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Adam Draper: New York BitLicense harms Bitcoin Startups

Boost VC Managing Director Adam Draper has recently launched a petition calling for some changes to the previous New York BitLicense.

The petition calls on regulators to collect less information about Bitcoin startups; to curb double federal and state regulations as they only continue to create hurdles and double costs; and to create a kind of sandbox for new products and services in which new innovations can be tested by people who understand the risk before financial products are made available to the masses, thus requiring a BitLicense.

It would also make it difficult for BitLicense investors to financially support Bitcoin revolution start-ups in their early stages

“The current BitLicense is making it very difficult for new companies in the digital currency industry to get off the ground and is affecting the way we do business. My company is focused on driving technological innovation and over-regulation stops the technology. Bitcoin revolution will not harm existing companies or large funds, but companies that are in the process of being formed or will be formed in the future.” Here is more about it:

In a video, Draper says these changes are necessary to reduce the cost of new Bitcoin startups in the digital industry. He expects the initial cost of a BitLicense to be up to $2 million. In addition, there are additional annual costs of approximately $1 million.

Draper says these costs include the hiring of an additional compliance officer, the necessary reporting standards, information gathering and AML/KYC (anti-money laundering) expenses and associated legal costs.

Adjustments on the Bitcoin loophole are urgently needed

According to the experts of onlinebetrug, the revised BitLicense is already a significant improvement over the original version. However, there are still too many components that are too costly for Bitcoin loophole startups. Draper’s statements are consistent with those of Fred Wilson (Union Square Ventures) and other critics who have already commented on the current version of BitLicense.

“Reading through the second version of BitLicense, I still have the impression that it will be too costly for new Bitcoin startups,” Draper said.

Draper says the proposed changes are good for both sides: “I think it’s a good balance between a proper regulatory framework and what businesses need to thrive.” Draper says.

But he also admits that he missed the end of the second comment period, but still wants to do his part to improve the license. With the petition, he also wants to bring those people into the discussion who have so far shown themselves to be cautious.

Bitcoin payments via Google Glass

Startup Eaze has released a beta version of the innovative Bitcoin app “Nod to Pay” for portable technologies. Nod to Pay was developed especially for Google Glass and is now available for download from the developers. The app currently supports Bitcoin wallets from Blockchain and Coinbase. More wallets are planned.

Due to the unique Google Glass interface, payment is a bit different than with a smartphone. To make a payment it is not enough to simply nod your head. First the users have to link their wallet via QR code. Then he has to activate the app and give it the command to execute the payment: “OK Glass, make payment”. On command the Google Glass then scans the QR code of the payee and shows the details directly on the display. The payment is then confirmed with a double nod. To ensure a higher security Eaze plans an individual limit which can be changed with a personal PIN code.

Portable innovation by the news spy

With the Nod to Pay app, Eaze offers a unique “hands-free” payment method. “We are proud to be the first to introduce a global payment method for the news spy to the market. Since its release in February, we have worked hard on the app to make it available for the commercial market,” says co-founder Rutger van Zuidam about the innovation to onlinebetrug and adds:

“With the integration of Coinbase and, we have also responded to the market by not introducing another wallet, but making existing wallets available for Google Glass.

Although the concept already exists since 2012, Google has only started this week with the official distribution of Google Glass. The $1,500 price sounds very expensive at first, but it’s worth remembering that the glasses were originally designed only for technical demonstration purposes and not for the consumer.

Last year, a Bitcoin secret for payment came onto the market

However, this was limited to certain brick and mortar businesses: Whether we like it or not, portable technologies like GoogleGlass and SmartWatches are on the rise and developers are eager to experiment with such apps. With the release of Bitcoin secret and the latest Google Wallet update, developments in this niche are on their way up, albeit slowly.

Bitcoin Ransomware from SAW – Jigsaw deletes files every hour

“I want to play a game…” Jigsaw, a Bitcoin Ransomware with the face of Billy the Puppet, deletes files if you don’t give in to the demands. Where the movie fandom can lead: A group of hackers have written a Saw-inspired program to get people rid of their Bitcoin.

The group has launched a ransomware worldwide attack on private computer networks. With a certain sense of irony, they named the Ransomware after the villain at Saw – the insane mass murderer Jigsaw. This Bitcoin Ransomware stands out from its predecessors in terms of meanness: the malware blackmails its victims by deleting files until you respond to the blackmail.

So you have the choice: either you lose your Bitcoin revolution – or your data

If a Jigsaw Bitcoin revolution Ransomware computer is infected, the victim has 24 hours to pay for and against a ransom of 20-200 dollars in Bitcoin revolution. After 24 hours, the malware starts deleting files every hour. With every hour there are more files, which increases the pressure even more. Finally, after 72 hours, all remaining files are deleted.

If you think you have to try any tricks, Jigsaw warns you urgently: “Try something funny and we’ll punish it with delete”. So the reboot of the computer leads to a penalty of 1000 deleted files.

Solution for Bitcoin revolution victims of Ransomware

However, if the computer has already been infected, there are fortunately solutions available. People from Bleeping Coputer have released a decryption solution with a step-by-step guide on how to remove this malware from your Bitcoin revolution.

According to the website, 200 different file extensions are attacked – which depends on the version of the malware. After an infection, Jigsaw will create a list of encrypted files and write a Bitcoin Wallet address into the system files.

The ransomware will also write something to the autostart, so that jigsaw will be opened on login. The Ransomware can be deleted after decrypting the files with a decrypter available in English and Portuguese.

To do this, proceed as follows: Firefox.exe and drpbx.exe are terminated in the task manager and firefox.exe is switched off during the start process. Then the Jigsaw decrypter will be launched to decrypt the drive C.

This should regain power over the computer without having to pay the blackmailers Bitcoin.

Fortunately, Jigsaw is not as invulnerable as some other Ransomware developments and can be quickly deleted without damage to the files.

Of course, the best protection is prevention and so you should look twice at what files you actually open from the net.

A good antivirus and antimalware program up to date and mentioned preventive behavior on the Internet or when reading the mails should be enough to prevent worse.

Singapore: Central Bank warns crypto exchanges and stops ICO

The Singapore Central Bank and Financial Supervisory Authority (MAS) announced on 24 May that it had warned eight crypto exchanges of the lack of licensing. In addition, it stopped an ICO and demanded the repayment of all investments from Singapore. Will the island state now start cryptoregulation after all?

Although Singapore has so far distanced itself from cryptoregulation and limited itself instead to anti-money laundering controls, crypto exchanges cannot operate in the island state as they please. Here the financial supervisory authority must issue a licence for securities trading before crypto exchanges can become active.

Previously unknown crypto exchanges warned about the Bitcoin secret

Non-licensed crypto exchanges are in constant danger of being warned by the state financial supervisory authorities about the Bitcoin secret as in this review. Once a warning has been issued to the exchange itself, its publication can follow quickly. As BTC-ECHO recently reported, the French and Belgian authorities had published blacklists of Bitcoin secret websites they wanted to warn users about. It is not difficult to guess what impact these announcements may have on the number of users. In addition, if the cautioned companies fail to act, there is of course a danger that the authorities will ban them.

The Singaporean MAS has not yet announced the names of the eight cautioned crypto exchanges. Nor is there any information on whether suspicious activities such as those in France had occurred on the platforms or complaints about the Exchanges such as those received in Belgium. The MAS stressed, however, with reference to the Securities and Futures Act (SFA), a law that provides for the regulation of activities and institutions in the securities, futures and derivatives industry:

“If the digital tokens are securities or futures contracts, exchanges must immediately stop trading these digital tokens until they have been authorised by the MAS as approved exchanges or recognised market operators.

Cryptosoft must be discontinued in Singapore

In addition, MAS asked an ICO issuer to stop its offer in Singapore. His token would represent the ownership right of a cryptosoft company and thus a security token according to the SFA. This, in turn, requires registration with the MAS, which is missing in this case. For this reason, the MAS demanded repayment of all cryptosoft investments from Singapore. According to MAS, the issuer has already complied with this demand:

“The [ICO] Issuer has suspended the Offer and taken remedial action to comply with the provisions of the MAS. It has also repaid all monies received from Singapore based investors.”

However, there is no precise information on the ICO and the amount issued. Lee Boon Ngiap, Assistant Managing Director of MAS, nevertheless does not want to give the impression that Singapore is introducing strict regulatory measures regarding crypto exchanges and ICOs. Instead, he announced that crypto offerings in Singapore had increased significantly. According to Finews.Asia, he stressed this:

“We see no need to restrict them when they are honest companies. However, if a crypto exchange, issuer or intermediary violates our securities laws, the MAS will take strict measures.

Crypto currencies are “economically and ecologically inefficient”

In the opening speech to a cash symposium of the Deutsche Bundesbank, its president Jens Weidmann denies crypto currencies such as Bitcoin to be considered money or currencies. He calls for global regulation and is convinced that digital money will not become a serious competitor for cash or bank balances in the foreseeable future.

The terms money and currency can only be applied to Bitcoin and other crypto currencies to a very limited extent, Weidmann said according to a speech published by the Bundesbank. The functions of money as a means of payment, value storage and unit of account were only fulfilled to a limited extent by crypto currencies, which is why he considers the term “crypto token” more appropriate.

For example, crypto currencies are hardly used as a means of payment because paying with them is comparatively cumbersome. Weidmann points out that transactions can take several minutes: “That may still be acceptable for buying a car, but Bitcoin is not suitable for paying at the cash register.

No gain in stability due to high power consumption

An important prerequisite for a functioning monetary system is confidence in its intrinsic value. In the case of banknotes, central banks would create this trust, while in the case of Bitcoin, trust would be created by increasingly complicated algorithms, among other things, which required ever higher power consumption. Weidmann referred to calculations by Carl-Ludwig Thiele, a member of the Bundesbank board, according to which a Bitcoin transaction consumes 460,000 times more electricity than a normal bank transfer.

In view of the high fluctuations in the value of crypto currencies, Weidmann said that electricity consumption was not offset by a gain in stability, which restricted its use as a means of payment.

“Nobody wants to give away a means of payment that rises strongly in value; nobody wants to accept a means of payment that loses strongly in value. Bitcoin is inefficient from an economic and ecological point of view”.

Global regulation makes sense

Regarding demands for a regulation of crypto currencies up to a ban, Weidmann said that possible losses in value alone do not justify a ban. It was important to enforce existing money laundering regulations. He pointed out that the European Money Laundering Directive is currently being revised so that operators of exchange offices and providers of e-wallets will in future have to monitor their customers within the framework of the usual due diligence obligations for financial institutions. However, national or European regulations could only be effective to a limited extent, which is why he wants to put the issue on the G20 agenda.

Regulatory intervention could give rise to potential financial stability risks, which are currently still limited. However, this could change if banks invest more in crypto currencies, provide investors with money for speculation with digital tokens or grant liquidity lines to crypto exchanges. The banks would have to back these risks with sufficient equity capital, which would be expensive from Weidmann’s point of view: “Given the high risk content, this would certainly be considerable capital requirements.