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Cryptocurrency Profit Reaches $182.62 Billion, Bitcoin Rises upto 10% in 24 Hours


According to data by Coindesk, the cryptocurrency value suddenly increased on Tuesday. And this comes as a matter of surprise as the whole trade market is suffering heavy losses due to coronavirus pandemic. Witnessing this sudden increase in the Cryptocurrency's value, Bitcoin eventually rose up to 10% in a single day, as trading prices reached $6,569.17 around noon, Singapore time.


Meanwhile, Ethereum's value has increased by 7%, whereas XRP witnessed a jump rate of over 5% in its prices.

The total value of the cryptocurrency trading market- Market Capitalization, recorded a surprising leap of $14 Billion to $182.62 Billion within a mere 24 hours at 11:47 am Singapore time, says the data of the website Coinmarketcap.com.

The entire Cryptocurrency market suffered severe losses at the start of March. On 8th March, the whole business failed when oil prices took a hard fall. Furthermore, on 12th March, the Cryptocurrency lost $93.5 of its value within a day, and even worse, Bitcoin suffered a 48% fall in its prices.

As observed, the growth of Cryptocurrency is marching foot by foot with the Equity market. Since recent years, people have started viewing Bitcoin as 'digital gold,' having complete faith that investing in it even under times of economic slowdown can be profitable. Unfortunately, Bitcoin, like the Equity market too, started suffering losses and became a risk asset, especially since the start of this year.

"We're seeing some bullish bitcoin price action today along with other asset classes after the Fed announced unprecedented measures yesterday to shore up the economy. It will be interesting to see how bitcoin fares in such an environment. Given this is its first test as a haven asset in a market downturn and is yet to be proven," says Vijay Ayyar in a conversation with CNBC.

 Key takeaways:
  • Bitcoin rose over 10% in 24 hours, earlier exchanging at $6,569.17. 
  • Ethereum and XPR also witnessed an increase in their prices. 
  • The market value rose from $14 Billion to $182.62 within a day.
  • The cryptocurrency market took a hard beating at the start of March due to the coronavirus outbreak.

The issue and circulation of cryptocurrencies will be banned in Russia


On March 16, a Representative of the Bank of Russia, Alexey Guznov, announced a possible ban on the issue and organization of cryptocurrency circulation in the territory of the Russian Federation. As noted in the bill on digital financial assets, the issue and circulation of cryptocurrencies in Russia carry an unjustified risk. The bill prohibits the issue and circulation of cryptocurrency in Russia and introduces responsibility for violating the ban.

Mister Guznov noted: "The position of the Bank of Russia remains unchanged. We believe that there are great risks when legalizing the circulation of cryptocurrencies." Risks arise for financial stability and the anti-money laundering system, and consumer protection will also suffer.
The Central Bank objected to legalizing cryptocurrency as a "tool" and an object of circulation, said mister Guznov.

Some experts suggested that cryptocurrency should be treated as a foreign currency and its issuance and circulation should be regulated in the same way.

The authorities replied that they did not intend to ban the ownership of the digital currency. The bill only prohibits the issuance and circulation of cryptocurrencies and introduces liability for violation of this ban.

It is absolutely impossible to ban cryptocurrencies and mining, said Yuri Brisov, a member of the Commission for the Legal Support of the Digital Economy. He is sure that such measures will become an obstacle to the development of the blockchain industry in the Russian Federation.

"The ban on mining and cryptocurrencies will lead to the complete decline of the blockchain industry. For this reason, all developed countries, although they understand the risks associated with money laundering, tax evasion, do not ban cryptocurrencies and mining; to ban today means to limit the potential for economic growth and technological development of their country," said Brisov.

It is important that legal regulation in Russia does not hinder the development of new technologies.
Earlier EhackingNews reported that Russian law enforcement agencies, together with the Ministry of Internal Affairs, to prepare proposals for the arrest of cryptocurrencies by 2021.

Recall that in 2018, President Vladimir Putin said that Russia should "carefully and cautiously" monitor the sphere of cryptocurrencies. At the same time, the position of the Central Bank of Russia was that electronic money can not be a means of payment.

Scammers Target Coindesk ;Impersonating Reporters and Editors in the Last Months


Scammers have a new target and this time its CoinDesk as they try to impersonate CoinDesk reporters and editors in the last few months, promising inclusion of projects in return for a fee.

At least two unique victims have paid hundreds of dollars in bitcoin and ether to these convicts and reached CoinDesk just subsequent to acknowledging that something wasn't right.

Thus CoinDesk makes it explicitly clear through an announcement that the news site doesn't, and will never, accept payment for coverage. They cautioned their users by informing them that in the event that they are being reached out by somebody professing to be one of CoinDesk's reporters on Telegram or LinkedIn, and that individual requests payment, then they should know that the account connecting to them is a fraud and should report it to the concerned social media platform right away, and to CoinDesk immediately, by emailing fraud@coindesk.com.

If possible, it would be ideal if the users could incorporate screenshots of what was written. On the off chance that the user has to affirm that they are, indeed, in contact with a CoinDesk staff member they are welcomed to at email news@coindesk.com.

Now that CoinDesk has been ensnared in various scams, they wish to clarify what is being done and how. Most of the victims are said to have received a Telegram message like this one:


This to and fro between the scammer and the news editor is generally well disposed and, in certain nations where associations regularly pay for news coverage, 'expected'.

The opportunity is straightforward and simple: Send the scammer $500 or so in bitcoin and get onto CoinDesk's front page.

There is typically some 'to and fro' and a portion of these scammers have come 'sophisticated' to the point that they are mocking CoinDesk email addresses to "confirm" their identities. One 'con-artist' even forged a CoinDesk editor's passport to "confirm" their identity.

Hence, CoinDesk advises its users that it's working with the new site's legal counsel and tech group to discover ways for impeding these impostors and in the meanwhile, requests the users to kindly verify the handles of the accounts contacting them.

The clients can likewise email the writer or the editor directly in the event that they have any inquiries.

UK to develop a system to track cryptocurrencies


HM Revenue and Customs (HMRC) of the UK Government has submitted a tender for the development of a system for monitoring financial transfers in digital money. The appearance of such a system in Russia could already have occurred.

Cryptocurrencies can be used not only for transferring funds or paying for services, but also for conducting criminal activities. This position was expressed by the UK tax service HMRC. The purpose of the introduction of this tool is the fight against criminal activity. It includes tax evasion and laundering of criminal proceeds.

Mikhail Mishustin, head of the Federal Tax Service of Russia and now Prime Minister, proposed the initiative to control income received through cryptocurrency for tax purposes in February last year.

"Money that a young person can freely move across the border using cryptocurrencies and other forms of payment, which the state does not notice and for which there is no regulatory framework, is dangerous," said Mishustin.

A similar system can already operate in Russia, suggested Dmitry Kirillov, a senior tax lawyer at Bryan Cave Leighton Paisner (Russia) LLP. He explained this by the fact that in 2018, the contract for the development of the Unified Information System was posted on the public procurement website. The 23rd page of the document states that "a tool should be created to analyze and identify illegal activities, including using cryptocurrencies."

"Apparently, the execution of the contract was completed. Therefore, I will not be surprised if the system already tracks cryptocurrency transactions of Russian users," said Kirillov.

Antonina Levashenko, the head of the Russian Center for Competencies and Analysis of Standards under the President of the Russian Federation, expressed a similar opinion. According to her, financial intelligence units of countries around the world are seeking to acquire effective tools for controlling cryptocurrency transactions, and Russia is no exception.

All experts agreed that a system for controlling transactions in cryptocurrency may appear in Russia. It is likely to focus on the fight against illegal income and the financing of terrorism.

The authorities of Uzbekistan to launch a national mining pool


Uzbekistan plans to legalize mining by providing the status of a participant in the mining pool, which is planned to be created in the Republic. This is stated in the draft resolution of the President "On measures for further development of the sphere of turnover of crypto assets".
Participants of the mining pool will be provided with privileges for paying for electricity. In addition, all transactions with crypto assets, as well as the receipt of income from this activity, will not be taxed.

According to the draft resolution, it is also planned to create a regulatory body for the development of digital technologies Uzbekistan Blockchain Valley. The organization will launch pilot projects to implement blockchain, crypto assets turnover, and other technologies.

In addition, the national mining pool Uzbekistan Cryptocurrency Mining Pool will be created. It will combine hardware mining facilities located in Uzbekistan. Experts believe that the establishment of a pool will legalize mining.

The nationwide mining pool will consolidate mining capacity, create favorable conditions for industrial and private miners on the territory of the Republic of Uzbekistan, increase the transparency, security and control of mining processes, as well as increase the efficiency of energy consumption and generally increase the investment attractiveness of Uzbekistan in the eyes of foreign cryptocurrency investors.

Also, from February 1, 2020, it is proposed to oblige industrial miners to undergo licensing, and private and small miners to register, as a result of which they will receive the status of a member of the mining pool.

Discussion of the draft resolution and the introduction of proposals and comments will last until January 31, 2020.

It is interesting to note that in December 2019, the government of Uzbekistan approved a resolution that sets an increased tariff for electric energy for miners. According to the innovations, from March 2020, miners will pay three times more for electricity.

Bitcoin fraud worth $ 359M caught by the Brazil Police


The Brazilian police have found what is said to be an alleged Bitcoins fraud that stole $ 359M from the sufferers. "The Brazillian state police have been able to counter the anonymous operation and have caught 9 criminals," says the Parana state government in a statement. "Growing concern in crypto-currency businesses has been followed by an increase of scams,” the report states. “The absence of supervision and attention along with large levels of distraction, unfamiliarity, cross-perimeter activities, and other characteristics crucial to the cryptocurrency business reveals possible dangers to the users," says Brazilian Congressman Aureo Ribeiro.


The 4 months inquiry exposed five hundred personalities from over 6 states that have fallen prey to the Bitcoin grant fraud. However, the figures could go up to 5000 persons. “It was obvious that the plan was a fraud when the victims got a notification from the organization, informing the users that the investors would not be able to debit their money for 6 months,” says the Parana state government's statement.

The company responded to the situation by saying it too had suffered a scam estimating $5 million. But the investors' withdrawal money was delayed even after 6 months passed, and that's how the company was caught red-handed.' According to one of the victims, a fraud had promised everyday returns up to 4% on investments. The people arrested for the theft are accused of money laundering, scam, counterfeit and unlawful connection. 

Cryptocurrency Frauds happened recently-

Sadly, it is not the first instance when people have fallen prey to the cryptocurrency scam. "In May, a cryptocurrency fraud gang had was locked down for theft of $200M from over 50,000 victims," reports Hard Fork. Criminals pretended to give crypto-currency grants assuring people 15% of profits for their money. "During the time, the firm had collected about $215M through February 2019, however, police concluded the figure could be around $250M," says Federal Revenue Service.

The police in April caught an individual on doubt that he was running drugs racket gang and stealing money through Bitcoins. In the region Porto Alegre, Southern Brazil, the police officials have discovered a secret drug lab having Bitcoin digging facilities.

British American Tobacco’s Romanian Platform Faces Data Breach; Ransomware Demands Bitcoins

British American Tobacco (BAT)’ s Romanian web platform compromised due to a ransomware attack and data breach.
BAT which is a United Kingdom-based company is one of the most gigantic manufacturers of nicotine and tobacco products.
Reportedly, the data breach was first ascertained on an Irish “unsecured Elastisearch server” with around 352 GB of data. Allegedly, the hackers had breached the data’s location.
The ransom request was waiting for the onlookers on the server in the form of a "readme" file wherein they had demanded a “Bitcoin payment” in exchange for “not deleting their data”.
Per sources, the cyber-researchers had discovered the data breach on a “server connected to the web platform YOUniverse.ro” which is part of the Romania promotional campaign for BAT, pursuing adult smokers.
The compromised data encompasses users’ “Personally Identifiable Information” (PII), like name, gender, email address, phone number, date of birth, source IP and cigarette and tobacco product preference.

Allegedly, tobacco advertising is mostly prohibited by the Romanian law, while exempting certain sorts of promotional campaigns and event sponsorship aiming at existing smokers over 18 years of age.
The platform in question aided Romanians to win tickets to events and parties studded with local and international performing stars.
Regardless of the numerous attempts made by the team to contain the breach, the database had been unprotected for the past two months and was finally contained on November 27, 2019.
According to sources, the research team has been after the company’s local branch, the global company, the server’s host, Romania’s National Authority for Consumer Protection (ANPC) and the Certification Authority (CA) for some clarification.
The CA was the only organization to revert to the team. The Romanian journalists who were contacted along with the authorities are yet to answer.   

Upbit suffers $52M loss in a Cryptocurrency Heist


One of the globe's largest cryptocurrency transactions is being forced to cease account debits and credits when it was hit by a huge online theft worth $52M. UpBit, a South Korean cryptocurrency market, announced the provisional stay declaration on Wednesday accompanied by a letter from CEO Lee Seok-woo, Dunamu. "The heist took place on Wednesday in the afternoon. Around $50 million in Ethereum currency were sent from an UpBit account via an anonymous beneficiary," says Lee Seok-woo.


The victims of the robbery will have their damages satisfied by the firm, which has sent additional crypto-currencies into the firm's cool account for advanced safety. “It is expected that our company will take around 2 weeks more until the transaction gets active again. As soon as it is done, we'll inform the public,” stated Lee. UpBit’s toils are the newest in a lengthy series of victorious cyberattacks attacking cryptocurrencies markets in recent times. Other victims involve United States company Coinbase, which faced charges whopping $1million, Bitpoint, of Japan, that suffered $32million, Singapore firm Bitrue, that was stripped of $4.5million and Binance, whose headquarters are in Malta.

"The newest heist is a serious lesson to account holders concerning the value of working only on safe and secure exchanging forums," argues Peter Wood, CEO CoinBurp, a cryptocurrency exchange. He further continues, "it is especially critical in the case of cryptocurrency because it can't be traced virtually and, no regulatory authority is present to look over this problem." “But, possible account holders are ensured that they shouldn't be concerned as attacks like these have happened before. However, the individuals must examine the safety contracts and measures carefully while working on any cryptocurrency exchanging program,” says Lee Seok-woo.

At the beginning of this year, the United Nations accused North Korea of utilizing its increasing hacking abilities to attack crypto markets in an attempt to fulfill the country's treasures. North Korea is accused of storing $2 Billion from the cryptocurrency hacks. Upbit was originally started as a business among Bittrex and Dunamu, a South Korean app maker, that supports messenger colossal Kakao. Other cryptocurrency exchanges have warned their users about the heist.

Binance to assist Ukraine in regulating the crypto currency industry


The largest cryptocurrency exchange Binance intends to help Ukraine in developing methods for regulation the cryptocurrency industry. This means that the company's specialists see great potential for the development of the crypto industry in Ukraine.

The company said that they signed a Memorandum of understanding with the Ministry of Digital Transformation of Ukraine. The Ukrainian government said that such cooperation will significantly improve the legal status of cryptocurrencies in the country. It is expected that the platform will begin work in the country before the end of the year.

As part of the partnership, Binance, together with the Ministry of Digital Transformation of Ukraine, intend to create a working group that will discuss further plans for the regulation of the crypto industry and the formation of the digital market in Ukraine.

Moreover, Binance will develop effective mechanisms designed to transfer rights to various virtual assets through a distributed network, as well as create favourable conditions for investment and business activities.

Changpeng Zhao is confident that the legal status of cryptocurrencies will improve the Ukrainian economy, as well as create the basis for additional investments.

The Minister of Digital Transformation of Ukraine, Mikhail Fedorov, is confident that cooperation with the largest cryptocurrency exchange will open the opportunity for transparent work with companies in this industry and create a comfortable environment for them.

He also believes that the entry of Binance into Ukraine will be a strong driver for the crypto-system and the legalisation of cryptocurrencies.

"This is an additional hundred of millions of taxes that our state will receive. For fans of cryptocurrency and those who work in this direction, this is a very big signal that Ukraine has appeared on the world map of cryptocurrencies," said the head of the Ministry of Digital.

“We are pleased that Binance has become interested in neighbouring countries. We hope that they will reach Russia as well,” commented Denis Onatsik, director of Deecrypto Store & Club.

However, in Russia, the regulation of the cryptocurrency market is regularly postponed due to disagreements among the members of the working group and the tough position of the Central Bank, which is categorically against the legalization of cryptocurrencies on open platforms.

An interesting fact is that in the spring of 2019, Binance suffered from a hacker attack, they stole $41 million in bitcoins.

Bitcoin and the Cryptocurrency Market Surged At Large


The bitcoin and the cryptocurrency market yet again become the center of attention as they experience a colossal upsurge at large.

While this surge is by all accounts partially predicated by many economists, investors as well as commentators on equities and other hazard or risk assets arriving at new highs or flooding to the upside, they likewise bring into center a couple of other factors at play as well that may further explain the cryptocurrency market's outstanding performance on the 25th and the 26th of October.

BitcoinEconomics, a Twitter account investigating this space, noticed that they accept that this 42% move (42% at the pinnacle of $10,600) was something driven by the news that Chinese President Xi Jinping had embraced blockchain innovations, as on the 25th the 'world leader 'openly support blockchain advancement and appropriation to improve quite a few numbers of industries.

The previously mentioned analyst even claims that this announcement from Xi likely has driven traders to theorize on a mass deluge of interest for Bitcoin and cryptocurrencies and subsequently started to purchase digital assets "en-mass".


However other contributing components particularly the technical ones, including the mass collection/purchases observed by some traders at the $7,400 price point, combined with the possibility that the sellers had become exhausted after a 47% drop from the year-to-date high of $14,000, additionally may be an extremely strong reason for the said upsurge.


Facebook and China on Developing Global Digital Currencies in Emerging Markets


Reportedly inspired by Facebook's announcement to head the launch of a crypto-currency run by the non-profit Switzerland-based Libra Association in 2020, the Peoples' Bank of China reported recently that it was working with a digital currency upheld by the Yuan.

This proposed digital currency by China is said to bear a few similitudes to Facebook's Libra, which is what has shaken Facebook’s cryptocurrency plans.

Analysts and crypto industry pioneers are highlighting geopolitical ramifications of China propelling a digital currency first — particularly if Libra hits a 'brick wall' with U.S. controllers. The Chinese digital coin could be utilized across significant payment platforms, including China's omnipresent WeChat and Alipay. The Peoples' Bank of China "has expedited its development of a Central Bank Digital Currency” after Libra's announcement in June, state the RBC Capital Market analysts.

RBC analysts Mark Mahaney and Zachary Schwartzman said in a research note “If U.S. regulators ultimately dismiss Libra and decide not to draft regulation to encourage Crypto innovation in the U.S., China’s [Central Bank Digital Currency] may be strategically positioned to become the de facto global digital currency in emerging economies, largely through Alipay, WeChat, UnionPay, and other messaging & payment apps,”

The U.S. Treasury Department has thusly labeled China as a currency manipulator — a complaint that could be exacerbated if a Yuan-supported cryptocurrency takes off.

Now that the U.S. and China are locked in an impasse on trade, and a battle for predominance in 5G, the mobile network promising faster data speeds, the cryptocurrency would add to a long list of existing pressures between these global superpowers.

UNICEF won't convert Bitcoin and Ethereum : will accept donations in cryptocurrency


UN's children's agency UNICEF has launched a Cryptocurrency Fund Programme, in this all donations will be made through cryptocurrency- limited to Bitcoin and Ether. According to this new Cryptocurrency Fund Programme, when the organization receives a donation in Bitcoin or Ether, it will not convert it to fiat currency rather distribute it in the same form. This is part of UNICEF's project with blockchain technology and to fund open source technology projects through cryptocurrency.


"This is a new and exciting venture for UNICEF. If digital economies and currencies have the potential to shape the lives of the coming generations, we must explore the opportunities they offer. That's why the creation of our Cryptocurrency Fund is a significant and welcome step forward in humanitarian and development work," Henrietta Fore, Director, UNICEF, said in a statement. This approach by UNICEF, couldn't have come at a better time, as Henrietta Fore, Director UNICEF says, "Humanitarian and development work cannot continue without contributions in whichever format people are most comfortable with".

And this would also assist cryptocurrencies, giving them a positive boost. Cryptocurrency, that is virtual money is the only form of global money presently, and is believed could be the currency of the future. Bitcoin continues to influence the macroeconomy and more and more industries and businesses are incorporating this technology into their functionality. Now, UNICEF is also amongst one such organization with its Cryptocurrency Fund Programme. In this program, UNICEF supports donations in only Bitcoin and Ethereum as these are the leading cryptocurrencies in the global market.

Depending on the success of the program, more currencies would probably be added in due time. The first donation to the UNICEF Cryptocurrency Fund Programme will be made by Ethereum Foundation to fund three grantees of the UNICEF Innovation Fund, as well as a project coordinated by the GIGA Initiative to connect schools to the Internet globally. It is unsure which amounts will change hands but the contribution will be done through the French National Committee for UNICEF. It is a big boon for cryptocurrencies, and collaboration between charitable organizations and cryptocurrency can be a big step forward into the new era of change and technology.

“The ETF Did Not Meet the Necessary Requirements”- SEC


On the contention that the ETF (exchange-traded fund) documenting from Bitwise Asset Management and NYSE Arca didn't meet the fundamental prerequisites, the United States Securities and Exchange Commission (SEC) dismissed a proposal to list a Bitcoin (BTC) ETF.

The announcement came on Oct. 9, where the regulators expressed that the said applicants didn't meet the vital prerequisites with respect to conceivable market manipulation and illicit activities.

The SEC stated: "Rather, the Commission is disapproving this proposed rule change because, as discussed below, NYSE Arcahas not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section6 (b) (5), and, in particular, the requirement that the rules of a national securities exchange be’ designed to prevent fraudulent and manipulative acts and practices.'

The choice by the SEC contradicts the recent remarks from Matt Hougan, managing director and global head of research at Bitwise, who on CNBC on Oct. 7 stated, “We’re closer than we’ve ever been before to getting a Bitcoin ETF approved.”

Hougan had been idealistic about the 'firm's chances to land approval' for a physically-held Bitcoin ETF and he likewise noticed the huge development that has transpired in the crypto space as of late. 

The dismissal of Bitwise's proposition pursues a series of deferrals and solicitations for input from the SEC, and now its decision on the proposition has been additionally delayed by the regulator — together with two other crypto ETF applications — until Oct. 13.

Bitcoin No More the World's Most Used Cryptocurrency, as Tether Takes Over

If someone were to ask you "what's the world's most used cryptocurrency?” you'd probably say "Bitcoin," which accounts for 70% of the world's market value digital assets. But in reality its Tether, which is now the world's most used cryptocurrency.

Although precise numbers on trading measures are arduous to get in this misty business environment, statistics from CoinMarketCap.com point that the Tether is the highest daily and monthly valued cryptocurrency, even though its market capitalization is 30% less.



In April, Tether's profit outdid Bitcoin for the first time, and since early August, it has steadily exceeded it at the rate of $21 billion per day, says CoinMarketCap.com. With its steadily trading volume nearly 18% greater than Bitcoin, Tether has no doubt become one of the most significant coins in the crypto sector.

It's also the leading cause why governors view cryptocurrencies with skepticism and have set a halt on crypto exchange-traded supplies among distress of business administration.

"Without Tether, we would have suffered a heavy cost of the regular amount -- about $1 billion or higher depending on the information reference, ” says Lex Sokolin, co-head, global financial technology at ConsenSys, which extends blockchain technology services.

"Few concerning possible tappings of dealing in the business may begin to drop off,” says Lex.

The reason being is Tether is the most accepted steady coin around the globe, as it avoids price fluctuations through stocks. Tether is also a road to the crypto market for most of the world's existing businesspeople. 'For instance, in China, a trading giant where cryptocurrency is outlawed, people can comfortably spend for cash with tethers on the tables without any uncertainty or mistrusts,' says Lex 'and furthermore they can swap it for bitcoins and distinct cryptocurrencies.'

Is it safe? 

However, many people don't truly rely on Tether, says Thaddeus Dryja, a research scientist at the Massachusetts Institute of Technology. People think of Tether as some money in their account, without actually realizing that they are using it, he says.

'Some trades unspecified their folios, to send the idea that customers are holding money rather than Tethers,' said Thaddeus.

Russia planning to introduce tax on cryptocurrencies


The Russian Banking Community has found a way to legalise cryptocurrencies. To do this, it is necessary to legally recognise the mining of digital money as an analogy of the occupation of property or treasure.

"Legally, it could be argued that the first owner of the cryptocurrency "found them", because the receipt from an anonymous system can be conditionally considered a finding,”— EhakingNews quoted the ARB report on «The Concept of Decentralized Cryptocurrency Turnover». Discussion of this document is scheduled for 8 October.

However, the acquirer of digital money does not just seize or find them as a ready-made object. Cryptocurrency arises as a result of mining, that is, human activity. In fact, he creates it himself, explained Anatoly Kozlachkov, the author of the report, Vice-President of ARB.

Based on this, cryptocurrency can be introduced into Russian law as “newly created” (includes property independently produced by a citizen).

Then it can be used in barter transactions and taxed, said Anatoly Kozlachkov.

This is a fair approach, said Andrey Ermolaev, partner of KPMG. According to him, it is impossible to equate cryptocurrencies with ordinary money because it is an investment, and the growth of the value of the paper is always considered as a taxable base.

According to a legal expert Elena Avakyan, an example is a German model involving the payment of tax in the cryptocurrency in which the income is received.

Yuri Brisov, founder of LFCS (Legal Support), called the ARB proposal "the biggest mistake in the list of initiatives of all the time".

"Cryptocurrency received as a result of mining is a payment of remuneration, but not a finding," explained Brisov.

Synergy Research Group Deputy Director-General for Legal Issues and Technologies, Peter Lyalin, also sharply criticized the proposal of the Association of Russian Banks (ARB). He proposed to equate mining to the production of goods, as is practiced, for example, in Australia and Canada.

"I consider the initiative unworked and superficial. It seems that such a proposal was made without taking into account the specifics of the mining as a cryptocurrency mining activity," the expert suggested.

Experts agreed that the initiative of the Association of Russian Banks (ARB) requires further refinement.

The guards at the Ukrainian nuclear power plant mined cryptocurrency and divulged state secrets


The attackers used the resources of the South Ukrainian nuclear power plant for mining digital currency. The Security Service of Ukraine (SBU) stopped the activity of criminals.

Agents of the SBU, checking objects of the nuclear power plant, found computer equipment, illegally connected to the systems for mining. On July 10, the employees of the Department searched and seized the media converter, fiber optic and part of the network cable.

It’s important to note that information about the physical protection of the station, which is a state secret, leaked to the network due to the unauthorized placement of computer equipment in the territory of a nuclear power plant.

Specialists of the Security Service of Ukraine have information according to which members of the National Guard of Ukraine may be involved in illegal mining. The SBU has achieved the initiation of criminal proceedings against them.

It is an interesting fact that recently it became known that in Ukraine the authority that controls the quality of equipment for the South Ukrainian nuclear power plant since 1992 will be eliminated. Employees of the structure carried out examinations, as well as participated in tests of the equipment.

The decision was made after the evaluation of the enterprise. The work of the center was deemed ineffective.

However, it can be assumed that this is due to the fact that someone was mining cryptocurrency on the territory of the South Ukrainian nuclear power plant.

In addition, this week the police discovered an underground farm for the production of cryptocurrency in Ingushetia. Its owners were engaged in illegal and unaccounted electricity consumption. During the inspection of this room, law enforcement officers found that more than 1.5 thousand devices for receiving crypto currency, a laptop, two system units, a video recorder of a video surveillance system, as well as two transformer points with a capacity of 1.6 thousand kW each were connected to the power supply system without appropriate documentation.

Recall that in May 2018 it became known that the police in the Ukrainian city Rovno were mining cryptocurrency directly at the workplace. Since Ukraine does not have legislation regulating the circulation and mining of cryptocurrencies, an investigation was conducted into the theft of electricity.

This was not the first case of using the official position for cryptocurrency mining. In September 2017, Crimean government officials were fired for mining bitcoins in the workplace, and on February 2018 it became known that employees of the Ministry of Finance of Kazakhstan used office computers and department servers for cryptocurrency mining.

Teen Hacker Elliott Gunton Taking Cryptocurrency for Stolen Data


In April 2018, Elliott Gunton, a teenager from Norwich, England, was caught by the police on the charges of hacking and his PC was taken hold of by the authorities.

He was convicted at Norwich Crown Court where he admitted five charges which included illegal data exchanges, computer exploitation and money laundering offences.

Gunton was subjected to a three and a half year community  order which kept him from using internet and software and he was made to pay a sum of £407,359 by the court order.

On the charges of stealing sensitive information of people and selling it in exchange of pounds in cryptocurrency, the Norwich Crown Court sentenced him to 20 months imprisonment and let out owing to the time spent on remand.

On the examination of Gunton's computer, it was found that he had scheduled supplies of stolen data of people which included their contact information for malicious purposes like texts to carry out fraud.

At the age of 16, Gunton hacked a telecommunications firm and was found guilty of the same.

The teen made constant and sophisticated efforts to conceal his fraudulent acts and hide the payments from police and therefore he dealt in Bitcoin instead of hard currency. However, he happened to leave behind some parts of conversations where he negotiated criminal deals.

Referencing from a tweet made by Gunton last year, "Having lots of money is cool… but having lots of money without people knowing is cooler." He called himself as a "full-time crypto trader."

Terrorists Resorting to Bitcoin for Funding




The military wing of Hamas, known by the name of 'Qassam Brigades', has established a highly sophisticated system which allows people to contribute in raising money by making donations which are extremely hard for the law department to trace.

In the most recent version of the wing's website, visitors are assigned their individual Bitcoin addresses which can be used by them to send the digital currency and make donations via a method which is nearly untraceable.

The site set up by the wing featuring the logo of the brigade is notably accessible in seven different languages, it also features a video which explains the procedure of acquiring and sending the digital currency in an increasingly sophisticated manner.

“This is going to be a part of the terrorist financing mix, and it is something that people should pay attention to", said Yaya Fanusie, a former analyst with the Central Intelligence Agency.

Commenting on the matter, Sigal Mandelkar, the Treasury Department’s undersecretary for terrorism and financial intelligence, said in an interview, “We are dedicating a lot of resources very specifically to this space.”

“It is still relatively new to them, but I’m confident that we’re going to see more of it in the future.”  He added.

There is a certain allure of cryptocurrency to the con men as it allows to hold money and make transactions without the involvement of a common authority, such as PayPal which can potentially freeze funds and close down accounts. Everyone, across the globe, is open to creating a Bitcoin address and receiving digital tokens without having to provide an address or identity.

Referencing from the statements given by, Mr. Zarate, an adviser at Coinbase, “I think we are still in the experimentation phase for terrorist groups — they are trying to figure out how best to do this,”

“What’s a challenge is that you see them continuing to experiment.” He further added.





New Zealand legalize salary payments in Cryptocurrencies





New Zealand is the first country to legalize payment of salaries in the form of  Bitcoin and other cryptocurrencies, Financial Times report.

The tax agency has deemed it legal for companies to pay wages in digital currencies is secured to at least one standard, or fiat, currency.

The country’s Inland Revenue Department (IRD) published a bulletin on August 7, 2019, stating that the ruling was made under the Tax Administration Act 1994.

According to the bulletin released, "the companies can only pay cryptocurrency to employees working under official employment agreements. Payments also have to be for a fixed amount – “the value of the crypto-asset is pegged to one or more fiat currencies.”

The ruling also states that cryptocurrency-based salary payments must also be able to be “converted directly into fiat currency (on an exchange).”

The report states that the salaries must be paid in a crypto-asset that functions as a currency.

The move has started a round of discussion on the controversial digital money coming into the realm of everyday payment modes. The major problem with the cryptocurrencies is that they are relatively free of regulation, and they are untrackable.

Bitcoin surges past $ 11,000

Bitcoin soared 9% on Monday, performing like a safe haven asset as it edged past $11,000 for the first time since around mid-July.

The price of the world’s largest cryptocurrency climbed as high as $11,860, according to CoinDesk data, hitting a more than 3-week high. Bitcoin’s value now accounts for nearly 70% of the global crypto market, according to CoinMarketCap.

Global stock markets on the other hand have been sliding lower on the back of renewed trade uncertainty, after President Donald Trump said last week that Washington would impose 10% tariffs on another $300 billion worth of Chinese goods.

The pan-European Stoxx 600 index slipped 1.6% on Monday while the MSCI’s broadest index of Asia-Pacific shares outside Japan plummeted 2.5%. Dow futures meanwhile were off by about 100 points.

Analysts have previously argued the case that bitcoin could be a safe haven asset, with investors having flocked to the digital asset in the past on the back of an escalation in U.S.-Sino tensions.

“Bitcoin has many use cases and one of the most important is as a form of digital gold,” Charles Hayter, CEO of digital currency comparison platform CryptoCompare, told CNBC by email on Monday. “We have seen bitcoin jump before on macro uncertainty as it becomes a conduit and flight-to-safety asset.”

Yuan depreciation

Bitcoin’s jump in value also comes as China allowed the yuan to break the seven-per-dollar level for the first time in 11 years, triggering fears of a potential currency war.

The yuan fell after China’s central bank, the People’s Bank of China, set the currency’s daily midpoint at 6.9225 per dollar, its weakest level since December last year.

Simon Peters, an analyst at trading platform eToro, said Chinese investors could be seeking to diversify as the yuan depreciates.

“Given that Chinese investors make up a large proportion of crypto investors, there’s a strong possibility some are backing bitcoin’s chances against the yuan,” Peters said in a note on Monday.