30-billion-invested-most-crypto-icos-have-nothing-to-show/

All About Airdrops

All About Airdrops

What is an airdrop?

An airdrop is simpy a marketing tool that many companies are using to drum up press for new blockchain projects. The concept is simple: You help a company with some of their initial marketing efforts by following them on social media, and they reward you with free tokens once the project launches. In many ways, airdrops represent free money. Using Quarry, you can apply for most airdrops in just a few minutes, and the rewards can range from a few dollars in value all the way up to hundreds in rare cases.

What do I need?

The first thing you need is an ERC20-compatible ETH wallet. If you’re using Quarry, don’t sweat it, because this has already been made for you. Airdrops will ask for your public address (not your private key!) in order to send you the tokens.

Beyond that, the majority of airdrops require:

  • an email address
  • a Telegram account
  • a Twitter account
  • a Facebook account

Rarely, a small number of airdrops may optionally require:

  • a Reddit account
  • a Medium account
  • a Discord account
  • a LinkedIn account
  • an Instagram account
  • a Steemit account
  • a Bitcointalk forum account
  • an Altcoinstalks forum account
  • a VK account
  • an AngelList account

If possible, you might want to consider using alternate social media accounts, instead of your personal pages. This will avoid cluttering your feed with too much token-related news, but it’s up to you. In Quarry, we even highlight on the airdrop page what accounts you will need ahead of time, so that there are no suprises on the page. Note that you never have to give any information that you aren’t comfortable sharing.

Are Airdrops Scams?

No. It’s a very fair trade. For one, having a lot of people following and reposting a project’s content on social media helps a company with brand awareness, much like advertising. Ideally, by the time the project launches, there are already thousands of people aware of the concept and excited to see it in action. Additionally, distributing airdrop tokens to participants actually helps the economics of the token on public exchanges, since the tokens are not concentrated in just a few locations.

In the past, a small number of scammers have pretended to run airdrops in order to steal information from unsuspecting partipants. One of the advantages of using Quarry is that we screen all airdrops before they enter the app to ensure that they are legitimate. However, just in case, please be vigilant. No airdrop should ever ask for:

  • your wallet’s private key (note: your public address is fine to share)
  • any kind of password
  • any amount of money

As long as you don’t hand out this information, you have nothing to fear.

When do airdrops pay out?

In general, an airdrop will pay out several weeks after completion. In some cases, it could take a few months. If you completed an airdrop and don’t see the coins yet, don’t panic! Most likely, the airdrop will distribute when the token crowdsale is complete.

What do I do when the tokens are paid out?

That’s up to you. Because projects doing airdrops are in very early stages of development, it is possible that the tokens will increase in value over time (remember when Bitcoins cost $5 each?), so it might be worth it to hold onto them for a while. However, if you would prefer to sell them once they hit the market, there are many token exchanges available online and on the Quarry “Discover” menu.

Article Produced By
Token Block Friends

We’re Token Block Friends, your buddies in the world of cryptocurrency and blockchain applications.

https://tokenblockfriends.com/all-about-airdrops/

France Attempts to Attract New Cryptocurrency ICO Token Issuers with New Legal Framework

France Attempts to Attract New Cryptocurrency ICO Token Issuers with New Legal Framework

France Tries to Attract Crypto-Issuers

France is looking to improve its stance toward cryptocurrencies by allowing their use, but with regulations in place to provide oversight. If France does establish regulations to oversee cryptocurrencies, it will be the first country in the world to do so, insofar as it relates to initial coin offerings. Those who are pro-regulation argue that coin issuers that agree to the regulation will be viewed as more trustworthy by investors, thus leading to more credibility in the long-term. Regulatory authorities will also issue a certification to issuers. It is important to note that issuers will also need to relent to having their profits taxed.

According to Fabrice Heuvrard, an auditor with a government task force responsible for developing accounting-related rules for ICOs, “The community is ready to pay taxes as long s they are not confiscatory.” France is looking to release new rules regulating the industry by next year. By regulating the industry and coaxing cryptocurrency platforms out of the shadows, so to say, the country may be able to create a market for companies interested in raising capital for ICOs and all the while receiving revenue and enhancing security for those who invest.

France is not the only country moving in such a direction. For example, though England does not regulate ICOs, it does have some financial oversight to determine whether the issuance of an ICO is under the purview of regulatory authority. As for the United States, the Securities and Exchange Commission has been considering establishing that ICOs and cryptocurrency are subject to the commission’s purview. However, the country has yet to establish strict rules. On the far end of the spectrum, China has completely banned cryptocurrencies due to concerns about fraud.

The position that France is taking may be a positive approach because it allows investors to verify the parties involved in the issuance of a new coin and they can also determine what happens if a project is unsuccessful. This ultimately leads to more confidence in the process. As of late, the country has had ICOs that have raised 90 million euros. According to businessman and CEO of a Canada-based company, “The different regulators have been hyper, hyper proactive.” A French official also pointed out that there are still issues related to the tax status and whether it has been settled. Right now, the country needs to consider how much revenue is being raised and what is the best tax rate.

Allard stated,

“Our plan is to declare the money raised as revenue and pay taxes on the profits we will make on those revenues. Since we are not close to making any profits, it doesn’t really affect us.”

Article Produced By
Bitcoin Exchange Guide News Team

https://bitcoinexchangeguide.com/france-attempts-to-attract-new-cryptocurrency-ico-token-issuers-with-new-legal-framework/

What Is An ICO Token And How Does It work?

What Is An ICO Token
And How Does It work?

What’s the definition of crypto token?

It's an entity with a value specified by the eminent. If it's a fashion startup, one token can be equal to one dress or a yearly license of a software in case of a hi-tech startup. You even can issue tokens of yourself and a token holder will be able to buy an hour of your work with the token. You can “tokenize” everything.

What’s the difference between cryptocurrency coins and tokens?

This is a difficult part. The easiest answer: tokens are not a currency. You don’t need to create a Blockchain to issue tokens, which is a must-have for a cryptocurrency, but you use an existing one (usually Ethereum, which was originally created as a platform for smart contracts and evolved to be a currency). A coin is a money equivalent, something that defines value and serves as a value transfer. A token is a symbol of a contract, the value does not depend on mining, gold price or any dynamic market criteria. A friend of mine once gave me a note saying that he will always make me a coffee on demand. He still does it, after 10 years, it was a heck good token!

What is a token contract and how does it work?

Ok, a token is not a coin, got it. But still, something should regulate it’s transaction, value etc? How does that work? You do need a platform for it. Let’s take Etherium as an example, since its one of the most popular platforms for smart tokens.

Here is the full contract cycle:

  1. Tokens creation: a company writes the basic rules (tokens amount, token value, special conditions). Once created the platform will serve as a very smart notary for all the future transactions, making sure all the conditions are carried out.
  2. Tokens acquisition: when somebody wants to buy a token, the process is really similar to buying a coke in a vending machine. You approach a machine, drop the coin and push the button “coke” (choose the token you want to buy). The machine checks if there are “cokes” in stock and if you are eligible to buy it. If everything is fine- you get your drink (or token in our case). The machine says “have a nice day” and updates the stock info (one coke less now).
  3. Token transaction: In case you have a coke, you can just pass it to your friend. For money or for free. In tokens reality, you have your token wallet which is supported by the same platform that issued the token. You can transfer your token using the wallet. And again, a virtual notary, powered by a smart contract, will make sure you do it according to the rules. Moreover, all the wallets activity is constantly recorded and being updated.

Is all this free? Nope. Somebody needs to pay for the notary, vending machine technician and coke delivery. In the token world – the operation processing called “gas.” So, each time you ask to buy or sell tokens, there will be some “gas” spent and you will pay its fee.

Note: the fee is not static. It depends on a number of transactions awaiting. You can define the max cap you are willing to pay for your gas. If the token cost is, say, $10 and the gas fee is $20 is not a great deal, isn’t it? So, you can say that you pay no more than $2 for your gas, click “submit” and find something else to do meanwhile. The system will serve the highest gas bids first and eventually yours when your time will come. There is a chance, you will wait for a long time (if others are willing to pay more than you). But you always can rise the gas cap.

Types of tokens

Let’s see the most common types of tokens.

Token – token (Utility tokens), the most popular type

Remember amusements parks from the childhood? Roller coasters, carousels, hot dogs and cotton candy? At the entrance, you’ve got tokens to buy food and enter the attractions. So, let’s pretend that a company is an amusement park and with the tokens, you can buy different services just as you do with carousels and hot dogs. Now, to make the analogy perfect, let’s say that you can buy lots of tokens before the park is officially opened, or when it’s just opened. If the park becomes popular, its tokens will be much more expensive. Like $10 for a hot dog. But a smart child who bought the tokens before the opening will still enjoy his meal for $1. This is basically the idea behind issuing and buying tokens. But if in the amusement park you buy the tokens at the entrance, where do you get a cryptocurrency token? The answer is ICO – Initial Coin Offering.

Token – stock (Equity tokens)

In this case, ICO is completely equal to IPO. Usually, token-stocks are issued when a startup does not require a crypto-technology. In this case, token holders will get dividend or fixed commission. They also will be able to take part is the company decisions. All this honor for supporting the project in the beginning of its life.

Token – credit

This is a loan; a holder gives to a startup. It’s another way to rise money. For example, you invest X to get X + 10 percent.

Token – combo

If you are not completely confused, you will be now: sometimes a token can belong to more than one type. For example, tokens Sia and Digix are both tokens and stocks. And Steemit has all the three types of tokens (Steem, Steem Dollars (SBD) and Steem Power (a denomination of VESTS).

How do you trade tokens?

This part is pretty similar to coins. You have to register on an exchange for buying and selling tokens. The transaction conditions can be really complicated: the contract can include multiple rules like “you can sell it only before a specified date” or “after some date but only for a certain vendor.” So, when investing in tokens, you should read the “small letters” really thoroughly.

Article Produced By
Cointelegraph

https://cointelegraph.com/ico-101/what-is-an-ico-token-and-how-does-it-work