Coin News

Dubai-based startup BitOasis has announced an expansion of its bitcoin wallet and exchange platform.

A coming together of prominent Bitcoin companies and organizations along with several law enforcement agencies and communities has resulted in the formation of the Blockchain Alliance, a nonprofit that, among other things, will help as a resourceful partner for law enforcement to aid against bitcoin- and block chain-based criminal activities. A new forum called the Blockchain Alliance has been established to help bridge and inculcate communication and understanding of bitcoin and block chain technology between law enforcement agencies and prominent players in the bitcoin industry. Altogether, the Blockchain Alliance will be a quick call away from law enforcement agencies when […]

The post Bitcoin Collective to Aid Law Enforcement with The Blockchain Alliance appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Holberton School, a software engineering school in San Francisco, claims to be the first school to deliver is academic certificates secured and accessible via the block chain. The school has partnered with Bitproof.io, which notarizes documents in the block chain. This goal is to help employers verify academic credentials quickly. Verifying document authenticity easily and economically is one of many uses the block chain brings to business, industry and academia. Block Chain Offers A Secure Environment Holberton School will issue digital certificates in a secure environment. Accessing the certificate interface will require 256-bit, encrypted private key and 2-factor authentication. After […]

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A London law firm has announced plans to digitise its legal agreements using bitcoin technology.

In what can only be regarded as good news for Bitcoin, the European Court of Justice (ECJ) Thursday ruled that exchanging bitcoin should not be subject to VAT (Value Added Tax). The verdict, which is the climax of an Swedish court dispute that started back in 2012, applies to all 28 E.U. member states. VAT-law is complicated, however, and some reports on the verdict have been confusing so far.

Hopefully, the answers to the six questions below will help make sense of this ruling.

Does the ECJ decision mean that exchanging bitcoin falls outside of the scope of VAT?

Actually, no. Any dealing that consists of exchanging traditional (“fiat”) currencies for bitcoin (or the other way round), is regarded as a service that is within the scope of VAT. More specifically, this refers to the exchangers' margin; the price difference between buying and selling from which an exchanger makes its profits.

Then why is everyone saying that exchanging bitcoin is free from VAT?

Because the ECJ has ruled that exchanging bitcoin is exempt from VAT. So while the European Court did decide that exchanging bitcoin falls within the category of services that is within the framework of VAT, it also ruled that, within this category, exchanging bitcoin deserves an exemption.

The end result is mostly the same, however: no VAT is due on exchanging bitcoin.

So does this VAT exemption apply to bitcoin itself as well then?

Well, no. But that’s good, too.

As opposed to exchanging bitcoin, the ECJ ruled that bitcoin itself does completely fall outside of the scope of VAT if it is used as a means of payment.

According to the ECJ, bitcoin has no other purpose than to be a means of payment... if it is used as such. Therefore, as long as bitcoin is used as money, it is set on equal footing with other types of money. As such, like other types of money, bitcoin doesn't need an exemption; it's not subject to VAT in the first place.

So, the end result is the same, again. No VAT is due on spending, paying and receiving of bitcoin.

Why did the ECJ decide to make exchanging bitcoin exempt from VAT?

Simple: Regular money exchange services are exempt from VAT. And since the ECJ considers bitcoin to be on equal footing as other means of payment, the ECJ believes this exemption should apply to bitcoin exchanges as well.

What does this mean for bitcoin in the EU?

For one, bitcoin exchanges, startups and users finally know where they stand from a VAT perspective.

Exchanges know they do not need to pay VAT over their services. Startups have a better sense of the legal domain they are in. And, perhaps most importantly, casual users don't need to worry about all sorts of complicated tax laws. Buying, selling, sending, receiving, accepting and spending bitcoin will not be taxed, which allows people to deal with bitcoin as they would with other types of money.

The only group that might not yet have all its questions answered are miners. While their selling of bitcoin will (probably) be VAT exempt, it's not completely cartain whether their production of bitcoin will.

What happens to all the VAT that has been paid by bitcoin exchangers over the past years?

In theory, that VAT should be reimbursed.

In practice, however, this will be complicated. In order to reimburse the VAT, the money must be returned to the original buyer of the bitcoin – not the seller. As such, exchangers will need to show their national tax authorities that the reimbursed VAT will be forwarded to their customers somehow. This is no easy feat, of course.

On top of that, most European tax authorities did not charge VAT up until now in the first place. Rather, they waited for the ECJ to present its judgment.

Thanks to fiscalist for law firm Baker & McKenzie and VAT-expert Roger van de Berg.

The post Six Questions to Make Sense of the European Court of Justice Decision on Bitcoin VAT appeared first on Bitcoin Magazine.

Rebit.ph co-founder Luis Buenaventure recently published a blog post on Medium claiming that Bitcoin does little to help cheapen remittances.

While the math-based currency does lower the bar of entry for startups, and local technological innovation could further improve the competitive advantage of so-called “rebittance” companies, Buenaventure argued that most of the cost is currently made in “the first and last mile.”

While Bitcoin does a great job realizing cross-boarder transfers of money, the distribution of physical cash was the expensive part of remittances all along – a problem Bitcoin hasn't solved.

To find out if Buenaventure is right, Bitcoin Magazine took the pulse of four other rebittance startups: Bitex, HelloBit, SatoshiTango and Volabit.

The first and the last mile

Most rebittance startups agree with the main premise as presented by Buenaventure. Bitcoin does not make rebittance cheaper – at least not yet. All four companies acknowledged that the bulk of the cost is made in the first and the last mile, the part of the remittance process that doesn't really involve bitcoin. As such, rebittance startups are not particularly well positioned to compete with existing giants Western Union and MoneyGram as far as costs go.

HelloBit co-founder and CEO Ali Goss explained:

“These companies have very large foreign exchange (FX) departments, and they're basically able to bring the cost of sending money across boarders down to zero. We're talking about big movements of money, which they do when prices are favorable. They might even make money doing that, as opposed to it being a major cost.”

As such, Goss continued, bitcoin doesn't actually remove that much friction. Rather, it can make it worse.

“With bitcoin, you're adding a third currency,” Goss said. “You go from U.S. dollar to bitcoin, and then from bitcoin to whatever the local currency is. You're adding an extra FX move right there alone. That increases friction. On top of that, small startups don't have a big FX department, and they don't have the big abilities that come with such a department ... they're generating more costs for themselves, not less.”

Hannah Kim, COO and Head of Product at Volabit, added:

“In addition to costs, perhaps a bigger problem is that Bitcoin companies in many countries – most notably the U.S. – cannot develop sustainable partnerships with cash-collecting and distributing networks due to unclear regulatory implications.”

SatoshiTango co-founder and CEO Matias Bari agreed, but emphasized that he is quite hopeful for the future, saying:

“I agree that rebittance is currently not cheaper than existing alternatives, but I do think that costs will lower as long as companies in the space grow and are able to charge less for the same service. That is a path we need to walk. But it is going to happen in a couple of years when the industry gets bigger and healthier and some mechanisms used today probably change for better ones, allowing us to improve our processes and lower fees.”

The only company that disagreed with Buenaventure's assessment was Bitex, the Latin Americawide bitcoin exchange that offers remittance services within the region as well.

Bitex co-founder and Chief Marketing Officer Manuel Beaudroit stated:

“In this region there's a significant reduction in cost when using bitcoin, from 15, 20, or 30 percent to 6 or 10 percent in most cases. Though it is true, though, that the main added costs are in the first and last mile, where the branch offices usually charge 2.5 percent to 3 percent.”

Innovation

The rebittance companies generally agreed with Buenaventure's conclusion that Bitcoin does help smaller startups get a foot on the ground in the remittance industry, while they also acknowledged that adoption of local virtual currencies or other fintech solutions could severely cut costs.

But the rebittance companies pointed out that one other aspect is even more important: innovation. The open nature of Bitcoin allows for startups to use this technology in new and innovative ways, and this is where they believe the rebittance industry should really get its edge.

“I would not say that the remittance industry is stagnating,” Volabit's Kim explained. “Rather, the industry is being forced to evolve quickly by learning what works and what doesn't. The remittance population is as diverse as its use case, and looking at success cases like Transferwise it’s clear to see that there are opportunities to reach people that are more open to online, tech-forward solutions.”

This was seconded by Goss, who's HelloBit transformed its remittance company into a sort of “Uber for cash,” where users act as “human ATMs.”

“Smart people need to come up with smarter things, and we will ultimately see the innovation occur that will make using Bitcoin for remittance cheaper.” Goss said.

“But that wasn't our goal. We knew early on that it wasn't going to be cheaper right off the bat, therefore what we asked ourselves: What could we do that's different? So, with HelloBit, you might pay more sometimes, but then you’d pay more for an additional service. You get the money delivered to you. Though it may be more expensive than picking it up at Western Union, or maybe the same price, you have the added benefit of delivery, which is a completely new distribution model. And out users are able to settle right there with their phone, rather than having to need a bank account.”

Bitex's Beaudroit agreed that rebittance companies should focus on alternative markets rather than the markets that are already served by the existing rebittance industry.

“I see bitcoin playing a fundamental role for remittance company when needing to move funds crossborderly, more focused on B2B (business to business) than B2C (business to customer), at least for the following couple of years,” Beaudroit told Bitcoin Magazine.

SatoshiTango's Bari acknowledged that rebittance companies will need some time to find the best way to utilize Bitcoin, too. He believes this will be a long process, with many failures on the way, but that this is healthy for the market as a whole.

“It is normal that we see a stagnation after some two years of absolutely excitement,” Bari said. “It is common; it’s a Darwinian process of selection among companies.”

And, drawing a comparison to the automobile industry, Bari said:

“You know Ford and Chrysler. Find out how many car companies were funded 70, 80 years ago, at the same time those two were funded. Hundreds. They couldn’t make it. It took many years until they became these amazingly huge companies. But when they first started they were startups, not knowing where to aim.”

The post Rebittance Startups Agree: Bitcoin Does Not Make Remittance Cheaper (But Does Allow for Innovation) appeared first on Bitcoin Magazine.

Virtual reality and 3-D design content creation platform developed by technology entrepreneur and media outlet CNET founder Halsey Minor has started the pre-sale of its in-game cryptocurrency “voxels.”

The pre-sale of voxels is a part of the platform’s upcoming launch of a new marketplace for VR assets, animations and games in the first quarter of 2016.

Introduced at a virtual reality forum and conference Oculus Connect, the Voxelus platform has processed more than 20,000 downloads of its Creator software despite the relatively small market that the company is targeting.

The rising popularity of the platform derives from its simplicity -- the Voxelus platform and technologies enable all users regardless of artistic abilities and technical skill levels to design virtual spaces and virtual reality games such as RPG and MMO games without writing a single line of code.

“Voxelus is using voxels to make the content accessible to anyone, anywhere in the world, including the 2.5 billion people with no access to a bank account,” Voxelus adviser Michael Terpin told TNW in an interview. “Uphold will help make this universally accessible. It will also trade on exchanges globally and by early next year, it can be purchased on Uphold using traditional credit/debit cards.”

The Voxelus team will be offering 31.5 million voxels in a private crowdsale. Built on Litecoin Core, Voxelus engineers added extra security measures and two-minute verifications on the original core.

Over the next few years, a total of 178.5 million coins will be issued and stored in an online wallet designed by Uphold, previously known as Bitreserve

The post CNET Founder Halsey Minor’s Voxelus to Issue Its Own Cryptocurrency appeared first on Bitcoin Magazine.

Virtual reality and 3-D design content creation platform developed by technology entrepreneur and media outlet CNET founder Halsey Minor has started the pre-sale of its in-game cryptocurrency “voxels.”

The pre-sale of voxels is a part of the platform’s upcoming launch of a new marketplace for VR assets, animations and games in the first quarter of 2016.

Introduced at a virtual reality forum and conference Oculus Connect, the Voxelus platform has processed more than 20,000 downloads of its Creator software despite the relatively small market that the company is targeting.

The rising popularity of the platform derives from its simplicity -- the Voxelus platform and technologies enable all users regardless of artistic abilities and technical skill levels to design virtual spaces and virtual reality games such as RPG and MMO games without writing a single line of code.

“Voxelus is using voxels to make the content accessible to anyone, anywhere in the world, including the 2.5 billion people with no access to a bank account,” Voxelus adviser Michael Terpin told TNW in an interview. “Uphold will help make this universally accessible. It will also trade on exchanges globally and by early next year, it can be purchased on Uphold using traditional credit/debit cards.”

The Voxelus team will be offering 31.5 million voxels in a private crowdsale. Built on Litecoin Core, Voxelus engineers added extra security measures and two-minute verifications on the original core.

Over the next few years, a total of 178.5 million coins will be issued and stored in an online wallet designed by Uphold, previously known as Bitreserve

The post CNET Founder Halsey Minor’s Voxelus to Issue Its Own Cryptocurrency appeared first on Bitcoin Magazine.

Abra is gearing up to release its bitcoin-powered remittance app in the next few weeks, pending final approval from the Apple App Store.

Bitcoin startup Abra will soon launch in the US and Philippines, and is rolling out a merchant services API. It also received investment from American Express and Ratan Tata.

Bitcoin price had declined according to expectations yesterday, only to fling back to near its price highs today. The verdict is out whether the bulls can achieve another high or if the present failure will prompt a sell-off. This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29. Bitcoin Price Analysis Time of analysis: 13h44 UTC BTC-China 4-Hour Chart From the analysis pages of xbt.social, earlier today: A cruel and unrelenting market pushes to a new high in B wave price […]

The post Bitcoin Price Reattempts The Highs appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

The European Court of Justice ruled the virtual currency can be treated in the same way as traditional money

A group of prominent Bitcoin companies and individuals under leadership of the Chamber of Digital Commerce and Coin Center have formed the Blockchain Alliance, a Washington D.C.-based nonprofit that will serve as a resource for law enforcement to help combat criminal activity involving bitcoin and the blockchain.

The Blockchain Alliance is so far engaged with the Department of Justice (including the FBI and the U.S. Marshals Service), the U.S. Secret Service, Immigration and Customs Enforcement, Homeland Security Investigations and the Commodity Futures Trading Commission.

The Blockchain Alliance will serve as a single point of contact for law enforcement to have any questions regarding Bitcoin and blockchain technology answered. As such, the organization will essentially function as a closed forum, where all participants can share information. While its exact form will continue to develop in consultation with these participants, this could take place through mailing lists, conference calls, meetings and more.

Speaking to Bitcoin Magazine , Coin Center Executive Director Jerry Brito explained why he believes the Blockchain Alliance is needed:

Bitcoin is often associated with illicit activity. And that's a shame, because Bitcoin is ultimately a neutral, open technology, a lot like email. Email is something that criminals use every day, and that absolutely regular people use every day. But we don't associate email with criminal activity, even though criminals use it every day. We need to get to that same place with Bitcoin. And part of the way to do that is to be completely open with law enforcement, be available to answer questions, and explain to them how the technology works.

Similarly, Perianne Boring, founder and president of the Chamber of Digital Commerce, sees Bitcoin's reputation in Washington as major hurdle to pro-growth regulation.

“It’s no secret that Bitcoin has perception issues, which is a roadblock to mainstream adoption,” Boring said in a statement. “Having an open dialogue with law enforcement and policymakers will help reduce anxiety about this transformative technology. This initiative goes hand-in-hand with the Chamber’s mission of promoting a regulatory approach that supports innovation, jobs and investment. Getting criminals off the blockchain is not only good for public safety -- it’s good for business.”

So far, an extensive list of Bitcoin companies, individuals and institutions have joined the Blockchain Alliance. Apart from the Chamber of Digital Commerce and Coin Center, this includes Bitcoin XT and former Bitcoin Core lead developer Gavin Andresen; Bitcoin Core developer Jeff Garzik; MIT Media Lab’s Digital Currency Initiative head Brian Forde; bitcoin exchanges BitFinex, Bitstamp, Coinbase, itBit, Kraken and CoinX; payment processors BitPay and Bitnet; wallet services Blockchain(.info), Circle and Xapo; API-provider BitGo; mining specialist BitFury and liquidity provider Noble Markets.

Jason Weinstein will serve as director of the Blockchain Alliance. Weinstein has a track record in the regulatory and digital payments space, as a former deputy assistant attorney general in charge of cybercrime investigations at the Department of Justice. Weinstein is also partner at Steptoe & Johnson LLP. In addition to that, Weinstein is a member of the strategic advisory boards of the Chamber of Digital Commerce, Coin Center and BitFury.

“The companies participating in this initiative are not only good companies, but they are also good corporate citizens,” Weinstein said. “For the blockchain to thrive, the industry must work together to correct the misperception of bitcoin as the 'currency of criminals.' By helping law enforcement agencies address public safety concerns about bitcoin and other digital currencies, we can foster an environment in which the full potential of the blockchain can be realized.”

The post Prominent Bitcoin Industry Players Form ‘Blockchain Alliance’ to Combat Criminal Activity appeared first on Bitcoin Magazine.

Nasdaq has acquired SecondMarket, an exchange for shares of privately-held companies, in a bid to broaden the scope of its offerings. 

With an increasing number of technology startups remaining off public markets, SecondMarket offers a venue for employees and early backers to buy and sell their shares. 

"As companies extend their pre-IPO lives, they face increasing pressure to provide liquidity to employees and early investors," Bill Siegel, CEO of SecondMarket, said in a statement. 

SecondMarket was founded in 2004 and became popular in the years leading up to Facebook's 2012 Initial Public Offering. The exchange attracted venture capitalists and startup employees alike who were looking to sell shares in private companies to outside investors, including hedge funds. Eventually, many Silicon Valley startup adopted policies restricting employees from private stock exchanges like SecondMarket. 

NASDAQ, which also began experimenting with blockchain technology earlier this year, is taking all of SecondMarket's employees as a part of the deal. SecondMarket has raised more than $30 million in venture capital backing. 

Barry Silbert, its founder and chairman, left the company last year to lead a Bitcoin-focused startup.  
Terms of the deal weren't immediately available.

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NOW WATCH: The secrets of Wall Street: slavery, terrorism, and hidden vaults

Many of the early pioneers of the web are now shells of their former selves. Lycos, Excite, and others no longer have any real relevance.  

The post How The Mighty Have Fallen: Yahoo! Turns To Google for Advertising Pact appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Bitcoin Press Release:  Innovative start-up Ucontrol.TV enables anyone to watch and control a live stream of water buckets with as little as 0.001 BTC. The buckets support different charities including Sean’s Outpost and The Water Project. Another use case for Bitcoin other than a currency or store of value has emerged. AUSTIN, TX – Ucontrol.TV has created the first live demonstration where anyone, anywhere can control the flow of water using Bitcoin as the on/off switch. “Not only does Bitcoin act as the switch but the amount of Bitcoin sent is proportionate to the amount of water dispensed” explains Dale […]

The post A New Use Case For Bitcoin, Ucontrol.TV Launches Bitcoin Controlled Live Web Streams appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Bitcoin Press Release: NextBank’s mission is to provide advanced banking services for Bitcoin and cryptocurrency users worldwide. NextBank will offer international Debit Cards, accounts denominated in both fiat such as USD and various cryptocurrencies, SWIFT transfers, an escrow service, currency exchange, and much more. NextBank believes in a great future for Blockchain technology and the cryptocurrency revolution by planning to offer international Debit Cards, accounts denominated in fiat and Bitcoin, SWIFT transfers, an escrow service, currency exchange, and much more. NextBank thinks about global business. They are against 3-5% charges for currency conversion. NextBank charges from 0.2% (popular currencies) to […]

The post World’s First Bitcoin Friendly Bank NextBank Announces Upcoming Launch Establishes “NB Formation Company” appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

A number of digital currency groups and businesses are partnering with law enforcement agencies on a new public-private discussion forum.

Since its inception in 2011, the Bitcoin development mailing list has been unmoderated. Anyone could join it and start posting to it. For most of its existence, the list was a mostly technical forum, devoted strictly to Bitcoin and the cryptography underpinning it, including bug discussions and proposals from the public. More recently, the list has become a hotbed of heated debate between proponents and opponents of immediate block size increasing. The debates have at times felt very much like the debates on raising the debt ceiling in US politics: divided parties repeating the same arguments, leading up to a […]

The post Bitcoin Development Mailing List Now Moderated appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Bitcoin should be exempt from VAT in Europe the EU’s highest court, the European Court of Justice, ruled today. The court has been hearing a case for numerous months, and has only now come to its recommendation.  The EU court stated, Bitcoin transactions "are exempt from VAT under the provision concerning transactions relating to currency, bank notes and coins used as legal tender.'' The case was between the Swedish Tax Authority and the nation’s Revenue Law Commission. It commenced only after a Swedish citizen asked for clarification on the VAT on Bitcoin question. That national, David Hedqvist, has sought for […]

The post EU's Top Court Rules Bitcoin Currency Trades Should Be 'Exempt From VAT' appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Bitcoin transactions will be exempt from Value Added Tax (VAT), the European Court of Justice (ECJ) has ruled.

Jeff Garzik, bitcoin core developer and CEO of Dunvegan Space Systems (DSS), argues in favor of public versus private block chains and sees a big future for bitcoin thanks to the benefit of being able to transfer value across space in addition to other benefits. As bitcoin evolves, he says computer code will iron out existing mismatches between supply and demand, according to the International Business Times UK.  DSS, based in Atlanta, GA, specializes in distributed applications and computing solutions for the space-based market, including Software-as-a-Service platforms. DSS seeks to open frontiers throughout the solar system for the benefit of humanity. […]

The post Dunvegan Space System’s Garzik: Public Block Chains Will Drive Future Fintech Along With Space Exploration appeared first on CCN: Financial Bitcoin & Cryptocurrency News.