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A South Korean lawmaker has reportedly proposed designating a regulation-free special cryptocurrency zone aimed at initial coin offerings. It has been about a year since token sales were banned in the country but the government has yet to introduce any guidelines for them.
Proposal for Special Crypto Zone
Jung Byung-guk, a leader of South Korea’s Bareunmirae Party, revealed at a National Assembly meeting on Wednesday his proposal to set up a special crypto zone for initial coin offerings (ICOs), Business Korea reported.
He suggested that South Korea can use Gibraltar as a benchmark, given its advanced financial system and “ICOs are very actively launched” there, the publication conveyed. He then proposed:
We need to designate a regulation-free blockchain and cryptocurrency special zone or test zone first to actively make various experiments.
Noting that he often finds “areas to improve” in his own crypto proposal every time he re-reads it, the lawmaker emphasized the need for a special test zone.
At the meeting, “It was suggested that the Crypto Special Zone should be set up in a certain area, rather than being allowed nationwide to be managed in a regulatory sandbox form,” Dtoday reported. “It is hoped that tightly-packed blockchain companies will be able to increase synergies and improve regulatory efficiency.”
Moon Jong-jin, a professor at Myongji University’s Department of Business Administration, was quoted by the publication suggesting that “after financing through ICOs, we should also examine the success rate of specific projects.” He reiterated that caution needs to be exercised when “promoting the crypto special administrative region policy.”
No ICO Regulatory Progress
Since the South Korean government prohibited all types of ICOs in September last year, the regulators have been focusing on cryptocurrency regulations, but there have been no guidelines on token sales. Meanwhile, other countries such as Singapore have been attracting Korean firms to launch their token sales abroad.
While the government claims to ban ICOs to protect investors, Business Korea pointed out that “there is no definite definition for virtual currencies nor regulations on unfair business practices. Accordingly, the number of fraud cases aiming for such legal blind spots is on the rise.”
Citing that “other countries are promoting ICOs as a means of helping startups attract capital,” Jung said:
I am so upset to see the South Korean government sitting on its hands after prohibiting all types of ICOs. The National Assembly members have been also holding numerous meetings and seminars to revise and enact related laws but we haven’t found an answer yet.
He is planning to invite government officials and task forces related to cryptocurrencies “to the National Assembly in October to hold the global conference and issue a minimum declaration for ICOs.” He was further quoted by the news outlet saying, “we hope that the declaration serves as a guide for countries in writing ICO guidelines that fit with their own political and economic situations.”
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On August 31 the CEO of the firm Viabtc, Haipo Yang, published a blog post proposing the establishment of a standardization organization like the World Wide Web’s W3C consortium. Haipo Yang wants to start a similar group called the Bitcoin Cash Standard Organization (BCSO) in order to create standards and achieve better transparency when it comes to BCH consensus proposals.
Viabtc’s Haipo Yang Proposes to Initiate a Standardization Group Called the Bitcoin Cash Standard Organization
There are many large organizations like the Linux Foundation and W3C that work together to create standards in the world of computers and the internet. Haipo Yang the founder of the blockchain development firm and mining pool, Viabtc, wants to create a similar organization for Bitcoin Cash (BCH) development standards. The Viabtc CEO says Bitcoin is a consensus protocol that “should be defined by documentation instead of software codes.” In order to avoid incompatibility and possible blockchain splits, Yang believes client protocols should be very careful when making code changes. To begin creating standards and documentation Yang proposes the initiation of a BCH-centric standardization organization.
“Together we will standardize Bitcoin by establishing the Bitcoin Cash Standard Organization (BCSO) — BCSO will give the definition of “Bitcoin” with standard protocol documentation. With the BCIP (Bitcoin Cash Improvement Proposal), BCSO will collect advice and suggestions of protocol standard as well as feedbacks for BCIP from the community,” Yang explains during his proposal announcement.
BCSO will regularly release the BCIP with updated standard documentation and help all clients with the updates — BCSO will also hold developer conferences to explore new Bitcoin technologies and growth.
Helping the Bitcoin Cash Community Reach Broad Consensus
Yang thinks the creation of the BCSO will make future Bitcoin consensus changes more public and transparent. When submitting BCIPs programmers should include documentation and test results, so BCH participants can get a better understanding of what is happening with development.
“BSCO will allocate BCIP No. for each proposal, collect suggestions from the community and call votes for the proposal via a method that’s commonly agreed by the community,” Yang concludes. “According to the result of BCIP, BCSO will update the Bitcoin Standard Protocol regularly and set a timetable for software implementation and network activation in coordination with the network upgrade.”
I believe that Bitcoin Cash Standard Organization (BCSO) will guarantee the development for Bitcoin, and help the community reach the broadest consensus.
What do you think about Viabtc’s CEO Haipo Yang proposing a standardization organization? Let us know your thoughts on this subject in the comment section below.
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The Trump administration is proposing to restrict an innovation in the Affordable Care Act that was intended to improve Medicare and slow spending in the vast federal insurance system for older Americans. Healthcare researchers hail the model’s promise to improve quality and efficiency, but administration…
A draft law prepared by deputies and representatives of the industry aims to introduce light taxation of crypto incomes in Ukraine. Businesses and individuals will be required to pay 5% on their profits from trading and mining cryptocurrencies when exchanged to fiat. Add to that the mandatory ‘military charge’ of 1.5% all Ukrainians owe the state since the start of the conflict in the East.
Ukrainians to Pay 5% Tax and 1.5% Military Charge on Crypto Profits
Despite their increasing popularity, cryptocurrencies are not yet legalized and regulated in Ukraine. The country’s growing crypto sector is expecting authorities to do that as soon as possible but officials in Kiev have been slow to grasp the phenomenon and figure out what to do with it. Three bills are stuck in the Rada since last October and a fourth one is expected to be filed this September.
Now when Ukraine is getting closer to adopting regulations after the approval of a regulatory concept last month, a new draft law addresses the aspects of taxation. A group of deputies led by Ukrainian lawmaker Oleksiy Mushak and two dozen representatives of the crypto business are working on the bill which proposes а temporary tax regime in the sector. The authors want it to be enforced in 2019 and remain in place until 2025.
The draft envisages the introduction of a 5% tax rate on profits from cryptocurrency trading and mining, Liga Business reported. The tax will be levied at the difference between the buying and selling price of digital assets, and the difference between mining income and mining expenses. It will be due only when the crypto funds are exchanged to fiat or in case of payments for goods and services, including property. Crypto-to-crypto transactions will not be taxed.
According to Mushak, the crypto industry has a positive attitude toward the proposals in the legal document. “The state shouldn’t touch the exchange between cryptos but the exit to fiat, the real sector, and the purchases of goods. 5% sounds optimal. In fact – this is the price to pay for the legalization of income from dealings in crypto,” says Artiom Afyan, managing partner at Juscutum law firm.
In addition, Ukrainians profiting from cryptocurrencies, will be expected to pay the so-called “military charge” – 1.5% on their incomes as private individuals. The tax was imposed as a temporary measure to finance the reform of the Armed Forces of Ukraine in August 2014. Ukraine’s army is engaged in a military conflict with pro-Russian forces in the Eastern part of the country since the spring of the same year.
Regulations and Regulators
According to the new draft, the crypto market will be regulated by the National Securities and Stock Market Commission (NSSMC). Recently, the regulatory concept prepared by the agency won support in Ukraine’s Financial Stability Council. The body is composed of representatives of the NSSMC, the National Bank of Ukraine, the Ministry of Finance, the Deposit Guarantee Fund, and the National Financial Services Market Commission.
Details about the new concept were made public by the NSSMC in July. It defines cryptocurrency as “token that functions as means of exchange and store of value”, and tokens are divided into “centralized or decentralized units of account” that are “cryptographically secure.” The Commission is also expected to take responsibility for licensing and oversight of crypto exchanges as well as the regulation of ICOs (Initial Coin Offerings). The Finance Ministry and the State Fiscal Service should implement the tax regime.
According to Konstantin Yarmolenko, adviser to the head of Ukraine’s Electronic Government Agency, rules should be adopted in order to protect investors and not for the sake of regulation itself. Alexander Momot, CEO of the Ukrainian crypto startup Remme, thinks that in order to stimulate the development of the crypto sector in the country, tax and regulatory breaks should be introduced instead of tax and regulatory regimes.
What do you think of the tax rate on cryptocurrency transactions proposed in Ukraine? Share your thoughts on the subject of crypto taxation in the comments section below.
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A Treasury Department report released Tuesday calls for regulatory changes to advance new financial technology companies and services, known in the industry as fintech.
“American innovation is a cornerstone of a healthy U.S. economy. Creating a regulatory environment that supports responsible innovation…
President Trump escalated his trade war with China on Tuesday, identifying an additional $ 200 billion in Chinese products that he intends to hit with import tariffs.
The move makes good on the president’s threat to respond to China’s retaliation for the initial U.S. tariffs on $ 34 billion in Chinese…
On Saturday June 9, the founder of the bitcoin cash-centric wallet Electron Cash, Jonald Fyookball, revealed that he had created an on-chain betting protocol called Chainbet. The 255 lines of code form a proposal that allows a simple coin flip type of bet, but the software could be designed to handle more complex on-chain betting methods.
Chainbet: A Trustless Gaming Mechanism Built on the Bitcoin Cash Network
This weekend the creator of Electron Cash, Jonald Fyookball, revealed a new on-chain betting protocol that enables a simple coin flip wager that’s tethered to the BCH chain. According to the Github repository, Fyookball’s protocol has two components, “a commitment scheme to enable a trustless wager, and an on-chain messaging system to facilitate communication.” At the moment the proposal can only do the coin flip bet but the protocol can be built out to allow more elaborate configurations, explains Fyookball.
“Since Paleolithic times, humans have engaged in games of chance, and probably always will — Blockchain technology can increase the fairness, transparency, and safety of these activities,” the Github repository details.
The Bitcoin Cash ecosystem can gain more users and more transaction volume by providing a trustless gaming mechanism.
Developer Says Chainbet Needs Peer Review
The Chainbet creator says in order to perform a trustless coin flip wager, Alice and Bob need to create secret values. If the sum of the value is ‘even’ then Alice wins, and if the sum of the value is ‘odd’ then Bob wins the bet. Meanwhile, both parties use a cryptographic scheme where Alice and Bob can lock the bet and reveal the secrets in a transparent manner. Moreover, the Chainbet protocol has a messaging client within the codebase that allows parties to exchange any “extraneous communication through the internet”.
“[Chainbet] still needs peer review — And I’m waiting for someone to poke a serious hole in the basic idea,” Fyookball explains on the Reddit forum r/btc.
Thanks to the Reddit users who inspired this — One person asked about how we could do on chain betting, another person later asked about gaming lobby — This combines both of those ideas.
A good majority of Bitcoin Cash proponents seem to like the idea and complemented Fyookball on his concept. The repository gives a fairly good description of how the system can work and reduce collisions. Further, Fyookball has added some implementation considerations on how to make the protocol a bit more efficient and secure.
What do you think about the Chainbet protocol? Let us know what you think about this subject in the comment section below.
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Vietnam’s Ministry of Finance has officially proposed that the country bans the import of cryptocurrency mining equipment. Bitcoin mining rigs are currently easily imported into Vietnam. This proposal follows the largest crypto fraud case in the country involving over $ 656 million and more than 32,000 victims.
Ministry of Finance’s Proposal
In the recently released report containing the opinions of the ministries involved in the management of bitcoin and other cryptocurrencies in Vietnam, the country’s Ministry of Finance proposes suspending the importation of mining equipment, according to local media. This report, referred to as Document 5964 / BTC-TCHQ, has been submitted to the country’s prime minister. Zing.vn publication elaborated:
According to the Ministry of Finance, mining machines are not on the list of goods banned from importation and are not subject to the list of specialized management or unsafe goods, so enterprises are easily allowed to complete the import procedures.
The ministry outlined in its report that the use of mining equipment for bitcoin, litecoin and other cryptocurrencies in the country is difficult for the authority to manage. “From there, it is easy for people to use [cryptocurrencies] as a currency or another method of payment,” the City Economic News Kinhte & Dothi quoted the ministry. “This is in violation of the amended government Decree 101 on non-cash payments,” Zing.vn conveyed.
The publication also noted that data from the General Department of Vietnam Customs shows that “from 2017 to half of 4/2018, the country imported about 15,600 mining machines,” adding that most of them were imported into Hanoi, Ho Chi Minh City, and Da Nang. Last year, more than 9,300 rigs were imported into Vietnam and over 6,300 rigs were imported in the first four months of this year.
Decision to Ban Mining Imports
The ministry also referred the case where Modern Tech Corp in Ho Chi Minh City was “accused [of] over VND 15 trillion [~US$ 656 million] of fraud by more than 32,000 people through its Ifan and Pincoin virtual currency investment models.” According to the ministry, protecting the Vietnamese people from similar scams in the future “requires state management agencies to take strict control measures with the import and use of this commodity.” The Vnexpress reiterated:
To prevent other possible events, in the immediate future, the Ministry of Finance proposed to apply the import suspension measures for the above types of mining equipment.
The Vietnamese Prime Minister Nguyễn Xuân Phúc recently signed a directive to strengthen “the management of activities related to bitcoin and other virtual currencies,” as news.Bitcoin.com previously reported.
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South Korea’s national legislature has officially proposed to allow domestic initial coin offerings, effectively lifting the ban imposed by the government in September last year. With the lack of proper guidelines, South Korean companies have been migrating abroad to launch their token sales.
National Assembly’s Proposal
The National Assembly, the 300-member unicameral national legislature of South Korea, has officially proposed for the government to lift the ban on initial coin offerings imposed last September, Business Korea reported on Tuesday. The news outlet elaborated:
The National Assembly has officially made a proposal to allow domestic initial coin offerings (ICOs). As the administration is sitting on its hands after imposing a total ban on ICOs in September last year, the National Assembly has come forward with an official recommendation.
Citing the Assembly’s proposed “legislative and policy proposal of recommendation to allow ICOs under the conditions of investor protection provisions,” the publication explained that the next step is for the administration to discuss the proposal with the Assembly.
Earlier this month, news.Bitcoin.com reported a group of lawmakers working on a bill to legalize ICOs that meet certain conditions under the government’s supervision. ICOs that are approved will be subject to tight supervision by the Financial Services Commission (FSC) and the Ministry of Science and ICT.
Special Committee’s Recommendations
The special committee on the fourth industrial revolution under the National Assembly held their last general meeting on May 28. “Through the legislative and policy proposal of recommendation finalized on the same day, the committee accused the administration of neglecting its duty in responding to blockchain application expansion,” the news outlet detailed.
“We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order,” the committee described. Among other recommendations, the committee outlined, “we will also establish a legal basis for cryptocurrency trading, including permission for ICOs, through the National Assembly Standing Committee.”
ICOs Moving Out of Korea
The news outlet pointed out that:
With the government failing to present any guidelines for ICOs, domestic blockchain companies are going to Singapore and Switzerland to do an ICO and pay unnecessary expenses.
Singapore and Hong Kong have recently emerged as meccas for token sales. According to Anson Zeall, chairman of the Association of Cryptocurrency Enterprises and Startups Singapore, “there has been a lot of [ICO] activity since September last year.”
Naver and Kakao Corp, the parent companies of popular chat apps Line and Kakaotalk, recently set up subsidiaries abroad with the possibility of launching ICOs. One of the country’s largest crypto exchanges, Bithumb, has also partnered with a Singaporean company to launch its own cryptocurrency.
Do you think South Korea will soon allow domestic ICOs? Let us know in the comments section below.
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Lots of people weren’t quite satisfied with The Simpsons ‘ response to a discussion of negative stereotypes of South Asians pushed by character Apu Nahasapeemapetilon—perhaps including the man who voices him. In an interview on Tuesday’s Late Show , Hank Azaria told Stephen Colbert he “had nothing to do with…