The groundbreaking proposal

In addition to the plan to extend the 4th Anti-Money Laundering Directive to include the aspect of digital currencies, the European Commission briefly presented another idea for regulation, which has not yet been discussed by the media.

It seems, however, that the Bitcoin news would be very far-reaching

The Bitcoin news announced that it is considering applying the rules on licensing and supervision of the Payment Services Directive (PSD) to digital currencies „in order to promote better control and understanding of the market“. Here is the review about the Bitcoin news.

The PSD acts as a cornerstone of European payments. It lays down regulations for payment traffic regulation and includes a corresponding catalogue of directives.

Companies offering payment services have to comply with many regulations, including licensing and supervision. It is precisely these rules that the European Commission now intends to apply to digital currencies and their exchange.

Such a plan seems to make sense. It is clear that there are two jurisdictions in the EU that would be well placed to regulate digital currencies. One is the PSD and the other is the E-Money Directive (EMD). Work on the new 3rd EMD is currently underway, so there could also be some changes there.

Revise basic Bitcoin formula assumptions

What is decisive, however, is how the regulation of the Bitcoin formula is currently structured like this: An important part of the PSD is the definition of „money“, which so far only includes cash, bank book money and e-money (regulated by EMD). Digital currencies do not fall into one of the categories – a fact that has been confirmed by the European Central Bank and other institutions.

As a result, for the European Commission, digital currencies are most likely to be regulated by the PSD guidelines, even though the PSD cannot cover digital currencies in its current form.

Accordingly, regulatory changes need to go much deeper than just adding a few regulations regarding licensing and supervision of digital currencies.

New regulations would likely lead to a rethink of the PSD’s basic assumptions, including the definition of „money“, „payment transaction“ or „payment service provider“.

How should stakeholders behave?
It is difficult to see through the European Commission’s plan as everything is still very general and vague at the moment. Be that as it may, it is likely to open the door to EU regulation of digital currency payments.

Various proposals will be made in the future. Some will provide for cautious and cautious regulation, others for stronger and more comprehensive regulation.

Companies that may be affected by these regulatory changes should monitor developments closely and be able to react quickly.

Class action brought against Ripple Labs

A San Diego lawyer recently filed a lawsuit on behalf of an investor against the operator of Ripple. Ten other parties have so far participated in the class-action lawsuit for the disputed violation of the U.S. federal securities law. The complaint alleges that the XRP is a security and not a currency. In addition, Ripple Labs allegedly attempted to bribe Coinbase to trade there.

As you can see from the Forum Reddit, several investors have filed a lawsuit against Ripple in the last few days. Attorney James Taylor filed the lawsuit for Ryan Coffey on behalf of all investors who purchased the crypto currency Ripple (XRP). Plaintiff Coffey feels betrayed by Ripple Labs Inc. In his opinion, the company had created new coins from nothing but „thin air“ in 2013. The complaint states that the sale of new coins, which was not registered with the SEC, had flushed several hundred million US dollars into the company’s coffers. Unlike Bitcoin or Ethereum, the XRP is not produced by traditional mining. The plaintiffs therefore speak of a „never ending ICO“. In the complaint it is besides stated, one tried to bribe the operators of on-line stock exchange Coinbase so that these take up the XRP with itself.

Class action brought against Bitcoin code

The controversial point here is whether one regards the Bitcoin code as pure crypto currency or as security (security), because no mining takes place. Securities such as tokens from ICOs fall under the Securities Act of the USA, which applies in all federal states. According to SEC Chairman Jay Clayton, pure means of exchange such as Bitcoin do not fall under it. However, Clayton also believes that the ripple is a security. The creators of Ripple created the network with 100 billion XRP and transferred 80 billion XRP to the for-profit operating company. To date, the company owns more than half of the coins stored in an escrow. Read more about it: Bitcoin Code Review 2018 ยป Full Scam Check

Ripple’s spokesman told Coindesk that the lawyer’s tweet had told them about the lawsuit. The company does not yet have any documents that can be commented on. Whether the XRP is a cash or an investment must be decided by the SEC in due course. Ripple Labs firmly believes that this is a digital medium of exchange and not a security.

Bitcoin code has to put its foot down

The action of the eleven parties should still be exciting. The United States Securities and Exchange Commission (SEC) must finally clarify whether the Bitcoin code is a security or a regular crypto currency. As usual, Reddit’s comments are highly sarcastic. The company could not be held liable for the fact that the value of its coin had not flown to the moon. Anyone investing in crypto currencies must be aware, regardless of the coin, that prices have always been subject to extreme fluctuations. To want to make cash in court afterwards is at least not the right way for investors, says onlinebetrug.

In addition, it is worrying if frustrated investors take legal action again: Almost a month ago, with the help of a lawsuit, they wanted to demand a hard fork from the developer team behind Nano. Such court rulings entail the risk that decentralized systems could become central entities again through the arm of the law. In a column, BTC-ECHO explained that there is a trend toward more centralized ecosystems among younger crypto currencies. These recent court cases should be a warning shot for development teams behind crypto currencies, for example to become more decentralized in terms of partnerships or development.

Consumers‘ Research: Blockchain will protect consumers

With growing interest in the blockchain and distributed account system of Bitcoin, the industry is now focusing more on the application of technology far away from the financial world.

This has now included more time and money for identity and security applications, if not exclusively financial in nature. As further proof of the growing interest in the technology, a presentation of Keynote 2015 will be given on a less addressed area of technology – consumer protection.

Joe Colangelo, Managing Director of Consumers‘ Research, was there to talk about this topic. The US non-profit organization was among the first to publish monthly magazines designed to help consumers make purchasing decisions.

In an interview, Colangelo opened the growing work of the over 80-year-old organization in the Bitcoin and Blockchain industry and stated that the technology will bring a fundamental change to consumer protection.

Colangelo told CoinDesk about Bitcoin formula:

„Consumers have always had to trust third parties about how to use their Bitcoin formula, even when it comes to cash. The whole model of Bitcoin formula protection is based on the assumption that consumers cannot easily find out which sources are reliable.

Colangelo relies more on consumer research than on the way his organization worked in the 1920s. These third parties are replaced by the ability of the blockchain to perform secure peer-to-peer transactions.

As The Wall Street Journal has shown, he recently organized a retreat at New Hampshire’s famous Bretton Woods, which brought together Michael J Casey (MIT Media Lab) and ChangeTips Community Manager Victoria van Eyk as well as other industrial celebrities.

The goal, Colangelo said, was to produce a document that would inform regulators and legislators of the potential benefits and opportunities of this technology.

„I have attended perhaps half of all major Bitcoin conferences in the last two years,“ Colangelo said. „We always get a big bunch of genius people together, then they talk about what they do and then they leave.

New third-party Bitcoin trader

Although Bitcoin and blockchain technology give users direct control over their assets, many digital currency users interact with third parties like these: This includes hosted web wallets, Bitcoin exchange exchanges and private key custodians that protect Bitcoin trader digital money.

Of all these developments, Colangelo is most interested in multi-signature wallets that allow users to retain control over their assets while sharing access with other institutions, thus protecting their assets.

Colangelo believes that the application of this technology will be of growing benefit to the consumer, especially when it becomes possible to similarly manage personal information.

„Social engineering is one of the main methods used to commit [information] theft. This becomes increasingly difficult when dealing with multiple parties,“ he said. „If I have a third party that manages my Bitcoins and I have a key with a partner like Third Key Solutions, then I don’t think it’ll be twice as hard, even four times as hard.“

Colangelo believes that it is a capability of Bitcoin to give users programmatically access to their money and data, which is ultimately the most attractive to them.

„You can start by making rules. For example, you could program a wallet so that it is not allowed to transmit more than 1 BTC per day. You can even reduce the risk to zero if you can program the money in such a way that it can only be transferred in a certain way.“

Colangelo sees Blockchain as an opportunity to give users back their possessions of their personal data. In the future, he claims, it may be possible to allow companies only temporary access to sensitive data, for example:

„We won’t have to share our information, we can temporarily share it with FitBit or Facebook or American Airlines and then take it back. We give them 24-hour access and keep the information,“ he explained.

ASIC Bitcoin-Mining: CoinBau reports back!

The name „WOLFBLOOD eXtreme Efficiency“ alone will make a Miner’s heart beat faster. Anyone who doesn’t hear a direct ring should think about an extremely powerful ASIC chip which, with values of 0.19 J/GH compared to conventional ASIC chips, requires only about half the power to mine Bitcoins. Conventional and previously used chips swallow an average of 0.37 J/GH and are therefore real power catapults.

But most of the Bitcoin trader probably remember that

We are talking about the Dresden-based startup ASICrising, founded in 2013. Under the name CoinBau and with a Bitcoin trader team of 10 highly qualified electrical engineers with strong roots in chip design and software development, the company has developed probably the world’s most efficient ASIC chip. Made in Germany!

These chips are now to be combined in a large Bitcoin mine. However, such a project requires sufficient capital and, as we reported in mid-August, the company was still looking for suitable investors at that time.

In an exclusive interview with BTC-Echo, CEO Sebastian Krause gave an interesting update on the current state of affairs:

The media response to the CoinBau project was quite large, but what about the reactions of potential investors?

Very good. We have received inquiries and signings from investors all over the world, most recently surprisingly for ourselves, especially from Latin America. We are on the right track, but will certainly need more time. But there were also very interesting enquiries from potential cooperation partners, which could speed things up.

Do you want to include a German crypto trader company?

That is correct. Following the crypto trader publication in the Wall Street Journal, a meeting was held with Smart Equtiy AG from Remscheid. The people responsible there are absolute experts in the field of cryptographic software solutions and have a very good investor network. The chemistry is right. We are currently engaged in correspondingly intensive discussions.

So a quick „exit“ is also conceivable?

Absolutely not! It’s about advancing the CoinBau project together and using synergies. In addition, you can think a little bigger together.

So what happens now?

As planned… But if the cooperation with Smart Equity comes about, everything could happen very quickly. The plans for a joint roadshow with potential investors are already very far advanced.

So we are still excited and are already looking forward to the next CoinBau headline. We thank Sebastian Krause for the friendly interview and will report as soon as there are any news.