Category Archives: forex

Sobre lo que es Bitcoin y su proyección en Colombia

Seguramente no es la primera vez que lees “bitcoin” en alguna publicación. Y si lo es, parece que ha llegado el momento de actualizarnos. La moneda digital sigue causando interés entre los inversionistas jóvenes y veteranos.

Por ello, conocer todo lo referente al mercado de #bitcoin en #Colombia no tendrá pérdida alguna.

Sobre lo que es Bitcoin y su proyección en Colombia - Bitcoin Colombia

Bitcoin — three things that make it special.

Why Bitcoin could continue long-term growth for the foreseeable future

There is a lot of mis-understandings about bitcoin, and what it is. I thought I would address a couple of things you find out as you delve deeper into the subject.

Bitcoin isn’t just a digital currency — Bitcoin is a digital currency it’s true, but it’s a lot more than that.

What is known as the “blockchain” is a revolutionary new technology which means that transactions are stored as a public record on many different computers, and as there is no one central record, it is basically un-hackable.

Bitcoin is decentralized

Bitcoin isn’t made by the government when they feel like, a complex algorithm needs to be solved to create a new one, so you can’t just create 5 million bitcoin and fix the price. This means the price will grow at an incredible rate, with huge swings, but eventually will become more stable as the blockchain becomes a part of everyone’s life, whether they know it or not.

Bitcoin is more versatile than bank s— Here are three examples

Lets imagine: You live in Brazil, or another country where it’s difficult to move your money out of the country. In Brazil the government now charges you tax on money that you move out of the country that isn’t sent to an account with your own social security number.

Enter Bitcoin: You can simply buy bitcoin in Brazil and then swap it for another currency and within an hour you have your funds.

Lets imagine again: You want to buy a house in Japan. You have to use the bank transfer system, spend massive fees, and it will take days.

Enter Bitcoin; you buy Bitcoin and buy the house, the funds are transferred in 30 minutes and the house is yours at next to no additional costs.

Lets imagine again: You don’t trust the government and want to keep money out of the bank system, but don’t want to hoard large amounts of cash around the house (besides, notes become obsolete and people are going to notice a pallet of cash when they come to visit your house and may think it’s weird right?).

Enter Bitcoin; You buy a USB drive and keep your Bitcoin on it, drill a hole in the roof and store it away. As long as you only keep it on that harddrive, they are safe, you can even print out Bitcoin in what is called a “paper wallet”.

Bitcoin is only PART of this technological revolution. Big businesses are starting to adopt the technology behind this, and creating new coins and businesses around the idea.

I will talk a little more about why the value of bitcoin is going up so much at the moment later. In this article I just wanted people to understand why Bitcoin is more than just a passing fad. It’s not something for nerds and nut-jobs, it will make life easier for a lot of people. While the price may come down further before it goes back up past $5000, imagine the price rise as it, and other cryptocurrencies, become more widespread.

Andrew “Davies” Nifield

Head of Education at GSI Markets.

www.gsimarkets.com

Leveraging Crowd-Intelligence for Forecasting and Predictions

Artificial intelligence is breaking onto the scene for managing hedge funds, where they process volumes of data to pick up on patterns that even the most seasoned traders couldn’t see.

Coupled with collective intelligence, also known as “wisdom of the crowd,” where professionals and clueless people alike give their insight on a certain topic for an average that is impressively accurate, the combination of the two could lead to more efficient and higher return investment vehicles.

The full article: https://coinidol.com/leveraging-crowd-intelligence-for-forecasting-and-predictions/

What is wrong with the foreign remittance market?

International Remittance if explained in the simplest of terms is the transfer of money from a foreign country into the home country usually by a foreign worker. Money transfer in some form or the other has existed for about 3000 years but foreign remittances have made a tremendous impact with the advent of industrialization and globalization.

In the last 150 years, there has been a huge advancement in the payments industry but it is astounding that the foreign remittance service has not advanced as much as the industry demands. There hasn’t been any major technological advancement in an industry with an annual turnover of $600 billion.

Moreover the transaction fees have not gone down any further.

So, what exactly is wrong with the remittance market? To understand this, we need to look at the different ways remittance happens today. The most preferred methods of money remittance today are:-

Bank transfers (This could be from the international branch of a bank to the local branch or different banks)

Online money transfer with the help of a host of websites and apps which are either direct bank transfers or could also involve a physical cash pick up point.

Offline-Offline which is a widely used system especially in corridors like UAE-India which involves the presence of a physical teller at one end and a physical teller at the other end.

What is fundamentally wrong with the remittance industry is three pronged:-

Exchange rates are not the same

In a glorious time of the internet where we can find who was the first president of Djibouti (Yes, it is a legit country) in less than 0.73 seconds on Google, there is no way you can find the exact exchange rate between two currencies as every source quotes a different number. So, how much is your money worth exactly at any given point in time depends on which website you trust the most. To illustrate this, I have taken a screenshot of different exchange rates at the same time.

FX differences seen among XE, a simple google search and Bloomberg Markets at the same time

And this varies at any given point in time and therein lies the crux of the problem. Since, the exchange rates differ depending on the site you visit, the money remittance companies quote different rates as well. At the office of the biggest money remittance firm in the world, three employees with top hats, monocles, sipping tea decide in the morning how much your money is going to be worth for the day. So, it is safe to say that if you received a dollar every time you thought about how the ‘Big Guys’ take advantage of you, they would still get to decide on how much that dollar is worth.

Why don’t they do away with this system of different exchange rates? This is where the money part kicks in. Apart from the fees charged to the user, all the international remittance firms make a profit playing the market.

So, essentially every transfer includes the fees and also playing the market in the form of exchange rates. For example:-

On a transfer of $1000 at the same time across three popular remittance sites

In essence, your exchange rates differ from any of the currency conversion sites you would visit. And this is true to any of the online sites you might use for money remittance. If you lose close to 70 paise for every dollar you send. You will not be laughing your way to the bank.

To illustrate my point, I shall take you through the exchange rates and fees for the Canada-India and Singapore-India Corridor.

On a transfer of 1000 Canadian Dollars at the same time across three popular remittance sites
On a transfer of 1000 Singapore Dollars at the same time across three popular remittance sites

So, for every $100,000 Singapore Dollars transferred, $1,400 Dollars is gained only on the change in the exchange rates over and above the exchange fee. Does not make sense? Damn right it does not.

Although it does not look like you lose a lot of money in exchange, the point is you do lose some money and some money lost by a lot of people is a lot of money lost.

The Speed — Cost Gamble

We are forced to believe and this fact is constantly bombarded to us in the form of advertisements that cost is directly proportional to the speed of the remittance. So, an online Bank to Bank transfer in the most widely used service takes 4–5 business days whereas the company which advertises that we remit your money in 4 hours charges a fee of $4.99 for transactions below $1000.

Why hasn’t technology mastered the art of international remittance which can be both instant and at a negligible cost? Most of the banking options to transfer money are fast but they cost you a leg and an arm to complete the remittance.

The mantra is if you want to remit money instantly (4 hours minimum for the USA- India Corridor), you have to pay a fee which is a significant fee.

If you believe that time is not money. Then, prepare to wait for 4–5 business days assuming there is no bank holiday in both the sender and the receiver’s location.

Nothing great about the service

The biggest remittance firm says, ‘Sending money to almost anywhere in the world from anywhere in the world’ highlighting their network of agents across the world. The service which claims to be the fastest in the US-India corridor says ‘The easiest way to send money’ and the one which claims to be the cheapest says ‘Send money with the real exchange rate’. So, we have — Send from anywhere; Easiest way to send money ; Send it with the real exchange rate. It really begs the question, why are all of these mutually exclusive?

Why cannot we have a service where you can send from anywhere in the world with the “Real” exchange rate and send it easy?

Conclusion

The concept of currency has advanced a lot in the past one hundred years. From the time period of 1917–2017, we have seen so many technological and design advancements in “Money”, why have we not extended the same courtesy to Money Remittance.

With the advent of blockchain in currency, it is not a utopian concept to think of a platform that marries speed, trust, cost effectiveness and convenience for transferring your money across geographies. That time of change is here. And that rate of change is gonna be here faster than we think.

Come to think of it, blockchain has already revolutionised the way we handle our money. It is time that we see what ripple effect does it have on the foreign remittance market.

The writing is on the wall for all the ‘Big Boys’ who have manipulated the system to their advantage. It is time to introduce democracy in a field that has always favored the monopolies.

Blockchain is the ultimate tool for mankind today to democratize trust. Nothing is more trustworthy than money today and there in lies the solution to this problem.

P.S. This is in anticipation of that utopian foreign remittance service. Watch this space for more!


What is wrong with the foreign remittance market? was originally published in eastereggapp on Medium, where people are continuing the conversation by highlighting and responding to this story.

MCAP Tokens Now Available on C-CEX and Bitcoin Growth Fund Exchange

Hi MCAPian’s,

Yeah, we again got a good news for you.

Since, the first day we have prioritised our users first and that’s the reason why most of our developments focus on how to make things easy and intuitive for you. There is already a lot of complexity surrounding the topic of blockchain. At MCAP we want to convert investing into a stress free and one click process for you.

Would you like to trade in MCAP at other exchanges? And what if you had a native BGF trade exchange built just for our you?

Seems a bit audacious, no it’s not. And to further add, it’s not all, we have successfully achieved some other development goals too that we promised. We are really proud of the team we have and also of the trust that you have showered on us.

Some but not all developments that we have incorporated in past few months are:

● Considering the wider acceptance of ERC 20 protocol and other advantages we have successfully migrated from Counterparty protocol to ERC 20 i.e. Ethereum. This step has not only brought us in the league of big guns like Genosis, Augur, Golem etc. but has also provided us a wider visibility. Wanna see MCAP on Ethereum block explorer. [Check here] .

● We have successfully developed our own trading platform. This step was decided to attract global users to trade on BGF platform in MCAP and improve its market value. Also, this will enable regular users to get a one stop solution at BGF platform with all facilities even the trading. So, don’t wait, put your MCAP’s to work.[Check here]

● Well, what else can be done to skyrocket the market price of MCAP, yes you’re right. Let’s list it in a global exchange. Now, you can trade your MCAP in other currencies like USD, BTC, DOGE, LTC etc. on C-Cex exchange. Soon we are going to launch it on 3 other exchanges too. So,hurry catch up with other traders and start trading today. [ Check here]

What to expect next at MCAP?

As soon as MCAP was launched on C-CEX trading exchanges on 28th May it’s price saw a rise and it reached around $6 in no time. Currently, it is racing around $7 and this is in accordance with earlier prediction of our analysts that forecasted market price of MCAP to reach $100 by the end of November, 2017.

The developments in past few months have led to a huge demand of MCAP tokens. Now with availability of MCAP on various cryptocurrency exchanges we can meet this demand. Also, such huge demand will ultimately lead to increase in the market value of token.

Also, the investment plan of MCAP has been developed such that it fosters the demand of MCAP tokens. As we have earlier stated that the capital raised from MCAP token is invested in mining or ICO. The company will use a part of this revenue 60% for further growth and 40% to buy and burn MCAPs from exchanges to increase the price of MCAP and provide return to the investors. So you can either sell your MCAPs to get an exit or hold them with increased valuation at various available exchanges.

In last we would request you to visit our updates page regularly to be up to date with all the ninja work going in MCAP den. We have some useful information like how to use new ERC 20 platform and other developments compiled for you.

Important: The contract address for MCAP is: 0x93e682107d1e9defb0b5ee701c71707a4b2e46bc

It’s time to make your MCAP work for you!

USD, BTC, DOGE, LTC etc. on C-Cex exchange. Soon we are going to launch it on 3 other

exchanges too. So,hurry catch up with other traders and start trading today. [ Check


MCAP Tokens Now Available on C-CEX and Bitcoin Growth Fund Exchange was originally published in BitcoinGrowthFund on Medium, where people are continuing the conversation by highlighting and responding to this story.

Bitcoin isn’t Dead — We’re Doing Just Fine

Source: PanteraCapital | This graph shows the price of bitcoin overlaid on the number of transactions per day processed on the bitcoin network.

Bitcoin has recently hit an all-time high of $1270 during March 3rd which is about $148 difference from previous highs in 2013 ($1122). Yet, according to financial ‘experts’ Bitcoin has died over a hundred times, mainstream news outlets have published some negative reports on Bitcoin with titles such as “Bitcoin Is Unsustainable” or “Where did Bitcoin go wrong”. You know what, I can understand why people could worry, I mean after all Mt. Gox (leading bitcoin exchange) lost up to $450m (USD) due to a vulnerability flaw within its security protocols. This ended up leaving a lot of users with losses due to the exploit. Because of that, it was very easy for future investors to lose sight on what made Bitcoin so amazing. During the massive dip in December of 2013, a lot of experts started to assume that Bitcoin was dead. Though, if you take a look at the bigger picture without any biased opinions, you can see that Bitcoin was still growing strong.

Bitcoins Price Spiked in 2013

After the massive spike that took Bitcoins price to $1122 in 2013, bitcoins blockchain saw an excessive amount of growth even though the price was still declining. Retailers such as Microsoft and Expedia started accepting bitcoin as an option of payment for online shopping.

Ben Bernanke, Chairmen of the Federal Reserve was quoted:

Ben Bernanke, Chairmen of the Federal Reserve — 2006–2014
“Virtual Currencies may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system.”

With people like Ben Bernanke seeing the ultimate value in Blockchain technology, we also start to hear people like Bill Gates, the founder of the world’s largest PC software company — also see’s the value with the currency and it’s technology on todays society…

Bill Gates, was quoted saying:

Bill Gates — Founder of Microsoft Corp.
“Bitcoin is exciting because it shows how cheap it can be. Bitcoin is better than the currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient.”

These are just a few people who stood by Bitcoin even during it’s ‘death bed’.

Best Performing Currency of 2015

When we take a step back and look at the last few years in Bitcoins price history and compare it to other global currencies — Bitcoin was the top-performing currency in 2015 by a landslide of 35% increases!

Source: TheMoneyProject —

Though, if we dive into the numbers, during the decline in 2014, Bitcoins total trading volume went from $15b to $25b, a massive increase of 66%.

Source: Coinmarketcap.com — 2013–2017

While Venture Capital funds increased 488%, $100m to $488m, (Just in 2016 we saw $1.1 billion dollars go through VC funding). The number of countries with VC investment funds in Bitcoin start-ups went from 8 to 18. The number of Bitcoin wallets skyrocketed from two million to eight million. While the number of transactions on the network went from 54,000 to just over 150,000 per day. Merchants adopting Bitcoin as a way to accepting payments went from 14,000 to 45,000– a 200% increase. As this all seem impressive, the most impressive thing of all is that the mining power behind the network has gone from 10,000TH/s to 300,000TH/s. That’s an increase of 3,000%. In just a small window, you can see the amount of success Bitcoin has had despite all the negative press that is currently circulating around mainstream media.

Bitcoin’s Success Isn’t Random

With Bitcoin becoming more popular and easier to access. Even though the growth metrics are only from 2014. There are still several reasons why one should remain positive about Bitcoin and it’s future for 2017 and onward.

  1. Bitcoin’s protocol went through a halving in July of 2016. This happens once every four years. New coins that are being created by the network get cut in half until there are none left (reduced supply).
  2. While Peoples Bank of China withers the value of the Yuan, Chinese citizens look for ways to hedge out of their currency. This will continue to lead to a large increase in demand for Bitcoin in China.
  3. Bitcoin is a way for citizens that live in certain country’s experiencing hyperinflation to opt out. For example, Venezuelan Bitcoin volume is up 1200% over the last six months. People are even using the currency to buy groceries through Amazon vendors because no one will take the Bolivar as a form of payment since it’s basically worthless.

The Conclusion

Bitcoin will continue to see a massive increase in growth and blockchain innovation over the next few years. It’s also worth to note that Bitcoin is something different to everyone. Some people, it removes the pain of transferring money overseas and dealing with outrageous fees. Or a way to hedge their way around hyperinflation within their countries central banks and governments. The next time you hear that Bitcoin is dead, or that Bitcoin is a ‘tulip’, you might want to check your facts. Because it could likely be a good time to buy.

Is Ethereum Ethereal?

Ethereum has recently attracted international attention from tech industry investors due to a higher potential for growth and more scalability than Bitcoin. The recent increase in Ethereum price from $17.10 to $51.76 (255%) is the result of many different variables but can be largely attributed to Bitcoin investors looking to diversify their portfolio into different Blockchain projects.
Google Trends is revealing a significant spike in organic search traffic on Google for the term ‘Ethereum’ starting in just this month, March 2017.

Source: Google Trends — March 2017

As Ethereum’s price started to grow organic search traffic for Bitcoin declines. This indicates a shift in investor interests from those who are already currently involved in the Bitcoin.

Source: Google Trends — March 2017

Another major indicator that Ethereum is currently being adopted by new users is an increase in transactions vs. new unique wallets. During the period between March 9th (64,266 transactions) to March 17th (106,635) transactions increased by 60%. This is a huge increase in transactions in a short period of time, over doubling the daily highs. We are also seeing about 6,610 unique addresses being made (new users) on the 9th and roughly 15,000 on the 17th which is also indicating that a lot of these transactions could be coming from these newer unique addresses.

Source: etherscan.io — Ethereum Transaction Chart — March 2017

The rise in Ethereum price also correlates with certain partnerships and developments within the Ethereum space. CEO and Founder at ether.camp, Roman Mandeleil, believes the rise in Ethereum prices are more of a reflection of industry adoption.

“I don’t think any specific development is the cause of the rise in the price of Ethereum. In my opinion, the surge in price is a reflection of increased adoption of the technology in the industry for Bitcoin development.”

Though one of the notable developments is Ethereum Harmony. Released in its trial version in September 2016, Ethereum Harmony is an independent Ethereum peer capable of managing Ethereum funds using RCP API, providing full support and provisioning to smart contracts, and can also be used by developers to monitor the integrity of the Ethereum network.

Almost 1 year ago Ethereum prices surged to new highs with the introduction of the DAO but slumped after the resultant hard fork. The event saw the community split into two. Ethereum price remained quite stable in its low state until the recent surge that has seen it rise above $51.

Ethereum’s Market Cap is sitting at $3.9b as of March 17th which is 22.2% of Bitcoin’s Market Cap of $18b. This definitely shows a lot of positive adoption for Ethereum. As the gap between Bitcoin & Ethereum’s market cap starts to tighten, we will see a lot more bitcoin investors starting to look over at Ether. The crazy thing is that Ethereum’s daily Market cap on March 9th was only at $1.5m USD. On March 17th, the daily market capital increased to $4.9m. That is a 226.7% increase in only 8 days, that’s a huge.
At the end of the day, we have a few options to go with when looking at investing into Blockchain projects. Bitcoin had a great run this year and is holding up a solid value, though when looking at its transaction history it is clear that Bitcoin holds a few risk factors in its current platform. While Ethereum has already in place protocols to decrease the transaction delays, lowering the risk of long-term investments.

Is Ethereum Ethereal?

Ethereum has recently attracted international attention from tech industry investors due to a higher potential for growth and more scalability than Bitcoin. The recent increase in Ethereum price from $17.10 to $51.76 (255%) is the result of many different variables but can be largely attributed to Bitcoin investors looking to diversify their portfolio into different Blockchain projects.
Google Trends is revealing a significant spike in organic search traffic on Google for the term ‘Ethereum’ starting in just this month, March 2017.

Source: Google Trends — March 2017

As Ethereum’s price started to grow organic search traffic for Bitcoin declines. This indicates a shift in investor interests from those who are already currently involved in the Bitcoin.

Source: Google Trends — March 2017

Another major indicator that Ethereum is currently being adopted by new users is an increase in transactions vs. new unique wallets. During the period between March 9th (64,266 transactions) to March 17th (106,635) transactions increased by 60%. This is a huge increase in transactions in a short period of time, over doubling the daily highs. We are also seeing about 6,610 unique addresses being made (new users) on the 9th and roughly 15,000 on the 17th which is also indicating that a lot of these transactions could be coming from these newer unique addresses.

Source: etherscan.io — Ethereum Transaction Chart — March 2017

The rise in Ethereum price also correlates with certain partnerships and developments within the Ethereum space. CEO and Founder at ether.camp, Roman Mandeleil, believes the rise in Ethereum prices are more of a reflection of industry adoption.

“I don’t think any specific development is the cause of the rise in the price of Ethereum. In my opinion, the surge in price is a reflection of increased adoption of the technology in the industry for Bitcoin development.”

Though one of the notable developments is Ethereum Harmony. Released in its trial version in September 2016, Ethereum Harmony is an independent Ethereum peer capable of managing Ethereum funds using RCP API, providing full support and provisioning to smart contracts, and can also be used by developers to monitor the integrity of the Ethereum network.

Almost 1 year ago Ethereum prices surged to new highs with the introduction of the DAO but slumped after the resultant hard fork. The event saw the community split into two. Ethereum price remained quite stable in its low state until the recent surge that has seen it rise above $51.

Ethereum’s Market Cap is sitting at $3.9b as of March 17th which is 22.2% of Bitcoin’s Market Cap of $18b. This definitely shows a lot of positive adoption for Ethereum. As the gap between Bitcoin & Ethereum’s market cap starts to tighten, we will see a lot more bitcoin investors starting to look over at Ether. The crazy thing is that Ethereum’s daily Market cap on March 9th was only at $1.5m USD. On March 17th, the daily market capital increased to $4.9m. That is a 226.7% increase in only 8 days, that’s a huge.
At the end of the day, we have a few options to go with when looking at investing into Blockchain projects. Bitcoin had a great run this year and is holding up a solid value, though when looking at its transaction history it is clear that Bitcoin holds a few risk factors in its current platform. While Ethereum has already in place protocols to decrease the transaction delays, lowering the risk of long-term investments.

CySEC Issues Advisory against Investments in XECoin, Cracks down on Forex Platforms

Cryptocurrencies are a dime a dozen. The evolution of cryptocurrencies started with Bitcoin and thanks to its open source nature; many people ended up creating their own versions of altcoins. While few significant ones solve real issues, many cryptocurrencies are created just to make a quick buck. Given the volatile nature of cryptocurrencies and the … Continue reading CySEC Issues Advisory against Investments in XECoin, Cracks down on Forex Platforms

The post CySEC Issues Advisory against Investments in XECoin, Cracks down on Forex Platforms appeared first on NEWSBTC.

How to Sign a Contract with a Broker?

forex broker contract

When starting your Forex trading, you choose a broker and sign a service contract. Only a few traders read this document, because they consider this step as a mere formality. However, some of the conditions specified in this document may change your decision to cooperate with this brokerage company after their detailed study.

Brokers often do not allow the the withdrawal of funds, due to terms of contract; it occurs especially often when working with partner programs. You attract customers, and when it comes to payments, it turns out that you have not fulfilled all the necessary conditions.

How to sign a contract?

When signing a contract for using one of the Forex trading platforms, pay attention to the following items if they are present in the document:

1. Conditions

For the execution of pending orders.

2. Financial accounting

Additional conditions here are simply not acceptable; the funds must be withdrawn from your account within 24 hours; sometimes it states “1-7 days”. That is quite convenient for the broker, but it is completely unacceptable for you.

3. Terms of account blocking

Some billing centers practice blocking their customers’ accounts if they violate terms of trade. In this case, there are two options to return return the funds. In the first case you receive only free funds, in the second the broker closes your orders independently and returns all the money. It is clear, which of the options is more profitable

4. Force majeure

When filling out one of the contracts, I faced the fact that a whole sheet was devoted to force majeure circumstances. As a result, it turned out that the company is not liable if the order was not executed due to hacker attacks, power outage, accidents, malfunctions of its equipment, etc. Quite a long list. If the description of the reasons for which you do not get your money takes half of the contract, the question arises whether it is worth working with such a broker.

5. The regulation of the provision of services

It is one of the most important applications that go with the contract; you should read it as closely as possible as all important trading conditions and additional questions are written here.

6. Limitation of transaction time.

Usually, the shortest transaction is not less than 5 minutes, and the longest is not more than two weeks. Quite an important point, for example, if you trade in scalping, the first condition will not work for you, but if you work with shares, the second one will suit you.

 

When signing a contract, remember that if something does not suit you, it is better to choose another broker rather than trying to collect your money and prove that some terms of the contract are not legal.

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The Time Is Now To Find The Best Trusted Forex CFD Brokers

Brokers provide an invaluable service to traders and investors all over the world. Finding the right broker for your particular needs can be a challenge. Particularly when it comes to contract-for-difference brokers, it is important to make a careful decision. FX Daily Report keeps a close eye on the trusted forex CFD brokers in existence … Continue reading The Time Is Now To Find The Best Trusted Forex CFD Brokers

The post The Time Is Now To Find The Best Trusted Forex CFD Brokers appeared first on NEWSBTC.

Russia’s Tax Service Confirms Bitcoin Legal Status as Foreign Currency

A document issued by the Russian Federal Tax Service finally presents the first official position on the status of Bitcoin and cryptocurrencies in Russia, equating them to foreign currency.

Also read: IRS WILL TAX YOUR BITCOINS IF THEY LEAVE YOUR COINBASE ACCOUNT

‘No Specific Legislation’ Banning Bitcoin in Russia

The formal letter, dated 3 October 2016, states that for legal purposes, cryptocurrencies should be treated as any other foreign currency. These require no financial reporting of transactions.

242f778

The legal consultant for Deloitte and head of the Russian blockchain community, Artem Tolkachev summarized the document:

  • The concepts of surrogate money, virtual currency, and cryptocurrency are not defined under Russian law;
  • There is no specific legislation prohibiting Russian citizens and organizations from using cryptocurrencies;
  • Using cryptocurrencies in transactions may form a basis for investigating those transactions regarding laundering money and terrorist activities;
  • According to the Federal Tax Service, buying and selling cryptocurrencies using foreign exchange assets (currency and securities), or Russian currency is considered a foreign currency transaction;
  • Under the current system, there is no obligation for residents or non-residents to provide information on foreign currency transactions (and hence cryptocurrency transactions) to the authorities.

Blanket Ban is Now Unlikely

This document does not guarantee, however, that new regulations will not be introduced. Especially given the historically tumultuous relationship between the Russian Finance Ministry and Bitcoin. Nevertheless, in the past six months, the stance of the government has reportedly softened.

An interview published this week, with Elena Sidorenko, Head of the Russian Federation Working Group on Cyber Security, would suggest this is the case. The group was formed at the beginning of 2016 to study cryptocurrency and blockchain technology. The evaluation of these studies will outline the prospects for further development.

Russians_paywithBTC_articlecover_Bitcoinist

In the interview, Sidorenko states that there is currently no legal framework to regulate cryptocurrency in Russia. One of the main tasks of the group is to put everything on a legal footing. Legal regulations must be accompanied by three components: rights, obligations, and responsibility for failure.

The group feels strongly that a ban on cryptocurrency will only serve to slow down development of blockchain technologies in Russia. There is an upcoming meeting of the group on 15 December, which will put forward questions for the Finance Ministry.

These will address:

  • the status of cryptocurrencies
  • possibilities for Russian mining
  • functions of the Central Bank
  • licensing
  • cross-border transactions
  • requirement for exchanges

After a rough ride, cryptocurrency in Russia is now in somewhat rude health. Everything seems to be pointing towards regulation of the market, rather than the previous attempts to blanket ban “surrogate currencies.” Even the CEO of Russia’s oldest and largest bank Sberbank recently admitted to buying and selling Bitcoin.

Will we see regulated Russian Bitcoin businesses in the near future? Share your thoughts below!


Images courtesy of  razor-forex.com

 

The post Russia’s Tax Service Confirms Bitcoin Legal Status as Foreign Currency appeared first on Bitcoinist.com.

Xtrade is Where Champions Trade

Xtrade is a praised innovative international Broker that provides Contracts for Difference (CFDs). The company offers the highest quality trading on Shares, Commodities, Forex, and Indices and is equipped with its own unique professional trading platform. The company is based in Limassol, Cyprus and is authorised to operate by CySEC to offer Contracts for Difference … Continue reading Xtrade is Where Champions Trade

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Blockchain-Based FX Settlement System to Prevent Currency Market Manipulation?

can-a-blockchain-based-fx-settlement-system-prevent-future-currency-market-manipulationsIn 2014 and 2015, financial regulators in Asia, the U.S., and Europe handed out fines to several global investment banks, totalling over $10 billion, for colluding to rig the daily currency market fixing. While the currency market is open 24 hours a day, five days a week, there is a daily price fix at 4PM London time for market participants to agree on a daily closing price. This price was regularly manipulated by colluding traders who submitted orders during the one-minute price fixing time window to push prices up or down as they required. The forex probe has not only tarnished the reputation of the banks involved but also lead to heavy fines and has led many to question the regulators’ approaches to overseeing the $3 trillion currency market.

That begs the question of whether an FX settlement system based on the public ledger technology, the blockchain, could prevent future manipulation within the currency markets.

London-based financial technology startup Cobalt DL may offer the solution. Cobalt DL is focused on leveraging blockchain technology to re-engineer post-trade processing for the institutional FX market participants to reduce settlements costs and replace inefficient legacy post-trade infrastructure. To bring this innovation to the market, Cobalt DL has partnered with blockchain firm SETL. CEO of SETL, Peter Randell, highlights that the venture is not merely a proof-of-concept but will be "a revenue-generating implementation of distributed ledger technology."

Currently, for a single FX trade, existing post-trade infrastructure creates multiple trade records for the buyer, seller, broker, clearer and the third parties involved. By instead creating a single, shared view of every currency transaction, Cobalt DL’s platform can free up back- and middle-office resources that are occupied with continuous reconciliations across multiple systems. Cobalt DL’s platform is designed to integrate with all trading venues to deliver significant cost reductions compared to existing legacy FX infrastructure.

Andy Coyne, Co-Founder of Cobalt DL, stated that:

“The emergence of agile, sophisticated technology such as distributed ledgers has set the scene for an alternative to the inflexible post-trade infrastructure that financial market participants are forced to use today. Cobalt DL’s combination of market expertise and forward-thinking technology is dramatically shaking up the post-trade space and significantly reducing costs for market participants.”

 

Cobalt DL has commenced beta testing of its blockchain-based peer-to-peer FX post-trade processing platform in conjunction with eight institutional FX market participants, including its key technology service partner and investor First Derivatives. The peer-to-peer platform will officially launch in 2017, with its current institutional FX partners.

With an accessible global ledger of all currency trades, market participants could be held accountable for their trades as such a system would facilitate the detection of manipulative trading behavior for regulators. It will undoubtedly take a long time before trades of the trillion-dollar currency market could be settled using the blockchain. However, it would undoubtedly prevent fraud and manipulative actions by market participants as a global ledger, easily accessible to regulators, would deter such behavior in the future.

Six In Ten Chinese Rich People Are Diversifying 15% of Wealth Portfolios

China has always been a driving force of Bitcoin investment and price speculation. By the look of things, that trend will only intensify over the next few decades. Recent polling shows over six in ten rich Chinese people plan to invest abroad. While there will be a large focus on real estate properties, alternative financial … Continue reading Six In Ten Chinese Rich People Are Diversifying 15% of Wealth Portfolios

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