BitTorrent will Create its Own Cryptocurrency Using Tron Platform

Maria Rodríguez
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BitTorrent will Create its Own Cryptocurrency Using Tron Platform

This month, the company will offer more details about the progress of the “Atlas Project”

One of the most popular platforms for the exchange of massive files on the Internet, BitTorrent, announced it will soon launch its own cryptocurrency to the broad digital market.

BitTorrent Foundation will issue the cryptoactive through the Tron platform, since last year this company bought BitTorrent for about 140 million dollars. During a press conference, Justin Sun, CEO and founder of Tron Foundation, said: “In one giant step, we will bring blockchain technology to billions of users around the world to empower a new generation of content creators with the tools to distribute their content directly to others on the web”.

The Bit Torrent Token Cryptoactive (BTT) will have an issuance of around 990 billion, and the platform will not charge commissions for transactions. BTTs will be active for accounts outside of the United States of America through the Binance Launchpad. This initiative seeks to position itself and maintain a token similar to the Etherum’s blockchain.

About the use of the cryptocurrency BTT on the platform, Sun said that the system asks users to enter a file in exchange for another in a download. So often the user removed the file from the platform after having downloaded the material he was looking for. But, with the implementation of BTT in the system, any user can pay to download the file, and even pay more for a bandwidth that allows a faster download. This offers the user the incentive to leave the file in the network and receive money in exchange.

The Atlas Project

The birth of the BTT cryptocurrency is part of the new strategies that the company is acquiring since the purchase by Tron Foundation, in June of last year. This merger has generated changes in the platform and significant advances in others. The Atlas Project is part of an integrated of both companies that seeks to promote the market of downloads step by step.

On the respect of the project that will generate optimization and more speed to the downloads, Sun commented that they will not need mining to authorize them, there will be more shipments and will be compatible with previous versions of the software.

In addition, Sun commented: “We aspire to eventually empower all content creators and their communities to eliminate intermediaries, and allow these content creators to distribute it directly to their users”. This opens up the possibility that users have power over their content, by distributing them through the renewed platform prepared by the company.

The project also seeks to venture into the creation of content and the use of other cryptocurrencies such as BitCache, which uses Bitcoins mainly. Eventually, the platform will have a series of changes that will be processed through a series of protocol extensions whilst remaining compatible with all versions of the BitTorrent network.

By María Rodríguez

Colorado proposes a Bill that Exempts Cryptocurrencies from Securities Laws

Maria Rodríguez
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Colorado proposes a Bill that Exempts Cryptocurrencies from Securities Laws

The legislation seeks to exclude cryptoactives and certain digital tokens from the laws that govern the concepts of values

Two legislators from Colorado, in the United States of America, presented this Friday, January 4th, a project that would allow exempting cryptocurrencies and certain tokens from the securities laws.

The main objective is to offer additional, but limited freedoms to some cryptocurrencies; this is because traders and local regulators complain about the illegitimate offers the industry presents.

It also seeks to eliminate the “regulatory uncertainty” that could curb the companies which offer markets for tokens and cryptocurrencies in order to raise funds through the use of cryptographic assets.

“The bill provides limited exemptions from the requirements of securities registration and licensing brokers for people who operate with digital tokens”, says a summary of the proposals.

Stephen Fenberg (Democrat) and Jack Tate (Republican) explained their project entitled “Colorado Digital Token Act”. The document explains that tokens stipulated mainly as consumption should be exempted from the statutes of securities laws since these tokens are not marketed for investment or speculation purposes.

The senators proposed the law in order to reduce the uncertainty surrounding the regulatory framework of digital currencies, and allowing token companies to raise funds using their cryptocurrencies.

The bill states that “the costs and complexities of the securities registry may outweigh the benefits”. Therefore, “this law will allow Colorado companies that use cryptoeconomic systems to obtain growth capital to help grow and expand their businesses, promoting the formation of local businesses and the creation of employment, helping to make Colorado a center for companies that are creating new platforms and decentralized Web 3.0 applications”, says the document.

Particular Characteristics

According to the bill, the purpose of token consumption must be available in no more than 180 days of its sale. In addition, the initial purchaser will not be able to resell or transfer it until the purpose of consumption is available. In addition, the token’s issuer must indicate to the state securities commissioner his intention to conduct the transaction.

“The initial buyer provides a clear and conscious knowledge that he is buying the digital token with the intention of using it for a consumer purpose and not for speculative or investment purposes”, the project explains.

In December, two members of the US House of Representatives proposed a similar idea, called the “Token Taxonomy Law”. But “Colorado Digital Token Act” is one more step closer. It establishes limited exemptions from the registration requirements for securities, securities brokers and vendor licenses for people who handle digital tokens.

In addition, it was announced that, if a token does not qualify according to the Colorado Safe Harbor Act, it must be “analyzed according to the typical securities law, or what is known as the Howey Test”.

Regulatory Attempts in Colorado

Last April, Colorado lawmakers presented a bill entitled “Money exemption law for virtual money exemption”. The proposal received approval, but subsequently failed because some legislators changed their opinion.

In May, the Senate reversed a bill that clarified whether digital tokens were securities. In June, Governor John Hickenlooper created the Council for the advancement of Blockchain technology, in order to obtain recommendations for “a comprehensive legal framework to support blockchain technology”.

The new bill to exempt cryptocoins from some securities laws is currently under consideration by the Colorado Senate. Lawmakers seem hopeful that attitudes towards cryptocurrencies and blockchain technology continue to advance.

By María Rodríguez


Chile will Use Blockchain Technology in Tax Collection

Maria Rodríguez
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Chile will Use Blockchain Technology in Tax Collection

The Chilean Parliament is currently reviewing a bill on the definitive adoption of blockchain technology. Although it has not presented the approved use of cryptocurrencies

Chile seeks to process public payments using a platform developed with blockchain technology. The news was announced a few days ago, through the social networks of the General Treasury of the Republic (in Spanish, TGR). The system was implemented last December, with the supervision of Digital Government, a department attached to the General Secretariat of the Presidency.

The project is called “TGR Blockchain” and, according to the information provided by government entities, its development was planned due to various discrepancies between the information registry, the payment issuer and the recipient of the taxes. With this new system, they also want to promote transparency, immediacy and the modernization of comfortably fulfilling these public payments.

Ximena Hernández, General Treasurer of Chile, said that this project represents a firm challenge in the search for the digitalization of payment processes.

Regarding the new process of tax collection, a press release clarified that: “This technological project is proposed as a solution to the square problem that the TGR represented among the suppliers (institutions, municipalities, among others) and the means of payment (Banks), which meant that at the end of the month the square of the transactions was not completely accurate between these three entities, due to the information that was lost along the way “.

This system realizes the block in an “automatic” manner, using a series of nodes in which the information is transported without being modified in any way, which generates reliability when sending these transactions, eliminating calculations errors at the moment of closing balances.

It was not mentioned if this technology will be supported through a private platform or if it will be supported on a known cryptocurrency. Although in Chile, no progress has been made in the adoption of the authorized use of any cryptocurrency; thus, implementing this technology represents real confidence in blockchain.

The Friendliest Latin American Country with Technology

The use of blockchain technology in taxes payments is not the only effort made by the government of Chile. Recently, the National Energy Commission (in Spanish, CNE) established a similar system, using Distributed Ledger Technology (DLT) to legitimize information in the energy sector. The platform is called “Open Energy” and is used as a means to manage information related to the sector.

“Economy of the Future”. This was the name of the government program with which the Ministry of Economy of Chile seeks to take the best advantage of technology. The project formed a research group in charge of studying the possible new uses of blockchain technology in government trade operations, identity verification, health, among others. Julio Pertuzé, the program’s Director, assures that these initiatives boost the nation’s growth and puts Chile one step closer to the “Fourth Industrial Revolution”.

By María Rodríguez

American Subpoenas Represent an “Entry Barrier,” According to Kraken

Andres Chavez
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American Subpoenas Represent an “Entry Barrier,” According to Kraken

Kraken, one of the most influential cryptocurrency exchanges in the United States of America and the whole world, is blaming the US government, at least partially, for the difficulties encountered by people to enter the crypto industry.

According to the platform, the cost of handling government subpoenas is quickly becoming a “barrier to entry” in America. Kraken recently published its “2018 Transparency Report,” and in the past weekend (on Saturday,) it tweeted an infographic explaining that law enforcement agencies and related inquiries from governmental institutions have tripled when compared to those of last year.

The exchange informed that it received 160 subpoenas in 2017, but the number jumped all the way to 475 in 2018, showing how the US government is making matters complicated for both crypto exchanges and users. Of the 475 total subpoenas, 315 came from American agencies, comfortable more than half. The United Kingdom, with 61 requests, followed the Americans in second place, and Germany was third on the notorious ranking with 34.

A subpoena is a legal term that refers to a request for the production of documents, or a request to appear in court or any legal proceeding. It could require testifying, presenting evidence or information, or any related activity. The word means “under penalty:” not complying with the terms of the subpoena may result in civil or criminal penalties.

The Raw Numbers

 “You can see why many businesses choose to block US users,” Kraken stated in its Twitter feed. The Department of Homeland Security Investigations (HSI) issued the most subpoenas out of the 315 in the United States, with 91. The FBI followed with 67 and the DEA (Drug Enforcement Administration (DEA) was third with 40. The SEC (Security Exchange Commission) and the CFTC (Commodity Futures Trading Commission) made 29 requests between the two.

In one of the answers of a Twitter thread, the exchange platform explained that it gets subpoenas for “all transactions, which could be petabytes of data when they actually only need the withdrawals from last week for one guy.” The inquiries, according to the firm, are “taxing” on the resources it has, because “significant amount of education and back-and-forth” is needed.

Why so many US Inquiries?

When confronted with the question about why it receives so many inquiries from American law enforcement agencies, Kraken answered that “US is about 1/5 of clients but 2/3 of requests. US agencies are much more active and are much less surgical. For many requests, we have no matches. It wouldn’t be surprising to find that the same subpoenas go out to everyone in the hopes that a match will be found.”

Kraken has made no secrets about its anti-government stance. Its CEO Jesse Powell, for example, declined to comply with an inquiry from the New York Attorney General (NYAG) in April 2018. “I realized that we made the wise decision to get the h*** out of New York three years ago and that we can dodge this bullet,” he said back then.

By Andres Chavez

Texas legally Declares Stablecoins as Money

Maria Rodríguez
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Texas legally Declares Stablecoins as Money

Banking institutions recognize as a monetary value the support that fiat money grants to this type of digital assets

The latest memorandum from the Texas Department of Banking qualifies the stablecoins as money. For this reason, its issuers will need a license to operate in that US state.

Charles Cooper, the Commissioner of the Texas Banking, published a document on Wednesday which details this information. Cooper points out that the Texas Law does not see cryptocurrencies as money and therefore it does not consider the exchange of cryptoactives for fiat money as a “currency exchange”, so new companies do not need currency exchange licenses to operate in this status.

However, the case of the stablecoins is different. According to the document, these can be considered as “money” or “monetary value” and any person who acquires the cryptoactive is entitled to the assets in sovereign currency that support the amount of tokens he or she has.

Is Cryptocurrency Money?

The reason why this happens and why the stablecoins are considered as money is due, according to Cooper, to the issuer “assumes the obligation to provide a sovereign currency in exchange for stablecoins at a later time”, whilst with cryptocurrencies it not always happen.

Only cryptocurrency to cryptocurrency transactions are not considered by Texas banking policies as money, whilst cryptocurrency-fiat transactions do represent a money transfer.

The memorandum define stablecoins as “a form of centralized virtual currencies that are backed by the issuer with sovereign currency, precious metals or cryptocurrencies and, therefore, it possesses intrinsic value”.

Because of this, the Monetary Services Law considers stablecoins as money or monetary value. “Receiving it in exchange for a promise to make it available at a later time or at a different location can be a money transfer”, Cooper said.

Stablecoins are also cryptoactive with stable prices, as the name implies. These do not suffer from characteristic volatility, so far, as it happened with Bitcoin and other cryptocurrencies during 2018.

Stablecoins seek to merge the best features of fiat (or traditional) currencies and cryptographic currencies: globalization, decentralization and, additionally and particularly, low volatility. They are digital assets designed to maintain a constant price, linked to a stable fiduciary currency.

Currently, there are three types of stable tokens: those guaranteed with fiduciary currency or products maintained by a custodian and with parity 1:1, those that other cryptocurrencies back and those that do not have backup guarantees.

Among some famous examples is Tether (USDT), which is a stablecoin that in the cryptocurrency exchange houses has become a substitute for the dollar; TrueUSD (TUSD), a token linked to the dollar and its reserves are held in the accounts of several trust companies, and USD Coin (USDC), a digital asset also backed by the dollar.

With these considerations, banking representatives in Texas inform to new companies, and to those who make exchanges, that they must comply with the relevant laws as appropriate when making money transfers. Other US states are studying concepts about this topic. Las week, New York announced it would have a group of experts that will give information to the governor, in order to be prepared and take the needed decisions.

By María Rodríguez

New York’s Government Creates a Group of Specialists in Cryptocurrencies

Maria Rodríguez
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0
New York’s Government Creates a Group of Specialists in Cryptocurrencies

The experts must prepare, before the last month of 2020, a detailed report to the Governor about their investigations

On January 2nd, a member of the US Legislative Assembly, announced, on his official Facebook account, that the state of New York will have a group of experts on blockchain technology, responsible for investigating the proper use of cryptocurrencies.

The group of specialists will consist of nine people who have a different vision of each aspect, related to the subject of cryptocurrencies and blockchain. There are consumers, technicians, investors and entrepreneurs. Its main task will be to inform the Governor and the State Legislature about the use of these cryptoactives in the economy and investigate the movements of other types of cryptocurrencies in the Big Apple.

It is worth noting that, on December 21st, the New York State Legislature passed a law that includes, in some way, these technologies in which to make the state economic. This law was proposed by the current Governor of the state, Andrew Cuomo. Therefore, this group of specialists will have to prepare a high report on their research before December 15th, 2020; according to the regulations of said law.

One of the members of the Legislative Assembly, Clyde Vanel, who is also Chairman of the Internet and New Technologies subcommittee, announced that New York will be the first state to form a group of this nature and that, in addition, it is the one that is going to investigate the potential use of blockchain technology in the economy, will also be responsible for developing a possible legal framework to guide the state, in order to regulate and control its use in the future.

“New York leads the country in finance. We will also lead in the correct fintech regulation. The expert working group will help us to find the balance between having a robust blockchain industry and a cryptocurrency economic environment, whilst protecting investors and consumers in New York”, Vanel concluded.

In addition, Vanel explained that the use of this technology is not only to achieve a purely commercial good of payment transactions with cryptocurrencies for goods and services, but this technology can be used as a means to register contracts, other transactions and movements. He commented that cryptocurrency tokens can store vital information for the study of social behavior on the Internet. “You can register or store information; from how long someone navigates through a website to rewarding behaviors”, he said.

New York is not the only one in the United States in which a group has been formed to investigate blockchain technology. In the state of Connecticut, the Governor, Dannel Malloy, signed, last June of 2018, the law SB 443, in which a working group was formed with the purpose of investigating the cryptocurrencie’s impact in the economy and its possible commercial advantage, as well as its possible use in robberies and scams, in order to avoid them. This is another benefit and a way to achieve a faster development for this country.

By María Rodríguez

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