Kvě 03

Missouri Prosecutes ‘Unlicensed’ Bitcoin Trader, Threatens 5 Years Jail

· May 3, 2017 · 4:00 pm

A Missouri entrepreneur faces up to five years in jail for unlicensed Bitcoin sales to undercover FBI agents.


‘Unlicensed’ Klein Sold Up To $75k To Fed Agents

Jason R. Klein, founder of technology businesses Logic Forte and Datality Networks, pleaded guilty to representing himself as a Bitcoin exchange without the appropriate state or federal licenses.

According to a release Tuesday, Klein met with undercover officers five times between February 2015 and July 2016, each time exchanging USD for bitcoins worth “between $1000 and $15000” per transaction.

Klein also levied exchange fees, which amounted to over $2000 over the course of the relationship.

“An undercover federal agent responded to an online advertisement posted by Klein. Klein told the undercover agent that his rate included a 10 percent commission “for an in-person $1,000 cash exchange,” the release states.

Jason R. Klein, founder of technology businesses Logic Forte and Datality Networks

Missouri Prosecutes Where Florida Gave Up

The charges represent another high-profile incident of US authorities cracking down on unsanctioned trading. Last year in Florida, a man was arrested for selling $1500 worth of bitcoin to an undercover agent, despite the buyer telling him he planned to use the funds for illicit purposes.

Due to the nature of cryptocurrency under Florida law, however, a judge ultimately threw out the charges.

“By pleading guilty today, Klein admitted that he represented himself on the Internet to be a bitcoin exchanger,” the release confirms. “However, Klein was not a licensed money transmitter with the state of Missouri or with the Financial Crimes Enforcement Network, as required by federal and state law.”

Jason Klein

Somewhat ironically, Klein is also the president of the Association of Information Technology Professionals in southwest Missouri. The organization exists to educate professionals on technology best practices and has around 230 members, making it the largest regional faction in the US.

The specific sentence will only be known once police investigations have concluded.

While Missouri has rarely made the news in cryptocurrency circles, the state is famous for being the jurisdiction to shut down embattled mining operator Butterfly Labs in 2014.

In 2016, the company settled a multimillion dollar legal case for just $15,000, due in part to the limited financial resources of alleged owner Sonny Vleisides.

What do you think about Jason Klein’s case? Let us know in the comments below!


Images courtesy of JRKlein.com, Shutterstock

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Led 22

Bitcoin is Being Increasingly Regulated Across the Globe

· January 22, 2017 · 4:00 am

Countries are reiterating tax specifications as Bitcoin becomes increasingly regulated around the globe amid rising price and popularity. 


Bitcoin Taken Seriously, Increasingly Regulated

Starting the year in the $1,000 USD range, Bitcoin has had an eventful month and January isn’t even over yet! So far, we’ve seen many countries take a new stance on Bitcoin in regard to regulations and taxes.

Although this may cause some commotion in the short-term, as seen with the Public Bank of China inspections, which led to a crash in the price, it’s actually great news for Bitcoin. It means countries are taking Bitcoin seriously (as they should), allowing it to intermingle with their traditional economies, rather than considering national bans.

Although we doubt that Bitcoin will be chosen as the official currency by any country in the near future, 2017 may hold great things for Bitcoin. Below are just some of the countries, who have recently reiterated their stance or are starting to consider regulating virtual currencies.

Poland

In Poland, Bitcoin miners were subject to a 23% VAT when selling the cryptocurrency. This is because mining was considered a service and the act of selling Bitcoin was subject to a fee for this service.

Even recently, in November 2016, a case in the city of Poznan led the Finance Minister to rule that the sale of bitcoins is an act subject to VAT as a supply of services.

poland

However, a recent case in January where a company issued foreign customers invoices in U.S dollars to be paid in Bitcoin led the country to revisit the subject. The Minister of Finance decided that the action selling bitcoins, for which the taxpayer occasionally received as compensation for services rendered, does not constitute an economic activity. Thus, Bitcoin is not subject to VAT.

The Minister pointed out that the sale of virtual currency would be taxed only if the company conducted professional activity in this field (eg. currency, banking services) and charged a commission fee for doing so.

The decision was based on the ruling of the European Court of Justice in October 2015, which stated that bitcoin transactions are exempt from the consumption tax since Bitcoin is used as a means of payment and not as a commodity.

Israel

The Israeli Tax Authority, however, has taken a different stance on the subject and has classified Bitcoin as taxable asset, and not as a currency or payment system.

A new document issued by the Israel Tax Authority on January 12th states that Bitcoin, Litecoin and other virtual currencies are considered neither as currencies or financial securities and are instead taxable assets that are subject to capital gains tax and value added tax (VAT).

israel

Individuals will be required to pay the capital gains tax of 25% every time they sell a cryptocurrency. Companies and individuals that are trading, marketing or mining bitcoin will be taxed as a business and must charge their clients a 17% VAT. Companies that accept Bitcoin payments, will need to classify the exchange as barter, which will lead to extra paperwork for the company.

The document was issued in response to the repeated questions from cryptocurrency users in the country. Although the new tax laws will make the life of cryptocurrency users harder, the regulatory landscape has at least emerged from the uncertain gray area.

China

Although no new regulations have yet been issued by the country, the latest developments suggest they will soon be.

Following the inspections carried out by the People’s Bank of China to domestic exchanges, these have halted margin trading services, which has led some to believe that new regulations are on the horizon.

Trading fees may also be applied to exchanges in China, as seen in the warning posted on BTCC’s official website.

China Bitcoin Core attack

Currently, citizens in China are free to hold and trade bitcoins, although financial firms cannot. The regulatory framework issued by China in 2013 sees Bitcoin, not as a currency, but as a virtual commodity. 

The sale and importation of commodities are subject to a 17% VAT in the country.

Russia

Russia, which has always had a difficult relation with the cryptocurrency has surprised many on this subject by stating that no further action will be taken by the government to prohibit the use of Bitcoin.

Russians_paywithBTC_articlecover_Bitcoinist

Instead, the Bank of Russia will try to attain a better knowledge of Bitcoin and build a regulatory framework around it. Bank of Russia’s Deputy Chairman Olga Skorobogatova stated:

It became clear that it is not straightforward to address Bitcoin with existing financial regulation. Regulators and financial agencies agree to not prohibit the use of Bitcoin. Instead, we want to gain a better understanding of Bitcoin, and build a regulatory framework we have gathered the necessary knowledge.

Nigeria

In Nigeria, where crypto-themed Ponzi schemes like OneCoin and Swisscoin are highly popular, warnings have been issued by two separate authorities, the Securities and exchange commission (SEC) and the Central Bank of Nigeria (CBN).

Bitcoinist_Central Bank of Nigeria

Although no new regulations have been issued, both notices warn users and financial institutions regarding the legal status of cryptocurrencies, which are not seen as legal tender, stating that financial institutions should deal with cryptocurrencies at their own risk.

Both notices mention OneCoin as a cryptocurrency, which demonstrates the lack of knowledge some countries still face when dealing with Bitcoin and other digital currencies.

For more about how Bitcoin is regulated (or unregulated) in other countries, go here.

What’s your take on the recent regulatory developments in the world of Bitcoin? Are they a step in the right direction? Let us know below!


Images courtesy of shutterstock

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Úno 07

Is Russia Going Soft on Bitcoin? – Paying for Phone and Internet Bills via Bitcoin Now made Available in the Country

Source: bitcoin

Is Russia Going Soft on Bitcoin? – Paying for Phone and Internet Bills via Bitcoin Now made Available in the Country

Russia has always been referred as a bitcoin unfriendly country. However, the crypto industry is growing stronger than ever and despite the old stigma that bitcoin is only used by cyber criminals and for money laundering, the industry is still booming in the country.

Also Read:  Russia Blocks Online Bitcoin Exchange in Midst of Blockchain Reform

Since the last submission of a bitcoin ban draft law presented to the Russia’s legislative assembly, the Duma, many deemed as uncertain the future of the digital currency industry. Nevertheless, the cryptocurrency industry continues to flourish and is now introducing new solutions to payment services.

Bitcoin payments made simple

Russian mobile operators such as Tele2, MTS, Megafon and Beeline are now allowing bitcoin payments via two Cryptonator and 7pay.in. These companies have set their aim on the future and have enabled Russians to pay for their Internet and phone bills with bitcoin. This way Russian have now the possibility of using bitcoin payments for Internet and phone bills indirectly since the payment is only done after a conversion into rubles within the platform’s internal price rate. According to Cryptonator, the service’s main advantage is the fact that it does not charge any fees and it greatly simplifies the use of digital currency.

In an effort to increase awareness in Russia, both companies believe that bitcoin payments should be made simple and that’s why they are allowing these new kinds of services to spread across the country.  They are trying to attract the most common users and for that to happen, Bitcoin payments should be made simple. People need to know that bitcoin allows for cheaper and more convenient payments than the conventional payments systems.

The service providers

7pay.in. is an online payment service provider that enables its customers to buy and sell bitcoin and now introduced the freedom to pay for Internet and mobile phone bills using cryptocurrency. The company offers its clients bullet-proof security while maintaining a transparent “modus operandi” and allows audit access to the sites statistics of all processed operations.

Cryptonator is an online multicurrency wallet that combines usability with a high level of privacy, anonymity, and security. This online wallet offers a free multi-cryptocurrency account and accepts online payments for popular games such as World of Tanks, and many others.

Paying indirectly with bitcoin

These two payment service providers enable easy direct transactions and instant exchange between different currencies. This feature is used to automatically exchange bitcoin for Russian ruble and pay the bills. The method is an indirect on-time way of paying for online services with bitcoin.

Russian digital currency-related companies are now seeking to make the use of bitcoin much simpler around the country and this way they are also helping Russians to get more acquainted with bitcoin. Cryptonator and 7pay.in services will now allow Russians to be able to pay their bills with bitcoin, however, when the customer wants to pay with bitcoin the service immediately exchanges them for rubles and automatically pays the bill. The great thing is that the service doesn’t charge extra fees and works pretty fast.

Regulation in Russia

The government even proposed a jail sentence to those using bitcoin. Since the last proposed ban draft in the country, many of the bitcoin enthusiasts and entrepreneurs  have been fearful that if these services become too popular regulators can start to impose sanctions to these companies and start to stifle the industry.  Even so, and for now, there is no reason for alarm as it seems clear that the industry is healthier by the day. The deal about this kind of services is that they only convert bitcoin into rubles and execute payments by using the national Russian currency and so there are no reasons for the Russian government to consider it illegal.

It’s becoming usual to find this sort of payment solutions in many countries. It is a clear sign that bitcoin has now surpassed the first level of adoption, and is already going full mainstream across the globe.

What’s your take on the increasing cryptocurrency establishment in Russia? Let us know in the comments bellow!


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Is Russia Going Soft on Bitcoin? – Paying for Phone and Internet Bills via Bitcoin Now made Available in the Country

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Led 22

The Netherlands Wants Clear Regulatory Guidelines For FinTech and Bitcoin Startups

Source: bitcoin

Bitcoinist_Netherlands Regulation

The Netherlands is often seen as a region where regulators are doing their best to keep up with financial innovation. IN the Bitcoin world, this has lead to a healthy startup ecosystem in the country, with clearly defined taxation rules. But a new report from Holland FinTech touches upon several barriers that are preventing future growth in The Netherlands, which include regulation and collaboration with financial players.

Also read: DASH Block Size Increase Reaches Consensus in Less Than 24 hours

Making FinTech Grow In The Netherlands

Even though the report mentions how the FinTech industry is doing quite well in The Netherlands, there is always room for future improvements to streamline the growth. Before that can happen, however, there are certain key barriers to overcome, which are currently hindering the growth of FinTech in the country.

Three key factors have been identified which will help put the country on the global FinTech map, and even make it a hub for future innovation. First and foremost, there is the topic of regulation and legal framework, a very sensitive issue in any country. Other regions, such as the United Kingdom, offer direct subsidies and established both competition laws and a supportive regulatory environment. The Netherlands has neither of these things, but that might be about to change very soon.

Actions to be taken in this regard range from a more prosperous collaboration between government, corporation, and research institutes to creating a joint vision for this industry. By developing a joint strategic agenda, key challenges for FinTech companies in The Netherlands can be identified and addressed. Furthermore, a list of key regulatory conditions must be created.

Active support for this industry will create an attractive Dutch market, and in the long run, accelerate innovation. Even though this industry is fairly strong in Europe, there is no clear front-runner just yet. London -or the UK in general – would be the obvious choice, but The Netherlands will not just roll over and let them have the spotlight.

Regulation of such a new and innovative sector is needed the most, though.The report mentions how European economies and interconnected, yet the regulatory landscape is scattered and disconnected. Such a situation will not lead to financial innovation any time soon, and it will hurt startups as there is no clarity.  In the end, the existing Dutch regulatory framework makes The Netherlands less attractive to FinTech in general.

Bitcoin is An Important Part of FinTech

As one would come to expect from such a detailed report, Bitcoin and digital currency are named as one of the driving factors for FinTech innovation. However, with the country’s regulation lagging behind other countries, The Netherlands lost the first-mover advantage to Luxembourg, who recently defined Bitcoin as scriptural money and giving it currency status.

FinTech offers quite a few different innovative solutions, ranging from cashless payments to robotic trading and alternative digital currencies such as Bitcoin. Furthermore, this industry does not develop existing complex services and products, making it a key element to give the global economy a healthy boost in the next few years.

What are your thoughts on the legal and regulatory status of FinTech in The Netherlands? Are things different in your country? Let us know in the comments below!

Source: Holland Fintech

Images courtesy of Holland FinTech, Shutterstock

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Led 20

Finance Manager Remains A Popular Job Opportunity Despite Bitcoin Growth

Source: bitcoin

Bitcoinist_Finance Manager

Depending on how people want to look at things, the financial sector is in need of a revamp or works fine the way it is right now. While it seems clear to most Bitcoin users how the financial sector needs to be disrupted sooner rather than later, landing a job as finance manager is still the number two most popular job choice. At the same time, the number of jobs in the Bitcoin world keeps growing month over month.

Also read: Protect Yourself From These Shapeshift.io Based Scams

Finance Manager Remains A Popular Job

Contrary to popular belief, landing a job in traditional finance is still at the top of the priority list for a lot of people. As more and more consumers start to worry about the future of finances, combined with the growing number of millennials looking for investment advice, there are plenty of opportunities for aspiring finance managers in the near future.

With close to 2,700 job openings available around the world, today, Europe and North America are the places where finance manager roles will need to be filled in the near future. But do not discount Asia and Australia as well, as there are opportunities to be found there as well. Do keep in mind the job of finance manager comes with a lot of responsibilities as well.

One of those responsibilities includes how every future finance manager will have to be aware of regulation in countries around the world.  As most people are aware, no two countries are alike in the financial ecosystem, and in some cases, every individual state has their own regulations and requirements.

Many people are drawn to the traditional financial world because of its high salary. Based on numbers provided by Telegraph UK, the average base salary for a finance manager is GBP 55,000. Do keep in mind this number will go up as employees gain more experience in their job. Seniority always leads to high annual salaries, and the financial sector is no exception.

Any company large enough to have a financial department of their own will need a finance manager at some point along the way. With new businesses and startups popping up all over the world, this is one of the job sectors where there will always be a  demand for a finance manager. Plus, this is one of the few jobs that is less susceptible to economic peaks and offers a clear line of progression.

Bitcoin Job Industry Provides Viable Alternatives

For job seekers who have a strong passion for finance, the Bitcoin industry offers plenty of jobs as well. It should come as no surprise the Bitcoin world is not even ranked in the top 25 of popular job openings around the world. However, with the blockchain technology gaining more interest from financial players, that mind shift could only be a matter of time.

Based on the job listings posted on Angellist, there is no shortage of Bitcoin jobs. Interested parties can even sign up to get a weekly newsletter filled with Bitcoin Startup Jobs. Most of these companies are looking for developers and marketers, but there is always room for those with knowledge of the financial ecosystem.

What are your thoughts on finance manager remaining a top three job in the world today? How will Bitcoin affect this situation? Let us know in the comments below!

Source: Telegraph UK

Images courtesy of Shutterstock, Angellist

The post Finance Manager Remains A Popular Job Opportunity Despite Bitcoin Growth appeared first on Bitcoinist.net.

Finance Manager Remains A Popular Job Opportunity Despite Bitcoin Growth

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