Blockchain Consultants

Blockchain Transformations Done Here

tax

Blockchain Governance in Estonia may be Inspiration for the Entire World

by

Blockchain Governance in Estonia may be Inspiration for the Entire World

This article talks about how Estonia has implemented the Blockchain for various purposes, especially in governance, creating inspiration for the rest of the world. 

Table of Contents 

  • Estonia: The First Digital Republic in the World 
  • Tiger Leap for the Development and Expansion of Internet Network
  • How the Estonians Way of Voting is Unique 
  • Other Ways Estonia is Utilizing Blockchain
  • Concluding Lines 

Estonia: The First Digital Republic in the World 

Estonia is a small nation in the Baltic region that offers the most widespread governmental online services in the world. Right from voting to healthcare and tax returns, the small nation has persistently adopted the concept of digitization. And this is the reason it is recognized as a ‘digital republic.’ Since 2005, the citizens of the nation are able to cast their vote digitally, and surprisingly, Estonia has digitized 99% of its public services, including tax returns, voting, healthcare treatments, and much more. In an era when trust in government services is declining, Estonians have a higher level of trust in their government and parliament than the EU average, according to the Eurobarometer study conducted back in 2014. 

Estonia is implementing Blockchain technology for governance, and this is the reason why it outperforms compared to other countries in terms of online governmental services. 

Want to learn Blockchain technology and become a Certified Blockchain Expert? You are just a click away!

Tiger Leap for the Development and Expansion of Internet Network

The invention of a digital society started in the year 1997, when only 1.7% of the world’s total population had access to the internet. The government of Estonia envisioned creating a digital society where all citizens would be technologically educated, and governance would be automated, decentralized, transparent, and secured. Keeping in mind the aims, the government launched a project called Tiigrihüpe, also known as ‘Tiger Leap’ in 1997, spending heavily on development and the expansion of internet systems and creating a knowledge-based society. Within a year, almost all schools gained internet access, and by 2000, Estonia became the first country to pass legislation declaring internet access as a basic human right for all citizens.

In 2001, Estonia created X-Road, an anti-silo data management system to enable both public and private organizations to share data securely without worrying about privacy. But this effort was dissipated as it was seen that X-Road experienced various cyber-attacks. This presented a need to adopt more powerful and advanced technology such as distributed ledger technology that is resistant to cyber-attacks. Thus, keeping in mind, the nation became the first country in 2012 to use blockchain technology for governance purposes.

How the Estonians Way of Voting is Unique 

Estonia is considered to be a world leader in electronic voting. This is because, since 2005, Estonians are able to cast their votes irrespective of their geolocation. Where most countries are still only contemplating the possibility, Estonia has already implemented a remote voting system using Blockchain for voting purposes. 

The tiny Baltic nation of Estonia has redefined its ‘Estonia’s i-Voting system’ that allows citizens to cast their vote from a remote location using a government-issued smart card. Unlike traditional voting mechanisms, this voting system offers a simple, elegant, and secure solution and is currently used by 46.7% of the population.

This system allows Estonia citizens to log on with their digital ID card and cast their votes multiple times during the pre-voting period, with each vote canceling the last, empowering voters to change their voting decision later. This unique solution has safeguarded Estonian voters against fraud and other manipulations. It was stated that while using this electoral system, the total time saved in the last elections was 11,000 working days.

Other Ways Estonia is Utilizing Blockchain

Apart from voting, there are other ways the tiny nation is utilizing DLT. Deploying Blockchain not only ensures protection against cyber attacks or any kind of future attacks but also poses other benefits. For instance, instead of filling the different forms with the same personal information when they need to access public services, citizens only need to input their personal information once with Blockchain. This is because technology ensures that data is immediately accessible when required.

Moreover, citizens have a valid digital ID, and they have full control over their information, ensuring that no one can access their personal data beyond what is approved by them. This is facilitated by Blockchain technology.

If you want to gain an in-depth understanding of Blockchain technology and become a Certified Blockchain Developer, we are here to assist you!

Concluding Lines 

From the above discussion, we can conclude that the Blockchain governance of Estonia may be an inspiration for the entire world. The future of Blockchain is near, and if implemented on a global level, we will experience a world full of transparency and trust. 

To get instant updates about Blockchain Technology and to learn more about online Blockchain Certifications, check out Blockchain Council.  

Blockchain Governance in Estonia may be Inspiration for the Entire World

Source

Russian Officials Must Declare Crypto Holdings

by

In a new move, Russian authorities have announced that officials have to start declaring their crypto holdings. They reversed a 2018 decision that did not require the declaration from officials.

Mandatory disclosure for public officials

Disclosure of crypto holdings will be considered mandatory for Russian public officials started January 1, 2021. The requirement was announced by Igor Krasnov, the Russian prosecutor general held a meeting with 15 fellow prosecutor generals representing the Shanghai Cooperation Organization (SCO). He announced the new requirements on October 20, saying,

“Starting next year, civil servants will be required to declare [virtual] currencies on an equal basis with other assets.”

Russian Officials Must Declare Crypto Holdings

The Russian labor ministry announced in 2018 that public officials do not need to declare virtual asset holdings in their tax reports. It said that the status of crypto was unregulated, hence it was not to be included in tax reports. However, concerns about cryptocurrencies being used as instruments of bribery and corruption started to rise.

What brings new requirements?

The office of the Prosecutor General claims that it has confiscated over $440 million worth of undisclosed, non-cryptocurrency assets from public officials in the past three years. The new requirements come after President Vladimir Putin signed new laws in July that would classify crypto assets as physical commodities started in 2021. This is the first time that virtual currencies will be recognized in the country. The laws still do not recognize cryptocurrencies as legal tender. However, it would make crypto-activities legal in the country.

SCO member states include Russia, China, India, Kazakhstan, Pakistan, Uzbekistan, and Tajikistan. Non-member partners and observer states like Armenia, Cambodia, Azerbaijan, Mongolia, Iran, Belarus, and Afghanistan were also present during the meeting. As Russia has announced mandatory crypto reporting requirements, it is likely that similar reporting requirements could be enacted in other European nations soon.

The Russian Federal Financial Monitoring Service claimed to have developed a partial de-anonymization system for Bitcoin, Ethereum, and Monero in August. It also said that it is planning to sell the system to overseas countries interested in the system.

Russian Officials Must Declare Crypto Holdings

Source

Myths About Cryptocurrencies That You Should Know About

by

Are you one of those who find cryptocurrencies confusing? In this article, we will clarify commonly judged misconceptions about Cryptocurrency. So let’s get started.

Table of Contents

  • Overview 
  • Myths About Cryptocurrency 
  • The Verdict 

Overview 

The advent of cryptocurrencies has taken the world by storm. Despite its popularity, people do not have a solid understanding of how cryptocurrencies work, and they find them confusing. Let’s start from the basics and understand what cryptocurrencies are. Cryptocurrency is a virtual currency, or we can define it as a medium of exchange that employs cryptographic protocols to ensure the safety and authenticity of transactions. Such virtual money works on the concept of the underlying technology, Blockchain, that is not regulated by any authority, and this is the reason why cryptocurrencies and their transactions are completely secured. But sadly, the concept of Cryptocurrency is still in its infancy and is generally misunderstood, contributing to the circulation of several misconceptions surrounding it.

Want to know more about cryptocurrencies and become a Certified Cryptocurrency Expert? Wait no more. Get enrolled in Blockchain Council today! 

Myths About Cryptocurrency 

Now, without further delaying, let’s explore the misconceptions surrounding cryptocurrencies.  

1. Bitcoin is the only crypto asset that matters. 

We all know that Bitcoin is the first-ever Cryptocurrency because of which it is the most widespread cryptocurrency people own. The reason why it is still the most likable Cryptocurrency is due to the reason that it has the highest liquidity in the crypto space.domain and the higher the liquidity ratio, the easier it is to sell a cryptocurrency at market price. But believing that it is the only crypto asset that matters would be a mistake. 

Although the market capitalization of Bitcoin tops the list, other cryptocurrencies have also started gaining public attention. According to the recent reports, Ethereum’s economy hits new milestones in transfer value and market cap. 

2. Cryptocurrency is an illegal form of digital money and used for criminal activities.

This is one of the biggest myths that cryptocurrencies hold. Although crypto-assets can be used for several purchases such as food and clothing, it is a belief that people use Cryptocurrency generally to make illegal purchases. The wider range of people believe that it is easier to buy illegal objects with Cryptocurrency than other payment systems. Undoubtedly it is true that crypto assets were previously used in some illicit activities, but the assumption that they are mainly used for such criminal purposes is entirely wrong. It is used considerably less commonly for illicit activity as compared to major currencies such as the US Dollar.

3. Cryptocurrencies are easily hackable 

Another misconception surrounding digital assets, such as cryptocurrencies, is that they are easy to hack. Although crypto-related exchanges have proven vulnerable to hackers in the past, to state they can be hacked easily is entirely false. These are difficult to hack because of its underlying technology, Blockchain, which ensures that hacks are unlikely. Crypto transactions are secured as transactions are stored in blocks of encrypted data. 

4. Crypto exchanges are not taxable

Crypto-based exchanges are assumed to be tax-free, but this is not true. Such exchanges need to register and pay tax on their earnings. As there are no central authorities or banks involved with crypto transactions, but that does not mean they are not taxable. There is plenty of confusion regarding certain aspects of how cryptocurrencies are supposed to be taxed. Cryptocurrencies are in the eyes of the IRS, and it has a new tax form out for all crypto traders. Last year, the IRS sent letters in order to amend or pay fines on unreported crypto profits to around 10,000 taxpayers that were connected somehow with crypto assets.

5. Assumptions that Cryptocurrencies will be banned 

The majority of the people fear investing and trading with Cryptocurrency because they believe that cryptocurrencies are unregulated and will be banned in the near future. But it is also important to consider that many countries, including U.S., India, and others, have taken a positive step towards cryptocurrencies. Instead of leaning more towards crypto restriction, countries are keen on learning regulations, which indicates that Cryptocurrencies are here to stay. 

The Verdict 

From the above discussion, you must have gained a clear understanding of the myths and why they are unreal. While few still hesitate and do not accept Cryptocurrency as payment, they are various popular retailers such as Microsoft, Overstock, KFC Canada, and others that accept cryptocurrencies for their respective purposes. Apart from the points that we have mentioned, keep in mind there are several other myths that exist too. 

If you want to understand all the ins and outs of Cryptocurrency and become a Certified Cryptocurrency Expert/Trader, Blockchain Council, a globally recognized online organization, can help you learn the fundamental and technical aspects of cryptocurrencies. 

 To get instant updates about Blockchain Technology and to learn more about online Blockchain Certifications, check out Blockchain Council.

Myths About Cryptocurrencies That You Should Know About

Source

South Korean Blockchain Advocacy Group Calls for Tax Laws Postponement 

by

However, while adoption appears to be on the rise in South Korea, industry experts have also urged the government to create an encouraging environment or players. 

A Short Implementation Window 

Most notably, industry experts have called on the government to nix its proposed crypto tax plan for now. Earlier this week, local news source News1 Korea reported that the Korea Blockchain Association (KBA), a blockchain and crypto advocacy group, requested that the government postpone implementing its crypto tax framework for 18 months.

The South Korean government’s proposed tax plan has been a particular sticking point for many in the country’s crypto space. The plan was published by the Ministry of Finance and Economy in July, with the Ministry stipulating that taxation for digital assets is a necessity as these assets continue to penetrate the traditional financial system. 

Under the new framework, the Ministry plans to categorize all gains from digital assets and intangible assets as taxable income. However, any income below 2.5 million won (about $2,000) per year falls below the Ministry’s minimum threshold and will be tax-exempt. All income above the minimum threshold will be subject to a 20 percent tax rate, on par with the tax rates for most other capital gains and taxable income in the country.

The tax laws apply to local and foreign transactions that trade digital assets via South Korean exchanges.  Under the new rules, exchanges will be responsible for all tax deductions and paying the monies to the Korean customs office. 

While the laws should come into effect on October 1, 2021, the BKA asks for a delay until January 1, 2023. As News1 Korea explained, the window for adjustment is too short, and exchanges won’t effectively adapt to the new tax regime. As the advocacy group explained, exchanges will be allowed to report on trades using the soon-to-be-outdated tax policy until the end of September. A 24-hour period will be too short for them to make the necessary changes.

Ineffective Reporting 

Oh Gap-soo, the BKA’s Chairman, also explained that a suspension of the tax code would be necessary since it is the first time the government is getting involved in digital asset taxation. He pointed out the possibility of regulators not accepting crypto firms’ reports – a possibility that could lead to sub-optimal operation

“The industry is having a great deal of difficulty in preparing for taxation because it is not equipped with a tax infrastructure in a situation where it is uncertain whether or not the business will continue ahead of the enforcement of the Special Payment Law.”

Besides the taxation laws, South Korean exchanges are also fighting back against the government’s mandatory identity verification rules. As Digital Today reported last week, the new regulations require exchanges to collect several details from their customers, including and especially social security numbers. However, that is a direct contradiction to the country’s Personal Information Protection Act.

South Korean Blockchain Advocacy Group Calls for Tax Laws Postponement 

Source

Law Decoded: Police and thieves on their screens, Oct 2–9

by

Every Friday, Law Decoded delivers analysis on the week’s critical stories in the realms of policy, regulation and law.

Editor’s note

Historians typically date the birth of international policing as we know it today to the 1800s, a response to the explosion in nationalist movements and non-governmental political radicalism in Europe. Just as new linking technologies like the telegraph and the steam engine aided and abetted new networks of political deplorables and any number of Sherlock Holmes plots, the explosion of communications tech of the last quarter-century has brought about new forms of crime. 

Which is, y’know, something everyone passively knows. In crypto, association with crime is a familiar reputational issue that is present but certainly not unique. New technology giveth and taketh away. Law enforcement’s interest in controlling new networks also grows. Paranational organizations like drug cartels and terrorist cells come to mind.

This week saw the U.S. Department of Justice press criminal charges against ISIS agents behind American deaths including James Foley’s, a move that expands their power to prosecute foreign agents as criminals under U.S. law. The FBI also busted up a home-grown far-right conspiracy to kidnap the governor of my home state of Michigan. In crypto, several jurisdictions have laid claim to new authority, with the DoJ in particular making a number of moves to expand its jurisdiction.

DoJ vs. everybody

The Justice Department’s new “Cryptocurrency Enforcement Framework” laid claim to a whole host of powers over crypto businesses that had previously been in limbo. Most notable is the generosity of what the DoJ is calling its own jurisdiction — basically anything that touches a U.S. server.

The new framework heralds a new era in the department’s crypto authority, but it’s just the clearest summary of a growing body of precedent that U.S. regulators from the SEC to the IRS have been building out for years.

The DoJ’s criminal charges against Seychelles-registered BitMEX’s leadership last week in some ways telegraphed their particular interest in combatting crime in crypto wherever in the world it may be. Most earlier involvement in crypto-linked prosecutions abroad had been focused on networks the DoJ saw as being primarily designed to finance terrorism or funnel money to sanctioned individuals. While the DoJ accused BitMEX of being a means for such action, the allegations against the leadership are not really accusing them of ideological or political illegality, but rather old-fashioned greed.

Distressing for the crypto community is, as always, the association with criminal activity. The DoJ’s report pays lip service to blockchain technology’s ability to revolutionize payments, finance, international trade, shipping, trust, consensus et al — I assume that this readership is familiar with the myriad use cases — but the report pivots compulsively to crime. From the DoJ’s side of things, that is their trade, so it makes sense, but it also adds to the unfair stigma against a technology.

Another cause for concern is that tech-savvy people in the U.S. can get around the barriers by really any crypto company, given enough time and potential profit. So as with the general trends of the last year, U.S. authorities really do seem to be building out the legal framework to give themselves jurisdiction over crypto basically anywhere. World Police indeed.

UK shuts door on whole genre of crypto investment

The United Kingdom’s Financial Conduct Authority nixed trading of crypto-based derivatives — including futures, options and swaps — for all retail investors starting in January.

While the FCA may not be as globally hawkish on crypto as its U.S. analogues, London remains Europe’s financial center. Much like Brexit itself, the predicted exodus from London has seen delays that seem to mock all bold predictions.

With its focus on retail investors, however, the FCA has obviously designed its new ban to be more of a protective maneuver for regular Britons rather than a handicap on the reigning heavyweight champs of the London Stock Exchange.

Nonetheless, as the UK’s position within both Europe and the global economy is vulnerable, implementing a stringent ban on a new asset class seems like yet another way of recusing itself from the financial future. As mentioned earlier, determined UK crypto investors will almost certainly be able to get around the new ban to access offshore exchanges with less legal accountability to the UK and more extravagant and risky leveraged offerings. 

But maybe a somewhat built-in assumption is that, while the technological implementation of any ban is going to be slow and imperfect, a retail investor capable of working around it is not exactly the person the FCA is most worried about protecting.

DoJ vs. the elusive Mr. McAfee

After decades of intercontinental outrageousness, John McAfee was arrested in Spain for tax evasion. He also faces a suit from the SEC for fraudulent ICO promotion.

McAfee first found success in the 80s at the head of the firm that produces the antivirus software that still bears his name. He left the company in the 90s and has been bouncing around the world more or less ever since, racking up guns, substance addictions, and allegations of sexual assault and murder. Also not paying his taxes, allegedly. He was posted up in Cuba out of the reach of U.S. authorities for a while.

Despite his early successes in technology, McAfee has for decades built a personal brand on foundations of infamy. The SEC’s allegations suggest that he managed to translate that megaphone into millions of dollars by plugging into the curious hypedraulic mechanics of the ICO boom. Earlier this year, he tried to launch a privacy token that he admitted was largely taken from another project. McAfee is hardly what you would call a builder. While everyone is innocent until proven guilty, McAfee’s absence from the crypto scene would be a blessing for the industry’s reputation.

Further reads

The Bank for International Settlements put out a new and extensive report on Central Bank Digital Currencies and the associated risks and prospects.

Tax attorney Jason Freeman runs down the latest memorandum from the IRS on how to get your taxes on virtual assets in order.

Writing for the Electronic Frontier Foundation, Rainey Reitman talks problems with the extradition hearings for Wikileaks founder Julian Assange.

Law Decoded: Police and thieves on their screens, Oct 2–9

Source

Bug Bounty Rewards For “Stargate” Doubled By A Wiser Cosmos

by

As Cosmos (ATOM) is slowly leading up to its next major network upgrade, Stargate, it announced a bug bounty campaign with double the rewards. This campaign will last three months, and aims to improve the robustness of the software before its inevitable release.

Doubling Down On The Bug Bounties

The Stargate upgrade will see Cosmos complete the original roadmap it had laid down in its whitepaper, and stands to include the first implementation of the IBC protocol. IBC will allow Cosmos to connect to various other blockchain networks, increasing its use cases.

Zaki Manian, one of the early contributors, explained that the Stargate testnet is fully geared to launch. Even so, various teams of Cosmos are very keen to see further testing to the upgrade, in order to help identify critical bugs and exploits that may have slipped past the integration and engineering process.

New Dollar Tax in Argentina Could Boost Crypto Adoption

New Dollar Tax in Argentina Could Boost Crypto Adoption

Learning Lessons From The Past

Through doing so, the team is eager to try and avoid repeating the previous two incidents occurring this past year, where critical components were discovered to hold formidable bug. Back in July of this year, Tendermint’s consensus algorithm had a critical vulnerability discovered within it, which was promptly identified by Bluzelle, the blockchain firm. All the way back in October of 2019, a high-severity security vulnerability was discovered by the Cosmos team itself.

The bug bounty, starting today and ending on the 31st December, 2020, has no maximum program reward. What this means, is there’s no set cap on the amount of money a single bug can be worth, and there’s no limit to the amount of bugs one can report.

As stipulated, a minimum of $5,000 will be given for any identified critical bugs, which stands as twice as much as the last series of bug bounties. Alongside this, high, medium, and low-risk bugs will have their rewards increased, as well.

Originally, they were valued at $1,000, $500, and $100, respectively, but have now been increased to $3,000, $1,000, and $200, respectively.

Maintaining Its Open-Source Philosophy

Tess Rinearson stands as the Vice President of Engineering at Interchan GmbH, a Cosmos development firm. Rinearson gave comment about the matter, explaining that the process of proactively identifying and patching bugs stands as a critical part of any blockchain protocol to make it strong and resilient.

Alongside this, Rinearson gave comment about the release of the Stargate codebase, claiming that it renews the commitment from the firm to maintain an open-source community. Rinearson reaffirmed its goal of bringing Cosmos into a new era, as well.

Bug Bounty Rewards For “Stargate” Doubled By A Wiser Cosmos

Source