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How to set up a secure offline savings wallet – Bitcoin Wiki

How to set up a secure offline savings wallet

Why Set up an Offline Savings Wallet?

Modern operating systems are very complexity, leading to a large attack surface. They also permanently leak information without the user’s skill or consent.

No matter how many precautions you take, it is very hard to ensure your wallets is reasonably secure on an Internet connected computer.

Because Bitcoins can be stored directly on your computer and because they are real money, the motivation for sophisticated and targeted attacks against your system is very high. Previously, only large organizations had to worry about advanced attacks.

Overview of existing solutions

The bitcoin ecosystem is still relatively youthful and unluckily not many user friendly and very secure wallets have been developed yet.

Today these are the two best ways to secure your bitcoins against theft:

A hardware wallet has two functions – it stores your Bitcoins in a hardened device that is designed to be elementary and very resistant to the usual range of attacks (viruses, hackers, keyloggers).

Cold storage wallets generates and stores private wallet keys on a clean air-gapped computer.

Used correctly, an air-gapped wallet is safe from all online threats, such as viruses and hackers. It is however still exposed to offline threats, such as hardware keyloggers, extortion, or people looking over your shoulder.

To spend funds from cold storage securely, an unsigned transaction is generated on an Internet connected computer. An unsigned transaction is akin to to an unsigned check. The unsigned transaction is then transfered to the air-gapped computer to be verified & signed with the wallet keys.

Using a cold storage wallet on an air-gapped computer may seem tedious, but recall that security almost always comes at the cost of convenience.

Security warning

When you deposit money at a bank, you let them worry about security. Bitcoins, however, are stored on your computer and that means you are fully responsible for securing them.

Unluckily, most people are not security experts, which means it’s very hard for them to fully understand the risks. They usually don’t. This increases the risk of making a fatal mistake that will result in Bitcoin theft.

For example, paper wallets are typically generated by potentially compromised PCs connected to the Internet, then printed for offline storage. This is not enough as malware running on the computer may steal your private keys and then later steal any Bitcoin you send to that address. Many Internet connected printers also save printed documents to memory.

Setting up an offline wallet from scrape

There used to be no other way to setup an offline wallet than to do it from scrape. Today there are solutions such as BitKey that can help simplify the process.

If you’re still interested in doing things the hard way, the rest of this guide will instruct you on how to create an offline wallet by palm.

How to Deposit Funds

  1. Sign up for a few different cloud drive accounts such as Dropbox or Google drive.
  2. Create a strong and unique passphrase offline (by hand). This passphrase should be TRUELY random. Diceware is a good way of generating the passphrase. It should be at least twelve words long.
  3. Never use this passphrase elsewhere, especially not on the web.
  4. Do not leave behind this passphrase. Recite it several times a day. It is effortless to overestimate your capability to recall a passphrase several months in the future. To be on the safe side, write it down and store the chunk of paper in a safe deposit box.
  5. Download Bitcoin-Core Linux binary and save it on a USB drive.
  6. Verify the software’s release signatures from an alternative device and internet connection (eg. your smartphone). This makes sure you are not using a malicious program that poses as the bona fide bitcoin-core client.
  7. Shut down your computer, and boot Ubuntu (or Linux distribution of you choice) from a liveCD. This will not affect your current operating system.
  8. Disconnect machine from the internet. Unplug any network cables and disable wireless. Verify that wireless is disabled in the icon on the upper right corner (Ubuntu). Dual check that machine is disconnected by opening the web browser.
  9. Run bitcoin while disconnected to the internet. The client will showcase zero connections and zero blocks, but it will still generate a wallet.dat file and a bitcoin address.
  10. Encrypt your wallet using the strong and unique password from step two above. (Bitcoin Client > Settings > Encrypt wallet)
  11. Copy wallet.dat (found in hidden folder .bitcoin in your home directory) to USB drive.
  12. Save bitcoin address to a text file and copy it to USB drive.
  13. Shut down system and turn off computer. Before switching your computer on again, liquidate all power sources for about one minute. Physically liquidate battery from laptop.
  14. Backup encrypted wallet.dat file in several places:
    • Send it to your five best friends by email attachment and ask them to save it for you.
    • Save it on your cloud drive accounts created in step 1.
    • Save it on several USB drives and CDs and store them in different geographic locations.
  15. Send bitcoins to the address saved on the USB drive. Dual check in the block explorer that they have been sent or you can add Witness Bitcoin Address in BlockChain Wallet.

How to Retrieve Funds

  1. Boot from Ubuntu liveCD, as in step five above.
  2. Insert USB drive.
  3. Run bitcoin client and close it again.
  4. Substitute wallet.dat in

/.bitcoin directory with wallet.dat from USB drive.

  • Connect to the internet.
  • Restart bitcoin client.
  • Wait for blocks to download (optional).
  • Send bitcoins.
  • How to Setup Observe Bitcoin Address

    Observe Bitcoin address is a way for you to check your cold storage balance online without exposing your private key.

    Related video:

    How to invest in bitcoin without getting hurt by volatility

    The bread blog

    Do you think that bitcoin might be a good investment, but don’t want to rail the roller coaster of volatility? Do you wish you could invest in bitcoin while reducing the bite of unexpected swings in price? If so, this post is for you.

    Over the last eight years, bitcoin has made headlines for its violent movements in price. With unprecedented impulses, both upwards and downwards, bitcoin tests the emotions of people who own and trade the world’s most popular cryptocurrency. It feels good when your investment goes up 10% in a single day, but terrible when the market moves against you.

    We aren’t going to dwell on the reasons for this volatility, but suffice it to say that as bitcoin matures into a globally trusted store of wealth, its volatility should proceed to decrease. But even however the price is much less sensitive today than it was a few years ago, it still bounces around enough to make the average investor dizzy.

    Let’s begin by taking a look at an example of what can happen if you don’t have a disciplined strategy to treat volatility. Imagine that it is January 1st, 2013. Bitcoin is trading at about $13 per coin. You determine to speculate a little and buy ten bitcoin for $130. By October 30th, bitcoin is at $194 per coin, netting you a comfy $1,810 build up from your initial investment. Wow, what a rail! You wish you had bought more. You determine to be responsible and sell half of your bitcoin. But the joy isn’t over yet. Despite the incredible rise up to that point, bitcoin hasn’t even gotten began. By November 30th, 2013, bitcoin is now trading at it’s all time high of more than $1,100 per coin.

    You begin to fright. Maybe you shouldn’t have sold half of your bitcoin? You still have five BTC, or $Five,500 worth, plus the $970 in cash that you received when you sold the other half. But what if this is only the beginning? What if bitcoin is going to $Ten,000 next?

    So you buy. But this time, you empty your entire savings account, and scrape together $20,000. Bitcoin is going to the moon and you are going all in with more than eighteen BTC! Then December 1st rolls around and the price drops 10%. Uh oh. That doesn’t feel good. But the real agony is yet to come. Over the next eighteen months you witness your precious investment leisurely disintegrate, bottoming out at under $200 per coin. Congratulations, you’ve turned $20,000 into $Trio,600, a -82% comeback.

    We’ve all very likely heard stories like this one before. Some of us are unlucky enough to have lived through something similar. The bad news is that we can’t switch human nature: people will always buy and sell assets with some degree of emotion involved. The good news is that there is a elementary, time-tested strategy for combating high volatility known as dollar-cost averaging: investing the same amount of money on a regular basis (e.g. buying $50 worth of bitcoin each month, regardless of price). Using this technology permits you to dramatically reduce your risk, while providing up some potential comes back.

    Let’s take a look at a brief analysis to demonstrate just how powerful the effect can be. For our comparison, we’re going to model the finances of Jill and Bob. Both have an extra $50 every month that they would like to save or invest. Jill determines to put her money into bitcoin, and Bob, who is a little more risk reluctant, determines to keep his money in cash. We’re going to see who has more in savings after a duo different time frames, to determine whether dollar-cost averaging indeed protects us from troughs and spikes in the bitcoin price.

    We’ll examine two different embarking dates, and for our end date, we’re going to roll back the clock seven months ago to September 1st, two thousand sixteen when the price of bitcoin was $450. This is a good place to stop because since then, the price of bitcoin has skyrocketed and a bitcoin holder couldn’t lose money if they attempted.

    Very first, let’s have a little joy, and imagine that Jill and Bob began their parallel journeys on August 1st, 2010. The price of bitcoin on that day was $0.05 per coin, and for her very first contribution, Jill collected eight hundred eighteen BTC. No, that’s not a typo! Bob, meantime, stashed $50 under his mattress.

    So what happens when we rapid forward to our end date on September 1st, 2016? The bottom line: Jill has $1,540,587 in savings (Trio,432 BTC at $450 per coin), and Bob has $Three,300:

    Clearly Jill is the winner, but winning is effortless if we embark the experiment during the early days, when a single bitcoin was worth pennies. You’ll notice that her spectacle (shown in blue) is so good that Bob’s savings (shown in crimson) show up to be plane. But we’re attempting to figure out if dollar-cost averaging works in any situation, including times when the price completes lower than it commenced. Let’s take a look at what happens if Jill and Bob begin their competition at the absolute worst time possible, when bitcoin began its prolonged decline from $1,100 on November 30th, 2013. Here’s what the numbers look like:

    Here, the story gets a little more interesting. Instantaneously following the crash in bitcoin price, Bob pulls ahead of Jill, and proceeds to do better for almost two years. But because Jill was accumulating so much bitcoin at depressed prices, when bitcoin began to rise again, the value of her savings tripled. Kicking off at $1,100 per coin, railing the grind to $200 and ending at $450 per coin, Jill’s final balance actually strike Bob’s by $348!

    That’s how dollar cost averaging protects you in the long run: you end up buying less of the asset when the price is high, and more of the asset when the price is low. Over time, the dips helped Jill to accumulate more bitcoin, and the deeper the dips, the more upside she realized when the price rebounded.

    This mechanism is superb for people who believe in the potential of bitcoin, but don’t want to make a mistake and time the market incorrectly. By setting a regular buy of a immobile dollar amount, you’ll be able to feel comfy with your bitcoin investment despite which direction the price goes in the brief run.

    If you liked this post and want to be notified about significant developments in the bitcoin world, subscribe to our mailing list.

    How to invest in bitcoin without getting hurt by volatility

    The bread blog

    Do you think that bitcoin might be a good investment, but don’t want to rail the roller coaster of volatility? Do you wish you could invest in bitcoin while reducing the bite of unexpected swings in price? If so, this post is for you.

    Over the last eight years, bitcoin has made headlines for its violent movements in price. With unprecedented impulses, both upwards and downwards, bitcoin tests the emotions of people who own and trade the world’s most popular cryptocurrency. It feels good when your investment goes up 10% in a single day, but terrible when the market moves against you.

    We aren’t going to dwell on the reasons for this volatility, but suffice it to say that as bitcoin matures into a globally trusted store of wealth, its volatility should proceed to decrease. But even tho’ the price is much less sensitive today than it was a few years ago, it still bounces around enough to make the average investor dizzy.

    Let’s begin by taking a look at an example of what can happen if you don’t have a disciplined strategy to treat volatility. Imagine that it is January 1st, 2013. Bitcoin is trading at about $13 per coin. You determine to speculate a little and buy ten bitcoin for $130. By October 30th, bitcoin is at $194 per coin, netting you a convenient $1,810 build up from your initial investment. Wow, what a rail! You wish you had bought more. You determine to be responsible and sell half of your bitcoin. But the joy isn’t over yet. Despite the incredible rise up to that point, bitcoin hasn’t even gotten began. By November 30th, 2013, bitcoin is now trading at it’s all time high of more than $1,100 per coin.

    You commence to scare. Maybe you shouldn’t have sold half of your bitcoin? You still have five BTC, or $Five,500 worth, plus the $970 in cash that you received when you sold the other half. But what if this is only the beginning? What if bitcoin is going to $Ten,000 next?

    So you buy. But this time, you empty your entire savings account, and scrape together $20,000. Bitcoin is going to the moon and you are going all in with more than eighteen BTC! Then December 1st rolls around and the price drops 10%. Uh oh. That doesn’t feel good. But the real ache is yet to come. Over the next eighteen months you see your precious investment leisurely disintegrate, bottoming out at under $200 per coin. Congratulations, you’ve turned $20,000 into $Trio,600, a -82% comeback.

    We’ve all very likely heard stories like this one before. Some of us are unlucky enough to have lived through something similar. The bad news is that we can’t switch human nature: people will always buy and sell assets with some degree of emotion involved. The good news is that there is a elementary, time-tested strategy for combating high volatility known as dollar-cost averaging: investing the same amount of money on a regular basis (e.g. buying $50 worth of bitcoin each month, regardless of price). Using this mechanism permits you to dramatically reduce your risk, while providing up some potential comebacks.

    Let’s take a look at a brief analysis to demonstrate just how powerful the effect can be. For our comparison, we’re going to model the finances of Jill and Bob. Both have an extra $50 every month that they would like to save or invest. Jill determines to put her money into bitcoin, and Bob, who is a little more risk reluctant, determines to keep his money in cash. We’re going to see who has more in savings after a duo different time frames, to determine whether dollar-cost averaging indeed protects us from troughs and spikes in the bitcoin price.

    We’ll examine two different commencing dates, and for our end date, we’re going to roll back the clock seven months ago to September 1st, two thousand sixteen when the price of bitcoin was $450. This is a good place to stop because since then, the price of bitcoin has skyrocketed and a bitcoin holder couldn’t lose money if they attempted.

    Very first, let’s have a little joy, and imagine that Jill and Bob began their parallel journeys on August 1st, 2010. The price of bitcoin on that day was $0.05 per coin, and for her very first contribution, Jill collected eight hundred eighteen BTC. No, that’s not a typo! Bob, meantime, stashed $50 under his mattress.

    So what happens when we quick forward to our end date on September 1st, 2016? The bottom line: Jill has $1,540,587 in savings (Three,432 BTC at $450 per coin), and Bob has $Three,300:

    Clearly Jill is the winner, but winning is effortless if we commence the experiment during the early days, when a single bitcoin was worth pennies. You’ll notice that her spectacle (shown in blue) is so fine that Bob’s savings (shown in crimson) emerge to be plane. But we’re attempting to figure out if dollar-cost averaging works in any situation, including times when the price completes lower than it began. Let’s take a look at what happens if Jill and Bob begin their competition at the absolute worst time possible, when bitcoin began its prolonged decline from $1,100 on November 30th, 2013. Here’s what the numbers look like:

    Here, the story gets a little more interesting. Instantaneously following the crash in bitcoin price, Bob pulls ahead of Jill, and resumes to do better for almost two years. But because Jill was accumulating so much bitcoin at depressed prices, when bitcoin began to rise again, the value of her savings tripled. Kicking off at $1,100 per coin, railing the grind to $200 and ending at $450 per coin, Jill’s final balance actually strike Bob’s by $348!

    That’s how dollar cost averaging protects you in the long run: you end up buying less of the asset when the price is high, and more of the asset when the price is low. Over time, the dips helped Jill to accumulate more bitcoin, and the deeper the dips, the more upside she realized when the price rebounded.

    This mechanism is excellent for people who believe in the potential of bitcoin, but don’t want to make a mistake and time the market incorrectly. By setting a regular buy of a immobilized dollar amount, you’ll be able to feel comfy with your bitcoin investment despite which direction the price goes in the brief run.

    If you loved this post and want to be notified about significant developments in the bitcoin world, subscribe to our mailing list.

    How to invest in bitcoin without getting hurt by volatility

    The bread blog

    Do you think that bitcoin might be a superb investment, but don’t want to rail the roller coaster of volatility? Do you wish you could invest in bitcoin while reducing the nibble of unexpected swings in price? If so, this post is for you.

    Over the last eight years, bitcoin has made headlines for its violent movements in price. With unprecedented impulses, both upwards and downwards, bitcoin tests the emotions of people who own and trade the world’s most popular cryptocurrency. It feels good when your investment goes up 10% in a single day, but terrible when the market moves against you.

    We aren’t going to dwell on the reasons for this volatility, but suffice it to say that as bitcoin matures into a globally trusted store of wealth, its volatility should proceed to decrease. But even however the price is much less sensitive today than it was a few years ago, it still bounces around enough to make the average investor dizzy.

    Let’s begin by taking a look at an example of what can happen if you don’t have a disciplined strategy to treat volatility. Imagine that it is January 1st, 2013. Bitcoin is trading at about $13 per coin. You determine to speculate a little and buy ten bitcoin for $130. By October 30th, bitcoin is at $194 per coin, netting you a comfy $1,810 build up from your initial investment. Wow, what a rail! You wish you had bought more. You determine to be responsible and sell half of your bitcoin. But the joy isn’t over yet. Despite the incredible rise up to that point, bitcoin hasn’t even gotten began. By November 30th, 2013, bitcoin is now trading at it’s all time high of more than $1,100 per coin.

    You embark to fright. Maybe you shouldn’t have sold half of your bitcoin? You still have five BTC, or $Five,500 worth, plus the $970 in cash that you received when you sold the other half. But what if this is only the beginning? What if bitcoin is going to $Ten,000 next?

    So you buy. But this time, you empty your entire savings account, and scrape together $20,000. Bitcoin is going to the moon and you are going all in with more than eighteen BTC! Then December 1st rolls around and the price drops 10%. Uh oh. That doesn’t feel good. But the real ache is yet to come. Over the next eighteen months you see your precious investment leisurely disintegrate, bottoming out at under $200 per coin. Congratulations, you’ve turned $20,000 into $Three,600, a -82% come back.

    We’ve all very likely heard stories like this one before. Some of us are unlucky enough to have lived through something similar. The bad news is that we can’t switch human nature: people will always buy and sell assets with some degree of emotion involved. The good news is that there is a elementary, time-tested strategy for combating high volatility known as dollar-cost averaging: investing the same amount of money on a regular basis (e.g. buying $50 worth of bitcoin each month, regardless of price). Using this technology permits you to dramatically reduce your risk, while providing up some potential comebacks.

    Let’s take a look at a brief analysis to demonstrate just how powerful the effect can be. For our comparison, we’re going to model the finances of Jill and Bob. Both have an extra $50 every month that they would like to save or invest. Jill determines to put her money into bitcoin, and Bob, who is a little more risk reluctant, determines to keep his money in cash. We’re going to see who has more in savings after a duo different time frames, to determine whether dollar-cost averaging indeed protects us from troughs and spikes in the bitcoin price.

    We’ll examine two different kicking off dates, and for our end date, we’re going to roll back the clock seven months ago to September 1st, two thousand sixteen when the price of bitcoin was $450. This is a good place to stop because since then, the price of bitcoin has skyrocketed and a bitcoin holder couldn’t lose money if they attempted.

    Very first, let’s have a little joy, and imagine that Jill and Bob began their parallel journeys on August 1st, 2010. The price of bitcoin on that day was $0.05 per coin, and for her very first contribution, Jill collected eight hundred eighteen BTC. No, that’s not a typo! Bob, meantime, stashed $50 under his mattress.

    So what happens when we quick forward to our end date on September 1st, 2016? The bottom line: Jill has $1,540,587 in savings (Three,432 BTC at $450 per coin), and Bob has $Trio,300:

    Clearly Jill is the winner, but winning is effortless if we begin the experiment during the early days, when a single bitcoin was worth pennies. You’ll notice that her spectacle (shown in blue) is so good that Bob’s savings (shown in crimson) show up to be vapid. But we’re attempting to figure out if dollar-cost averaging works in any situation, including times when the price completes lower than it began. Let’s take a look at what happens if Jill and Bob begin their competition at the absolute worst time possible, when bitcoin began its prolonged decline from $1,100 on November 30th, 2013. Here’s what the numbers look like:

    Here, the story gets a little more interesting. Instantaneously following the crash in bitcoin price, Bob pulls ahead of Jill, and proceeds to do better for almost two years. But because Jill was accumulating so much bitcoin at depressed prices, when bitcoin began to rise again, the value of her savings tripled. Embarking at $1,100 per coin, railing the grind to $200 and ending at $450 per coin, Jill’s final balance actually strike Bob’s by $348!

    That’s how dollar cost averaging protects you in the long run: you end up buying less of the asset when the price is high, and more of the asset when the price is low. Over time, the dips helped Jill to accumulate more bitcoin, and the deeper the dips, the more upside she realized when the price rebounded.

    This mechanism is fine for people who believe in the potential of bitcoin, but don’t want to make a mistake and time the market incorrectly. By setting a regular buy of a motionless dollar amount, you’ll be able to feel convenient with your bitcoin investment despite which direction the price goes in the brief run.

    If you loved this post and want to be notified about significant developments in the bitcoin world, subscribe to our mailing list.

    Related video:

    How to Buy Bitcoin

    How to Buy Bitcoin

    You can buy Bitcoin lightly, in a process as ordinary as signing up for any mobile app.

    Before you buy Bitcoin, you need to download a Bitcoin wallet by going to a site like Blockchain.info, or to a mobile app such as Bitcoin Wallet for Android or Blockchain Bitcoin Wallet for iOS, and packing out an online form with basic details. This shouldn’t take more than two minutes. (Related reading, see: Basics For Buying And Investing In Bitcoin)

    This is what your account page would look like if you were to sign up for a Bitcoin wallet on Coinbase. As you see, it looks kind of like the online banking software that most traditional commercial banks use for their customers:

    Use Regular Money to Buy Bitcoin

    Once you have a Bitcoin wallet, you use a traditional payment method such as credit card, bank transfer (ACH), or debit card to buy Bitcoins on a Bitcoin exchange (example: Coinbase). The Bitcoins are then transferred to your wallet. The availability of the above payment methods is subject to the area of jurisdiction and exchange chosen. Here is a screenshot of the Bitcoin interface showcasing how to buy and sell not just Bitcoin but also Ethereum and Litecoin​, which are other popular virtual currencies. As you see, it’s as straightforward as clicking on the “Buy” tab if you want to buy, and “Sell” tab if you want to sell. You select which currency you are buying/selling and which payment method (your bank account or credit card) you want to use.

    Reminisce that “Bitcoin exchange” and “Bitcoin wallet” need not be the same. Bitcoin exchanges are kind of like forex exchanges–places where you can trade Bitcoin for a fiat currency, say, BTC for USD and vice versa (in U.S. for example). While exchanges suggest wallet capabilities to users, it’s not their primary business. Since wallets need to be kept safe and secure, exchanges do not encourage storing of Bitcoins for higher amounts or long periods of time. Hence, it is best to transfer your Bitcoins to a secure wallet. Security must be your top priority while opting for a Bitcoin wallet; always opt for the one with multi-signature facility.

    There are many well-established exchanges that act as a one-stop solution by suggesting high security standards and reporting. Due diligence must be exercised while choosing a Bitcoin exchange or wallet. (Related reading, see: What Is Cold Storage For Bitcoin)

    A Bitcoin Wallet is for Your Private Key, Not for Storing Bitcoin

    The common assumption that Bitcoins are stored in a wallet is technically incorrect. Bitcoins are not stored anywhere. Bitcoin balances are kept using public and private “keys,” which are long strings of numbers and letters linked through the mathematical encryption algorithm that was used to create them. The public key (comparable to a bank account number or IBAN) serves as the address published to the world, and to which others may send Bitcoins.

    The private key (comparable to an ATM PIN) is meant to be a guarded secret, and only used to authorize Bitcoin transmissions. Thus, it’s the “private key” that is kept in a Bitcoin wallet. Some safeguards for a Bitcoin wallet include: encrypting the wallet with a strong password and choosing the cold storage option, i.e. storing it offline. In the case of Coinbase, they suggest a secure “multisig vault” to host your keys, which you can sign up for.

    As a user, you are free to use those Bitcoins using the “private key” to buy a commodity, or make a payment for a service, or send money to a friend or family. These Bitcoins are sent using the “address” of the recipient. Selling Bitcoins on the exchange will earn you its selling amount in the local currency, which can be withdrawn by you.

    Albeit Bitcoin is homogenous (the same everywhere in the world), its price varies across countries and even exchanges within the same country, providing a rise to arbitrage opportunities. The Bitcoin price in South Korea has been trading at a 35% premium while in India it has been at a 20-25% premium. The request and supply conditions result in some aberrations in its price.

    The number of places where Bitcoins can be spent is enhancing rapidly and includes some big retail players as well as many petite businesses and retailers. The enhanced acceptance is boosting its footprint across the globe and is helping it secure an official recognition as a mode of payment. Japan has recently accepted Bitcoin as a payment mode.

    The Bottom Line

    The switching regulatory stance, enhancing adoption and acceptance, investments in Bitcoin start-ups and products being launched around it have cumulatively raised the confidence in Bitcoin. However, it’s still in a nascent stage and thus one must be aware of the price volatility issues, taxation aspect and legality angle before buying Bitcoins.

    Related video:

    GBTC – Bitcoin Investment Trust – Invest in Bitcoin with Grayscale

    A bright future for currency.

    A bold chance to invest.

    The Bitcoin Investment Trust’s shares are the very first publicly quoted* securities solely invested in and deriving value from the price of bitcoin.

    The BIT enables investors to build up exposure to the price movement of bitcoin through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping bitcoins.

    *Publicly quoted on OTCQX® under the Alternative Reporting Standards

    Legal Counsel: Davis Polk & Wardwell LLP

    Transfer Agent: Continental Stock Transfer & Trust

    ‡As of August 31, 2017

    Titled, auditable ownership through a traditional investment vehicle

    The Bitcoin Investment Trust is a traditional investment vehicle with shares titled in the investors name, providing a familiar structure for financial and tax advisors and effortless transferability to beneficiaries under estate laws.

    Eligible for tax-advantaged accounts

    Shares of the Bitcoin Investment Trust are eligible to be held in certain IRA, Roth IRA, and other brokerage and investor accounts.

    Publicly quoted

    Eligible shares of the Bitcoin Investment Trust are quoted on OTCQX® under the symbol: GBTC, making it possible to buy or sell shares continuously through the trading day at prices established by the market.

    Supported by a network of trusted service providers

    Davis Polk & Wardwell LLP serves as legal counsel to the Sponsor of the Bitcoin Investment Trust. Financial statements for the Bitcoin Investment Trust are audited annually by Friedman LLP.

    Sturdy security and storage

    The Bitcoin Investment Trust’s assets are stored with Xapo, Inc., as Custodian, in deep cold storage vaults. Bitcoin stored in the Xapo Vaults reside on multisignature addresses, the private keys for which are protected by intense cryptographic, physical and process security.

    Invest in the very first publicly quoted bitcoin investment vehicle

    The Bitcoin Investment Trust provides a secure structure to build up exposure to the price spectacle of bitcoin. Eligible shares are quoted on the OTCQX®, the top marketplace operated by OTC Markets under the Alternative Reporting Standards. Investors can buy and sell shares through most traditional brokerage accounts at prices dictated by the market.

    At close as of 09/6/2017

    At close as of 09/6/2017

    Past spectacle is not necessarily indicative of future results.

    * Market Price per share reflects the closing price of BIT shares at 4PM ET on OTCQX® under the symbol: GBTC as of the date indicated on http://www.otcmarkets.com/stock/GBTC/quote.

    ** Bitcoin Holdings per share is calculated daily at 4pm ET, based on a twenty four hour VWAP of TradeBlock’s XBX Index. If you would like to see how the Bitcoin Holdings is calculated, please refer to the disclosure language on OTC Markets.

    ‡ At close as of 09/6/2017

    Downloads

    BIT in the News

    Bitcoin Investment Trust Provides Update on Possible Bitcoin Cash Distribution

    Fresh YORK, Sept. 6, two thousand seventeen /PRNewswire/ — Grayscale Investments, LLC, the sponsor (the “Sponsor”) of the Bitcoin Investment Trust (the “Trust”) (OTCQX: GBTC), announced that it proceeds to work with the Trust’s professional advisors and third-party service providers to understand the implications for the Trust of the fork in the Bitcoin blockchain that resulted in the creation of Bitcoin Cash.

    Grayscale Investments, LLC Update Regarding Bitcoin Investment Trust and Bitcoin Cash

    Fresh YORK, Aug. Two, two thousand seventeen /PRNewswire/ — Grayscale Investments, LLC, the sponsor (the “Sponsor”) of the Bitcoin Investment Trust (the “Trust”) (OTCQX:GBTC), announced that a fork in the Bitcoin blockchain occurred yesterday, August 1, 2017. The Sponsor is monitoring events relating to the fork and the Bitcoin Cash resulting from the fork. A record date has not been established for the purposes of any distribution that may be made in connection with Bitcoin Cash. The Sponsor will announce a record date, if any, once established.

    Grayscale Investments, LLC Statement Regarding Bitcoin Investment Trust and Bitcoin Cash

    Fresh YORK, July 28, two thousand seventeen /PRNewswire/ — Grayscale Investments, LLC, the sponsor (the “Sponsor”) of the Bitcoin Investment Trust (the “Trust”)(OTCQX:GBTC), announced today plans to react to the possible fork of the Bitcoin blockchain that would result in the creation of a fresh digital currency in addition to Bitcoin called Bitcoin Cash.

    Bitcoin Investment Trust Surges as BTC Price Soars to Yearly High

    Following the latest spike in bitcoin trading volume and price, shares of Grayscale’s Investment’s Bitcoin Investment Trust (symbol: GBTC) surged to US$32 per share, marking a Ten.92% increase over the past few days.

    ARK Invest Becomes Very first Public Fund Manager to Invest in Bitcoin

    ARK Investment Management LLC (ARK) is pleased to announce that the ARK Web x.0 ETF (NYSEARCA: ARKW) has become the very first ETF to invest in bitcoin. ARK has made its investment for ARK Web x.0 ETF through the purchase of publicly traded shares of Grayscale’s Bitcoin Investment Trust (OTCQX: GBTC).

    Barry Silbert Exposes Bitcoin Investment Trust Holds 100,000 Bitcoins

    The Bitcoin Investment Trust (BIT) now holds more than 100,000 BTC, according to Barry Silbert, CEO of SecondMarket and founder of the trust. Silbert has big plans for the Bitcoin Investment Trust, which is expected.

    Disclaimer

    Grayscale Investments, LLC is the sponsor of both the Bitcoin Investment Trust (the “BIT”) and the Ethereum Classic Investment Trust (the “ETC Trust”). Both the Bitcoin Investment Trust and the Ethereum Classic Investment Trust are private investment vehicles, not registered with any regulatory agency of any jurisdiction, and are NOT subject to the same regulatory requirements as SEC-registered exchange traded funds or mutual funds, including the requirement to provide certain periodic and standardized pricing and valuation information to investors.

    The Bitcoin Investment Trust and the Ethereum Classic Investment Trust represent speculative investments and involve high degrees of risk. Investors must have the financial capability, sophistication/practice and preparedness to bear the risks of an investment. Any suggesting or solicitation will be made only to certain qualified investors, who are “accredited investors” as defined under Regulation D of the -Securities Act of 1933, as amended. Qualified investors may invest in the BIT or the ETC Trust pursuant to a formal suggesting with extra documentation, all of which should be read in their entirety. Information provided about the BIT and the ETC Trust is not intended to be, nor should it be construed or used as investment, tax or legal advice, a recommendation, or an suggest to sell, or a solicitation of an suggest to buy, an interest in the BIT or the ETC Trust. Any suggest or solicitation of an investment in the BIT or the ETC Trust may be made only by delivery of the BIT or the ETC Trust’s suggesting documents (the “Offering Documents”) to qualified investors, which would contain material information not contained herein and which would supersede this information in its entirety. In making an investment decision, investors must rely on their own examination of the BIT and the ETC Trust and the terms of the suggesting contemplated by the Suggesting Documents, including the merits and risks involved. An investment in the BIT and the ETC Trust is not suitable for all investors. The BIT and the ETC Trust are not registered with the SEC and the shares of the BIT and the ETC Trust are being suggested in a private placement pursuant to Rule 506(c) under Regulation D. As a result, the shares of the BIT and the ETC Trust are restricted and subject to significant limitations on resales or transfer. Potential investors should cautiously consider the long term nature of an investment in the BIT and the ETC Trust prior to making an investment decision. Interests in the BIT and the ETC Trust are not registered under the -Securities Act of 1933, as amended, or any state securities laws, and the BIT and the ETC Trust are not registered under the U.S. Investment Company Act of 1940, as amended. Any interests in the BIT and the ETC Trust described herein have not been recommended by any U.S. federal or state, or non-U.S., securities commission or regulatory authority, including the SEC. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this information on this website. Any representation to the contrary is a criminal offense.

    The BIT’s shares are publicly quoted on OTCQX® market under the OTC Market’s Alternative Reporting Standards, which do not require the same level of public disclosure as the Securities Exchange Act of one thousand nine hundred thirty four standards applicable to SEC-registered investment vehicles. You should note cautiously the following:

    • The BIT represents a speculative investment and involves a high degree of risk. Investors could lose all or a substantial portion of their investment. Investors must have the financial capability, sophistication/practice and preparedness to bear the risks of an investment in the BIT.
    • An investment in the BIT should be discretionary capital set aside rigorously for speculative purposes.
    • An investment in the BIT is not suitable or desirable for all investors.
    • The BIT’s Annual Reports have not been reviewed or approved by federal, state or local regulators of any jurisdiction.
    • The BIT’s shares are traded on an unregistered basis on the OTCQX® market, but trading may be utterly limited.
    • The BIT has limited operating history or spectacle.
    • The BIT’s sponsor has total authority over the BIT and shareholders’ rights are enormously limited.
    • The BIT and its managers or advisors may rely on the trading expertise and practice of third-party managers or advisors, the identity of which may not be fully disclosed to investors.
    • The BIT may involve a sophisticated tax structure, which should be reviewed cautiously, and may involve structures or strategies that may cause delays in significant tax information being sent to investors.
    • The BIT’s fees and expenses (which may be substantial regardless of any comebacks on investment) will offset the BIT’s trading profits.
    • The BIT and its sponsor, managers, advisors and agents may be subject to various conflicts of interest.
    • The above summary is not a finish list of the risks and other significant disclosures involved in investing in the BIT and is subject to more accomplish disclosures contained in the BIT’s Annual Reports on OTC Markets website, www.otcmarkets.com, which must be reviewed cautiously.

    With respect to the ETC Trust, you should note cautiously the following:

    • The ETC Trust represents a speculative investment and involves a high degree of risk. Investors could lose all or a substantial portion of their investment. Investors must have the financial capability, sophistication/practice and preparedness to bear the risks of an investment in the ETC Trust.
    • An investment in the ETC Trust should be discretionary capital set aside stringently for speculative purposes.
    • An investment in the ETC Trust is not suitable or desirable for all investors. Only qualified investors who are “accredited investors” as defined under Regulation D of the Securities Act of 1933, as amended, may invest in the ETC Trust.
    • An investment in the ETC Trust will be illiquid and there will be significant limitations on transferring interests in the ETC Trust.
    • The ETC Trust is a fresh vehicle without operating history or spectacle.
    • The ETC Trust’s sponsor has total authority over the ETC Trust and shareholders’ rights are utterly limited.
    • The ETC Trust and its managers or advisors may rely on the trading expertise and practice of third-party managers or advisors, the identity of which may not be fully disclosed to investors.
    • The ETC Trust may involve a elaborate tax structure, which should be reviewed cautiously, and may involve structures or strategies that may cause delays in significant tax information being sent to investors.
    • The ETC Trust’s fees and expenses (which may be substantial regardless of any comebacks on investment) will offset the ETC Trust’s trading profits.
    • The ETC Trust and its sponsor, managers, advisors and agents may be subject to various conflicts of interest.
    • The above summary is not a accomplish list of the risks and other significant disclosures involved in investing in the ETC Trust and is subject to the more accomplish disclosures contained in the ETC Trust’s Suggesting Documents, which must be reviewed cautiously.

    GBTC – Bitcoin Investment Trust – Invest in Bitcoin with Grayscale

    A bright future for currency.

    A bold chance to invest.

    The Bitcoin Investment Trust’s shares are the very first publicly quoted* securities solely invested in and deriving value from the price of bitcoin.

    The BIT enables investors to build up exposure to the price movement of bitcoin through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping bitcoins.

    *Publicly quoted on OTCQX® under the Alternative Reporting Standards

    Legal Counsel: Davis Polk & Wardwell LLP

    Transfer Agent: Continental Stock Transfer & Trust

    ‡As of August 31, 2017

    Titled, auditable ownership through a traditional investment vehicle

    The Bitcoin Investment Trust is a traditional investment vehicle with shares titled in the investors name, providing a familiar structure for financial and tax advisors and effortless transferability to beneficiaries under estate laws.

    Eligible for tax-advantaged accounts

    Shares of the Bitcoin Investment Trust are eligible to be held in certain IRA, Roth IRA, and other brokerage and investor accounts.

    Publicly quoted

    Eligible shares of the Bitcoin Investment Trust are quoted on OTCQX® under the symbol: GBTC, making it possible to buy or sell shares continuously through the trading day at prices established by the market.

    Supported by a network of trusted service providers

    Davis Polk & Wardwell LLP serves as legal counsel to the Sponsor of the Bitcoin Investment Trust. Financial statements for the Bitcoin Investment Trust are audited annually by Friedman LLP.

    Sturdy security and storage

    The Bitcoin Investment Trust’s assets are stored with Xapo, Inc., as Custodian, in deep cold storage vaults. Bitcoin stored in the Xapo Vaults reside on multisignature addresses, the private keys for which are protected by intense cryptographic, physical and process security.

    Invest in the very first publicly quoted bitcoin investment vehicle

    The Bitcoin Investment Trust provides a secure structure to build up exposure to the price spectacle of bitcoin. Eligible shares are quoted on the OTCQX®, the top marketplace operated by OTC Markets under the Alternative Reporting Standards. Investors can buy and sell shares through most traditional brokerage accounts at prices dictated by the market.

    At close as of 09/6/2017

    At close as of 09/6/2017

    Past spectacle is not necessarily indicative of future results.

    * Market Price per share reflects the closing price of BIT shares at 4PM ET on OTCQX® under the symbol: GBTC as of the date indicated on http://www.otcmarkets.com/stock/GBTC/quote.

    ** Bitcoin Holdings per share is calculated daily at 4pm ET, based on a twenty four hour VWAP of TradeBlock’s XBX Index. If you would like to see how the Bitcoin Holdings is calculated, please refer to the disclosure language on OTC Markets.

    ‡ At close as of 09/6/2017

    Downloads

    BIT in the News

    Bitcoin Investment Trust Provides Update on Possible Bitcoin Cash Distribution

    Fresh YORK, Sept. 6, two thousand seventeen /PRNewswire/ — Grayscale Investments, LLC, the sponsor (the “Sponsor”) of the Bitcoin Investment Trust (the “Trust”) (OTCQX: GBTC), announced that it resumes to work with the Trust’s professional advisors and third-party service providers to understand the implications for the Trust of the fork in the Bitcoin blockchain that resulted in the creation of Bitcoin Cash.

    Grayscale Investments, LLC Update Regarding Bitcoin Investment Trust and Bitcoin Cash

    Fresh YORK, Aug. Two, two thousand seventeen /PRNewswire/ — Grayscale Investments, LLC, the sponsor (the “Sponsor”) of the Bitcoin Investment Trust (the “Trust”) (OTCQX:GBTC), announced that a fork in the Bitcoin blockchain occurred yesterday, August 1, 2017. The Sponsor is monitoring events relating to the fork and the Bitcoin Cash resulting from the fork. A record date has not been established for the purposes of any distribution that may be made in connection with Bitcoin Cash. The Sponsor will announce a record date, if any, once established.

    Grayscale Investments, LLC Statement Regarding Bitcoin Investment Trust and Bitcoin Cash

    Fresh YORK, July 28, two thousand seventeen /PRNewswire/ — Grayscale Investments, LLC, the sponsor (the “Sponsor”) of the Bitcoin Investment Trust (the “Trust”)(OTCQX:GBTC), announced today plans to react to the possible fork of the Bitcoin blockchain that would result in the creation of a fresh digital currency in addition to Bitcoin called Bitcoin Cash.

    Bitcoin Investment Trust Surges as BTC Price Soars to Yearly High

    Following the latest spike in bitcoin trading volume and price, shares of Grayscale’s Investment’s Bitcoin Investment Trust (symbol: GBTC) surged to US$32 per share, marking a Ten.92% increase over the past few days.

    ARK Invest Becomes Very first Public Fund Manager to Invest in Bitcoin

    ARK Investment Management LLC (ARK) is pleased to announce that the ARK Web x.0 ETF (NYSEARCA: ARKW) has become the very first ETF to invest in bitcoin. ARK has made its investment for ARK Web x.0 ETF through the purchase of publicly traded shares of Grayscale’s Bitcoin Investment Trust (OTCQX: GBTC).

    Barry Silbert Exposes Bitcoin Investment Trust Holds 100,000 Bitcoins

    The Bitcoin Investment Trust (BIT) now holds more than 100,000 BTC, according to Barry Silbert, CEO of SecondMarket and founder of the trust. Silbert has big plans for the Bitcoin Investment Trust, which is expected.

    Disclaimer

    Grayscale Investments, LLC is the sponsor of both the Bitcoin Investment Trust (the “BIT”) and the Ethereum Classic Investment Trust (the “ETC Trust”). Both the Bitcoin Investment Trust and the Ethereum Classic Investment Trust are private investment vehicles, not registered with any regulatory agency of any jurisdiction, and are NOT subject to the same regulatory requirements as SEC-registered exchange traded funds or mutual funds, including the requirement to provide certain periodic and standardized pricing and valuation information to investors.

    The Bitcoin Investment Trust and the Ethereum Classic Investment Trust represent speculative investments and involve high degrees of risk. Investors must have the financial capability, sophistication/practice and preparedness to bear the risks of an investment. Any suggesting or solicitation will be made only to certain qualified investors, who are “accredited investors” as defined under Regulation D of the -Securities Act of 1933, as amended. Qualified investors may invest in the BIT or the ETC Trust pursuant to a formal suggesting with extra documentation, all of which should be read in their entirety. Information provided about the BIT and the ETC Trust is not intended to be, nor should it be construed or used as investment, tax or legal advice, a recommendation, or an suggest to sell, or a solicitation of an suggest to buy, an interest in the BIT or the ETC Trust. Any suggest or solicitation of an investment in the BIT or the ETC Trust may be made only by delivery of the BIT or the ETC Trust’s suggesting documents (the “Offering Documents”) to qualified investors, which would contain material information not contained herein and which would supersede this information in its entirety. In making an investment decision, investors must rely on their own examination of the BIT and the ETC Trust and the terms of the suggesting contemplated by the Suggesting Documents, including the merits and risks involved. An investment in the BIT and the ETC Trust is not suitable for all investors. The BIT and the ETC Trust are not registered with the SEC and the shares of the BIT and the ETC Trust are being suggested in a private placement pursuant to Rule 506(c) under Regulation D. As a result, the shares of the BIT and the ETC Trust are restricted and subject to significant limitations on resales or transfer. Potential investors should cautiously consider the long term nature of an investment in the BIT and the ETC Trust prior to making an investment decision. Interests in the BIT and the ETC Trust are not registered under the -Securities Act of 1933, as amended, or any state securities laws, and the BIT and the ETC Trust are not registered under the U.S. Investment Company Act of 1940, as amended. Any interests in the BIT and the ETC Trust described herein have not been recommended by any U.S. federal or state, or non-U.S., securities commission or regulatory authority, including the SEC. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this information on this website. Any representation to the contrary is a criminal offense.

    The BIT’s shares are publicly quoted on OTCQX® market under the OTC Market’s Alternative Reporting Standards, which do not require the same level of public disclosure as the Securities Exchange Act of one thousand nine hundred thirty four standards applicable to SEC-registered investment vehicles. You should note cautiously the following:

    • The BIT represents a speculative investment and involves a high degree of risk. Investors could lose all or a substantial portion of their investment. Investors must have the financial capability, sophistication/practice and readiness to bear the risks of an investment in the BIT.
    • An investment in the BIT should be discretionary capital set aside rigorously for speculative purposes.
    • An investment in the BIT is not suitable or desirable for all investors.
    • The BIT’s Annual Reports have not been reviewed or approved by federal, state or local regulators of any jurisdiction.
    • The BIT’s shares are traded on an unregistered basis on the OTCQX® market, but trading may be utterly limited.
    • The BIT has limited operating history or spectacle.
    • The BIT’s sponsor has total authority over the BIT and shareholders’ rights are enormously limited.
    • The BIT and its managers or advisors may rely on the trading expertise and practice of third-party managers or advisors, the identity of which may not be fully disclosed to investors.
    • The BIT may involve a elaborate tax structure, which should be reviewed cautiously, and may involve structures or strategies that may cause delays in significant tax information being sent to investors.
    • The BIT’s fees and expenses (which may be substantial regardless of any comebacks on investment) will offset the BIT’s trading profits.
    • The BIT and its sponsor, managers, advisors and agents may be subject to various conflicts of interest.
    • The above summary is not a finish list of the risks and other significant disclosures involved in investing in the BIT and is subject to more accomplish disclosures contained in the BIT’s Annual Reports on OTC Markets website, www.otcmarkets.com, which must be reviewed cautiously.

    With respect to the ETC Trust, you should note cautiously the following:

    • The ETC Trust represents a speculative investment and involves a high degree of risk. Investors could lose all or a substantial portion of their investment. Investors must have the financial capability, sophistication/practice and preparedness to bear the risks of an investment in the ETC Trust.
    • An investment in the ETC Trust should be discretionary capital set aside stringently for speculative purposes.
    • An investment in the ETC Trust is not suitable or desirable for all investors. Only qualified investors who are “accredited investors” as defined under Regulation D of the Securities Act of 1933, as amended, may invest in the ETC Trust.
    • An investment in the ETC Trust will be illiquid and there will be significant confinements on transferring interests in the ETC Trust.
    • The ETC Trust is a fresh vehicle without operating history or spectacle.
    • The ETC Trust’s sponsor has total authority over the ETC Trust and shareholders’ rights are utterly limited.
    • The ETC Trust and its managers or advisors may rely on the trading expertise and practice of third-party managers or advisors, the identity of which may not be fully disclosed to investors.
    • The ETC Trust may involve a complicated tax structure, which should be reviewed cautiously, and may involve structures or strategies that may cause delays in significant tax information being sent to investors.
    • The ETC Trust’s fees and expenses (which may be substantial regardless of any comebacks on investment) will offset the ETC Trust’s trading profits.
    • The ETC Trust and its sponsor, managers, advisors and agents may be subject to various conflicts of interest.
    • The above summary is not a finish list of the risks and other significant disclosures involved in investing in the ETC Trust and is subject to the more finish disclosures contained in the ETC Trust’s Suggesting Documents, which must be reviewed cautiously.

    Related video:

    Digital Currencies: International Deeds and Regulations, Perkins Coie

    Digital Currencies: International Deeds and Regulations

    Last updated: 05.2017

    No Legal Advice or Attorney-Client Relationship: This chart is provided by Perkins Coie LLP’s Blockchain Technology & Digital Currency industry group for informational purposes only and is not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Recipient should not act upon this information without seeking advice from a lawyer licensed in his/her own state or country.

    P lease click a link below to view the corresponding section:

    Developments Over Time

    Virtual currencies are not legal tender under the country’s National Constitution, which designates the Central Bank as the only authority that may issue legal tender. Albeit not specifically regulated, latest statements by government officials suggest an enhanced interest in virtual currency transactions, including issuing warnings about their use and requiring financial institutions and other entities to report virtual currency transactions.

    Austria has not regulated virtual currencies and has not issued a cohesive policy on how to treat virtual currency.

    The Financial Markets Authority (FMA) of Austria issued a warning advising the country’s consumers to exercise utmost caution in relation to virtual currencies, particularly when related to business and investment models based on virtual currencies. Further, the FMA explicitly advised consumers that such offerings are not subject to any form of regulation, and in particular are not subject to supervision by the FMA. Source.

    Austrian ministers emerge to have given conflicting guidance on the tax treatment of Bitcoin during a parliamentary Q&A session. The finance minister reportedly stated that Bitcoin is not a financial instrument, and that capital gains tax would apply to bitcoin holdings sold within a year of purchase, while the minister for science, research and economy reportedly referred to German policy recognizing bitcoin as a unit of account. Source.

    Virtual currency transactions are subject to goods and services, incomes, and capital gains taxes. Further regulation is unlikely for now.

    The Australian Attorney-General’s Department issued a Consultation Document stating that the government wants to begin drafting legislative proposals to regulate digital currencies by the middle of 2017. The aim is to begin finalizing that legislation in 2018. To that end the government solicited public comment on the proposal that looks to include digital money in the laws against money laundering. Source.

    The Australian Department of Treasury issued a white paper listing crypto-currencies, such as bitcoin, as a challenge in determining how to appropriately tax companies and could provide a company with the capability to relocate profits to minimize their taxes. Source.

    The Australia Taxation Office issued guidance on the tax treatment for Bitcoin. The ATO concluded that Bitcoin is neither money nor a foreign currency, but is an asset for capital gains tax purposes. However, capital build up or loss from using bitcoin to purchase goods or services for private use or consumption will be disregarded, provided that cost of the bitcoin is $Ten,000 or less. Source.

    Bank of Australia governor Glenn Stevens stated that, while virtual currencies pose regulatory questions, he believes that investors who are ready to accept the risk in speculating in virtual currency should be permitted to do so. Source.

    Interview with Bank of Australia governor Glenn Stevens suggests that Australia sees potential risk and volatility with bitcoin, but did not, for the time being, indicate an intent to regulate. Source.

    Australian Taxation Office (ATO) confirms Bitcoin transactions are subject to goods and services (GST) and income tax and says that speculators should keep records for capital gains taxes and that bitcoin is expected to be means of electronic payment or money. Source.

    Bangladesh Bank issued a warning against conducting transactions in cryptocurrency, and reportedly stated that such use is punishable by up to twelve years in jail

    Bangladesh Bank issued a warning against conducting transactions in cryptocurrency, and reportedly stated that such use is punishable by up to twelve years in jail. Source.

    The National Bank of Belgium has warned investors and the public of the dangers of virtual currencies and announced that they are not legal tender, but there is no current indication that regulation is forthcoming.

    Federal Public Service Finance reportedly issued a statement that bitcoin trading transactions are not subject to VAT, however, its position is subject to switch pending the position taken by the European Committee. Source.

    National Bank of Belgium (NBB) and Belgian Financial Services and Markets Authority (FSMA) warned investors that virtual currencies are not issued by a central bank; there is no current regulation; risks associated with security, hacking, and fraud; value fluctuates; exchange rate is variable; and they are not legal tender. Source.

    NBB does not have plans for financial regulations to regulate Bitcoin (not an official position, but voiced in a meeting inbetween the bank and industry reps). National Bank likely to issue warnings similar to those issued by the EBA and other European nations. Source.

    Minister of Finance Koen Geens commented that Belgian National Bank does not object to Bitcoin, which was being used by only a handful of traders at this time, and that there was no indication that Bitcoin was being used for money laundering. Source.

    The Central Bank of Brazil has not yet regulated virtual currencies, but has issued the now-standard warnings about their use.

    Brazil’s House of Representatives held a public hearing to discuss a bill that would give the country’s central bank oversight of digital currency activity in the country. Source.

    Brazilian tax authority requires reporting of bitcoin holdings and payment of capital gains taxes for holders of bitcoin over certain value thresholds. Source.

    Central Bank of Brazil says that virtual currencies are not “electronic currency” under Brazilian law. It warned that virtual currencies are not ensured or issued by a central authority, are not assured by real assets, may be subject to volatility and total loss of value, can be used in illegal activities, and may be insecure due to the possibility of hacking. Eventually, the Bank said that it was following the evolution of virtual currencies, and would consider adopting measures. Source.

    Brazil adopted Law No. 12,865, which specifically referenced regulation of electronic currency. While the definition of “electronic currency” appeared to cover virtual currency, the Central Bank of Brazil later distinguished electronic currency from virtual currency. Source.

    Virtual currency has been explicitly banned.

    The Central Bank of Bolivia banned any currency or coins not issued or regulated by the government, including a list of virtual currencies. The Bank’s resolution states that citizens are prohibited from denominating prices in any currency that is not previously approved by its national institutions. Source.

    Private income from the sale or exchange of bitcoin is taxable, and will be treated as income from sale of financial assets.

    The Bulgarian Revenue Agency determined that income from the sale of bitcoin will be treated as income from sale of financial assets. Source.

    Virtual currencies are not legal tender in Canada and, reportedly, virtual currency exchanges are not subject to money laundering regulations. Virtual currencies, however, are subject to goods and services and capital gains taxes, and money laundering and terrorist financing laws.

    The central bank of Canada published a fresh working paper suggesting its researchers believe digital currency exchange rates will become less volatile should adoption increase. Source.

    The central Bank of Canada’s Senior Deputy Governor, Carolyn Wilkins, voiced the need for radical switch in the treatment regarding traditional finance and emerging technology at a speech at Toronto’s Rotman School of Management. Concerning disruptive technologies such as distributed ledgers and bitcoin, Wilkins said “[w]e have to envisage a world in which people mostly use e-money, perhaps even one that’s not denominated in the national currency, like Bitcoin.” Source.

    The Canadian Standing Senate Committee on Banking, Trade and Commerce released a report calling for limited regulatory control over digital currencies. Source.

    The Canadian central bank released a working paper examining the effects of competition inbetween different cryptocurrencies and the exchanges. The authors conclude that there is no clear evidence that Bitcoin will keep its superior position in the market, and that exchanges will be able to coexist and possibly contest on fees. Source.

    The Canadian parliament passed a bill amending its money laundering and terrorist financing act. The act now applies to persons in Canada engaged in the business of dealing in virtual currencies, as well as persons outside of Canada that provide such services to customers in Canada. Source.

    The Canadian Federal Budget included a reference to intended legislation regarding anti-money laundering and anti-terrorist financing that would apply to virtual currencies. Source.

    Official from the Office of the Superintendent of Financial Institutions says that virtual currencies are not “legal tender.” Source.

    Financial Transactions and Reports Analysis Centre (FinTRAC) reportedly wrote to several prominent Bitcoin exchanges that they are exempt from Canadian money laundering laws. Source.

    Canada Revenue Agency says barter transaction rules apply to use of Bitcoin for goods or services and are subject to tax. Also, Bitcoin bought or sold as a commodity is subject to capital gains taxes. Source.

    Financial institutions and third-party payment providers are banned from accepting, using, or selling virtual currencies. Albeit its use remains legal, the People’ s Bank of China has required exchanges to register with the adequate regulatory authorities and has suggested it will closely witness the markets. The People’s Bank of China has allegedly warned banks from working with virtual currency-related businesses.

    Chinese fattest bitcoin exchanges unveiled they will impose trading fees, as the government is tightening control over digital currency. Source.

    China’s central bank issued a recruitment ad (in Mandarin) published by the bank on Nov. Nine in connection with hiring blockchain experts to help it develop its own digital currency, Based on the information that has been released by the Central Bank, under this digital currency project the Central Bank would still retain control over the country’s money supply. Source.

    The People’s Bank of China (PBOC) is conducting a digital currency examine and is reportedly considering issuing its own digital currency. Source.

    Reports from a meeting with the People’s Bank of China (PBOC) indicate that PBOC has warned banks to cease doing business with virtual-currency-related businesses. Source.

    In wake of 12.Five.13 PBOC statement, BTC China no longer accepts yuan. PBOC extends ban on accepting, using, or selling bitcoin to third party payment providers. Bitcoin remains legal, however, for individuals to use but without providers, is effectively unlikely. Source.

    PBOC says that bitcoin is not currency, that financial institutions and payment institutions cannot be involved in bitcoin-related transactions, websites.exchanges that deal in bitcoin-related services need to register with adequate regulatory agencies, PBOC will pay close attention to potential uses of bitcoin for money laundering, and PBOC will educate the public about the risks of using, trading, or dealing in bitcoin (specifically, the lack of a central authority that administers or provides redress). Source.

    Colombia’s financial regulatory figure (SFC) has prohibited banks from working with virtual currency. The SFC and the Central Bank have also indicated that bitcoin is not a currency.

    In a press release, the Colombian Central Bank indicates that bitcoin is not a currency, and cannot be used in connection with Colombia’s exchange rate regime. Source.

    Colombia’s financial regulatory assets issued a resolution prohibiting financial institutions from holding virtual currency. The release also discussed a number of risks associated with virtual currency. Source.

    Informal statements by the Croatian National Bank are favorable regarding the legality of bitcoin.

    The Croatian National Bank indicated in an informal discussion that the use and sale of virtual currency would not be unlawful in Croatia. Source.

    Virtual currencies are not illegal in Cyprus, but Central Bank has warned about their use.

    Central Bank acknowledged that virtual currencies are not illegal, but reiterated earlier warnings about their use and exchange. Source.

    Central Bank issues warnings like those of the EBA and Bank of France that virtual currencies have no ensure of reimbursement, are inherently speculative, pose money laundering and other criminal activity risks, and are risky speculative investment vehicles. Source.

    Czech Ministry of Finance has indicated that virtual currency transactions are subject to anti-money-laundering laws and reporting requirements.

    A guidance note from the Ministry of Finance of the Czech Republic’s Financial Analytical Unit indicates that purchase and sale of virtual currencies in excess of 1,000 euros is subject to suspicious activities reporting under the Czech Republic’s anti-money-laundering laws. Source.

    Financial Supervisory Authority has issued warnings about the risks of virtual currencies, similar to other European nations, and has suggested there may be amendments to regulations regarding virtual currencies. Presently, it does not emerge that virtual currencies are regulated, at least under money laundering or financial institution regulations.

    The Danish Assessment Board (Skatterådet) gave its ruling on twenty five March two thousand fourteen in the case of SKM2014.226.SR (published on one April 2014).

    The board ruled that bitcoins are not considered an official currency for tax and VAT purposes, as bitcoin is not a currency that:

    • Is regulated by the operators on the global currency markets
    • Is subject to regulation by a central bank
    • Can be withdrawn from circulation
    • Is affiliated to a state or currency area

    Furthermore, fluctuation in the value of bitcoins is not taxable as gains or losses on currency covered by the Tax Act on Capital Gains and Losses on Debt and Claims. This conclusion is based on the description of the bitcoin system according to which purchase and ownership of bitcoins does not involve a debtor or creditor and, thus, neither a claim nor debt exists for tax purposes. Source.

    On March Legal, 2014, the Danish Central Bank issued a statement proclaiming that Bitcoin is not a currency. The Bank went on to explain, “Bitcoin does not have any real trading value compared to gold and silver, and thus is more similar to glass beads. The Danish Central Bank went on to point out that Bitcoins are not protected by any national laws or ensures, such as a deposit assure. Source.

    Chief Legal Advisor to FSA says that most likely development will be to amend existing financial regulations to cover exchanges and to have money laundering regulations cover cryptocurrency transactions. A member of Parliament suggested, however, that this would be done on a European-wide basis, not just in Denmark. Source.

    Financial Supervisory Authority (FSA) releases statement re: risks for cryptocurrencies: (1) losing money to exchanges, (Two) theft from virtual wallets, (Trio) might not be able to exchange it for fiat currency, (Four) rapid price fluctuation, (Five) links to criminal activity and (6) taxes. FSA also provides that cryptocurrencies are not covered by existing regulatory framework for electronic money, currency exchanges, brokerages, or deposit services. They are unregulated electronic money and there is no permission needed to run an exchange there. Source.

    Ecuador has banned issuance, promotion, or circulation of virtual currencies, and plans to issue its own digital currency for use as legal tender.

    Ecuador has mandated that all banks and “entities of the public, private, and cooperative financial sectors” must accept the country’s digital currency within the next three hundred sixty days. Ecuador’s official fiat currency is the U.S. dollar, and the digital currency under Ecuador’s Electronic Currency System will be “equivalent and convertible to US dollars.” Source. Source.

    Congress reportedly approved legislation to issue a digital currency for use alongside the U.S. dollar, which is presently the only legal tender in Ecuador. A monetary authority will be established to regulate the digital currency, which will be backed by liquid assets. Source.

    Ecuador’s Congress reportedly approved extensive reforms to its financial system providing for, among other things, the creation of a digital currency and financial regulation system managed by the executive. In connection therewith, it reportedly also banned the issuance, promotion or circulation of all digital currencies. Source.

    Estonian Supreme Court Rules Against Bitcoin Trader. The Supreme Court determined to apply extra regulation to Bitcoin trading, including the requirement to meet customers in person as well as the requirement keep IDs of all customers and report those who trade more than 1,000 Euros more per month.. This ruling not only applies to Bitcoin, it applies to all blockchain tokens and assets. Source. Source.

    The Estonian Supreme Court asked various government agencies and officials, including the Ministry of Finance, the Interior Ministry, the Estonian Central Bank and the Estonian Financial Supervision Authority, to reaction questions regarding the government’s stance on the legality of bitcoin as it considers arguments in a two thousand fourteen case filed by the operator of a bitcoin trading company, BTC.ee. Albeit the response was due by January 11, 2016, as of March 21, two thousand sixteen the Court has yet to publish its findings. Source.

    The Estonian Tax Authority stated that income derived from Bitcoin transactions constitutes capital build up subject to taxation. Source.

    Head of the Estonian central bank payment and settlement system voices concerns in an email about risks associated with bitcoin, including the nature of the decentralized system and the potential for a Ponzi scheme. Source.

    European Banking Authority issued warnings to the public about the risks associated with virtual currencies, and recently indicated it will apply anti-money laundering and anti-terrorist financing rules to virtual currencies.

    EU ministers met in December following the terrorist attacks on Paris and agreed to tighten checks on payment methods used by terrorist organizations. The European Commission is presently conducting a risk assessment on terrorist financing and money laundering, paying particular attention to virtual currencies. Documents recently released indicate the Commission will propose stricter rules involving virtual currencies and prepaid cards by June 2016. Source. Source.

    European Court of Justice ruled that the value-added tax (VAT) will not apply to purchases of bitcoin through exchanges. This ruling flows from a VAT provision for excepts related to currency, bank notes and legal tender. Source.

    Europol issued an internet organized crime threat assessment, which examines the various technologies and services used by cybercrime organizations. The assessment includes a discussion of the use of virtual currencies, including Bitcoin, in laundering the proceeds of cybercrimes. Source.

    The European Commission indicated that it will impose anti-money laundering and anti-terrorist financing rules on virtual currencies. Source.

    Sweden reportedly asked the European Union to provide definitive rules on the VAT treatment of cryptocurrencies, voicing concern over the inconsistencies in treatment among member states. Source.

    European Banking Authority (EBA) warns consumers on virtual currencies because (1) consumers can lose value, (Two) can be stolen from virtual wallets, (Trio) EU refund rights do not protect, (Four) value can switch quickly, (Five) can be used for criminal activity, including money laundering, and (6) consumers may be subject to tax liability. Source.

    The European Central Bank releases a detailed report regarding virtual currency and its potential for regulation under EU regimes. Source.

    F inancial Activity Task Force

    The Finnish Central Board of Taxes judged Bitcoin to be a financial service in ruling 034/2014, making Bitcoin exempt under the EU VAT directive. Source.

    Bank of Finland says, through interview with head of oversight Paeivi Heikkinene, that Bitcoin is not “currency” or a “payment instrument,” but is “more comparable to a commodity.” Source.

    The Finnish Tax Authority released tax interpretations regarding bitcoin, indicating that capital gains treatment would be given to an exchange of bitcoin for another currency, but that losses would not be deductible. Source.

    In television interview, Finnish Central Bank says that bitcoins are legal and can be invested in and used however people would like. There are no ensures, however, that unregulated virtual currencies can be exchanged back into traditional money. Source.

    Bank of France has issued warnings similar to other European nations. There were informal indications that France might have been willing to permit virtual currency companies to operate as payment service providers under French law, and France has now indicated it will implement customer identity verification rules for virtual currency platforms.

    France’s Central Bank (The Banque de France) issued a press release indicating that it has tested the blockchain technology for hypothetical use in the management of SEPA Credit Identifiers, or identification markers used to establish the identity of creditors within the Single Euro payments Area. Source.

    The French Senate released a report focusing on the type of regulation the government should apply on bitcoin transactions. and refers to Bitcoin as a type of virtual bartering instrument, and calls cryptocurrencies a “long-term trend raising significant legal and economic matters, that can no longer be disregarded by public authorities”. Source.

    The finance ministry reportedly announced that it plans to implement customer identity verification rules for bitcoin distributors and other platforms by the end of the year. It also reportedly implemented tax rules classifying bitcoins as property subject to capital gains and asset taxes. Source.

    Police reportedly shut down a bitcoin exchange operating illegally in France, seizing three hundred eighty eight bitcoins in the process. The site’s operators are reportedly being examined on potential charges of illegal banking, money laundering and operating an illegal gambling website. Source.

    The senate committee on finance heard testimony on the issues raised by the development of Bitcoin and other virtual currencies. The committee concluded that the rise of virtual currencies is a long-term trend that can no longer be disregarded by public authorities. It further noted that despite its risks, bitcoin offers numerous opportunities for the future and that public authorities should work on a balanced regulatory framework. Source.

    The French Ministry of Economy stated that revenue from sales of virtual currency is taxable income. The French Banking Federation indicates that wiring revenue from the sale of virtual currency to a individual bank account may require the bank to file a declaration with the French anti-money-laundering agency. Source.

    Bank of France warns about risks associated with virtual currencies: (1) security risks, (Two) absence of central regulatory authority, (Trio) speculation and big volatility, (Four) legal risk, and (Five) use of currencies for illegal and illicit activities. Source.

    Bitcoin Central, an exchange operating through a partnership with Aqoba, reportedly was approved by French regulators to operate as a “bank” (actually a payment services provider) under French law. Source.

    Virtual currencies are financial instruments under German law and, more specifically, are a form of “private money” that can be taxed as capital. Certain uses may also require a license or permit. Earlier guidance from the German financial supervisory authority also suggested virtual currencies are commodities, and are subject to taxation both upon sale of bitcoin and sale of goods in exchange for bitcoin.

    The Austrian and German governments are funding a research effort focused on the use of digital currencies in organized crime.: “BitCrime”. The initiative, is split into two sub-projects: (1) the German sub-project, primarily supported by the German Federal Ministry of Education and Research, and (Two). the Austrian sub-project, backed primarily by the Austrian Federal Ministry for Transport, Innovation and Technology, the Austrian Institute of Technology, and the Federal Ministries of Finance and the Interior. Source.

    The German Ministry of Finance has reportedly published a letter ruling that the commercial sale of bitcoin is a “miscellaneous service.” Retailers accepting bitcoin would be taxed on the sale of goods and upon selling any bitcoins they accept in purchases. Source.

    BaFin releases an overview of risks related to virtual currency, and indicates that commercial use of BTC may require licensure and permitting in certain circumstances. Source.

    German Finance Ministry says that virtual currency is not e-money or foreign currency but is still a financial instrument under German banking rules. Virtual currency is therefore more akin to “private money” that can be used in “multilateral clearing circles” (suggesting that virtual currency would be taxed as capital). Source.

    BaFin (German financial supervisory authority) says that Bitcoins are exempt from definition of e-money because they are not tied to legal tender currency. Instead, it is a commodity subject to taxation. Source.

    The Bank of Greece has adopted the EBA warnings regarding virtual currencies.

    Bank of Greece adopted the EBA’s warnings to consumers regarding virtual currencies. Source.

    See Denmark, above; autonomous country but under Kingdom of Denmark

    Informal guidance suggests that regulatory authorities are monitoring virtual currencies, particularly with regard to money laundering. Virtual currency considered a virtual commodity and not legal tender.

    The Hong Kong Monetary Authority (HKMA), ,in partnership with the Hong Kong Applied Science and Technology Research Institute (ASTRI). published a white paper on distributed ledger tech. The paper presents blockchain as a contraption that “carries enormous potential” depending on the kind of application but highlights that from the regulatory perspective, risks remain. Source.

    A senior Hong Kong official indicated, in response to a question submitted during a meeting of the Legislative Council of Hong Kong, that the government does not see a need for legislation that would regulate or ban bitcoin activities. The statement indicated that bitcoins are not a legal tender, and their value is not backed by any physical items, issuers or the real economy. Source.

    The Hong Kong Monetary Authority issued a statement warning the public about the risks involved in virtual currency trading after a a bitcoin exchange allegedly stole its clients’ funds. The statement also stated that Bitcoin is a virtual “commodity” and not legal tender. Source.

    Secretary for Financial Services and the Treasury says that there are high risks in exchanging, trading, and holding bitcoin; there are no physical currency assures; and its value is very speculative. Also suggested that Hong Kong was monitoring the virtual currency market and was particularly worried about money laundering. Source.

    The National Bank of Hungary has issued warnings similar to those of other countries.

    The National Bank of Hungary (MNB) issued a public statement warning citizens who use or invest in cryptocurrencies such as bitcoin, citing their unregulated nature amid enhancing instances of high-return investment schemes manhandling the cryptocurrency. The warning also reminded users that there is no institution ensuring the execution of a transaction or the reimbursement of payment. Source.

    National Bank of Hungary warns about the use of virtual currencies, including that they are not issued or assured by a central authority, the possibility of loss of value or theft, their volatility, and the inability to seek recourse or refund. Source.

    Regulates virtual currencies as electronic currency through the Icelandic Exchange Act, which effectively prohibits entities from engaging in the exchange of virtual currency.

    Icelandic Exchange Act applies to bitcoin exchanges, and bitcoin is not exempt as a good or service. Therefore, one cannot engage in foreign exchange that involves the electronic currency, bitcoin. Source.

    Reserve Bank of India has issued warnings to the public about the risks associated with virtual currencies and has suggested it is examining virtual currencies under India’s existing legal framework.

    The Reserve Bank of India’s governor and two deputy governors made statements about bitcoin. He indicated that while the technologies have the potential to be disruptive they could also have undesirable consequences if left unchecked. He also acknowledged that the technology can assist financial inclusion, that Cryptocurrency can help alleviate transaction settlement concerns. Source.

    Reserve Bank of India issues warnings to customers who buy, sell or trade in virtual currencies about security risks, absence of regulatory authority, speculation and volatility, legal risk, and use of currencies for illegal activities. Also says it is “presently examining” issues associated with using, holding, and trading VCs, including regulations for foreign exchanges and payments systems laws. Source.

    India’s Enforcement Directorate raided the offices a virtual currency exchange, reportedly in response to violations of India’s Foreign Exchange Management Act. Source.

    Virtual currencies are not legal tender, and using virtual currencies violates the country’s information and electronic transaction laws and currency laws.

    Bank Indonesia issued a statement on virtual currencies stating that these are not considered to be currency or legal payment instruments in Indonesia, and warned the public that the user/proprietor of bitcoins bears all risks related to their ownership/use. Source.

    Deputy Governor of Indonesian Central Bank says that using bitcoin violates information and electronic transaction laws and currency laws. DG also strongly urged Indonesians not to use bitcoin as a means of payment, and highlighted security risks of bitcoin too. Source.

    The Central Bank of Ireland does not regulate bitcoin. Ireland’s Revenue Commissioners are monitoring bitcoin for tax-related developments.

    The Central Bank of Ireland was cited by the Minster for Finance as stating that it does not regulate bitcoin or consider it to be legal tender. The Minister for Finance also referenced a statement by the Revenue Commissioners that they are monitoring development of virtual currency and its tax implications, albeit they do not believe virtual currency represents a significant risk for tax evasion. Presently, implications for taxation are varied, as bitcoin has elements both of a commodity and a currency. Source.

    The government intends to put in place a regime promoting virtual currency business, subject to anti-money-laundering requirements.

    The Gambling Supervision Commission Officials weighing regulatory switches that would permit gambling services to accept digital currencies “as if they were cash”. They issued a “public consultation” that was open from Four/26/16 until 05/20/16. Source. Source.

    The Isle of Man Department of Economic Development announced plans to run a trial of the very first government-owned blockchain project. Source.

    Effective April 1, 2015, virtual currency businesses, including those that exchange, sell, buy, or store virtual currency, must serve with the Isle of Man’s anti-money laundering laws. Source.

    The Isle of Man Department of Economic Development announced that it intends to take activity in the coming months to implement a regime that promotes business opportunities in digital currency but also applies suitable anti-money laundering requirements. Source.

    The Israeli central bank and Finance Ministry has issued warnings to the public about the risks associated with virtual currencies.

    Israel’s government is set to apply capital gains tax to bitcoin sales, categorizing digital currencies as a type of property. According to a statement published on 12th January, the Israel Tax Authority (ITA) said that it would consider bitcoin and other digital currencies as a kind of intangible asset rather than a foreign currency. Individuals involved in the sale or mining of digital currencies would be subject to business tax rates. Further, any commercial sales of bitcoin or transactions involved with trading are subject to value-added tax (VAT), the agency said. Source.

    Central Bank and Finance Ministry warns against the use of virtual currencies, similar to those of the European Banking Authority. It warned that virtual currencies are not legal tender, may be subject to volatility, can be used for money laundering or terrorist financing, and are subject to loss via a technical attacks by hacking. Source.

    Reportedly, the Bank of Israel and the Israel Securities Authorities, and justice and finance ministries are waiting to see how other countries address virtual currencies before taking act. Source.

    A law requiring identification of parties in bitcoin transactions has been proposed in the Italian Parliament, but no regulation yet.

    Agenzia delle Entrate, Italy’s top tax authority, released fresh information about its treatment of digital currencies, stating that purchases and sales made with bitcoin remain exempt from VAT. Source.

    The Central Bank of Italy issues a directive warning that virtual currency could be used for money laundering and terrorist financing, but that businesses that store and exchange virtual currency for fiat currency, among other virtual currency-related businesses, are not required to conform with AML/KYC requirements. Source.

    The Central Bank of Italy issues two directives warning about the use of virtual currency and agreeing with the EBA’s stance that financial institutions should not buy or invest in virtual currency until a formal legal framework is established. Source.

    The attorney general of Rome and an officer of the Italian financial police reportedly warned in separate interviews that Bitcoin could be manhandled by criminals, and called for regulations to combat criminal activity involving virtual currency. Source.

    A law is proposed in the Italian Parliament to require identification of a sender in a transaction involving more than 1,000 euros. Source.

    Japan approved a law regulating Virtual Currencies on May 25, two thousand sixteen which was promulgated on June Trio, 2016. The law was enacted and came into effect on April 1, 2017.

    Japan passed a bill that includes amendments to the Payment Services Act (the PSA) and the Act on the Prevention of Transfer of Criminal Proceeds (the “Criminal Proceed Transfer Act”), both of which provide for virtual currency exchange transactions to be regulated by the relevant authorities.

    The following persons or entities will fall under the category of a virtual currency exchange operator (VCEO): a person or entity that, in the course of trade, engages in (i) purchases and sales of the virtual currency or exchanges the virtual currency for another virtual currency; (ii) an intermediator or agent of the above transactions; or (iii) custody or safekeeping services in relation to a dealing or broking transaction set forward in (i) or (ii) above. Such person or entity is required to register with the Prime Minister as a VCEO.

    A foreign entity that engages in the virtual currency exchange business outside of Japan and does not obtain such registration with the relevant regulator shall be prohibited from making solicitations of the businesses indicated in (i) through (iii) above to a resident in Japan. Further, a VCEO is now categorized as a “Specified Business Operator” under the Criminal Proceed transfer Act. Accordingly, a VCEO is required to confirm the identities of its customers at the time of any transaction and to report any suspicious trading to the relevant authorities. Eventually, the amendments left unclear whether the elementary purchase of virtual currencies would be subject to Japanese tax. Source. Source.

    The legislation was promulgated on June Three, two thousand sixteen and it is expected to be enforced within one year from the promulgation date.

    On March Trio, two thousand sixteen Japan very first bill regarding cryptocurrencies was submitted to the Diet. The bill (i) provides definitions of Virtual Currency and Virtual Currency Exchange Services, (ii) requires registration of Virtual Currency Exchange Services (iii) sets forward the regulations regarding the business of Virtual Currency Exchange Service Providers, and (iv) imposes certain obligations (including customer identification obligations) by designating Virtual Currency Exchange Service Providers as “specified business operator” within the meaning of the Act on Prevention of Transfer of Criminal Proceeds. Source. Source.

    The Financial Services Agency (FSA) has proposed legislation that would recognize virtual currencies as equal to conventional currencies. If passed, virtual currency companies would be required to register with the FSA. Regulators hope to have the legislation passed before the end of the current Diet session. Source.

    Japan’s Liberal Democratic Party reportedly stated that Japan has determined against regulating bitcoin for now, but will proceed to assess the possibility of regulation. Source.

    Virtual Currencies under threshold amount are subject to “light touch” regulatory scheme.

    Authorities in the State Assembly, the legislature of the British Crown dependency of Jersey, published an order on 23rd September, stating that anyone operating as a digital currency exchanger is exempt from registration requirements if their annual turnover is less than £150,000. The order came into force on 26th September. The Jersey legislature also approved a switch to the dependency’s money laundering statutes, which would apply to digital currency exchangers. The orders reflect the outcome of a consultation process begun last year by Jersey’s government. Source.

    The States of Jersey government released a regulatory scheme for virtual currency exchangers. As companies grow, regulatory requirements increase, with those companies exceeding 150,000 GBP facing higher reporting and registration requirements. Source.

    Virtual currencies are not legal tender in Jordan and the Central Bank has warned against their use. Banks, currency exchanges, financial companies, and payment service providers operating in Jordan are prohibited from dealing in virtual currencies.

    Reportedly, the Central Bank of Jordan warned against the use of virtual currencies and said they are not legal tender. The warnings were similar to those issued by other countries: that there is a high risk of devaluation, that their value is very volatile, that virtual currencies can be used for criminal activities, and that there is a risk of total loss because it is not backed by a central authority. Further, the Central Bank reportedly told all banks, currency exchange companies, financial companies, and payment service providers, that they are prohibited from dealing in virtual currencies. Source.

    Bank of Lebanon has issued warnings to the public about the risks associated with virtual currencies, and has said that financial institutions and exchanges cannot, be decree, deal in virtual currencies as “e-money.”

    Bank of Lebanon has warned about risks of digital currencies, including that transactions made through unregulated networks cannot be ensured and losses not recoded; transactions may be irreversible; the currencies are very speculative and volatile; and can be used for criminal activities. It also reminded financial institutions and exchanges that “e-money” is prohibited by decree. Source.

    Central Bank of Lithuania has issued the standard EBA warnings but is holding off on further regulations for now.

    Central Bank of Lithuania clarifies that regulation of virtual currencies is under discussion but that it is likely to wait until further activity from EU countries before pursuing regulation. Source.

    Extra warnings issued regarding virtual currency and fluctuations in value of virtual currency. Source.

    Central Bank of Lithuania adopts the EBA warnings to consumers. Source.

    The issuance of virtual currency is not regulated “from a monetary point of view.” Financial services providers, which could include virtual currency businesses, must receive authorization from the Minister of Finance.

    The Luxembourg financial regulatory commission (CSSF) has issued a statement concludes that virtual currencies are not legal tender. It warns that virtual currencies entail risks for their holders, and reminds financial services providers that carrying out activities of the financial sector requires an authorization by the Minister of Finance and subjecting themselves to CSSF supervision. Source.

    Virtual currencies are not legal tender, are unregulated, and are risky.

    Central Bank of Malaysia has said that “The bitcoin” is not legal tender in Malaysia, that is does not regulate the operations of bitcoin, and that the public is advised to be cautious of the risks associated with the use of digital currencies. Source.

    Malta’s government is reportedly developing a broad national strategy that will see the government embrace bitcoin and blockchain innovation to promote and adopt the technology.

    Malta’s government is reportedly developing a broad national strategy that will see the government embrace bitcoin and blockchain innovation to promote and adopt the technology. The island nation’s Cabinet has approved the very first draft of a national strategy to promote blockchain. The revelation was made by Malta’s Prime Minister Joseph Muscat, speaking at an official financial conference. Source.

    Virtual currencies are not legal tender currency, and the Bank of Mexico has warned of risks of using virtual currencies.

    Mexico’s Secretariat of Finance and Public Credit clarified its stance on bitcoin, stating that virtual currencies will be included in the prohibitions of article thirty two of Mexico’s LFPIORPI, its federal law that is meant to prevent and identify operations transacted with illicit goods. Source.

    The Bank of Mexico has issued a press release warning of the risks of using virtual currencies, which also indicates that virtual currency is not legal tender. The release notes that presently virtual currencies do not presently have significant invasion in Mexico, however, the Bank in coordination with other authorities is monitoring their development and will issue regulations if necessary. Source.

    The Netherlands do not regulate bitcoin under its Act on Financial Supervision, but its national bank has released consumer warnings regarding the use of virtual currency. One court has ruled that it is a “medium of exchange” but not electronic money and another court has classified virtual currency as an “object” subject to seizure.

    The Dutch central bank has committed to developing an internal blockchain prototype dubbed “DNBCoin”, according to a latest publication. The development signals a desire on the part of the Dutch central bank to explore blockchain tech as an avenue for exchanging physical cash with digital replacements. Source.

    Based on unofficial statements, the Ministry of Finance is reportedly considering exempting bitcoin transactions from VAT, treating bitcoins similarly to payment instruments. Source.

    Dutch prosecutors released a document describing their response to Project ITOM, which involves collaboration inbetween EU and U.S. law enforcement, financial intelligence and monetary agencies to tackle illegal trade on the dark web. The Dutch prosecutors identified cryptocurrencies as one of their priorities for deterrent act, and emphasized the need for law enforcement to be able to obtain more information on Bitcoin transactions. Source.

    Courts reportedly ruled that bitcoins are objects, and the public prosecution department can therefore legally seize virtual currency from criminals and place them in its own digital purse. Source.

    A district court in a civil suit involving an uncompleted bitcoin transaction inbetween two parties ruled that bitcoin is a medium of exchange that is an acceptable form of payment in the country but that cannot be defined as legal tender, common money, or electronic money. Source.

    The Dutch Central Bank issues extra warnings relating to use of virtual currency, including statements that virtual currencies are not a viable alternative for legal tender. Source.

    Virtual currencies such as bitcoins presently do not fall within the scope of the Act on Financial Supervision of the Netherlands, as the Dutch Minister of Finance recently emphasized. Source.

    The Dutch Central Bank released a warning listing risks of usage of virtual currency and stated that it does not supervise virtual currencies. Source.

    A transcript of a question and reaction section with the Dutch Minister of Finance regarding risks of using bitcoin. The Q&A indicates that bitcoin is not a financial product for the purposes of the Act on Financial Supervision and that bitcoin transactions are taxable on an as-converted to legal tender basis. Source.

    Informal warnings about the risks associated with virtual currencies; suggestion from Commerce Commission that virtual currency may be regulated.

    The Deputy Governor of Fresh Zealand’s Reserve Bank (RBNZ) reportedly likened Bitcoin to a commodity rather than a realistic cash substitute, and stated that a switch in regulatory treatment was needed to manage the enhanced operational risk caused by the rise of online and mobile payments. Source.

    Reserve Bank of Fresh Zealand Gov. John McDermott warned people to “tread cautiously” because of supply, controls, and monitoring. Also warned of risks from volatility in pricing and speculation. Source.

    Fresh Zealand’s Commerce Commission reported as stating that bitcoin is covered by Fresh Zealand’s Fair Trading Act and Commerce Act. Source.

    Indications are that virtual currencies are not “money” or “currency” but are assets subject to capital gains taxes.

    Following a latest European Court of Justice ruling, the Directorate of the Norwegian Ministry of Finance reviewed its position on the applicability of VAT exemptions to Bitcoin, and recently concluded that services relating to the exchange of Bitcoin are covered by the VAT Act’s exemption for financial services. Source.

    Norwegian Director of General Taxation says that virtual currencies are not “money” or “currency” (a widely accepted and agreed upon method of exchange for goods and services). Virtual currencies are, however, assets subject to capital gains taxes. Source.

    Exchanges are not regulated by the Philippines Central Bank or other regulatory authorities in the country.

    Establishing itself as one of the very first governments in Southeast Asia to formally regulate digital currency, the Bangko Sentral ng Pilipinas (BSP) issued Circular No. 944, regulating digital currency exchanges as remittance and transfer companies. Digital currency exchanges must obtain a Certificate of Registration (COR) and serve with annual filing and reporting obligations. The regulatory framework requires digital currency companies to implement adequate risk management and security controls, and restricts “pay-outs” greater than $Ten,000 to checks and direct deposit. Source.

    The Central Bank of the Philippines has issued a press release describing virtual currencies and the risks of buying, holding or trading virtual currencies. The release indicates that the Central Bank is monitoring developments and may adopt adequate regulatory measures as needed. Source.

    Virtual currencies are not illegal, but are also not legal tender. They are subject to capital gains taxes and value-added tax.

    Poland’s Financial Ombudsman has called on the country’s Ministry of Finance to regulate the local cryptocurrency industry, claiming that as Poland’s cryptocurrency market is experiencing rapid growth, it should be subject to regulations that would protect customers of cryptocurrency exchanges. The appeal urged the Finance Ministry to evaluate and compare the best practices from those countries that have regulated cryptocurrencies, and implement the best instruments. Source.

    Poland’s Central Statistical Office (GUS) has recognized the trading and mining of virtual currencies as an official economic activity. As a result, companies active in the industry will now be able to register with the agency. The development marks a significant advance for industry players in Poland where, to date, the state has not issued any specific legislation that regulates bitcoin and other virtual currencies. Source.

    A draft bill introduced in Poland aims to create a create a Central Database of Accounts to be maintained by the Ministry of Finance, which would provide authorities rapid and effortless access to information on the locations of certain funds and other liquid assets. The draft bill would apply to banks, credit unions, payment services providers, and “entities that suggest products or services that enable storage of authentication data required to access virtual currencies,” Covered entities would be required to notify authorities within twenty four hours of the opening or closing of an account, or a switch to account information, with penalties of up to PLN 1.Five million or up to three years in prison. The bill marks Poland’s very first attempt at regulating the digital currencies market.

    The Grind Ministry of Finance concluded that, while virtual currencies are not subject to any separate regulation under Grind legislation, and while their use in Poland is fully legal, they are subject to income tax. Source.

    Poland’s Ministry of Digital Affairs announced an expansive digitization plan which seeks to promote digital public services, the development of cashless solutions and the implementation of electronic identification (eID). Source.

    The deputy finance minister reportedly released a statement that options and futures contracts based on bitcoin can be considered as financial instruments. The statement also concluded that Bitcoin is not legal tender in Poland or elsewhere. Source.

    The Lodz provincial office of the Grind Tax Administration issued an opinion stating that the sale of mined bitcoins is subject to Grind value-added tax of 23%, based on the rationale that bitcoin mining is a service with a set service fee, and mined bitcoins will be subject to VAT as a result. Source.

    Ministry of Finance announces that it does not consider bitcoin illegal, albeit it is not a legal currency either. Also clarified that profits from virtual currencies are subject to taxation as gains. Source.

    Informal warnings from the Bank of Portugal about the risks of virtual currency, while clarifying that the Bank does not monitor bitcoin.

    The Bank of Portugal issued a consumer alert warning of the risks of use of virtual currencies such as Bitcoin. The warning states that virtual currencies are not safe, and cautions that users bear the risks of using virtual currencies due to their lack of legal tender status and consumer protection regulation. Source.

    The Bank of Portugal issued a press release highlighting the risks of using bitcoin and stating that the Bank of Portugal does not oversee or supervise the issuance or use of bitcoin. The Bank concluded the release by indicating that banks are aware of the need to monitor and may eventually recognize and act on bitcoin. Source.

    Virtual currencies are banned as money surrogates under the federal law “On the Central Bank of the Russian Federation.” Stiff criminal penalties have been proposed for conversion of virtual currencies into rubles

    Russia’s government is said to be moving ahead with plans to introduce rules for blockchain use by 2019. According to state-owned news service TASS, the disclosure came from a report from the Ministry of Communications, which was not publicly accessible. TASS reports that the documents touch on “the adoption of legal acts” related to blockchain, positing two thousand nineteen as the time framework for the update. Source.

    Russian bitcoin ban faces an uncertain future after a draft of the bill was withdrawn. The bill – popularly known as the “Russian bitcoin ban” – received some negative feedback after the Justice Ministry is said to have objected to the bill on the grounds that its comments were not incorporated. The national legislature, the Duma, has been deliberating the bill since earlier this year. Source.

    The Finance Ministry in Moscow is planning to submit legislation next month which would penalize those using digital currencies. The proposed legislation would prohibit the issuance of digital currencies, as well as their use in exchange for goods and services in Russia. The range of penalties is commensurate with the level of usage. Russia joins Bolivia, Iceland, and Vietnam in taking steps to criminalize digital currency use. Source.

    Lawmakers submitted a fresh draft bill to Russia’s legislative assembly, the Duma, proposing a ban on virtual currencies. The law would impose imprisonment and civil penalties ranging from $265 to $66,000 for those who crack the law. The bill prohibits “malevolent issuance of money surrogates,” which may include miners as well as exchangers, “assistance in money surrogates circulation,” which captures virtual currency wallets, and “circulation of money surrogates” which includes those who purchase goods and services using virtual currency. The bill goes so far as to prohibit advertising virtual currencies in mainstream media and online, by prohibiting “intended distribution of information sufficient and necessary for issuance of money surrogates in media and information and communications networks.” Source. Source.

    Deputy Finance Minister Alexey Moiseev voiced support and appreciation for blockchain technology, while maintaining the Ministry’s stance on bitcoin as a danger to the banking system. The Ministry of Finance seeks to criminalize bitcoin conversions through a proposed draft law that would subject those who convert the virtual currency to up to four years in prison. Source.

    The Ministry of Finance revised its proposed legislation banning virtual currency activity, reducing the applicable fines by approximately 20-50%. Source.

    Deputy Finance Minister reportedly announced that a law will be passed by next spring banning transactions in virtual currencies. The law will reportedly provide for criminal penalties against miners of virtual currency, and ban access to exchanges and online stores accepting bitcoin. Source.

    The finance ministry is reportedly preparing a bill prohibiting transactions with “money substitutes,” including cryptocurrency. The ministry reportedly believes that virtual currencies are attractive to the shadow economy due to their lack of regulation. Source.

    Central Bank of Russia says that, under existing regulations, virtual currencies are a money surrogate, not an official currency, and are prohibited. Entities that use or exchanges that trade in virtual currencies will be subject to suspicion based on the potential use of virtual currencies for money laundering or other criminal activities. Source.

    Former economy minister and current chief of state-run OAO Sberbank Herman Gref says that banning virtual currencies in Russia would be a “colossal step backward” and had sent letter to the Kremlin, central bank, and Finance Ministry regarding the same. Source.

    The Security Committee in the lower house of parliament, the State Duma, approved a draft counterterrorism bill that included limitations on anonymous transactions, including virtual currencies. Source.

    Banque Régionale de Marchés (BRM) announced that it partnered with eCurrency Mint Limited (eCurrency) to provide a digital currency in the WAEMU. BRM will issue the digital tender, eCFA, in compliance with e-money regulations of BCEAO. The eCFAs will be transacted across all existing payment platforms and will be equivalent to physical legal tender. The eCFA distribution will begin in Senegal and will be extended in a 2nd phase to Cote d’Ivoire, Benin, Burkina Faso, Mali, Niger, Togo and Guinea- Bissau. Source.

    The National Bank of Serbia issued a statement that Bitcoin is not legal tender in Serbia or any other country, and cannot be subject to sale and purchase by banks and licensed exchange dealers. The statement further warns that due to the lack of legal protections, investing in bitcoin and other similar virtual currencies not issued or backed by a central bank constitutes a risk and may result in financial losses. Source.

    Virtual currencies are not “money” or “currency.” However, virtual currency businesses may be subject to anti-money-laundering regulations. Informal reporting suggests that virtual currency sales are taxed as income, investments are taxed as capital gains, and may be subject to goods and services tax.

    The Monetary Authority of Singapore announced the development of a blockchain proof-of-concept pilot project that will facilitate inter-bank payments, globally. The project aims to develop a payment system that will enable banks to transact inbetween global markets at any hour, with instant transfer of funds inbetween participants. Source. Source.

    The central bank of Singapore has proposed a fresh regulatory framework for payments providers in the city-state, a budge that would bring digital currency exchanges under its oversight. The proposed framework would require applicable companies to obtain a license from the Monetary Authority of Singapore (MAS), and divides payment activities into several categories. Digital currency exchanges would be covered by a provision overseeing startups that provide “money transmissions and conversion services.” Source.

    Monetary Authority of Singapore states that it will regulate virtual currency intermediaries to address money laundering and terrorist financing risks. Planned regulations include requirements to verify customer identities and reporting suspicious transactions. Source.

    Inland Revenue Authority of Singapore (IRAS) reportedly responds to request about taxation. Companies will be taxed on income based on virtual currency sales. When used as an investment, taxed as capital gains. Further, GST could vary depending on the level of services. Reminded that virtual currencies are not “money” or “currency” so they are a good or service for taxation. Source.

    Monetary Authority of Singapore cautions consumers regarding risks of trading in bitcoin. Source.

    Bank of Slovenia has issued warnings to the public about the risks associated with virtual currencies. Slovenia has also indicated that certain activities, including mining, would be subject to taxation.

    The Slovenian Ministry of Finance indicated that individuals selling bitcoin for capital gains would not pay income tax, but bitcoin miners would pay income tax. Overall, Slovenia intends to review bitcoin taxation on a case-by-case basis. Source.

    Bank of Slovenia reiterated EBA warnings about virtual currencies: (1) can lose money, (Two) money may be stolen from virtual wallet, (Three) EU refund rights do not protect when VC for payment, (Four) value can switch quickly, (Five) can be used for criminal activity, including money laundering, and (6) consumers may be subject to tax liability. Source.

    South African Reserve Bank has warned that virtual currencies have no legal status and are subject to lack of security, may lose value, and may not be convertible to legal tender.

    South Africa’s central bank is “open” to cryptocurrencies and blockchain, according to fresh statements from its governor. Governor Lesetja Kganyago indicated that the South African Reserve Bank is exploring the technology and interested in innovations that may stem from its development. The remarks suggest a greater degree of interest on the part of the central bank in the technology, coming less than two years after it released a position paper on digital currencies. Source.

    South African Reserve Bank issues warning similar to those of other countries that virtual currencies have no legal statute and cannot assure “security, convertibility, or value.” Source.

    Virtual currencies are not legal currency, are volatile and risky, and have no intrinsic value.

    Financial regulators in South Korea launched a fresh digital currency task force, with the purpose to introduce fresh regulations for exchange. Source.

    Ministry of Strategy and Finance, Bank of Korea, Financial Services Commission, and Financial Supervisory Service said that “cyber currency” is not a “real legal currency” and does not meet the standard regulations governing currency transactions, either via the Internet or commercial institutions. Also warned about the high volatility in the value of bitcoin, and about its lack of intrinsic value. Source.

    Virtual currencies are reportedly taxable as an electronic payment system under gambling law, but its treatment under other areas of law is unclear.

    The Ministry of Treasury confirmed that cryptocurrency is exempt from VAT in Spain. Source.

    Ministry of Treasury and General Government reportedly issued a ruling that it will treat Bitcoin as an electronic payment system for purposes of gambling law. It is unclear whether the Ministry’s interpretation is applicable to other areas of laws. Source.

    Informal statement from a tax official suggests that virtual currencies are not currencies in Sweden but instead will be treated as assets.

    Sweden’s central bank is considering the possibility of issuing its own digital currency, tho’ the exact technology it will use is yet to be determined. The Riksbank said it is facing pressure to make the switch following a decline in domestic cash use. With the news, Sweden becomes the latest nation to see its central bank consider a digital currency, a process that for most has included at least some exploration of blockchain-based digital currencies. Source.

    Sweden announced that it will treat income generated from certain bitcoin mining activity as income from employment. Source.

    The Swedish central bank published an article in its biannual economic review journal describing Bitcoin and other virtual currencies, their benefits and risks, use in Sweden and future outlook. Source.

    The Swedish Central Bank issued a commentary analyzing whether virtual currencies have affected the retail payments market, which noted that there are significant risks associated with virtual currency, as it is not subject to regulation. Source.

    Swedish Tax Agency official says that Sweden is likely to view virtual currencies as an asset, like art or antiques, and not a currency. Source.

    Swiss financial regulator has defined licensing requirements for bitcoin kiosk operators and said that virtual currency platforms are subject to anti-money laundering act, but other regulation unlikely because virtual currencies are perceived as a marginal phenomenon.

    The Swiss Federal Department of Finance (FDF) outlined its plan to regulate fintech with the aim of introducing draft legislation to parliament by mid-2017 after a public consultation. The plan’s stated aim was to help the country draw in more fintech companies by virtue of an accommodative stance aimed to reduce barriers to market entry for fintech firms. Source.

    The Swiss Federal Tax Administration confirmed that bitcoin is exempt from Value Added Tax (VAT) in Switzerland. Source.

    The Swiss federal council issued a report on virtual currencies examining the economic significance, legal treatment and risks of virtual currencies. The report concludes that there is no present need for legislative measures to be taken given that virtual currencies are a marginal phenomenon and many of their applications are covered by existing financial, criminal and contract laws. Source.

    The Swiss Financial Market Supervisory Authority issued a fact sheet clarifying that the purchase and sale of bitcoins on a commercial basis, and the operation of trading platforms used to transfer money or bitcoins from a platform’s users to other users, are subject to Switzerland’s anti-money laundering act. Notably however, a banking license is required by providers who accept bitcoins from clients and administer bitcoin holdings for clients. Source.

    The Swiss financial market regulator gave its approval for a bitcoin kiosk operator to operate a kiosk network, two weeks after delaying the launch of a different bitcoin kiosk. The regulator’s response also set forward the money transmitter licensing and self-regulatory organization membership requirements for operating a Bitcoin kiosk network in Switzerland. Source.

    Central Bank and Financial Supervisory Commission warned that virtual currencies are not currencies, but commodities and have no legal protection. Both plan to regulate virtual currencies.

    The Financial Supervisory Commission (FSC) released a statement to CoinDesk reiterating an earlier statement defining bitcoin as a “virtual commodity” and refusing to acknowledge it as a currency. The FSC stated “At the end of 2013, the Central Bank of the Republic of China and the FSC has [sic] released a joint statement that defines Bitcoin as a ‘virtual commodity’. Considering the non-currency nature and risk of Bitcoin, the FSC has required banks in Taiwan not to receive or exchange Bitcoin. At present, the FSC’s position on this issue remains the same as before.” Source.

    Taiwan’s Financial Supervisory Commission Chairman recently stated at a legislative hearing the opinion that virtual currencies were illegal. Commission plans to work with the Central Bank to regulate virtual currencies. Source.

    Central Bank and Financial Supervisory Commission warned against use because virtual currencies do not have legal protection. Suggested they may regulate virtual currencies if country financial institutions begin to engage with virtual currencies. Source.

    Thai law most likely does not regulate virtual currencies, but that does not mean that exchanges are free to operate in Thailand.

    A senior director of the Bank of Thailand reportedly stated that a company providing bitcoin exchange against the baht does not require approval or a license from the central bank. However, exchanging bitcoin for foreign currency would require an operating license granted by the central bank. The official also stated that exchanges also have to serve with related commercial, consumer and anti-money laundering laws. Source.

    Reportedly, the Bank of Thailand concluded that Thai law does not regulate virtual currencies, but that exchanges still cannot operate to the extent that they cannot prevent virtual currencies from being exchanged for currencies other than the baht. Source.

    Bank of Thailand reportedly said, in a meeting with a Bitcoin company, that there is an absence of applicable laws and capital controls and that, buying or selling bitcoin, buying or selling goods or service for bitcoin, or receiving bitcoin from outside Thailand is illegal. Source.

    The Central Bank of Tunisia exerts, on the State’s behalf, the special privilege of issuing on the territory of the Republic bearer banknotes and metal coins which are the only legal tender in the country.

    It is illegal to import or export Tunisian dinars. As a result, many converting ATMs exist across the country for tourists.

    The currency for Tunisia is the Dinar. The Dinar is the official currency of several countries including Libya, Algeria, Iraq, Jordan, and Tunisia. The common currency symbol for the Tunisian Dinar is TD.

    Tunisia has been reported to be substituting its self-created eDinar digital currency with a blockchain-based version, making it the world’s very first country to issue national currency using advanced blockchain technology. Source. Source.

    Tunisia agreed to become the very first nation to suggest its national currency for transmittance through cryptographic technology. Source. Source.

    Turkey’s recently enacted law on payment services and electronic money does not apply to bitcoin.

    Turkey’s Banking Regulation and Supervision Agency announced in a press release that bitcoin is not covered by Turkey’s “Law on Payment and Securities Reconciliation Systems, Payment Services and Electronic Money Institutions” and is therefore not subject to regulation under the Law. The Agency cautioned bitcoin users about risks associated with volatility and anonymity within the bitcoin system. No apparent switches in this position as of April 2015. Source.

    The UAE’s recently enacted regulatory framework on Stored Values and Electronic Payment Systems does not apply to bitcoin.

    On January 1, 2017, the Central Bank of the UAE issued a Regulatory Framework for Stored Values and Electronic Payment Systems, prohibiting “all Virtual Currencies (and any transactions thereof). The Central Bank of the United Arab Emirates (UAE) has clarified its past statements about a prohibition on “virtual currencies”, confirming that rules released last month do not apply to bitcoin. Caution is advised until a formal statement is released by the Central Bank. Source.

    Reportedly, exchanges do not have to register under money laundering regulations. Virtual currencies are taxed under goods and services taxes based on profits from a sale.

    The Governor of the Bank of England stated that the fintech sector did not need the same level of regulations as banks. Britain has seen a large boom of business from fintech firms, which employ more than 60,000 people there and is a business worth almost seven billion pounds (for companies providing services like contactless payments, banking apps and online crowd sourcing). Source.

    The UK’s government-owned Royal Mint plans to use blockchain technology to operate a fresh gold-trading system. The Royal Mint is working to put $1 billion worth of gold on a blockchain sometime next year to permit customers to own and trade fractions of gold, stored in the Royal Mint’s vaults, using a digital token called Royal Mint Gold (RMG). Each RMG holds the value of one gram of gold. Source.

    Light touch regulation of virtual currency exchanges have come into effect on the autonomous island of Jersey in the UK. The fresh laws make virtual currency exchange a supervised business and require exchange businesses with an annual turnover threshold of £150,000 or more to register with the Jersey Financial Services Commission (JFSC). Digital currency service providers will be sanctioned if they fail to register within three months of crossing that threshold. Source.

    The UK Treasury published a report last week describing the government’s plans to stop money laundering and terrorist financing risks. As part of the plans, the government will implement AML regulation. However, it will not seek to impose these AML regulations on virtual currency wallet providers. Source.

    The UK Treasury published a risk assessment in October two thousand fifteen of money laundering and terrorist financing. According to the report, the majority of the illicit transactions involving virtual currencies involve online markets and the sale and purchase of managed substances and firearms, rather than terrorism and money laundering. The report noted that “[t]here is little evidence to indicate that the use of digital currencies has been incorporated into established money laundering mechanisms […] [and] little evidence to indicate that the use of digital currencies has been adopted by criminals involved in terrorist financing.” Source.

    In a Treasury report released in late March, the UK Government announced plans to regulate bitcoin exchanges with anti-money laundering regulations, while at the same time committing significant funds to research and probe of Bitcoin technology. Source.

    Bank of England issued a report assessing the macroeconomic effects of digital currencies. The report concludes that digital currencies do not presently pose a material risk to monetary or financial stability in the U.K. Source.

    HMRC reportedly considering categorizing virtual currencies as a “private currency,” which would eliminate profits taxes. Source.

    HMRC reportedly wrote to FYB-UK that there is no requirement for an exchange to register under UK money laundering regulations. Source.

    Her Majesty’s Revenue & Customs (HMRC) says that digital currencies are covered by the UK tax system and, when used to pay someone for goods and services, the profits are taxable. Source.

    Please refer to the Perkins Coie Virtual Currency Report for analysis of U.S. law.

    Virtual currencies are not money nor legal tender in Vietnam and the State Bank of Vietnam warns against investing in, holding, or transacting in virtual currencies.

    State Bank of Vietnam recommends not investing in, holding, or transacting in virtual currencies because of harm and risks of use for criminal purposes, lack of technical security and vulnerability to hacking, price volatility, and lack of a central government authority. It also determined that virtual currencies are not money nor are they a form of legal payment in Vietnam. Source.

    Related video:

    Completing our transition to becoming a digital currency company (not just a Bitcoin company)

    Completing our transition to becoming a digital currency company (not just a Bitcoin company)

    As we kick off 2017, I think it’s significant for Coinbase and GDAX to proceed supporting more crypto currencies. We are no longer just a Bitcoin company. We are a digital currency company.

    This past year, we embarked the process by adding support for Ethereum. This was a major step. In 2017, you’ll see us proceed that trend.

    To be clear, I love Bitcoin and it is not going anywhere. It shows up to be the reserve currency of the digital currency space — a sort of digital gold if you will. It is an asset class that people flee to in times of trouble, most suitable for large, slow transfers, with a more conservative roadmap to evolve the protocol. What it has not become is a scalable payment network (with lower fees, quicker confirmation times, and higher throughput). I’m skeptical that it will be able to make this leap (even with fresh developments in the pipeline). Federated protocols seem to evolve leisurely. This primarily saddened me because I think an open payment network is where the greatest potential lies for digital currency to improve the world (hence our mission at Coinbase: to create an open financial system for the world). But I’ve come to accept that Bitcoin may not pack this role, and that is ok. It is still a very valuable technology in the world as an asset class, and that is ideally fine.

    Bitcoin may surprise me and scale (I hope it does). As we wait to see, an chance has emerged for other protocols to pack the payment network gap. Ethereum seems the most likely candidate for this at the moment (albeit things switch rapidly in digital currency space). It proceeds to attract a number of good engineers to work on the protocol and build applications (an significant leading indicator) and if proof-of-stake is successful this year, it will be a major computer science breakthrough providing a sustainable advantage. ICOs (people raising money on the blockchain) demonstrate no signs of slowing down, and Ethereum makes it very effortless to issue fresh tokens. I think fresh tokens built on top of Ethereum will find all sorts of use cases, from virtual worlds to prediction markets.

    Bitcoin’s assured scarcity is an attractive property from an investment point of view (another gold like characteristic). Ethereum has yet to determine its inflation policy, but it seems to be leaning toward some moderate inflation policy (2–3% a year). This is another indicator to me that you’ll see Bitcoin proceed to flourish as an asset class (and hold its value) while Ethereum may emerge as the preferred option for payment networks and custom-made tokens.

    It’s exceptionally difficult to predict the future and the digital currency industry is no exception (take the above for what it is, unspoiled speculation). Rapid switch seems to be the only certainty. For this reason, you’ll see Coinbase and GDAX proceed to support more crypto-currencies in 2017. As the most popular retail exchange (Coinbase) and institutional exchange in the U.S. (GDAX), we want to make it effortless for people to use all types of digital currencies. Our aim going forward is to not play favorites, or support one digital currency more than any other, but simply to make it effortless for customers to buy and sell whatever digital currencies they want. In this way, we can help support growth of the entire digital currency industry.

    I think the world is still largely unaware that digital currency has been growing

    Two.5x every year. If this trend proceeds (and I see no reason to believe otherwise) the future is very bright indeed. I’m looking forward to an titillating and productive 2017.

    Completing our transition to becoming a digital currency company (not just a Bitcoin company)

    Completing our transition to becoming a digital currency company (not just a Bitcoin company)

    As we kick off 2017, I think it’s significant for Coinbase and GDAX to proceed supporting more crypto currencies. We are no longer just a Bitcoin company. We are a digital currency company.

    This past year, we embarked the process by adding support for Ethereum. This was a major step. In 2017, you’ll see us proceed that trend.

    To be clear, I love Bitcoin and it is not going anywhere. It emerges to be the reserve currency of the digital currency space — a sort of digital gold if you will. It is an asset class that people flee to in times of trouble, most suitable for large, slow transfers, with a more conservative roadmap to evolve the protocol. What it has not become is a scalable payment network (with lower fees, swifter confirmation times, and higher throughput). I’m skeptical that it will be able to make this leap (even with fresh developments in the pipeline). Federated protocols seem to evolve leisurely. This originally saddened me because I think an open payment network is where the greatest potential lies for digital currency to improve the world (hence our mission at Coinbase: to create an open financial system for the world). But I’ve come to accept that Bitcoin may not pack this role, and that is ok. It is still a very valuable technology in the world as an asset class, and that is flawlessly fine.

    Bitcoin may surprise me and scale (I hope it does). As we wait to see, an chance has emerged for other protocols to pack the payment network gap. Ethereum seems the most likely candidate for this at the moment (albeit things switch rapidly in digital currency space). It proceeds to attract a number of good engineers to work on the protocol and build applications (an significant leading indicator) and if proof-of-stake is successful this year, it will be a major computer science breakthrough providing a sustainable advantage. ICOs (people raising money on the blockchain) showcase no signs of slowing down, and Ethereum makes it very effortless to issue fresh tokens. I think fresh tokens built on top of Ethereum will find all sorts of use cases, from virtual worlds to prediction markets.

    Bitcoin’s assured scarcity is an attractive property from an investment point of view (another gold like characteristic). Ethereum has yet to determine its inflation policy, but it seems to be leaning toward some moderate inflation policy (2–3% a year). This is another indicator to me that you’ll see Bitcoin proceed to flourish as an asset class (and hold its value) while Ethereum may emerge as the preferred option for payment networks and custom-built tokens.

    It’s exceptionally difficult to predict the future and the digital currency industry is no exception (take the above for what it is, unspoiled speculation). Rapid switch seems to be the only certainty. For this reason, you’ll see Coinbase and GDAX proceed to support more crypto-currencies in 2017. As the most popular retail exchange (Coinbase) and institutional exchange in the U.S. (GDAX), we want to make it effortless for people to use all types of digital currencies. Our objective going forward is to not play favorites, or support one digital currency more than any other, but simply to make it effortless for customers to buy and sell whatever digital currencies they want. In this way, we can help support growth of the entire digital currency industry.

    I think the world is still largely unaware that digital currency has been growing

    Two.5x every year. If this trend proceeds (and I see no reason to believe otherwise) the future is very bright indeed. I’m looking forward to an arousing and productive 2017.

    Related video:

    Blockchain: The Fattest Tech To Hit Wall Street Since The Internet

    The Fattest Tech To Hit Wall Street Since The Internet is Not Yet Ready For Prime Time

    It’s not an overstatement to say that blockchain is one of the most evangelized technologies out there today. Everywhere you look fresh companies are promising that blockchain will be a game changer for everything from banking to energy to walking.

    But is the technology ready for enterprise deployment?

    There’s no question that blockchain is an titillating fresh development. Invented ten years ago by the mysterious Satoshi Nakamoto, blockchain is the technology that makes the cryptocurrency Bitcoin work. Think of it as a decentralized ledger that continually verifies and keeps track of every transaction. Nakamoto’s genius with Bitcoin was to create a financial system “based on cryptographic proof instead of trust, permitting any two willing parties to transact directly with each other without the need for a trusted third party.”

    Anyone in business will see the elegance and appeal of that statement. The idea of taking third-parties out of the equation opens up a entire fresh world of automation and efficiency that should (rightly) have most C-suite executives doing their homework on how they can use blockchain.

    But we advise you proceed with care.

    Blockchain might not be the optimal solution for your company’s problems. Executives need to ask themselves: What problem am I attempting to solve? And could it be solved using a more established technology? For example, it you’re considering using an internal blockchain to share data across far-flung divisions, ask yourself why blockchain would be better than a traditional data warehouse?

    Designed to be an ecosystem solution, Blockchain works best when you get a critical mass of players to agree to use it and that’s not always effortless. For a bank, that might mean wooing trading playmates, stakeholders and regulators to climb on to the same platform. Before investing in blockchain technology, think about who will have to buy into using the platform and make sure everyone is on board.

    That might be challenging because blockchain technology is still very immature. The two most viable blockchain deployments are Bitcoin, and Ethereum, another cryptocurrency with wise contract features, These two blockchain protocols are magnitudes slower than today’s databases and both have very petite capacities compared to what will be needed for say, trade finance. The underlying computer codes are open-sourced, still evolving, and come with warnings to use at your own risk.

    Albeit almost $Two billion has been invested in blockchain ventures, most are still proofs-of-concept, experiments, or puny scale deployments. Granted, these are bellwether events, but it will take time to develop and scale enterprise-grade blockchains.

    That doesn’t mean businesses should reject the idea of blockchain applications. Through our research at MIT’s Center for Information Systems Research and the University of Missouri-Saint Louis we’ve come up with three practices that forward thinking companies should engage in to understand what, if any, business problems blockchain technology can solve for them.

    Collaborative blockchains are going to need standards that everyone agrees to. If you think blockchain might benefit your company, get out in front and join a consortium or non-profit that is working to help set the standards. Word to the wise: Large consortia can be slow to agree upon standards or to develop actual applications. Many puny consortia, on the other arm, produce proofs-of-concept quickly, but may not attract enough extra participants to reach critical mass. If possible, mitigate the risk of backing the wrong pony by participating in both large and petite consortia.

    As with any fresh technology, the most critical resource is talent. But one interviewee estimated that there are only around Five,000 people in the world with the abilities to architect blockchain applications. You might need to playmate with the consulting firms who snagged much of the global talent and let them transfer their skill to internal staff.

    Startup ventures are proliferating in this space, some of which might be working on solutions to the problems you are facing which means you won’t have to embark from scrape internally. Monitoring the start-up space in your industry will help you know when it make sense to invest in the fresh technology and when it makes sense to hire an outside hard.

    The bottom line: Enterprise blockchains are coming, but not as quickly as the evangelists will have you believe.

    (Top photo: Courtesy Getty Pictures.)

    Dr. Mary C. Lacity is Curators’ Distinguished Professor at the University of Missouri-St. Louis and a Visiting Scholar at MIT Center for Information Systems Research. She has published twenty six books on the topics of business services, sourcing, and automation, most recently Robotic Process Automation and Risk Mitigation: The Definitive Guide (2017) with Professor Leslie Willcocks at the London School of Economics.

    Kate Moloney is a Research Specialist at the MIT Sloan School of Management’s Center for Information Systems Research.

    All views voiced are those of the authors.

    Related video:

    Blockchain sharpens Dianrong’s edge in P2P lending to puny businesses, South China Morning Post

    Blockchain sharpens Dianrong’s edge in P2P lending to puny businesses

    Dianrong to expand Shenzhen team as its teams up with Foxconn on the Chained Finance blockchain platform that aims to revolutionise supply chain finance.

    Zen Soo UPDATED : Sunday, sixteen Jul 2017, Ten:30PM

    Dianrong, one of China’s top peer-to-peer lending platforms, is combining blockchains to its loans assessment system, aimed at helping puny and medium suppliers with unsteady cash flows breach the last mile of creditworthiness to obtain financing.

    The proof of concept was in March, when Dianrong ( 點融 ) set up Chained Finance with FnConn, the financing arm of Foxconn, the world’s largest contract manufacturer of consumer electronics. Chained Finance originated US$6.Five million in loans for puny and medium suppliers in a successful pilot.

    “Finance is about managing information, the most significant element is credibility and trust,” said Dianrong’s founder and chief executive Soul Htite, in an interview with the South China Morning Post. “Blockchain offers us a fresh model to maintain the transparency” of financial transaction information at very little cost, he said.

    Blockchains, the distributed databases conceptualised in two thousand eight as core components of the digital currency bitcoin, are increasingly finding their way into financial technology and helping to redefine the boundaries of traditional banking. They can be used as open, distributed digital ledger systems that can record transactions efficiently.

    With contracts embedded with certain business rules in the blockchain, manufacturers can ensure that suppliers only get paid if they abide by the agreement, preventing suppliers from outsourcing work while permitting manufacturers to know exactly which suppliers they are working with on a project.

    Dianrong, founded in two thousand twelve in Shanghai by the Lending Club’s alumnus Htite and Chinese entrepreneur Kevin Guo, originated 16.23 billion yuan (US$Two.Four billion) of loans in 2016, more than dual the year earlier. While lenders earn interests paid by borrowers, the platform takes a ten per cent fee.

    Dianrong and Foxconn are presently working together to apply the Chained Platform for Foxconn’s suppliers. Chained Finance is also in “advanced talks with some very large suppliers,” Htite said, declining to name them.

    Dianrong is expanding its team in prep for the increase in supply chain finance loans through Chained Finance. The company has plans to hire five hundred more staff in Shenzhen in addition to the sixty they already employ, Htite said.

    One of the challenges that Dianrong still faces is the misperception that users who cannot get a loan from the bank can lightly get a loan from a P2P lender like Dianrong.

    “You’re either a good quality borrower or a bad quality borrower,” said Htite, who said that Dianrong manages risk the same way banks do, by verifying a borrower’s capability to pay, the purpose of the loan and whether the borrower has at least some assets.

    “We collect information about you and, based on how comfy we are with your data, we give you the most competitive [loan],” said Htite.

    “Dianrong is able to give a loan to a person based on data, in a country that only believes you can get a loan if you have an asset,” he said. “We’re [the alternative] inbetween secure lending and shadow banking, which could charge you sixty per cent [interest].”

    Related video:

    Blockchain Explained – Part Two

    Blockchain Explained – Part two

    By Jérôme Kehrli

    The blockchain has tremendous potential for fraud prevention and cyber security. With this series of articles, we will explore how the blockchain will switch the cyber risk game.

    In my very first article, I have introduced the blockchain concept, presents what it is in the light of its initial deployment in the Bitcoin project, key problems solved by blockchain, and the blockchain operation principle.

    With this 2nd part, we dig into the technical aspects to accomplish our thorough introduction to blockchain. Concrete business applications and evolutions will be discussed in an article to go after in the coming weeks.

    1. Technical aspects of a blockchain

    In the Bitcoin system, a blockchain is a transaction database collective by all knots participating in a system based on the Bitcoin protocol.

    A total copy of a currency’s block chain contains every transaction ever executed in the currency. With this information, one can find out how much value belonged to each address at any point in history.

    1.1 The blockchain data structure

    The blockchain data structure is an ordered, back-linked list of blocks of transactions. Every block contains a hash of the previous block. This has the effect of creating a chain of blocks from the genesis block to the current block. Each block is assured to come after the previous block chronologically because the previous block’s hash would otherwise not be known. Each block is also computationally impractical to modify once it has been in the chain for a while because every block after it would also have to be regenerated.

    Transaction data is permanently recorded in these blocks as if they were files. These blocks can be thought of as the individual pages of a city recorder’s recordbook (where switches to title to real estate are recorded) or a stock transaction ledger. Over time, blocks are organized into a linear sequence, also known as a blockchain.

    Fresh transactions are permanently being processed by miners into fresh blocks, which are then added to the end of the chain and can never be switched or eliminated once accepted by the network.

    1.Two A very first view on a block structure

    Each block contains, among other things, a record of some or all latest transactions, as well as a reference to the block that came instantly before it. It also contains an response to a difficult-to-solve mathematical puzzle known as the hash or proof of work—more on that later!

    1.Trio A miner’s life

    In the Bitcoin world, transactions are broadcast to the network by the sender, and all peers attempting to solve blocks collect the transaction records and add them to the block they are working to solve. This is called mining.

    Mining is the process of adding transaction records to Bitcoin’s public ledger of past transactions. This ledger of past transactions is called the blockchain because, simply, it is a chain of blocks. The blockchain serves to confirm to the rest of the network that the transactions have taken place. Bitcoin knots use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend bitcoins that have already been spent elsewhere.

    Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains sustained. Individual blocks must contain a proof-of-work to be considered valid. This proof of work is verified by other Bitcoin knots each time they receive a block. Bitcoin uses the hashcash proof-of-work function.

    The primary purpose of mining is to permit Bitcoin knots to reach a secure, tamper-resistant consensus.

    Mining a block is difficult because the SHA-256 hash of a block’s header must be lower than or equal to the target in order for the block to be accepted by the network.

    Let’s simplify this problem for explanation purposes: The hash of a block must commence with a certain number of zeros. The probability of calculating a hash that starts with many zeros is very low, therefore many attempts must be made. In order to generate a fresh hash each round, a nonce is incremented.

    Miners implement the following (simplified) algorithm:

    1.Four Difficulty adjustment

    The difficulty is the measure of how difficult it is to find a fresh block compared to the easiest it can ever be. It is recalculated every two thousand sixteen blocks to a value such that the previous two thousand sixteen blocks would have been generated in exactly two weeks had everyone been mining at this difficulty. This will yield, on average, one block every ten minutes.

    As more miners join, the rate of block creation will go up. As the rate of block generation goes up, the difficulty rises to compensate so that the rate of block creation is shoved back down.

    Any blocks released by malicious miners that do not meet the required difficulty target will simply be rejected by everyone on the network and thus will be worthless.

    Again, the difficulty of the mathematical problem is automatically adjusted by the network, such that it targets a aim of solving an average of six blocks per hour. The network comes to a consensus and automatically increases (or decreases) the difficulty of generating blocks.

    1.Five Miner retribution (and Bitcoin creation)

    Mining is also the mechanism used to introduce bitcoins into the system. Miners are paid transaction fees as well as a subsidy of freshly created coins. This both serves the purpose of disseminating fresh coins in a decentralized manner as well as motivating people to provide security for the system. In other words, the subsidy provides incentive for miners to put their computation power at the disposition of the blockchain network.

    Because there is a prize of brand fresh bitcoins for solving each block, every block also contains a record of which Bitcoin addresses or scripts are entitled to receive the prize. This record is known as a generation transaction (or a coinbase transaction) and is always the very first transaction appearing in every block.

    The number of bitcoins generated per block starts at fifty and is halved every 210,000 blocks (about four years).

    In addition to the generation transaction, miners are motivated to include transactions in their blocks because of fastened transaction fees. A modest fee is received for every transaction in the freshly mined block.

    1.6 Bitcoin supply thresholds

    In the specific case of the Bitcoin, Satoshi had the idea of limiting the bitcoin supply early on. Of course, there is an significant reason behind this.

    In a centralized economy, currency is issued by a central bank at a rate that is supposed to match the rate of goodsexchanged, so that these goods can be traded with stable prices. The monetary base is managed by a central bank. In the United States, the Fed increases the monetary base by issuing currency, enhancing the amount banks have on reserve, and, more recently, printing money electronically in a process called Quantitative Easing.

    In a fully decentralized monetary system, there is no central authority that regulates the monetary base. Instead, currency is created by the knots of a peer-to-peer network. The Bitcoin generation algorithm defines, in advance, how currency will be created and at what rate. Any currency that is generated by a malicious user that does not go after the rules will be rejected by the network and thus is worthless.

    Bitcoins are created each time a user detects a fresh block. As a reminder, the rate of block creation is adjusted every two thousand sixteen blocks to aim for a constant two week adjustment period (equivalent to six per hour.) The number of bitcoins generated per block is set to decrease geometrically, with a 50% reduction every 210,000 blocks, or approximately four years. As a result, the number of bitcoins in existence is not expected to exceed twenty one million.

    But why twenty one million? Some speculate that twenty one million matches a 4-year prize halving schedule; or that the ultimate total number of Satoshis that will be mined is close to the maximum capacity of a 64-bit floating point number. Satoshi has never truly justified or explained many of these constants.

    Related video:

    BLOCKCHAIN BITCOIN WALLET REVIEW AND ANALYSIS, Dark Web News

    BLOCKCHAIN BITCOIN WALLET REVIEW AND ANALYSIS

    With the rise of bitcoin, we see that Blockchain is among the most used and recommended bitcoin platforms.

    Therefore, the company ought to take measures to ensure that the security of their systems is top-notch and also, the reputation grows with time to attract more clientele.

    The platform’s user base is cracked up into two types: there are those who use the website to transact, and there are those who choose to use mobile apps to transact.

    Whichever the case, it depends on whether or not the platform is convenient to the user.

    If you’ve created an account on the platform, your very first step should be to secure your account by all available means.Blockchain has taken fairly some measures to ensure that users’ funds are protected.

    Apart from providing the user with a diversity of ways to protect their coins, it is up to them to ensure they make good use of the available methods.

    Regardless, some users will avoid taking the necessary steps to beef up the security of their account.

    In a world where cybercrime is rampant and attackers are ready to use any possible means to take control of significant documents and funds, it is crucial that the security of your system is solid.

    In this case, the security measure taken by Blockchain must be enhanced by the account holder. So, there are three levels of security.

    Level one is the most basic, and it is meant to prevent you from losing access to your funds.

    At this level, the very first thing is to verify your email which will be used in the login process.

    2nd, get a backup phrase in case you need to recover your bitcoins and lastly, create a password hint that you can reminisce in case you leave behind your password and need to access your account.

    The backup phrase comprises of twelve letters, which is displayed on the screen. You can either write the words down, take a picture or print it.

    Because it is essential in accessing your funds in the event of suspicious activities that might make your coins inaccessible.

    To confirm this phrase, you will then come in a few words in the next page where you are to prove the phrase according to the numbers displayed

    The 2nd level of security involves the prevention of non-authorized logins to your wallet.

    With the rise of bitcoin, we see that Blockchain is among the most used and recommended bitcoin platforms.

    In this case, one has to inject their mobile number, which will be used to send a verification code in the event any suspicious activities are ongoing.

    So if someone is attempting to access your funds and they come to this step, the mission will fail. Also, the 2nd part of this is the two-factor authentication (2FA) is solely meant to verify the authenticity of the user by providing details that only they have in their possession.

    The third level of security involves hardening your wallet. According to the site, they claim this process is to prevent all the IP addresses that are from Tor network from accessing your wallet.

    If one is a Blockchain user, all these can be found on the top-left part of the web page. It is the third icon titled “Security Center.” It is very recommended that these not to be overlooked irrespective of the user’s balance or their work on the internet.

    When one registers on the platform, they are assigned a unique wallet ID that comprises of both numbers and letters, which are separated by a hyphen after a specific number of characters.

    So, this is more of like the username that you will use when you are logging into the platform.

    Because one cannot use their email address, name or phone number to access their coins apart from the wallet ID.

    After they inject the wallet ID, it is when they inject the password.

    When logging into your account, you can also just search for the login link and inject the password, then wait for a confirmation link.

    With this in mind, it makes it virtually unlikely for someone to guess the email you are using for your bitcoin wallet because there is no evidence whatsoever.

    Now when one is using the mobile app, the process of synchronizing information with the wallet involves creating a pin and scanning a code at the setting section.

    Without doing this, you cannot access your account using your phone. Therefore all due steps must go after.

    Upon following the above processes, it will be lighter to access your wallet from your phone which is much more convenient than logging into the site using a desktop or laptop since it is just a matter of putting in your pin.

    When one logs into their account using a desktop, they will have a confirmation link sent to their email.

    And if you have no access to the email, then it is not possible to access the wallet. Therefore, this can be considered an extra layer of security in the event someone has access to your password for one reason or another.

    It is never advisable for one to use the same password for email and other accounts, as it makes it effortless for one to access your accounts and possibly even switch emails in the event they are after you.

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