North Korea wants its own cryptocurrency

An analyst from Center for Financial Crime and Security concluded that the nation has the essential expertise and tools to establish its cryptocurrency. In terms of the motives behind the initiative, the specialists often largely produce negative situations — by bypassing the global sanctions and money laundering to speculation and funding the weapons of mass destruction.

Bypassing U.S. sanctions?

Pyongyang wants a digital currency to bypass international sanctions. Using its cryptocurrency, the DPRK might have the ability to access the global financial system.

Critics consider that an electronic currency would be a mean to bypass sanctions since they are more difficult to follow. North Korea would be able to trade with several countries around the world and evade the US sanctions.

As most analysts assert North Korea might be endorsed by other nations, including Iran, Russia or even Venezuela, that are already researching federal electronic assets to skip the U.S. sanctions.

Libra is “sensitive for society” and has no launch date

https://cointelegraph.com/news/crypto-carnage-zuckerberg-admission-royal-btc-scam-hodlers-digest-sept-2329

Facebook CEO Mark Zuckerberg seemed to demonstrate a rare display of dread as regulatory scrutiny enclosing the Libra stable coin intensifies.

He confessed that the job was “very sensitive for society” and said his business was decided to work through problems before launch. The billionaire also confessed this is a really different approach to that Facebook could have done five years ago.

The Calibra wallet mind David Marcus – that has faced a grilling facing Congress – claimed in a blog article that blockchain-based payment systems can tackle inefficiencies in existing payment methods.

New Balance will use the Cardano blockchain to allow its customers to verify the origins of an range of products

Cardano CEO Charles Hoskinson announced that New Balance will be using the Cardano blockchain to help authenticate its products.

Cardano and New Balance intend to roll out the program internationally. But, current plans don’t entail employing the ADA token in this pilot.

Hoskinson allegedly produced the partnership announcement throughout Cardano’s 2nd-anniversary event in the Cardano Summit at Bulgaria’s second-largest city, Plovdiv.

Blockchain, global supply chain and health insurance

Many organizations have already begun to implement blockchain technologies. Walmart is utilizing blockchain technologies to make a food traceability system based on the Linux Foundation’s Hyperledger Fabric.

In August, public venture blockchain stage VeChain partnered with Australian winemaker Penfolds to launch an instance of blockchain-encrypted wine bottles available, within its own Wine Traceability Platform initiative.

In March, Carrefour introduced its blockchain-powered solution for monitoring milk, which can be reported to ensure customers entire product traceability across the full distribution chain, from farmers’ fields to the shop shelves.

Government of Uzbekistan Triples Tax on Electricity for Crypto Miners

The authorities of the Republic of Uzbekistan have ordered a 300% increase in power tariffs for cryptocurrency miners.

The Cabinet of Ministers of the Republic of Uzbekistan has decreed that cryptocurrency miners have to pay three times more the present power tariffs.

This comes after the Aug. 22, 2019 decree from President Shavkat Mirziyoyev qualified “On Accelerated Measures to Improve Energy Efficiency of Economic Sectors and the Social Sphere, Implement Energy Saving Technologies and Develop Renewable Energy Sources” and also to further inspire the logical use of electric energy by customers.

Uzbekistan’s approach to crypto and blockchain

Last September, Mirziyoyev ordered the establishment of a state blockchain development fund called the “Digital Trust.” The fund’s objective is to incorporate blockchain into different government jobs, including health care, education and ethnic locations. The organization is defined to be accountable for global investment from the Uzbek digital market.

Earlier the exact same month, a decree legalizing crypto trading, which became tax-free, and mining at the nation came to force. As stated by the legislation, foreign nationals can simply exchange cryptocurrencies from Uzbekistan by creating a subsidiary in the nation.

The legislation additionally specifies a minimum funding requirement of about $710,000 to create a crypto exchange. What’s more, crypto dealers won’t fall beneath Uzbek stock exchange regulations and will probably be relieved of the duty to pay taxes on trading earnings.

Bakkt, the first federally regulated platform for Bitcoin (BTC) futures trading, was launched

In August 2018, Intercontinental Exchange (ICE) declared its strategies to make a Bitcoin cryptocurrency exchange fully compliant with CFTC regulations.

Created by the worldwide trading giant Intercontinental Exchange (ICE) and counting a good portfolio of investors from Microsoft’s venture fund M12 to Starbucks, Bakkt delivers institutional traders something brand-new. The system’s value proposition is physically-settled BTC futures contracts, along with a solid custodial service accepted by the Commodity Futures Trading Commission (CFTC).

Assuming it is digital assets’ volatility and lack of regulatory defences that deter otherwise exceptionally interested institutional investors by moving large on BTC, Bakkt’s introduction is a major landmark on the deadline of crypto adoption, and several in the distance expected its introduction with fantastic excitement.

Unfortunately, Bakkt’s launch coincided with a massive recession in Bitcoin’s market price, causing some analysts to suspect a causal link between the two.

China needs more time for research before announcing a launching date for its digital currency

https://cointelegraph.com/news/chinas-central-bank-digital-currency-has-no-timetable-for-launch

China does not have any particular launch date in mind for its digital currency. Its own central bank has stated comments contradicting previous statements.

The People’s Bank of China (PBoC) has denied Beijing is prepared to launch its fresh financial currency. According to Global Times, the PBoC “needs to research, test, evaluate and prevent risks.”

“China’s research and development of digital currency has achieved positive progress, but the country has no timetable to launch a digital currency so far,”

German government adopts the blockchain strategy

On Sept. 18, the German Federal Government released its finalized blockchain plan, pointing out 10 big principles to create concrete steps for unlocking the advantages made available by blockchain technologies by the end of 2021. The authority voiced its favourable stance towards blockchain, saying that the plan intends to encourage the nascent ecosystem in Germany.

At precisely the exact same time, the authorities explained it won’t be encouraging blockchain-powered stable coins from getting alternative currencies because of its danger to the German’s sovereignty. Included in the dangers posed by the coming Facebook’s cryptocurrency Libra, the record reads that the German authorities won’t depart the issuance of monies to private businesses.

On Sept. 17, German Finance Minister Olaf Scholz contended that lawmakers can’t accept parallel currencies like Libra, expressing optimism that Libra will be definitely rejected.

7-Eleven Stores Across the Philippines Now Sell Bitcoin

https://cointelegraph.com/news/all-7-eleven-stores-across-the-philippines-now-sell-bitcoin

Cryptocurrency investment program Abra begins selling crypt in most 7-Eleven shops across the Philippines using a brand new partnership with payment chip ECPay.

Abra declared on Sept. 18 that the venture will bring crypto into 6,000 retail outlets across the Philippines, including all 7-Eleven shops. The aim of the venture is to make facilitate obtaining cryptocurrency simpler:

“Using new digital tools that open up financial access shouldn’t be hard. And they shouldn’t be complicated. Moving cash to crypto and other digital assets should be simple and fast. That’s why we are really excited to announce our new partnership.”

Turkey Announces Plans for National Blockchain Infrastructure

The Turkish government has announced plans to set a federal blockchain infrastructure to use distributed ledger technologies (DLT) in general public management.

The Ministry of Industry and Technology set out its own vision through its Strategy 2023 demonstration on Sept. 18 at Ankara.

Turkish institutions have been embracing blockchain technology in various spheres. In August, the Istanbul Blockchain and Innovation Center (BlockchainIST Center) was inaugurated at Bahçeşehir University. The centre’s director, Bora Erdamar, said BlockchainIST will be “the most important centre of research and development and innovation in Turkey in which scientific studies and publications are made in blockchain technologies.”

Earlier this month, Turkey’s Istanbul Clearing, Settlement and Custody Bank (Takasbank) announced a blockchain-based platform for trading physical gold. Takasbank’s new project aims to enable users to transfer physical gold stored at the Borsa Istanbul Stock Exchange.

Narvesen Stores and Lithuanian Press Kiosks to Sell BTC

According to the local news outlet, Delfi, Lithuanian convenience shops Narvesen and Lithuanian Press kiosks will begin selling Bitcoin (BTC). The stores will begin selling coupons which may be exchanged for BTC online. Narvesen and Lithuanian Press were picked due to their extensive network and positive attitude towards cryptocurrencies, which will grant access to this target market and offer the capacity to purchase vouchers fast.

Narvesen CEO Vigintas Bartaševičius stated:

“We currently have a network of nearly 60 Narvesen stores, where we are constantly looking to expand our selection of products and services. We recently offered a cash withdrawal service to our busy city customers, and now we are starting to sell Bitcoin vouchers, both cash and card. Bitcoin coupon sales are geared to meet the needs of a younger audience.”

No ID or other files will be asked to convert euros to Bitcoin obtained with the voucher. All a user needs is an email address and a Bitcoin wallet address.

Blockchain Being Used to Turn Ocean Plastic Waste Into Eco-Fabrics

https://cointelegraph.com/news/blockchain-being-used-to-turn-ocean-plastic-waste-into-eco-fabrics

Dutch firm Waste2Wear has set to create the world’s very first selection of recycled materials, made from sea plastics, that may be tracked via blockchain.

First disclosed on Aug. 20, the group has been specially developed by Waste2Wear in reaction to client demand for recycled materials used in cloths to be traceable. The business declared the initiation of the beta version of its own proprietary blockchain system for its new set on Aug. 22.

Waste2Wear stated plastic waste needs to adhere to a long journey from the sea to getting a finished textile product, which demands quite a few incremental data documents.

By applying blockchain technologies, the organization plans to produce the supply chain of sea plastic materials completely traceable.

The plastic used for Waste2Wear Ocean Fabrics was sourced out of the coastal and water regions of a little island near Shanghai. In collaboration with the regional government, Waste2Wear constructed a business model permitting local fishermen to make money by recovering plastics in the sea. In accordance with Waste2Wear, fishermen are collected over three tons of waste from the sea weekly.

Waste2Wear is not the first thing to explore applying blockchain technology for environmental purposes. On Sept. 4, Germany’s Free Democratic Party suggested paying crypto to anybody who removes carbon dioxide and other greenhouse gases from the air.

U.S. government clamps down

The critical moment when the U.S. had to take decisive action against illegal drugs being bought with cryptocurrency occurred in 2013 when FBI agents hurried to the San Francisco Public Library to detain Ross Ulbricht, a guy who played a fundamental part in the digitalization of the global drug trade.

Running under the pseudonym “Dread Pirate Roberts,” Ulbricht was the mastermind behind the Silk Road — an anonymous, Amazon-like marketplace located on the darknet — that allow users buy and sell anything, irrespective of legality.  Even though the website recorded weapons, stolen credit card information in addition to legal goods, illegal drugs were undoubtedly the most frequently encountered listing. The Silk Road initiated using Tor, the system software used to get the darknet, and Bitcoin (BTC) escrow to hide customer and vendor identities and their action.

Though U.S. representatives had expected that the seizure of the Silk Road would suppress darknet action, the news website DeepDotWeb stated the bust has been “the best advertising the darknet markets could have hoped for,” using quite a few copycat websites popping up in following decades.

In 2014, the FBI captured 27 darknet websites during Operation Onymous, a concerted effort between the FBI and the European Union Intelligence Agency Europol to stamp out illegal markets.

In 2019, darknet markets are still promoting illegal drugs which could be bought with cryptocurrency, but U.S. law enforcement proceeds to have a hardline strategy, arresting a few in California on Aug. 6 to selling medications on the darknet in exchange for Bitcoin and Bitcoin Cash (BCH).

Recent events appear to verify the company policy of U.S. government officials.

Over two weeks ago, the Department of the Treasury added multiple crypto addresses to its Specially Designated Nationals, or SDN, list under the Foreign Narcotics Kingpin Designation Act.

The addresses are supposedly connected with three Chinese taxpayers, all of whom are busy Bitcoin users. 1 Litecoin (LTC) speech was also contained in the listing.

The Kingpin Act functions to clamp down on trades between global drug traffickers trying to inject medication in the U.S. and prohibit transactions between these traffickers and U.S. entities. The action also gives the authorities the capacity to organize and explore foreign traffickers, the names of whom have been attracted to the attention of the president, who finally decides whether to impose sanctions.

Such legislative measures are established in reaction to the condition of illegal drug consumption in the U.S.: The nation is presently in the throes of a severe opioid outbreak, as an American dies every 16 minutes from an opioid overdose.

The White House issued 2 advisories representing its concern that fentanyl, alongside other synthetic opioids, are being bought using cryptocurrencies.

The advisories names the cryptocurrencies most used by those selling illegal drugs:

“Individuals located in the United States search for fentanyl and identify potential websites that may provide the opportunity to purchase illicit drugs online. Foreign representatives will instruct the U.S.-based individual to send payments through CVC, such as Bitcoin, Bitcoin Cash, Ethereum, or Monero.”

Within a way to slow down on the Internet drug commerce, the advisories encouraged financial institutions to come forward with any questionable user information, including:

“Virtual currency wallet addresses, account information, transaction details (including […] hash), relevant transaction history, available login information (including IP addresses), information obtained from the analysis of the customer’s public online profile and communications, mobile device information.”

Where are drugs bought with crypto?

For the most part, “medication sales on the darknet” is a term which is now synonymous with “drugs bought with cryptocurrencies.” The darknet is part of the net that’s available via technical network applications which permit users to navigate anonymously while their action is mostly untraceable.

Given the greater surveillance powers of authorities — many especially from the U.S. after 9/11 — that the darknet offers an environment that’s attractive, rewarding and, for the most part, secure for prohibited drug traffickers.

Professor Talis Putnins, co-author of an influential University of Technology Sydney report about cryptocurrency and prohibited drugs:

“Cryptocurrencies have fundamentally transformed the way illegal drugs are bought and sold, shifting much of the activity from a cash-based, physical ‘on the street’ market to an online marketplace.The online illegal drugs trade needed two fundamental things to take off. One is an anonymous communications platform, which was provided by the darknet and underpinned by TOR (an anonymous communications protocol). And the second important piece was an anonymous or private way of making digital payments that was difficult to trace by authorities. That is the role that cryptocurrencies have played. Thus, they are an integral part of the online drugs trade.”

On the other hand, Europol spokesperson Jan Op Gen Oorth voiced the opinion that the translucent nature of cryptocurrency renders transactions easier to follow compared to those involving cash:

“Payment for drugs using cryptocurrencies naturally makes more sense when compared to, for example, bank transfers. On the other hand, most cryptocurrency transactions are far better traceable due to their inherently transparent nature than cash.”

How widespread is cryptocurrency in illegal drug sales?

Because cryptocurrency is harder to trace, it’s not easy to gauge the precise market share of cryptocurrencies in illegal commerce.

The University of Technology Sydney report estimates that around 46% of prohibited activity annually is associated with Bitcoin.

Although it’s reasonable to remember that this figure doesn’t represent illegal drug sales alone, the researchers discovered that Bitcoin is the most widely used cryptocurrency for buying drugs on the darknet. Professor Talis Putnins, warned that even though using bitcoin for prohibited purposes has improved, lawful trades using the cryptocurrency will also be rising:

“What our research shows is that the dollar value of illegal activity in Bitcoin has continued to rise, as has the number of Bitcoin users involved in illegal activity, those growth rates have recently been outpaced by the strong growth in legal users, largely speculators. As a result, the percentages or shares of Bitcoin activity that is involved in illegal activity have fallen in recent years. Therefore, while the online black market has continued to grow, cryptocurrencies are increasingly being used for legitimate reasons.”

The 2019 Global Medicine Survey notes an all-time high 27.1p% of surveyed medication users got prohibited chemicals for the first time through the darknet in the previous 12 months, up from 19.9% the preceding year, which highlights that the tendency of the increasing digitalization of drug commerce.

The report says that within the previous six decades, there’s been a year-on-year gain in the proportion of surveyed participants getting drugs on the darknet. Additionally, 30% of respondents asserted that the selection of medications they use has improved, and a further 5% reported they had never tried drugs prior to obtaining them through the darknet.

The gain in both darknet earnings and broader medication use among respondents suggests that the digitalization of the drug trade is earning narcotics more reachable — due to anonymous purchasing and selling in addition to untraceable payments with cryptocurrency.

Moreover, according to the Global Drugs Survey, the ready availability of drugs on the darknet that are purchasable using cryptocurrency has increased their use and made them more attractive to people contemplating first-time use:

“Over one quarter of participants reporting darknet market use in the last 12 months began their use in the year 2018: that is, they were new recruits to the darknet. These data confirm that darknet markets continue to attract new participants and that they are an increasingly significant players in the sale of distribution of illicit and prescription medication.”

How does cryptocurrency compare to other payment methods for drugs?

Before cryptocurrencies, fiat cash was mostly thought of as the most anonymous way of carrying out illegal transactions, because of the fact it is largely untraceable. But even as Bitcoin’s popularity grows, cash still appears to keep its central role in facilitating offender profits.

Europol’s report notes that this occurs for a number of reasons. The first one is that hard cash is a tried-and-tested payment system that’s been utilized for centuries. Consequently, well-established procedures for laundering funds exist. Another benefit that traditional cash has over its electronic counterparts is the fact it is equally as untraceable (with the exclusion of consecutive numbers) and anonymous while being simpler to swap.

Most cryptocurrency exchanges and online wallet providers need at least some fundamental Know Your Client, or KYC, information to be able to validate the identities of the clients.

The Europol report says that exchanges are normally very cooperative in regards to identifying poor actors. Cash, on the other hand, can be exchanged between strangers and laundered in numerous ways without advice about these involved being forced public.

A Ciphertrace report discovered that, despite the fact that there are many different cryptocurrencies utilized on the black markets, Bitcoin is still the coin of selection at 76% of trades.

That is unsurprising, considering Bitcoin is the very well-known and broadly approved cryptocurrency: Litecoin is reported to be used in only 7% of cases, whilst solitude coins like Monero (XMR) are just cited as being used in 4 % of trades, in spite of popular belief.

How have cryptocurrencies changed the purchase of illegal drugs?

Why use cryptocurrency to buy illegal drugs?

Cryptocurrencies can provide fast and anonymous digital payment.

Before cryptocurrency existed, such transactions were carried offline, and the payment involved a physical transport of cash.

Of course, these previous payment methods limited the availability of illegal drugs because there always was a risk to be intercepted by governments.

The co-founder and principal scientist in blockchain analytics company Elliptic, Tom Robinson, said that the advantages of anonymity for both drug traders can be restricted by the capability to cash out their crypto gains:

“The challenge for drugs traffickers is how to cash-out the proceeds of their sales. Most cryptocurrency exchanges make use of cryptocurrency transaction monitoring tools such as Elliptic’s, which use blockchain analysis to determine whether funds are coming from sources such as dark markets.”

“One trend we are seeing is the increased acceptance of privacy coins such as Monero on dark markets where narcotics are available to purchase. Most new markets now accept Monero payments, typically alongside Bitcoin. This represents a threat to law enforcement’s ability to trace this kind of activity and bring those involved to justice.”

Robinson stated that the usage of Monero is rising:

“First, what has become apparent and is slightly unexpected is that the emergence of privacy coins has not overly impacted the widespread use of the less anonymous Bitcoin in illegal trade. The privacy coins offer many advantages to criminals, but it seems the ‘first mover advantage’ of Bitcoin makes it difficult to replace now that its adoption in dark markets has become widespread. Put simply, it is not the best cryptocurrency to use for crime, but nevertheless remains the most popular.”

Are cryptocurrencies the best payment option for drug dealers?

Anonymity is a basic characteristic of cryptocurrencies which has been both criticized and celebrated in equivalent amount ever since their creation. But people buying and selling medication using cryptocurrency are not as straightforward as they may wish.

The blockchain records are public and are accessible by anyone who wishes to do so. Blockchains record all transactions made between all addresses. Until the consumer launders the trade by means of a set of intermediary accounts, the destination and origin of the trade can readily be discovered.

According to professor Robinson, the addresses can be traced back to public documents.

“Cryptocurrencies are far less anonymous and less private than many people in the drug trade might hope. The analytical methods that we have developed for the Bitcoin blockchain allow a lot of the illegal activity to be identified and monitored. Continued raids and crackdowns by law enforcement agencies also speak to the ability of authorities to track at least some of the illegal activity in Bitcoin and other cryptocurrencies.”

Even though it might enable trades to have a higher degree of anonymity than traditional wire transfers, cashing out crypto which has been formerly used for prohibited purposes remains a complex and dangerous process.

For all these reasons, cryptocurrency is not likely to fully replace fiat as the choice of cash for prohibited trades anytime soon.

While the opinion that cryptocurrency is only a payment method like any other can be somehow correct, its anonymity making it increasingly appealing to folks seeking to purchase or sell illegal drugs.

However, as technology improvements and anonymous cryptocurrencies become more broadly accepted, cryptocurrencies have the capability to influence the structure and growth of black markets along with the illegal drug trade.