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Russia’s Finance Ministry wants to ban Bitcoin formula, not the blockchain

HOME PAGE POLITICS REGULATION RUSSIA MINISTRY OF FINANCE WANTS BITCOIN, NOT TO BAN THE BLOCKCHAIN
Even though the subject of Bitcoin regulation is and remains a big issue around the globe, there is probably no other country in the world that lets the Bitcoin community speculate as much as Russia.

For more than a year now, the Russian Ministry of Finance has been speaking out against an alternative currency to the state-issued ruble. Just a few weeks ago, Deputy Finance Minister Alexey Moiseev announced that the Ministry is currently working on a bill to make the exchange of digital currencies into Russian rubles subject to a prison sentence of up to four years.

However, in addition to the statements, the government’s position on the digital currency remains unclear. In an interview with CoinDesk, Moiseev said that Bitcoin and Blockchain technology must be treated differently:

We believe that Bitcoin formula will be very important for different Internet applications in the future

However, Moiseev also pointed out Bitcoin formula risks. By and large, he was somewhat less aggressive than the Treasury itself. “We appreciate the potential of blockchain technology for the e-commerce industry and therefore the technology itself should continue to be allowed and promoted. The handling of Bitcoin formula itself, on the other hand, and viewed as a currency should continue to be viewed critically. Integration into the banking system or exchanging Bitcoin for roubles can be very dangerous”.

Moiseev cited money laundering and terrorist financing as reasons for an urgently needed regulation of Bitcoin. But since Russia is likely to regard the exchange of Bitcoin for roubles as a criminal act, Moiseev sees no danger for the national currency.

Bitcoin and terrorism

Since the first birth of Bitcoin, regulators have been looking for ways to best regulate the digital currency. The state of New York, for example, developed a new legal framework to regulate the digital currency especially for Bitcoin. Most other countries and states in the USA are currently trying to amend current laws and thus make them applicable to Bitcoin.

Many governmental organizations are afraid that Bitcoin could be used by cybercriminals or that it would simplify the financing of terrorist attacks. Especially now, after the attacks in Paris, the authorities are sensitized.

Moiseev also has the topic of terrorist financing on his screen. He says Bitcoin could make the country’s financial system more vulnerable to abuse:

“We are very concerned about current developments, as we have created a good system of protection against money laundering and anti-terror financing in the conventional banking system. We are very concerned that with the legalization of the Bitcoin/Rubel exchange, we could open this window further for criminals”.

But Russia is also observing how other countries are proceeding with Bitcoin’s regulation:

“We are watching exactly how other countries regulate digital currencies and how they deal with the problems of money laundering and terrorist financing,” Moiseev said.

What are ethical ICOs in the Bitcoin secret?

Fraudsters have given the term ICO a bad aftertaste with scam projects. While investors fear not to see their money again, honest ICO owners are struggling not to be put into the scam drawer. The ICO hype clearly seems to be over. But a UK-based crypto company believes that ICOs can still be an excellent source of money – if they comply with certain ethical principles.

As BTC-ECHO reported in May of this year, many ICOs are frauds who smell the fast money. Only eight percent of all ICOs are successful and are listed on crypto exchanges. Only recently, Civil was surprised when the Blockchain project had to announce the failure of its crowdfunding campaign – it had not been able to reach the soft cap. Accordingly, the company had to pay the investors back their money. Since this “money-back guarantee in the event of failure” is currently the only protection for investors, ICOs are anything but secure.

Bitcoin secret in a new light

As Crypto Briefing reported on 19 October, the British holding company Investx intends to give Bitcoin secret a different connotation and set new ethical standards with its own offering. The INX token is intended to enable the purchase of dividend shares in private companies. The main focus here is on opening up SME investments to a broader range of investors, including private investors. The British Financial Conduct Authority (FCA) has already given its Bitcoin secret approval.

The planned public sale of its utility token INX is to follow strict principles. With the creation of a reserve fund and a sustainable token supply, the company wants to reduce the risk for investors. In this context, David Atkinson, Director of Holochain (HOT), advised Investx on the development of the ethical ICO.

What is an ethical ICO?

Atkinson firmly believes that public sales will restore confidence in the market. His own company Holochain promises a “more humane Internet” on the website, the ICO was developed ethically correct. Peter Edgar, CEO of Investx, asked Atkinson for support in the development of the INX ICO when he became aware of these promises.

Atkinson believes that an ICO is ethical if the token sold has a real value based on a real need. To do this, the white paper must contain the future purpose of the token and explain exactly how it would benefit its owners. He explains:

“It’s up to the projects to clearly present their product and show that there is a demand for what they build. With Investx, for example, they need to be able to show that there are private buyers who want to use the blockchain to buy dividend shares in private companies.”

Since the INX tokens are useful because they facilitate the purchase of shares, Atkinson recognizes them as ethical. The special benefit is the saving of legal costs. It also avoids the time delays normally associated with the purchase of dividend shares.

It is well known that it is very difficult to strip off a bad image. However, the approach that Holochain and Investx pursue with their ethical ICOs promises in the long term to have the potential to improve the reputation of this crypto crowdfunding strategy. The motto is still not to blindly invest in promising projects, but to carry out detailed research in advance. The criteria for ethical ICOs can be quite helpful thereby.

What are ethical ICOs?

Fraudsters have given the term ICO a bad aftertaste with scam projects. While investors fear not to see their money again, honest ICO owners are struggling not to be put into the scam drawer. The ICO hype clearly seems to be over. But a UK-based crypto company believes that ICOs can still be an excellent source of money – if they comply with certain ethical principles.

As BTC-ECHO reported in May of this year, many ICOs are frauds who smell the fast money. Only eight percent of all ICOs are successful and are listed on crypto exchanges. Only recently, Civil was surprised when the Blockchain project had to announce the failure of its crowdfunding campaign – it had not been able to reach the soft cap. Accordingly, the company had to pay the investors back their money. Since this “money-back guarantee in the event of failure” is currently the only protection for investors, ICOs are anything but secure.

ICOs in a new light

As Crypto Briefing reported on 19 October, the British holding company Investx intends to give ICOs a different connotation and set new ethical standards with its own offering. The INX token is intended to enable the purchase of dividend shares in private companies. The main focus here is on opening up SME investments to a broader range of investors, including private investors. The British Financial Conduct Authority (FCA) has already given its approval.

The planned public sale of its utility token INX is to follow strict principles. With the creation of a reserve fund and a sustainable token supply, the company wants to reduce the risk for investors. In this context, David Atkinson, Director of Holochain (HOT), advised Investx on the development of the ethical ICO.

What is an ethical ICO?

Atkinson firmly believes that public sales will restore confidence in the market. His own company Holochain promises a “more humane Internet” on the website, the ICO was developed ethically correct. Peter Edgar, CEO of Investx, asked Atkinson for support in the development of the INX ICO when he became aware of these promises.

Atkinson believes that an ICO is ethical if the token sold has a real value based on a real need. To do this, the white paper must contain the future purpose of the token and explain exactly how it would benefit its owners. He explains:

“It’s up to the projects to clearly present their product and show that there is a demand for what they build. With Investx, for example, they need to be able to show that there are private buyers who want to use the blockchain to buy dividend shares in private companies.”

Since the INX tokens are useful because they facilitate the purchase of shares, Atkinson recognizes them as ethical. The special benefit is the saving of legal costs. It also avoids the time delays normally associated with the purchase of dividend shares.

It is well known that it is very difficult to strip off a bad image. However, the approach that Holochain and Investx pursue with their ethical ICOs promises in the long term to have the potential to improve the reputation of this crypto crowdfunding strategy. The motto is still not to blindly invest in promising projects, but to carry out detailed research in advance. The criteria for ethical ICOs can be quite helpful thereby.