The Ethereum Merge Is Complete: From PoW to PoS

The Ethereum Merge Is Complete: From PoW to PoS

The upgrade from a proof-of-work (PoW) to a proof-of-stake (PoS) blockchain is now completed. What does this mean for the first programmable blockchain? 

On September 15, 2022, after years of development, Ethereum’s developers completed the Merge – the upgrade from a proof-of-work (PoW) to a proof-of-stake (PoS) blockchain. The PoS network is expected to power a more energy-efficient blockchain while reducing transaction fees and improving scalability. 

Potentially, the payoff could be huge. Ethereum should now use 99.9% less energy. According to one estimate, Ethereum’s energy consumption dropped from 77.77 TWh on September 14 to 0.01 TWh on September 16, 2022. 

The Ethereum Merge Is Complete: From PoW to PoS

The developers of Ethereum claim that the upgrade will bring the network, which houses many cryptocurrency tokens, to a more scalable and secure state. Ethereum’s TVL (Total Value Locked) is at about $30 billion, considering all its DeFi apps – DEXs, lending protocols, NFT marketplaces, and other apps.

The Ethereum Merge was completed at 7 a.m. UTC. However, the price of Ether (ETH) started to slowly decrease, dropping by 12% on the first day after the Merge. Ether’s price started a downtrend, and many investors are bearish.  

PoS Ethereum = no more ETH miners

In 2008, when Bitcoin was created, it introduced the concept of a decentralized ledger –  a single immutable record that computers all over the globe could access and trust without intermediaries.

In 2015, Ethereum was introduced. It expanded on the core concepts of Bitcoin’s blockchain by adding smart contracts. These smart contracts are bits of code that use the blockchain to record data onto its network and trigger automated transactions when certain pre-defined conditions are met. This innovation was key to decentralized financing (DeFi) and NFTs, which were the major catalysts for the recent crypto boom.

On Ethereum’s proof-of-work (PoW) network, crypto miners were responsible for verifying transactions and adding new blocks to the blockchain in exchange for rewards paid in ETH. These blockchain operations required miners to invest in expensive hardware equipment that was capable of solving the required cryptographic puzzles – hence the intensive energy consumption of the network. 

Ethereum miners were often organized in farms, which were actually huge buildings filled with mining equipment, similar to data centers, which were a huge strain on any energy network.  

PoS Ethereum

The new proof-of-stake system for Ethereum, which is a blockchain-based cryptocurrency, completely eliminates mining.

Miners are now replaced by validators. To become an Ethereum Validator, you must stake 32 ETH on the network. This means that maintaining Ethereum’s network security will not rely anymore on an energy-intensive computer network but the value of ETH stakes. It will require a similar level of electricity as any other computer software. 

Proof-of-stake is a system where the staked amount of ETH – and not the energy expended – determines who has control of the network. This makes attacks more costly and self-destructive, according to proof-of-stake boosters. Attackers can have their staked Ethereum slashed or reduced as punishment for trying to harm the network.

However, some are skeptical about the proof-of-stake security. There are no indications that Bitcoin, for example, will ever abandon the proof-of-work (PoW) consensus mechanism, as it is still seen as the more secure system. 

Now, Ethereum’s security relies on stakers

The upgrade to a PoS blockchain ends the network’s dependence on energy-intensive cryptocurrency mining.

The idea that Ethereum would eventually switch to proof of stake was clear from the beginning. However, the transition was complicated and risky. Many people doubted that it would ever happen.

The complexity of the update was exacerbated by the fact it was one of the most complex open-source software projects in history. It required coordination among dozens of teams as well as volunteers, researchers, and developers.

Tim Beiko, an Ethereum foundation developer, played a crucial role in the coordination of the update. He believed that more investors would become interested in crypto after this monumental milestone in the crypto universe. 

Vitalik Buterin, Ethereum’s creator, suggested that there’s still a long way ahead for the network: “This is the first step in Ethereum’s big journey towards being a very mature system, but there are still steps left to go.” 

Crypto Volatility Can Affect People’s Mental Health

Crypto Volatility Can Affect People’s Mental Health

Volatility is the name of the game when talking about anything involving cryptocurrencies. Most projects are especially prone to crypto volatility, especially as they are just starting out. They can experience dramatic price swings and fluctuate by double-digits within a single day. 

On one hand, wild price swings can be a great way to make profits (if you are lucky enough). But others will lose those funds at the same time and that can trigger some unexpected and intense emotional reactions from investors who are affected by this crypto volatility. 

While most of our daily activities don’t account for too much for it, mental health plays a huge part in establishing a well-balanced lifestyle. However, we shouldn’t ignore it and it is required to always pay attention to any emotional responses that our day-to-day interactions might make us feel. For instance, financial events play a key part in our emotional well-being. Considering the current bear market, the constant despair from the volatility of crypto markets can cause serious mental health damage.

Most of the time, crypto investors hide behind faceless Twitter accounts and unknown blockchain addresses. But in May 2022, when the Terra ecosystem collapsed when the UST stablecoin depegged, all of those involved were affected. Having to see your life’s saving dissolve in a matter of hours is not something our brain can easily comprehend and, unfortunately, there were many suicide cases that followed. 

There is no way to predict where this bear market will take us, but we know for sure that we can’t control the crypto volatility. However, one thing we can control is the state of our mental health and the ways to improve it. 

What is affecting mental health?

Sometimes, you might not even know that what you’re experiencing might be a normal emotional response to an outside event. Actually, professional traders know this and spend years training to ignore their emotions when trading assets. 

But even with all the knowledge, if you are still new in the crypto trading space, you will be under emotional pressure at some point. And that’s when you will make poor trading decisions. 

Trading requires more than technical and fundamental analysis. A trading mindset is crucial. It’s a known fact that anyone can make disastrous decisions under the pressure of emotions. This can lead to serious financial losses. 

The best thing you can do is to know (and stay away from) the exact moments and situations that might affect your mental health: 

  • Premature exit. Beginners are more likely to take quick profits after a successful transaction and then close the deal too soon. They lose part of the potential profits they might have made.
  • Dependence on market participants. Many traders are influenced by signals and opinions from established market participants. However, to reap the greatest benefits, you must be independent of these factors. One such example is Dogecoin and Elon Musk’s tweets.
  • Losses are difficult to accept. The cryptocurrency market is highly susceptible to emotional trends. The price of cryptocurrency will react immediately to various statements and rumors. It is not possible to eliminate the emotional influence.
  • Euphoria after the first deal. A positive emotion that comes with the first profit can make the trader lose control.
  • Gambler syndrome. This leads to taking uncalculated risks. For instance, investors may enter large transactions without really thinking about them.
  • FOMO (Fear Of Missing Out). FOMO is a fear of missing out on potential deals. 

And as if that’s not enough to make you lose your reason, there are other external factors that might affect your trading positions. Hackers are a major concern in the crypto industry. Besides volatility, crypto assets are more susceptible to hacking and other scams due to their digital, anonymous, and decentralized nature.

What can you do about it?

Remember that it’s not all doom and gloom when it comes to trading crypto. In fact, you can still be involved in the crypto space and make money with crypto without a big (is any) upfront investment. 

However, not all crypto investors are mentally affected by crypto’s volatility. Most people do not become addicted or emotionally engaged in trading digital assets. Remember that trading cryptocurrencies can have serious consequences for your mental health and general well-being. It is crucial that investors decide how much risk they are willing to take to limit the psychological effects of cryptocurrency stress.

Cryptocurrency Sees Massive Adoption in Retail Payments

Cryptocurrency Sees Massive Adoption in Retail Payments

According to crypto experts, cryptocurrencies will have a greater impact on the retail industry in the future as more people invest in digital currencies.

Although the cryptocurrency market appears to be in a bear market right now, it’s not hard to see that the industry has grown tremendously over the past few years, especially when looking at adoption.

According to a recent study by Insider Intelligence, digital assets will be used more often by Americans to make daily purchases. The study suggests that we will see a 70% increase in the use of digital assets for purchases by the end of 2022. This is a significant increase from 1.08 million users (in 2021) to 3.6 million users. The global crypto transaction volume is expected to hit $10.4 billion this year. 

The volatility of the crypto market is decreasing due to the increased use of stablecoins as well as central bank digital currencies (CBDCs). This will lead to more people considering these digital assets to be legitimate payment options. According to the research, 12.8% (33.7 million people) of the US population will hold crypto by the end of 2022.

This number could rise to 37.2 million by 2023. This is a realistic figure, especially considering that the number of investors who have entered the global crypto market has nearly doubled in the past 12 months, particularly when you consider that there are many countries such as India, Brazil, and Hong Kong that have seen a significant increase in their investment. 

Cryptocurrency Sees Massive Adoption in Retail Payments

It’s time to see massive crypto adoption in retail payments

Max Krupyshev, CEO of CoinsPaid, a crypto payments processor, believes that cryptocurrency payments will experience exponential growth over the next three years:

“I think we will be able to talk about tens of millions of users in the United States alone by 2025. The American market is a fertile ground for any innovative solutions. Another factor driving crypto’s adoption as a day-to-day transactional currency is that it is becoming increasingly easier to buy, spend these assets with global brands.”

He also stated that Asia could surpass America when it comes to crypto payments. The region is flexible in accepting new and upcoming technologies. We should also be aware of the increasing popularity of cryptocurrency in African countries. There is a high demand for crypto apps as well as alternative investment tools with a low entry threshold.

Brandon Dallman, the chief marketing officer of the DeFi ecosystem Unizen, believes that the cross-border remittance and retail payments ecosystem had been dominated for a long time by a few players such as Western Union, PayPal, and Stripe. With the rise of cryptocurrency in popularity, people can now bypass issues such as middlemen and high fees: 

“Fast blockchain networks are suitable rails for CBDCs like the digital dollar, euro etc. The blockchain that is able to cater to the demand put forward by financial institutions like stock exchanges and clearing houses will win the battle. We are seeing banks of all sizes dip their toes in the water to see how they can start to interact with the new digital world in front of them, driven by a growing fear of being left behind.”

But crypto may not be for everyone

However, not everyone is on the same page when it comes to the crypto adoption perspectives. The head of research and strategy at cryptocurrency exchange AAX, Ben Caselin, stated that although we might see custodial stablecoins being adopted in the near future, it is highly unlikely that we will be heading toward a massive crypto payments society.

“With increased integration, we can expect more vetting and regulation which will not bode well at all for crypto. There might be some venues where particular tokens may be the currency of choice, for example, a Bored Ape-themed restaurant is likely to accept payments in ApeCoin. But, other than that, I’m of the view that ultimately, real-world payments and store of value utility will converge on Bitcoin, although this does not discount the continued growth of online and offline micro-economies.”

However, he agreed that it was encouraging to see mainstream people get a better understanding of money. He noted that if merchants and corporations can actually hold the crypto assets they are paid with, this could be very exciting.

What cryptocurrency is suitable for retail payments?

Some of the top condensers for the role of retail crypto payments are Solana (SOL) and Bitcoin (BTC). Some believe that Solana (SOL) can easily accommodate everyday transactions, as it offers high speeds and low gas fees, making it more accessible. Bitcoin (BTC) is a bit more controversial, but it was already chosen as a legal tender in some countries (El Salvador and the Central African Republic), which may lead to a more mainstream approach and increase in popularity. 

Many of those already working in the crypto space believe that Bitcoin will be a more popular method of payment than any stablecoin even though most products and services are denominated using U.S. dollars. Some supporters say that Bitcoin (BTC) has proven its viability, having survived multiple crises and more than one crypto winter. Bitcoin seems to be working well for larger transactions, but can also become more viable for smaller transactions as a result of advances in solutions built on top of the Lightning Network.

However, it is unlikely that BTC-centric payments will be implemented at a mass scale over the next few years. This is due in large part to the fact production costs are still paid using fiat currencies. They are typically tied to the U.S. Dollar, Euro, British Pound, yen, or yuan.

Besides Bitcoin (BTC), Ether (ETH) could also be a strong contender for the go-to global payment crypto for retail businesses, due to its market dominance and popularity among investors. 

There is also no doubt that the most used and held cryptocurrencies will gain the most ground in the payments market. As transactional currencies, the 20 largest coins in market capital will prevail. And stablecoins will surely be part of that market. 

Mainstream and big companies are already accepting crypto payments

The popularity of crypto assets has increased rapidly, with many famous brands now accepting digital currencies. Microsoft accepts Bitcoin crypto payments for its various services, including Xbox Live, Microsoft Apps, and games.

Overstock, an American online furniture retailer, appears to be the leader in crypto shopping. The reason is that the company currently accepts a variety of digital tokens including Bitcoin, Litecoin (LTC), Ether (ETH), and Monero (XMR ). Home Depot, America’s largest hardware store chain, accepts Bitcoin payments via Flexa’s checkout system. This is a crypto payments ecosystem supported by Gemini.

Starbucks also has partnered with Bakkt futures exchange, which allows users to pay for their coffee and other digital goods using digital assets. This is also true for American supermarket chain Whole Foods. Recently partnered with SPEDN, allowing users the ability to purchase all their groceries using BTC or LTC. SPEDN does not only apply to Whole Foods. It also allows users to use their digital holdings at Jamba Juice, Jamba Juice, Regal Cinemas, and Baskin Robbins.

AT&T, the first American telecom provider, has offered its clients crypto payments. BitPay is a third-party payment portal that allows users to access the company’s services and offerings using Bitcoin.

Other than the ones listed above, there are many other notable brands that accept crypto payments. These include entertainment company AMC, travel booking agent Travala and American department store franchisee JCPenney (through gift cards). GameStop is also accepting crypto payments.

We are moving into a future in which digital currencies will continue to grow in popularity at an alarming rate. It will be fascinating to see how crypto integrates into the global retail landscape, particularly in terms of competing with or complementing existing fiat payments systems.

Smarter money with blockchain: Project Ubin in Singapore

Smarter money with blockchain: Project Ubin in Singapore

Singaporean monetary institutions are known for their efficacy. The state’s public policy is seen as a blueprint to other fundamental systems round the world. The Monetary Authority of Singapore (MAS) has also taken the lead of the investigation regarding the potentials of distributed ledger technology in relation to banking and finance software.

MAS partnered with a range of financial institutions and venture blockchain technology organizations to make Project Ubin. It implemented real-time gross settlement (RTGS) systems with complete transaction privacy and settlement finality while avoiding single points of failure. Project Ubin efficiently reimagined institutional infrastructure in Singapore by implementing blockchain platforms.

By experimenting with technology that aims to improve transparency and enhance efficiencies, MAS indicates that it is prepared to future-proof its recognized procedures. MAS has established a multi-phase practice in partnership with a consortium of international banks, dispersed ledger technology, and blockchain providers.

“DLT has shown potential in making financial transactions and processes more transparent, resilient, and at a lower cost. The project aims to help MAS and the industry better understand the technology and the potential benefits it may bring through practical experimentation. This is with the eventual goal of developing simpler to use and more efficient alternatives to today’s systems based on digital central bank issued tokens.” – The Monetary Authority of Singapore

Together, they demonstrated how the tokenised Singaporean dollar may be a method for everyday inter-bank settlement. The goal was to enhance how trades are settled compared to the present system, where they’re queued and occasionally netted. The project determined the programs tested could function as foundations for distributed ledger-based RTGS systems.

At the conclusion of Stage 2, MAS supplied open-source access to this code and supporting information from the practice.

Having demonstrated that blockchain technology functions for interbank settlement, Project Ubin proceeded on to interconnecting blockchain networks.

Stage 3 (Delivery-versus-Payment) was a project with SGX on growing capacities for simultaneous transactions and final settlement of tokenised electronic currencies and securities resources on various blockchain platforms. The capability to carry out these tasks concurrently improves operational efficiency and reduces settlement dangers.

Stage 4 (Payment-versus-Payment) appears at linking up blockchain payment systems for cross-border payments. Stage 4 began as a cooperation with Bank of Canada and Bank of England on a tech-agnostic overview of present obligations versions and new alternative versions that could improve cross-border settlements and payments. It then continued as a technical experiment to join the experimental national payment systems of Ubin and Jasper by Bank of Canada, for cross-border payments. The project demonstrated the capability to join both networks and permit Payment-versus-Payment (PvP) settlement with no necessity for a reliable third party to serve as an intermediary.

The project is now into its fifth stage – Stage V. This stage concentrates on creating the version of the multi-currency payment, among those other models described in Stage 4, with the intention of business testing with commercial uses. This stage requires a step past technical experimentation, researching and understanding the wider ecosystem advantages of empowering business opportunities which were previously impossible or not cost-effective. The Phase V network will offer connectivity ports for additional DLT networks to join and integrate easily, providing added features to encourage use-cases like DvP together with trades, programmatic escrow, and conditional obligations for Trade and Trade Finance.

Why don’t people pay with Bitcoin?

Why don’t people pay with Bitcoin?

Ever since Bitcoin first was created, 11 years ago, the community around it grew and for the past few years, everyone started talking about mass adoption. But before even thinking about Bitcoin replacing cash and traditional fiat, we need to overcome the handicap we are facing right now and answer the question: Why don’t people pay with Bitcoin?

Probably one of the main reasons nobody spends Bitcoin is because nobody earns Bitcoin on a regular basis. If this ever changes then we can expect a whole lot more stream. It isn’t ideal to purchase Bitcoin and then to use it to buy something else. But for those who have it coming in their wallet each week, the mindset is different.

What are the reasons people refuse to use Bitcoin for everyday payments? Why don’t people pay with Bitcoin?

Tax And Regulations

Why don’t people pay with Bitcoin? There’s no denying that taxation issues aren’t helping with the Bitcoin mass adoption.

As a normal consumer and taxpayer, why would an individual want to complicate his or her life with paying tax for cryptocurrency, when they have a complicated enough life as it is? Most won’t bother.

The taxation of Bitcoin has another major issue – Bitcoin’s volatility. To understand how volatility can affect a Bitcoin holder, consider this: An individual can purchase 0.1 BTC when the price of Bitcoin is $10000 and then trade it a number of times, ending with a net profit of 0.005 BTC by the end of the year. This concludes that your total amount of Bitcoin is 0.015 BTC. But consider that the current price of Bitcoin is $6000. So even with an increase in the amount of BTC, there is still a cut from the initial price and since the tax needs to be paid in USD, it boils down to whether declare this situation a reduction or a profit. This case needs to be clearly defined if there will be voluntary compliance.

Most Bitcoin owners are confused about the regulations are believe it is unfair to pay double taxation. VAT is a widely applied outside the US and it already represents a tax and paying yet another tax just because something is being bought with Bitcoin would result in double taxation.

On top of that, it wouldn’t be realistic to assume that the authorities and the financial institutions will simplify the tax collecting procedure while they haven’t sorted out what’s the best way to tax Bitcoin, in the first place. And this leads to another point, regulation of Bitcoin. Regulating Bitcoin will take a great deal of time.

And regulation needs to be comprehensible by most individuals. Paying tax for something that was created to avoid this old system in the first place, is not something most accept and for good reason. People don’t like paying taxes if they don’t understand where their taxes are going or doing for them.

Can paying taxes be avoided? Yes. 

But taxes are not a problem for those using services which don’t send out tax reports for purchases made with Bitcoin, such as BitRefill, eGifter and OverStock. Many use such services to purchase good using Bitcoin while paying not paying taxes for the cryptocurrency spent.

Hoarding coins

Why don’t people pay with Bitcoin? There are certainly lots of reasons why ordinary consumers don’t use Bitcoin to pay for services or products.

We must bear in mind that the image of Bitcoin that was portrayed since 2018  throughout financial debates is not reflecting the entire picture and it is starting to fade. Obviously, one major reason behind the adoption problem is that many retailers lack cryptocurrency payments because they are only holding crypto in for that potential bull run. And we might not really blame these individuals since for certain Bitcoin is a fantastic digital advantage to hold as an investment.

The crypto community tends to agree on the fact that the big majority aren’t spending their Bitcoin because they are hoarding their coins. That’s why it is expected to see a higher volume of trades when the Bitcoin price goes up, as many are waiting to cash in on their profits.

In the speculative market we have today, holding your Bitcoin for better days is what most seem to be doing. It is simply too risky to pay with Bitcoin and to precious to sell it.

To put in a simple sentence, the answer to “Why don’t people pay with Bitcoin?” is “Because people don’t earn simply Bitcoin, they don’t understand regulation and taxation and see it way too risky due to the speculative market.”

Crypto World November 2019: Bitcoin Lightning, BTC ATMS, Ripple acquired MoneyGram

Crypto World November 2019: Bitcoin Lightning, BTC ATMS, Ripple acquired MoneyGram

Bitcoin’s Lightning Network Can Be Used for Private Messaging

Lightning Labs revealed an experimental project: Whatsat, an application of the lightning network which may be utilised to send private messages.

Just like bitcoin, it is censorship-resistant. However, unlike encrypted programs that morph messages to info, securing the text to keep the messages private from prying eyes, there is no central thing to prevent users from using the system.

The developer Joost Jager said:

“Lightning is a peer to peer network in which anyone can participate. There is no central entity that has the ultimate power to decide on [what] users are allowed to communicate.”

Personal messaging is a huge thing in the electronic era, but it is still simple for bad intentioned actors to intercept messages which are not encrypted.

Ghana May Issue Digital Currency in ‘Near Future’

The governor Ghana’s central bank, Ernest Addison, stated that Ghana might issue an electronic form of the country’s currency, the cedi in the”near future”. He also said they are in discussions to develop a pilot project in a “sandbox environment”.

Addison’s opinions, made in Ghana’s Annual Banking Conference, were revealed in a public transcript.

The Bank of Ghana governor said Ghana is experiencing rapid digitization with the help of the mobile banking industry. “Mobile cash” transfers grew by 70% from 2017 to 2018.

Addison said he’d approved that the central bank to issue digital money backed 1:1 by cedi and held electronic wallets Monday. But the digital money is different from cryptocurrency. The governor stated in the press conference:

“It is just electronic money backed by currency,”

So [the central bank] cannot create money; they are only having an electronic representation of the cedi that the Bank of Ghana puts into circulation. So it is not crypto.”

Simon Malls Has 5 New Bitcoin ATMs

Bitstop set up five bitcoin ATMs at Simon Property Group locations within the last month: Carlsbad Premium Outlets in Carlsbad, California, Mall of Georgia in Buford, Georgia, Miami International Mall in Miami, Sawgrass Mills in Sunrise, and The Avenues at Jacksonville, Florida.

They are a part of Bitstop’s drive to woo crypto beginners: individuals who shop at malls, do not know much about blockchain and have a bitcoin wallet.

The co-founder and CEO Andrew Barnard explained these places are similar to the old cliche: “If you build it, they will come.”

“Once you put these ATMs down and you give people easy access, the people go and figure out how to use it,”

With these new places, Bitstop is continuing to build out vulnerability among novices and handhold them through the process of purchasing their very first bitcoin. He explained the kiosks represent a gateway to first-timers.

He said individuals buy from an ATM within an investment, but also to then purchase on the internet or send remittance payments residence.

The average purchase is $160 bucks. And Barnard said traffic is particularly heavy around the 1st and 15th day of every month, which he explained is money back for many consumers.

China’s Digital Yuan Will Target Retail Payments First

Speaking in the Caixin Hengqin Forum at Zhuhai, former leader of the People’s Bank of China Xiaochuan Zhou said the nation will highlight the retail usage of electronic payment to the electronic yuan.

“There are two goals for international digital currencies,”

“The first one, which is also what China envisions is to develop digital payment and its use for retail system in the country, while the other goal is to cross-border payment for international financial institutions.”

According to Zhou, both of these aims will need different technical designs for the electronic yuan, and China may expand its capacities once it implements the electronic payment role.

Zhou said China is a challenging environment to try the new electronic money, and a country with a smaller population might be better because the cycle for money flow is briefer.

“In case there is something wrong, it will be easier to steer the boat into a different direction,”

Ripple Has Acquired MoneyGram For $50 Million

Ripple made the final payment to purchase MoneyGram at a cost of $4.10 per share, which is over a dollar per share of the stock’s recent price of approximately $3.00. The action first started in June 2019.

Ripple owns just under 10% of MoneyGram’s outstanding common stock.

MoneyGram plans to utilize this funding inflow to support its operations, specifically since it expands its usage of Ripple’s On-Demand Liquidity product, the renamed xRapid payment system which uses the XRP cryptocurrency.

Since June, MoneyGram has started using XRP to run trades in Europe, Australia and the Philippines, and now transacts approximately 10% of its own Mexican peso foreign exchange trading volume.

In an announcement, MoneyGram chairman and CEO Alex Holmes said that the venture was “transformative,” noting that the corporation could settle trades “in seconds.”

South Korea Takes Legal Step to Stamp Out Unregistered Crypto Exchanges

South Korea passed a legal amendment to oblige assets exchanges to register with the  Financial Services Commission (FSC).

This change was made to align fight money laundering,  and it asks crypto exchanges to have so-called actual name virtual bank account – sub-accounts for consumers inside a market’s main account – to avoid falling foul of the laws.

The opposition lawmakers had voiced worries that exchanges without real-name digital balances would be made to shut, bringing additional contraction of the national cryptocurrency market.

In 2018, the FSC outlawed anonymous digital balances with the consequence that just four exchanges were abandoned with real-name digital balances through contracts with local banks: Bithumb, Upbit, Korbit, and Coinone.

Ukraine Plans to Tax Crypto Gains at Low 5% Rate

Ukraine’s parliament received a cryptocurrency tax draft bill.

Written by 13 members of the parliament, the bill defines crypto-assets as a “special type of valuable property in the digital form, created, accounted for and disposed of electronically,”, for example, cryptocurrencies, tokens and other forms are not defined in the draft.

“We are confident that the adoption of this [draft] law will create conditions for the launch of the virtual assets market in line with the legislation of Ukraine, taking into account the balance of interests of entities engaged in transactions with virtual assets and the state, which will get additional tax revenue from such transactions,” said the ministry.

If the bill passes parliament, the earnings from trading assets will be calculated as the difference between the buy price and the price received in the sale. Profits should be declared as “other” form of earnings, while reductions might not be balanced to decrease the whole financial result before taxation, the record states.

Crypto income will generally be taxed at the normal speed, which will be 18% in Ukraine. However, in better information for dealers, there is a first 5% rate on private income from the selling of crypto assets to get a five-year period after approval of the invoice (assuming it moves).

Revenue of crypto assets wouldn’t be responsible for value-added tax (VAT).

Tokenized assets would observe another tax program, being described as electronic assets certifying possession or non-property rights. In such cases, tokens are taxed in precisely the exact same manner as the products or services financing them.

Michael Chobanian, creator of this Ukraine-based crypto trade Kuna and president of this Blockchain Association of Ukraine, stated he considers the law would operate, however, there are additional challenges confronting the business which have to be dealt with.

“If the National Bank of Ukraine doesn’t allow banks to open accounts for crypto businesses in Ukraine nothing for the industry will really change,” Chobanian said.

The ministry lately declared a partnership with all the Binance cryptocurrency market for help developing regulations for crypto from the nation.

Coinbase has added support for 5 new crypto options to its Visa debit card

Coinbase declared that holders of Coinbase Card are now able to spend XRP, basic attention token (BAT), augur (REP), 0x (ZRX) and stellar (XLM). These add to the already available options: bitcoin (BTC), ether (ETH), bitcoin cash (BCH) and litecoin (LTC).

Coinbase clients in Bulgaria, Croatia, Denmark, Hungary, Iceland, Liechtenstein, Norway, Poland, Romania and Sweden have also been given access to Coinbase Card.

Zeeshan Feroz, CEO in Coinbase UK, said in a statement:

“By more than doubling the number of assets our customers can spend on Coinbase Card, as well as introducing the card to 10 new countries, Coinbase continues to help drive crypto’s role as a utility, and not just an investment.”

The Coinbase Card has been introduced back in April to function both the U.K. and EU states. Coinbase issues it “immediately” and converts cryptocurrency into fiat money when clients make a trade using the debit card.

According to the company, the card may be used anywhere that accepts Visa. There are charges for ATM transactions over the value of $200 – 1% domestically and 2% international, and fees for some trades.

Coinbase also supplies an iOS and Android program which allows users to create Visa obligations on their cellular devices. The Coinbase Card is issued by Paysafe Financial Services Limited, a company approved by U.K. regulator, the Financial Conduct Authority.