Bitcoin news HTC planning to build blockchain phone

The company ended up paying its 260,000 customers a total of $440 million (313 million) in compensation for the loss and was ordered by Japanese financial authorities to tighten up its security.

It announced the news in the form of a written statement penned by the Coinsecure team, as well as a copy of a complaint issued to New Delhi Police by CEO Mohit Kaira.

Speaking toIT Proin February, KPMG head of tech growth Patrick Imbach said: Im not sure actually whether some sort of tangible use-cases and commercial models based on blockchain technologies will evolve over the next months.

Bitcoin owners may soon find themselves faced with a nasty tax bill thats worth more than the value of their coins, amid a market downturn that shows no signs of recovery.

At the time of writing, Bitcoin was trading at $8,200, Ethereum at $521, and Litecoin at $153, all significantly down since the start of the year.

27/03/2018:Twitter has said it will join Facebook and Google in banning adverts for initial coin offerings on its platform over concerns that users could be duped by misleading claims.

The news comes as the Reserve Bank of India has implemented a new rule banning banks and other financial organisations from accepting cryptocurrencies.

I feel like I might have accidentally ruined my life because I didnt know about the taxes…

On Thursday, the company posted an announcement on its homepage telling users that its systems had been breached and that the attackers had stolen around 438 bitcoin ($3.3 million).

Monex, a commercial foreign exchange service, has expressed an interest in buying Coincheck, the bitcoin business that was the victim of a huge digital money theft earlier this year.

The group is to form an organisation that will enforce standards for cyber security and best practice across the industry, an effort thats almost certainly an attempt to get ahead of government-led regulations that some fear could stifle the cryptocurrency market in the country.

Google is banning all advertising for cryptocurrencies and initial coin offerings, joining Facebook in a clampdown on speculative financial services.

The ban contributes to a much wider regulatory clampdown on the crypto market, with major markets in the US, China, Japan and South Korea having already made it clear that tougher regulations are on the horizon.

Prosecutors believe that the criminals behind the heist masterminded four burglaries in total. Three of them happened in December, while another occurred in January.

He added: The incident reported by Dr. Amitabh Saxena does not seem convincing to us. Kaira is also urging the authorities to cancel his passport because he might fly out of the country soon.

However, whether any profit is chargeable is judged on a case by case basis, and that depending on the facts, a transaction may be so highly speculative that it is not taxable or any losses relievable.. For example gambling or betting wins are not taxable and gambling losses cannot be offset against other taxable profits, the guidance reads.

Addressing this issue in its acquisition statement, Monex said: We aim to build a secure business environment for customers by fully backing up Coinchecks enhancement process.

Criminals are notoriously adaptable and will follow the money wherever it goes, leading to an increase in the popularity of cryptojacking.

This inquiry comes at the right time, as regulators and Governments wrestle with recent events in cryptocurrency markets, said Treasury Committee member and Labour MP Alison McGovern. New technology offers the economy potential gains, but as recently demonstrated, it may also bring substantial risks.

I took most of my savings and bought 8 bitcoins back in early 2017 for about $7200, a Reddit user who goes by the name thowaysaid in a post. Around December 2017, I got caught up in the altcoins frenzy and sold most of my bitcoins (about $120k worth) to buy a bunch of different coins.

Its thought that up to 380 million worth of digital currency was stolen from Coincheck in a high-profile attack in January, although the company hasnt formally revealed how much was taken. It did, however, pay back investors hit by the cyber attack 46 billion yen (307 million) from its own reserves.

The CEO explained that the user funds are securely kept in our bitcoin wallet. Only Karia and Saxena have access to the private keys for the wallet.

Google hasnt given its reasoning for the ban, but its likely to be in response to a rising number of online scammers trying to take advantage of the furore around cryptocurrencies by promising quick returns on investments.

Particular attention will be given to the risks that digital currencies pose to businesses and consumers, such as the markets volatility and its use as the currency of choice for cyber criminals and money launderers.

Authorities in Iceland have reportedly arrested 11 people in connection with the theft of 600 cryptocurrency mining servers from data centres across the country.

The anonymity it affords participants within its transactions has also created concerns that it will provide a major boost to illicit proceeds generated from drug sales and arms laundering.

But KPMG, meanwhile, believes blockchain still remains in the hype stage withresults not expected till at least 2019 at the earliest.

If the body is able to self-regulate successfully, it could be a compromise to heavy-handed government oversight that threaten exchanges in South Korea, one of the most influential markets in the cryptocurrency industry.

Coincheck has something of a chequered past, having fallen victim to a massive hack in January this year. The incident saw thieves take 523 million units of the digital currency NEM, which at the time was valued at $547 million (390 million), exceeding the infamous hack that brought down Bitcoin exchange Mt. Gox in 2014 and making it possibly the most expensive hack ever.

The cross-party committee will take evidence from market experts as part of the investigation, before submitting a report to the government outlining its recommendations.

Unicef wants to borrow your computers processing power for a good cause – mining cryptocurrency.

Adverts for token sales had increased in volume across social media sites following the rise in popularity of cryptocurrencies last year, allowing potential investors to trade cash for new speculative cryptocurrencies set up to support the launch of a new service.

If the deal, which was first reported byReutersgoes ahead, it will give Monex the opportunity to use Coinchecks trading platform and snipe its customers, transitioning them to its products instead, although its unclear how many customers Coincheck has at present.

We dont have a target in minas it is the first time a product like this is developed for the market. Were hoping to raise thousands, and were asking people in Australia to make the Unicef Hopepage their homepage.

The weakest point in any cybercrime operation used to be the monetisation – e.g. selling stolen data or transferring ransom money, Max Heinemeyer, director of threat hunting at cyber security firm Darktrace, toldIT Pro. There used to be a money trail that law enforcement could trace back to the offenders. Cryptocurrencies allow anonymous monetary transactions, basically eliminating the traceable money trail that was the biggest challenge for a lot of cyber criminals in the past.

Coinbase apologised for the error and said it was, actively working with banks, processors and networks to improve the digital currency purchasing experience.

02/03/2018: Japans crypto market to self-regulate after $530m heist

Monex, however, currently has 1.74 million customers and is estimated to hold 4.3 trillion yen (28 billion) in customer currency. At present, it doesnt have a cryptocurrency business, but has realised the potential and will look to Coincheck to provide guidance. Coincheck is estimated to be the fifth largest crypto currency exchange in Japan, which would give Monex quite the start to its virtual currency business.

The European Union has warned that it will begin regulating cryptocurrencies if the markets volatility, born from spikes in the value of Bitcoin and others, is not addressed by the industry.

Furthermore, as Sirin OS makes use of the distributed ledger consensus found in blockchain systems, it is claimed to be fully tamper proof.

Finney is Sirin Labs second smartphone device following the release of Solarin in 2016.

Bitcoin is hovering at just under $8,000 at the time of writing, and has yet to recover from the market slump at the start of the year which saw hundreds of billions wiped off the cryptocurrency market almost overnight.

Marketed as an ultra-secure smartphone, Solarin was priced at $14,000, a princely sum compared to Finneys relatively modest pre-order price of $999. Users will also be able to pre-order Finney using SRN, Sirins own token, at a discounted price.

Initial coin offerings, which ask investors to fund a new cryptocurrency in order to support a service or product, have become particularly problematic for online advertisers. While there are many legitimate offerings, its thought that only half of the ICOs in 2017 successfully made it out of their initial funding stages, and many were deliberate attempts to scam their investors.

Elsewhere across Europe, there is a cautious pursuit of bitcoin. Germany and France have recognised its potential for innovation and growth but believe it presents substantial dangers to investors and, without the necessary regulatory frameworks, could be a boon to the financial crime industry.

Of the 11 arrested, only two people remained in custody after a hearing at Reykjanes District Court on Friday,Associated Pressreported.

The phone is expected to ship in October, with Sirin aiming to sell between 100,000 units to a few million in 2018, potentially adding to more than 25,000 pre-orders. Moreover, the device will initially be sold in eight new stores located in regions with the most active crypto communities, from Vietnam to Turkey, according toBloomberg.

The deal, which was first rumoured earlier this week, will cost Monex 3.6 billion yen (24 million) but give it full control over the company, with the current CEO and COO stepping down and Monexs CEO Toshihiko Katsuya taking over as head of the business.

Were still a little bit early in that process, I wouldnt expect any exciting commercial opportunities to arise in large numbers any time soon – in the UK, particularly.

I didnt know this back then but it looks like I owe income taxes on those trades, which adds up to about $50k if I add up state (California) and federal. But with the crash that happened recently, I added up my altcoins and I only have like $30k worth. I only have about $5k in other savings.

Any digital coins the childrens charity successfully mines via itsHopepage, which people can visit to donate their CPU, are automatically donated to the charitys Australian arm, Unicef Australia, and spent on life-saving supplies such as clean water, food and vaccines for vulnerable children.

Twitters new stance is not an outright ban, as it said it will be restricting adverts to only those cryptocurrency exchanges and wallet services that are offered through public companies already listed on major stock exchanges.

UK traders are currently subject tothree-year-old guidelines, implemented when Bitcoin was worth just under 500, which state that those who buy or sell cryptocurrencies are subject to capital gains tax. This would force traders to pay 10% on transactions over 11,700 (the current exemption) if they are basic rate payers, or 20% for higher rate payers.

The issue was highlighted earlier this week when one Reddit user revealed they owed $50,000 to the IRS following trades valued at $120,000 – coins that are now worth $30,000.

Accompanying a sleek design, provisional hardware specs include a 5.5in display, 64GB internal storage, 6GB of RAM with a 12MP main camera and 13MP front-facing camera.

We know that this type of content is often associated with deception and fraud, both organic and paid, and are proactively implementing a number of signals to prevent these types of accounts from engaging with others in a deceptive manner.

Its likely that the UK government will fall into line with other European countries looking to enact tougher regulations on the use of cryptocurrencies France and Germany have both signalled their desire to have the implications of cryptocurrencies placed on the agenda at the G20 summit in Argentina in March.

The accelerated pace of the cryptocurrency market, matched against the digital transformation of societies, has posed concerns, particularly as the decentralised nature of the market means theres a lack of accountability or central regulatory body.

Olafur Helgi Kjartansson, police commissioner for the region, described it as a grand theft on a scale unseen before, adding that it was a highly organised crime.

05/03/2018: Bitcoin heist sees 600 crypto-mining servers stolen in Iceland

The scope of the cross-party inquiry will include an assessment of the growing popularity of cryptocurrencies like Bitcoin, which in theory could lead to more stringent regulations for trading in the UK.

The popularBitcoinexchange has attributed the error to changes in the Merchant Category Code, which is

Our system itself has never been compromised or hacked, and the current issue points towards losses caused during an exercise to extract BTG [Bitcoin Gold] to distribute to our customers, said the firm in a statement.

Max Heinemeyer, director of threat hunting at cyber security firm Darktrace, said it is becoming increasingly difficult for the police to handle cryptocurrency-related crime.

An additional sixteen exchanges, including Coincheck, have also been permitted to continue operating while their applications to the self-regulatory body are reviewed.

Facebook was the first to take action against this style of investment, banning all cryptocurrency adverts in January, while Google later said it would also start removing all adverts starting in June.

Starting in June, the worlds largest provider of digital ads will block promotions for platforms such as Bitcoin across its entire portfolio of services, including Youtube and any third-party websites that buy adverts from Google.

04/04/2018:Monex considers buying Coincheck

Speaking toIT Proin February, KPMG head of tech growth Patrick Imbach said: Im not sure actually whether some sort of tangible use-cases and commercial models based on blockchain technologies will evolve over the next months.

16/02/2018: Bitcoin exchange bug overcharged customers thousands

Dr Saxena, chief security officer at Coinsecure, alerted Kaira that the exchange had been hit by some attack which had resulted in funds being stolen from the companys bitcoin wallet.

The donations platform is powered by Coinhives , which offers a mining tool for the digital currency Monero that can be embedded into other websites. By donating CPU, Unicef is able to use processing power in bulk to solve complex equations that reward successful miners with new coins they can spend.

30/04/2018: Unicef wants to use your CPU to mine cryptocurrency

Last week, Bank of England Governor Mark Carney slammed cryptocurrencies for causing a global speculative mania.

Advertisement of Initial Coin Offerings (ICOs) and token sales will be prohibited globally, said a Twitter spokesperson, speaking toBloombergon Monday.

All 16 government registered exchanges have signed up to the organisation which seeks to operate under the countrys Payment Services Act, as reported byReuters, including bitFlyer and GMO Coin.

05/04/2018: Foxconn plans to manufacture blockchain phone

Adverts for cryptocurrencies, exchanges, digital wallets, trading advice, and initial coin offerings will all be banned under the revised policy, according to abrief Google statementreleased on Tuesday.

But according to auditors KPMG, blockchain still remains in the hype stage with results not expected till at least 2019 at the earliest.

Were still a little bit early in that process, I wouldnt expect any exciting commercial opportunities to arise in large numbers any time soon – in the UK, particularly.

Policymakers have long been concerned by the lack of regulatory oversight of alt-currencies, which have grown incredibly popular over the past year, despite the significant risks to investors.

Automakers such as BMW, Ford, Groupe Renault and General Motors, for instance, earlier this monthcame together to form a consortiumthat will explore how blockchain can reinvent mobility and address industry shifts.

It follows a $530 million hack on Tokyo-based crypto exchange Coincheck in January, which sparked alarm that the industry was doing very little to ensure customers are protected. Calls for industry-wide security standards were made when it was discovered Coincheck had stored funds in wallets connected to their networks rather than in isolated, offline wallets that many other exchanges favour.

19/03/2018: Cryptocurrency traders hit with substantial tax bills

This is a global phenomenon and its important there is an international follow-up at the global level, Valdis Dombrovskis, the EUs financial chief, said, as reported by theGuardian. We do not exclude the possibility to move ahead by regulating cryptocurrencies at the EU level if we see, for example, risks emerging but no clear international response emerging.

Monex has had no dealings in Bitcoin or any kind of cryptocurrency previously, but the acquisition will give it a foot in the door of this increasingly lucrative market.

They are required to stop having a business relationship with the entities dealing with virtual currencies forthwith and unwind the existing relationship within a period of three months.

13/04/2018: Indian Bitcoin exchange lost $3.3m in cryptocurrency heist

It follows a decision by Facebook in January to ban all adverts for Bitcoin and similar crypto assets, which it made clear at the time was an attempt to protect its users from exaggerated promotions.

Foxconn, as one of the worlds biggest electronics manufacturers, is known for producing some of the worlds best-selling products – from iPhones to Kindles – and recently diversified its portfolio byagreeing a deal to purchase Belkin for $866 million.

Police are still looking for the servers, which are apparently valued at $2 million. The heist happened in the southwestern Reykjanes peninsula, though the authorities did not name the companies that were affected.

Following the theft, the Japanese authorities came down hard on all the countrys digital currency providers, accusing them of being lax over customer data protection and money laundering regulations.

The tightening grip of the market since the New Year has meant the cryptocurrency market has struggled to recover from recent price adjustments, and has largely remained stagnant over the last three months. At the time of writing, one Bitcoin is worth $8,944, $10,000 less than its December high.

The phone will also feature a cold storage crypto wallet, enabled via a physical switch, that, when flicked, immediately turns off all unencrypted communications – meaning the crypto wallet will be offline unless deliberately activated.

Head HTCs business and corporate development Phil Chen, who founded the companys virtual reality system Vive, outlined these plans in an interview withThe Next Web, also providing provisional schematics.

HTC is planning to build a new blockchain-powered phone featuring a built-in cryptocurrency wallet.

It aims to scrutinise the regulatory response to digital currencies from the likes of the Bank of England, the Financial Conduct Authority, and government ministers, and assess whether regulations could be rebalanced to provide adequate protection for consumers and businesses without stifling innovation, according to astatementissued on Thursday.

For those that traded in the US, and therefore were subject to Internal Revenue Service tax laws, its likely that they have capital gains to report that may be in excess of the value of any coins they now hold.

People can choose the level of processing power they want to let Unicef use, and Unicef can borrow it as long as users stay on its mining page.

The touted Android device, known as Exodus, will come packaged with a universal wallet and hardware support for all major cryptocurrencies, including Bitcoin, as well as featuring decentralised applications.

14/03/2018: Google bans cryptocurrency adverts in new clampdown

Our CSO, Dr. Amitabh Saxena, was extracting BTG and he claims that funds have been lost in the process during the extraction of the private keys, explained the company.

We wanted to leverage new emerging technologies to raise awareness about current humanitarian crises and raise funds to support children caught up in them, said Unicef Australias director of fundraising and communication, Jennifer Tierney.

The Treasury Committee will also look at the development ofdistributed ledger technologiessuch as blockchain and its potential effects on UK financial institutions and infrastructure, which includes the central bank.

The UKs Treasury Committee has said it will investigate digital currencies and the underlying blockchain technology, in an effort to assess the potential benefits and risks facing consumers, businesses and the government.

Indian Bitcoin exchange Coinsecure has confirmed it was hit by a devastating cryptocurrency heist, which saw crooks make off with $3.3 million worth of digital coins.

Electronics manufacturing giant Foxconn has agreed to build a blockchain-centric phone that will help its owners securely store and trade cryptocurrency.

22/02/2018: UK MPs launch inquiry into risks of cryptocurrencies

In November the IRS informed currency exchange Coinbase that it would need to provide the details of almost 15,000 users who had traded more than $20,000 in digital currencies between 2013 and 2015. The position is that failing to report capital gains could be considered tax evasion.

Police believe that this was one of Icelands biggest ever burglaries, with Icelandic publications branding it the Big Bitcoin Heist.

Developed by Sirin Labs, the device – dubbed Finney – will run the Android-based Sirin OS, and act as a device to securely store cryptocurrencies such as Bitcoin and Monero and convert cash from one cryptocurrency to another.

The use and exchange of cryptocurrencies have been largely unregulated to date – but a handful of regulatory bodies have indicated plans to provide some oversight on trading in future, with the Financial Conduct Authority (FCA) last monthannouncing its intention to launch a regulatory review of cryptocurrencies.

Through Exodus, we are excited to be supporting underlying protocols such as Bitcoin, Lightning Networks, Ethereum, Dfinity, and more, Chen said. We would like to support the entire blockchain ecosystem, and in the next few months well be announcing many more exciting partnerships together.

Game Chaingers used cryptocurrency mining as a method to help raise donations for Syrian children caught up in the countrys ongoing conflict, by asking gamers to install Claymore to generate Ethereum.

HTCs latest innovation follows in the footsteps of electronic manufacturing giant Foxconn, which last month announced it had agreed to build a blockchain-powered device developed by Sirin Labs.

However, the UKs inquiry into digital ledger technology is most likely going to strike a more positive tone, as the likes of the Bank of England have already worked closely with blockchain startups on projects involving asset exchanges and the tracking of public money.

[T]he cryptocurrency exchange business plays a core part in a vision of MONEXs new beginning. Therefore, the Company has resolved on 100% share acquisition of Coincheck which has been a pioneer among cryptocurrency exchanges, it added.

Salonrecently asked readers using ad-blockers to allow it to mine cryptocurrencies with their spare processing power instead.

Governments across the world have voiced concern about digital currencies, with China and South Korea already having implemented strict regulations on crypto-mining.

Importantly, the UK has yet to make any demands similar to the IRS on cryptocurrency exchanges, but given the number of users trading in high value transactions, that could change.

Theres currently no name or launch date for the organisation, although sources have suggested the body will form at some time in the Spring.

Japanese online currency exchange Monex is to acquire Coincheck, a cryptocurrency exchange that became notorious earlier this year for suffering a major security breach.

The Bitcoin exchange Coinbase has overcharged users thousands of dollars due to an error in its system, but will offer refunds.

In a statement reported byCCN, Monex said: We recognise blockchain technology and cryptocurrencies as next-generation technologies and platforms which are likely to drastically change the way people approach money.

While IRS rules are fairly straightforward, the same cant be said of other countries struggling to deal with tax issues and consumer protections.

02/03/2018: EU warns of crypto regulation if risks are not addressed

HTCs announcement continues a recent trend of companies taking up blockchain technology in a bid to refresh and enhance their products and services – with a range of sectors, from finance to automotive, indulging in the new technologys appeal.

Customers were charged multiple times for transactions, which Coinbase has explained as a result of a bug tied to how credit companies billed for the service. Having fixed the issue, the Bitcoin exchange has vowed to refund those affected.

Other instruments, such as binary options trading and spread betting, which often sell themselves as get-rich-quick schemes to internet users, will also be banned.

However, Kaira is not buying this story and has accused Saxena of orchestrating the entire heist. In the police complaint, he claims that Saxena is making a false story to divert attention and might have a role to play in this entire incident.

While many of these ICOs are legitimate attempts at crowd-funding, users are frequently stung by projects that either fail to live up to promises or outright scam their investors out of their funds.

Similarly, in aReddit Ask Me Anything session, founder and former CEO of Microsoft Bill Gates slammed cryptocurrencies by going so far as to say Bitcoin had caused deaths with its use in the drug trade.

Three months ago users were enjoying a cryptocurrency market surge that saw the price of Bitcoin surge to just shy of $20,000, only for the market to crash at the start of 2018, wiping more than half of the value of the currency.

It is time that Whitehall and Westminster understood cryptocurrency better, and thought more clearly about the policy environment for blockchain technology.

The Finney, which is expected to ship in October, features a cold storage crypto wallet, enabled via a physical switch, that, when flicked, immediately turns off all unencrypted communications – meaning the crypto wallet will be offline unless deliberately activated.

Taiwanese manufacturer HTC is aiming to sync its Exodus devices to a native blockchain network, with each device acting as nodes, enabling cryptocurrency trading among users with ease.

Cryptocurrencies, and Bitcoin in particular, are potentially lucrative assets for criminals,with their values rising, if volatile. Bitcoin, for instance, reached $20,000 at the end of 2017, but has since plunged to around $11,000. They also make it more difficult for police to follow criminal transactions due to their anonymous nature.

There used to be a money trail that law-enforcement could trace back to offenders. Cryptocurrencies allow anonymous monetary transactions, basically eliminating the traceable money trail that was the biggest challenge for a lot of cyber-criminals in the past, he said.

B.P. Kanungo, deputy governor of the bank, said: We have decided to ring-fence the RBI regulated entities from the risk of dealing with entities associated with virtual currencies.

06/04/18: Monex confirms Coincheck buyout

Bitcoin, in particular, has enjoyed cycles of huge success, peaking at $20,000 in late 2017, only to plummet dramatically the next month, wiping off hundreds of billions from the market.

The Hopepage is currently supporting the charitys response to the Rohingya crisis and follows on from Unicefs previous cryptocurrency-driven fundraising platform, Game Chaingers, which started earlier this year.

The Treasury Committee recently announced it would be launching an inquiry into whether the technology is harmful, while Lloyds announced it was banning their customers from using credit cards to purchase bitcoin.

Sixteen of Japans cryptocurrency exchanges have said they will form a self-regulatory body in order to garner trust in the highly volatile industry and undo the damage caused by a $530 million heist in January.

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