European Authorities Propose Unitary Regulation for Cryptoactives

Maria Rodríguez
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European Authorities Propose Unitary Regulation for Cryptoactives

The European Securities and Markets Authority consider two different categories of cryptoactives to be regulated: financial and non-financial

The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) are urging the member states of the European Union (EU) to create a unified cryptocurrency regulation to be applied in that region, according to a statement issued by these organizations, last 9th of January.

EBA published the information in a press release, where it confirmed that there are differences between the financial and state representatives of the EU in terms of how to regulate cryptoactives. This situation has not allowed achieving a unitary regulatory approach which contemplates the supervision and use of cryptocurrencies in the member countries.

This clash of visions regarding cryptoactives is observed both in the United States and in the European Union. Ardo Hansson, Governor of the Central Bank of Europe, said cryptocurrencies are “fairy tales” and a “financial bubble”, while months ago the Center for Social and Economic Research of the European Union said that economists should not discredit cryptocurrencies.

In response to these discrepancies, EBA stressed that cryptoactives are not regulated services in Europe, which is why they are not within the scope of the Banking, Payments, and Money Act of the European Union. The institution considers that in the absence of regulations, users are exposed to financial risks and that the market in the region is even fickle before possible money laundering practices.

The authority considers that the use of cryptoactives in Europe is only for some people and that the evolution of the cryptocurrency market needs a mid-term review, to legislate on purse developers, exchange houses and custody firms.

For these reasons, and while the legislation agreements are reached, EBA will take a position of monitoring and advising the cryptocurrency market. Among its decisions, the European Commission is requested to convene its member states to regularize operations with cryptocurrencies, covering, as far as possible, all visions or their most important points.

Similar Opinions

The European Securities and Market Authority (ESMA) also recommend that European Union institutions conducted a new regulatory approach in the cryptocurrency sector.

The authority indicates that there is a group of cryptoactives that are recognized as “financial assets”. For these ones, European financial laws for markets and commercial assets that include anti-money laundering measures and KYC may apply.

“Our survey of NCAs (European Competent Authorities) highlighted that some cryptographic assets may qualify as financial instruments, in which case the full set of financial rules of the European Union would apply. However, because the existing rules were not designed with these instruments in mind, the NCA faces challenges in interpreting the existing requirements and certain requirements that do not adapt to the specific characteristics of the cryptoactives”, Steven Major, Director of ESMA, said.

The institution explains that there is a second large group, the “financial non-financial”, among which are the private currencies and tokens to access services and goods. European laws do not cover these categories, which is why ESMA considers that it should start regulating this sector to avoid money laundering cases. According to the institution, one way to achieve this is to incorporate new financial legislation to the existing ones.

The European Banking Authority (EBA) issued a report on the “applicability and suitability of European Union legislation to cryptoactives”, which highlights various measures for this 2019. The institution made some recommendations in its latest report, in which the need for further investigation of cryptocurrencies is highlighted.

Regarding its next actions, the report reads: “EBA will continue to examine the need to adopt new measures within the scope of its legal competences and is willing to support the European Commission in relation to any further analysis of the issues that arise in relation to with the cryptoactive ones”.

By María Rodríguez

Artist hides Bitcoin Treasure at a Mural in France

Maria Rodríguez
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Artist hides Bitcoin Treasure at a Mural in France

Thanks to some donations, the reward for solving the riddle of the painting can rise at any time

Pascal Boyart is the name of the artist who decided to hide in his new street work a reward in 0.26 Bitcoin (BTC), equivalent to about 1000 US dollars, according to its current price. The news was announced through his blog, on January 6th.

The work is a tribute to the recent social conflicts that take place in Paris, with the so-called “Yellow Vests”, since last November 2018. According to the artist, this work emulates a famous painting, which is a symbol of the French Revolution, creation of Eugene Delacroix. His name is: “Liberty Leading the People”, but Boyart’s work also shows the current social context of France. “I choose this figure because it is a powerful photo and the events in France with the yellow vests are similar to the time of the past revolutions”, said Pascal, who is also known by the pseudonym PBOY.

There is a main feature known about Boyart’s creation: the painting is hidden in the streets of Paris, which is why the person who wants to solve the riddle must get the artwork following some tracks that are watered by the city and then try to solve the puzzle hidden in it, which contains a lucrative reward. The artist commented that he did the artwork in this way to commemorate the tenth anniversary of the “Genesis Block”, which was held on January 3rd of this year.

“Liberty Leading the People 2019 is inspired by the famous painting by Delacroix made in 1830. With the movement of the yellow vests that began at the end of 2018, it was the right time to make a contemporary version of the original. This is a painting that contains a small secret inside. This street art hides a Bitcoin puzzle”, said Pascal about painting.

Boyart clarified the reward can go in ascent, since anyone interested in making a donation can have access to the address of the digital wallet and transfer there the amount he prefers, in order to make the game much more interesting. He also revealed that a part of the reward is possible thanks to an incentive made by Alistair Milne, an entrepreneur and cryptocurrency enthusiast, who decided to provide his financing for this purpose.

About the project in general, Boyart said: “Alistair was the first one to make donations with BTC in May 2018, using the QR of my street art ($ 400). We started to communicate about this BTC treasure. I had the project to make a BTC puzzle using my street art for a long time, but I did not have enough funds for it. So, he sponsored this mural with 0.26 BTC ($ 1,000)”, Boyart explained.

The Frenchman also raised his opinion about blockchain technology. “Internet allowed the exchange of information between equals; cryptocurrencies allow the exchange of value between peers. Banks and centralized financial monopolies will blink, even in contemporary institutional and financial art”, he explained about his idea of ​​incorporating his art in the cryptocurrencies’ world.

The French crypto-artist has made an artistic career around different murals and painted pieces to represent different themes. Part of his earnings is due to the fact that a few years ago he incorporated his own QR code, which directs to his digital purse, in order to receive payments for his creations, or small payments to appreciate his paintings.

By María Rodríguez

Banco Santander’s Remittance Service Will Start Operating with Blockchain Technology

Maria Rodríguez
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Banco Santander’s Remittance Service Will Start Operating with Blockchain Technology

The entity closed its international transfers to make way for “One Pay”, a product that uses Bitcoin technology

“Santander Envíos”, the remittance company of Banco Santander, closed its doors to make way for blockchain technology and, with it, efficient and secure automation. One Pay, which operates with the Ripple blockchain, will replace the traditional service, as reported this January 6th.

One Pay is the first product designed under blockchain technology that commercially opened a bank on a global scale last spring. The previous remittance company of Banco Santander was incorporated in 1994 under the name “Latinoenvíos” and then it was renamed in 2009 as “Santander Envíos”. This company facilitated money transfers to more than 25 countries in America, Africa and Europe.

Traditional banking strengthened the remittance service because of the immigrants growing influx, after the economic crisis faced by Spain and the financial institution. Immigrants used to send regular amounts to their families.

The strategy received an important impulse, by allowing bank drafts to be made from any ATM of the 4B network, in addition to offering the service at the bank’s branches. Many of them even opened specialized branches to attend and attract this group, with the remittance service at the core of the offer.

That decision immediately opened almost 12,400 points (ATMs) to the bank’s clients, also making it possible to send money from 8:30 a.m. until 10:30 p.m., without limiting the attention of the public in the branches. The service also became free for those customers of “We want to be your bank”, launched by Banco Santander.

Subsequently, digital platforms gained ground, because they shorten the time taken by traditional processes and avoid trips to branches. Now it is time for blockchain technology, which is characterized by allowing information backup, stored in nodes, and access only for authorized people.

This is how Santander decided to launch One Pay FX, which eliminates intermediaries and allows the sending of remittances almost instantly. This new proposal was launched simultaneously in Spain, Brazil, the United Kingdom and Poland. The company hopes to start operations in other markets.

One Pay FX was so successful that Santander finally wound up liquidating “Santander Envíos” on December 19th, according to information from the Mercantile Registry.

Data from the European Statistics Office (Eurostat, in Spanish) report that in 2017 Spain outnumbered the United Kingdom as the second country with the most remittances transferred abroad, France ranks first. That year Spain sent more than 7,300 million euros (more than USD 8,300 million).

BBVA and Santander joined the E.U. International Association for Trusted Blockchain Applications (IATBA), to be launched in the first quarter of this year. Recently, the representatives of these two Spanish banking groups were invited to a round table on the European Union blockchain, held in Brussels. The main objective is to develop a blockchain regulation and prepare the launch of new applications.

Last July, Santander joined IBM’s blockchain platform and created a research team to explore the blockchain uses in securities trading.

Whilst it is true that these technologies are revolutionizing different industries, there are still certain challenges that must be overcome, including the concept or test phases, to achieve mass adoption.

By María Rodríguez

Crypto startup Keplerk Allows People to Acquire Bitcoin in French Tobacco Shops

Andres Chavez
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Crypto startup Keplerk Allows People to Acquire Bitcoin in French Tobacco Shops

As hard to believe as it may sound, technology is still viewed as an entry barrier to the cryptocurrency industry. Some people still do not trust the digital channel to acquire Bitcoins, and they would prefer a more “traditional” approach. Although those people do not represent the majority, we are in 2019 and still see cases of “fear of the Internet.”

For those afraid of venturing into a cryptocurrency exchange and or mining Bitcoin from the comfort of their homes, France provides an innovative alternative: the country’s tobacco shops will sell Bitcoin vouchers thanks to a strategic partnership with Keplerk.

The first announcement came back in November 2018. Now, the alliance between Paris-based FinTech startup Keplerk with six ‘tabac’ shops spread in France’s capital is official. In a similar way that coupons or gift cards function, the tobacco sellers will issue BTC vouchers that people can redeem for digital coins thanks to Keplerk’s crypto wallet. 

Thousands of Licensed Bitcoin-Selling Stores

According to Keplerk co-founder Adil Zhakar, there would be nearly 100 bitcoin-selling tobacco stores in France by the end of the week. He stated that the goal was to enroll over 6,500 licensed tobacco shops in the program by early February. Keplerk wants people to have more available venues in which they can enter the crypto universe.

“Some people find it complicated to get bitcoins online,” Zakhar told a rec. “They trust their local tobacco shop owner more than they would trust some remote anonymous website.” Regulators in France are not quite sure about how to best “tackle” the issue when it comes to Keplerk’s legal validity. For what is worth, the Autorité Des Marchés Financiers (AMF) has already issued an operational approval to PAYSAFEBIT SASU, the public limited firm backing the startup.

The Autorité Des Marchés Financiers is the French equivalent of what the Security Exchange Commission (SEC) is in the United States of America. However, it is not entirely sold on Keplerk and PAYSAFEBIT SASU’s liquidity

The AMF states that “its distribution by a public limited company, PAYSAFEBIT SASU with a capital of 50,000 Euros, using the trade name KEPLERK, which does not have any authorization or approval by a French or foreign authority, is not likely to provide any guarantee to the customer base.”

A Matter of Regulation

Confusion, therefore, dominates the scene, mainly because cryptocurrencies are not yet regulated in France. The extent of their acceptance within the country’s legal framework is limited to a couple of ordinances on blockchain technology, but not much more. Far from serving as an encouraging entity, the AMF has continuously warned potential investors about the potential risks of Bitcoin and altcoins. In fact, the organization does not consider them financial instruments.

As a member of the European Union (EU,) France will probably follow the EU’s path when it comes to defining and regulating these assets. The nature of startups such as Keplerk will likely become clearer from a legal standpoint once the European Banking Authority materializes the recent proposal to create a pan-EU bitcoin law.

By Andres Chavez

Venezuelan Companies that Use Cryptocurrencies Must Pay Taxes with Cryptoactives

Maria Rodríguez
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Venezuelan Companies that Use Cryptocurrencies Must Pay Taxes with Cryptoactives

It also applies to institutions that conduct big operations with foreign currencies

Decree 3.719, published in Official Gazette No. 6.420 of the Bolivarian Republic of Venezuela, indicates that the persons or companies that conduct operations with cryptocurrencies, or with foreign national currencies, have to calculate and pay taxes with cryptoactives, US dollars or euros, according to be the case.

The payment of taxes in foreign currency will be exempt from transactions involving securities in the Caracas Stock Exchange, as well as the export of goods and services made by the public sector. The decree applies from now and throughout the Venezuelan territory since “it enters into force after its publication in the Official Gazette of the Bolivarian Republic of Venezuela”, as it is explained in Article 8 of the statement.

The purpose of this measure is “to strengthen the tax control mechanisms, in order to improve the efficiency in national taxes collection”. This provision is issued based on “the framework of the state of emergency and economic emergency”, as explained in the public document.

The Gazette explains that “passive subjects that conduct operations in the national territory, in foreign currency or cryptocurrencies authorized by the Law, through the Exchange Agreements signed between the National Executive and the Central Bank of Venezuela or by Presidential Decree, which constitute taxable events generators of national taxes, must determine and pay the obligations in foreign currency or cryptocurrencies”.

Article 4 of this mandate indicates that the National Integrated Service of Customs and Tax Administration (Seniat, for its initials in Spanish) will dictate the regulations to establish the formalities for declaration and payment in foreign currency or cryptocurrencies. This public body will define the guidelines on tax payment with cryptocurrencies.

On the other hand, the Superintendence of Banking Sector Institutions (Sudeban, for its initials in Spanish) will dictate the regulatory norms of the adjustments that must be made by the banking sector institutions, to guarantee the execution of the decree issued this Monday, January 7th.

Other Exceptions

The Venezuelan Government exempted from payment of taxes in foreign currencies or cryptocurrencies to all “operations of securities traded on the Stock Exchange” and to “the export of goods and services, carried out by public bodies or entities”.

According to the presidential decree, the determination and payment of tax obligations, in foreign currency or cryptocurrency, will be applicable not only to the tax, but also to its accessories and to the sanctions derived from its non-compliance”.

Only cases of repetition of payments, recovery or refund of national taxes will be processed in national currency, applying the official exchange rate in effect for the date, as the case may be. The Ministry of Economy and Finance will be responsible for ensuring execution.

The operations with currencies have become popular in Venezuela, this is due to the fact that the Bolívar has lost its ability to be a reserve of value, as a result of the hyperinflation that exists in that country.

Even the Venezuelan government resorted to the use of cryptoactives such as Petro to obtain new forms of international financing. Currently, the country is looking for new ways to obtain foreign currency due to the economic situation it faces.

By María Rodríguez

Unicef France will Accept the Stablecoin DAI for Donations

Maria Rodríguez
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Unicef France will Accept the Stablecoin DAI for Donations

The institution currently accepts contributions in different cryptocurrencies, such as Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), Ripple (XRP), Dash, among others

The United Nations Children’s Fund (UNICEF), in The French National Committee, issued a statement in which it announced that its donation system will also accept the stablecoin DAI, to find another way to contribute with these charitable causes.

According to the statement, the institution is in the task of improving the donation system by expanding the cryptocurrency options. However, the central objective is to develop efficient strategies which help the development of the most vulnerable populations in the world, using technological platforms such as blockchain.

About this point, Sebastien Lyon, UNICEF France’s Executive Director, commented that “cryptocurrencies and blockchain technology without a profit offer a new opportunity to appeal to the generosity of the public and to continue developing our activities for children in our country”.

This idea was promoted through UNICEF Ventures, an organization that develops different activities around the world in order to guide, and teach young people who are interested in blockchain technology, cryptoactives, their uses, among other aspects.

With regard to donations in DAI, Christina Lomazzo, UNICEF Ventures’ blockchain expert, said: “UNICEF France has been able to accept DAI before because it is an ERC-20 file, but now we are promoting the fact that these DAI donations will help finance the blockchain development community that UNICEF Ventures is building”.

The fundraising program was originally announced last September, when it was announced that it would accept donations in nine different cryptocurrencies, and that it would also offer the option to mine through the institution directly from UNICEF’s digital portfolio. Also spokespersons of the institution commented they intend to even create their own cryptocurrency, so they are still in the planning and study phase.

Talking about the collection program, called “Game Chaingers”, the institution once again called on all video game enthusiasts to participate by installing the mining software, which generates Ethereum (ETH) and thus be able to finance the support to children affected by the conflict in Syria.

Another Social Initiatives

There are, in France, other institutions that also accept donations in cryptoactives. Like, for example, Samu Social. This institution has different locations throughout France, and some in other parts of the world. It is generally responsible for providing medical care to people with very low resources. Since last year this foundation began accepting donations in different cryptocurrencies such as Bitcoins (BTC) and Litecoins (LTC).

DAI is a cryptocurrency that is backed by a collateral reserve, whose value remains static with respect to the US dollar. This cryptoactive has its support thanks to the smart contracts platform, MAKER, which supports the value of the cryptocurrency through a process of debt positions with guarantees and economic incentives from external actors committed to the growth of the stablecoin and the blockchain technology. Its adoption by UNICEF France is another step towards DAI’s consolidation.

By María Rodríguez

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