Buy Airline Vouchers With BCH From Flightgiftcard

It's the season of travel and if you want to surprise someone with a trip, you can now do it using cryptocurrencies like bitcoin cash (BCH). Flightgiftcard.com is a Dutch website that allows you to order airline vouchers and send them to your friends and family with a personal message.

Flightgiftcard Lets You Customize Gift Cards for Air Travels
When buying a voucher from Flightgiftcard, you can choose between three different options. Printout and Email are the fastest as they take only a few minutes to order. In the first case you'll receive a PDF file in your inbox with customized text and image, while the Ecard, or Evideo, can be emailed to the recipient. You can also purchase a physical luxury gift card and have it delivered to your address. Then you'll be able to add a handwritten message to it.

You can order up to 10 vouchers at a time and have their value denominated in a number of major fiat currencies including euro (EUR), U.S. dollar (USD), British pound (GBP), and Japanese yen (JPY). You can also select an image according to the occasion from hundreds of stock photos in categories such as Birthday, Anniversary, Wedding, and Congratulations. Alternatively, the online platform lets you upload your own personalized image.

Once you create your Flightgiftcard voucher and confirm the order, you'll be offered multiple fiat and crypto options to pay for it. These include bank cards like Visa, Mastercard and American Express, as well as payment processors such as Paypal and Ideal. If you choose to buy the voucher with digital coins, you'll be able to send bitcoin cash (BCH), bitcoin core (BTC) and litecoin (LTC).

Recipients of the Flightgiftcard vouchers can search for flights with over 300 airlines and departures from 70 countries around the world and they can book a flight using the platform's website. Businesses can order branded vouchers to send to their employees, clients or partners as corporate gifts.

For more gift cards you can purchase with bitcoin cash, check out our Spend Bitcoin Cash page, where you can shop online for a variety of products and order gift cards of major retailers such as Macy's, Target and Home Depot. The cards are listed in multiple categories including Travel and Lodging, Sports and Outdoors, and Home and Garden.

48 Crypto Exchanges Approved in the Philippines

The number of approved cryptocurrency exchanges has been growing in the Philippines. In addition to 11 operators registered by the central bank, the Bangko Sentral ng Pilipinas, there are 37 other crypto exchange operators licensed by the government-owned Cagayan Economic Zone Authority.

11 Crypto Exchanges Registered With Central Bank
The Bangko Sentral ng Pilipinas (BSP) has registered 11 cryptocurrency exchanges, allowing them to operate in the country, according to the most recent list of Remittance and Transfer Companies with Money Changing or Foreign Exchange Dealing and Virtual Currency (VC) Exchange Service.

The licensees are Betur Inc. dba Coins.ph, Rebittance Inc., Bloomsolutions Inc., Virtual Currency Philippines Inc., Etranss Remittance International Corp., Fyntegrate Inc., Zybi Tech Inc., Bexpress Inc., Coinville Phils Inc., Aba Global Philippines Inc., and Bitan Moneytech Co. Ltd.

The central bank adopted a formal regulatory approach to cryptocurrency through the issuance of Circular No. 944 dated Feb. 7, 2017. It requires businesses engaged in the exchange of cryptocurrencies for fiat money in the Philippines to register with the central bank as remittance and transfer companies. The bank elaborated:

BSP-registered VC exchanges are now required to put in place adequate safeguards to address the risks associated with VCs such as basic controls on anti-money laundering and terrorist financing, technology risk management and consumer protection.

As for cryptocurrency ATMs, the central bank revealed on June 13 that it had not authorized any individual or entity to install them in any location in the Philippines or manage online platforms for them and other crypto transactions. The notice reiterates that crypto ATM operators must register with the central bank as VC exchanges under the aforementioned circular. In addition, the BSP noted that a separate approval may be required from the Securities and Exchange Commission for the issuance of initial coin offerings and operation of crypto trading platforms.

37 Others Licensed by CEZA
Besides the companies registered by the BSP, many others have been licensed by the Cagayan Economic Zone Authority (CEZA) to operate crypto exchanges. CEZA is a government-owned and controlled corporation tasked to manage and supervise the development of the Cagayan Special Economic Zone and Freeport, the 54,119-hectare area located at the northeastern tip of the country.

"As a freeport, it operates as a separate customs territory similar to Hong Kong, Singapore, Labuan in Malaysia and Hamburg in Germany," CEZA described, adding that it has been offering foreign companies incentives and advantages to registering their businesses there. "These developments are all deemed toward attracting legitimate and productive local and foreign investments and, thus, creating employment opportunities in and around the freeport," its website details. CEZA Administrator and CEO Raul L. Lambino explained:

We are making CEZA a sandbox for the development of these disruptive technologies, serving as a laboratory for interested parties to experiment on these new dimensions of business enterprise.

On June 17, CEZA revealed that 37 companies are currently licensed under its "Financial Technology Solutions and Offshore Virtual Currency Exchange (OVCE) Business Rules and Regulations of 2018." There are two types of licenses. Twenty-four companies have been granted the OVCE Principal license and 13 companies the OVCE Regular license. The former allows licensees to conduct offshore fintech business and crypto exchange activities; the latter allows licensees to conduct only offshore crypto exchange activities.

List of OVCE licensees provided by CEZA on June 17.
The 24 Principal licensees are Golden Millenial Quickpay, Ultra Precise Investment, Liannet Technology, Rare Earth Asia Technologies, Formosa Financial Holdings, Tanzer Holdings, Asia Premier International, Orient Express Global, White Ranch, Dragon Empire Developments, Galaxy Plus Developments, Tiger Wheel, Ipe Global, Cr8tiv Solutions Management, Sino-Phil Economic Zone Agency Development and Management, Digifin Technologies, Hong Kong Yuen Shing Hong, First Bullion Holdings, Okcoin Philippines Technology, 6x Tech, Increz Korea, Harseq, Fafa Internet Blockchain (China), and Wangwang Quickpay Foundation.

The 13 Regular licensees are Cezex Trading, Unicorn Venture Investment, Eplata Pacific, A&C Fintech, Zipmex, Bird Mouse, Ecoflow, Adax Tech, Monetium, Bitpoint Apec Investment, Hxl (HK) Technology, Noah Ark Technologies, and Wtia.

Some companies have falsely claimed to have been licensed such as Freedom Traders Club, Ploutos Innovation, Ploutos Coin, Hedger Technology, Hedger Mining, Idragon Science Development, Teo Consulting Group, ECP, and Grace Exchange, CEZA warned. The authority additionally clarified:

No Filipino company, Filipino, or Philippine resident is allowed to apply for a CEZA OVCE license, and if so licensed, such licensee is not allowed to sell securities to Filipinos or to exchange tokens into fiat currency, unless they are registered with the SEC or the Bangko Sentral ng Pilipinas (BSP), respectively.

Philippines Building Crypto Valley of Asia
In collaboration with property developer Northern Star Gaming and Resorts, CEZA is building Crypto Valley of Asia for companies operating in the Cagayan Special Economic Zone and Freeport.

The first phase of the project consists of a 25-shop housing development inside the cyberpark with services and amenities such as co-working and living spaces, business incubation and acceleration hubs as well as back offices of crypto exchanges and service providers, CEZA outlined, adding:

Soon to also rise in crypto valley are a world-class internet data center, crypto-mining firms, self-contained power production facilities, and a state-of-the-art cyber security and risk assessment facility.

BSP's Regulatory Approach to Cryptocurrency
"The BSP recognizes that VC systems can revolutionize financial services delivery, particularly for payments and remittances," Governor Nestor A. Espenilla Jr. acknowledged at the annual convention of the Association of Philippine Correspondent Bank Officers in June last year.

BSP Governor Nestor A. Espenilla Jr.
Explaining the central bank's views and regulatory approach to cryptocurrency, the governor stated that "Cryptocurrencies are a medium of exchange. The Bangko Sentral ng Pilipinas recognizes this," noting:

We have adopted a regulatory approach to privately-issued cryptocurrency that is balanced, open and flexible… This is to allow the market to promote financial innovation and for the industry to take advantage of all its benefits and efficiencies – with prudence.

He further remarked, "Cryptocurrencies, like fiat currencies, are neither good nor bad. They are neutral … The BSP allows the market to develop but it has also issued responsive regulations to uphold consumer protection and to maintain financial stability."

Crypto Debit Cards You Can Use Now Plus a Few to Expect Soon

Debit cards tied to cryptocurrency wallets provide an opportunity to spend your digital coins almost anywhere fiat money is accepted. It's a working solution, at least until wider adoption comes around. That's why they've become so popular in the crypto community. Challenges of different sorts have negatively affected some of the earlier offerings, but it's good to see products that have survived and new ones that are gaining traction or are about to enter the market.

A Global Crypto Debit Card
During the past year, crypto winter forced businesses to downsize and adjust to unfavorable market and regulatory conditions. Many are still trying to adapt and some are already seeking opportunities elsewhere. For example, the company that issued Shift, arguably the first bitcoin debit card in the U.S. which allowed holders to spend from their Coinbase wallet, is not offering it anymore. It's now operating under a new brand name, Apto Payments. And in Europe, many card providers suffered a hard blow when Visa terminated Wavecrest's membership – some have recovered, others are yet to return.

Not everything is so bleak, however. Paycent is a crypto debit card that's been available worldwide since relatively recently but according to its website, over 53,000 cards have already been delivered globally. They enable users of the Paycent wallet to spend their digital assets in brick and mortar stores as well as with online merchants through conversion to fiat. You can also withdraw funds in local currency from ATMs in just about any country. The card can be ordered from the platform's wallet which supports a number of coins including bitcoin core, ethereum, litecoin, dash, and the Binance token.

Paycent's operator, Singapore-based company Texcent Asia, issues three types of cards – Mastercard, Union Pay International and China Union Pay. The Ruby card (CUP) has spending and withdrawal limits of $2,500, while the Sapphire card (UPI) and the Solitaire card (MC) are limited to $5,600 for transactions and $1,650 for withdrawals. They come as both physical and virtual cards and are delivered for $49. You can find out more about the applicable fees and limits on the Paycent card site.

At the moment, Paycent is offering one of the few, if not the only, crypto debit cards with global coverage. Nevertheless, there's a number of other options that we've previously reviewed and here are those that are still available in mid-2019. Wirex is a popular choice in Europe. Its Visa card supports conversion from several major cryptocurrencies and provides a 0.5% BTC cashback on in-store purchases. The card issued by Bitpay remains a working option for U.S. residents who can use it to shop with Visa merchants anywhere in the world. They can spend bitcoin cash (BCH) and bitcoin core (BTC) from their Bitpay wallet and the cryptos are converted to dollars.

Cryptopay is a platform that offers a prepaid card which can be loaded from its wallet supporting four cryptocurrencies – bitcoin core, ethereum, litecoin, and ripple. The card is currently available for clients in the U.K., Europe and Russia, with negotiations underway with a new issuer in Singapore. It comes in plastic and virtual form and allows holders to spend their coins both online and offline as well as withdraw fiat cash worldwide.

Cards Supporting Bitcoin Cash
A growing number of card issuers now support bitcoin cash in their products, with the above-mentioned Bitpay being the most notable example. Other platforms added the cryptocurrency more recently. Crypto.com's MCO Visa card has allowed you to spend BCH since the end of May, when the Hong Kong-based payment processor announced it had introduced the coin to its wallet and card app. The company started shipping its debit cards to customers in Singapore last October and promised to take them to the U.S. through a partnership between its Florida-registered affiliate Foris Inc. and the Metropolitan Commercial Bank in New York. Its wallet is currently available in 36 states but there's been no update on the plans for the card itself.

Crypto enthusiasts who have a Uquid account can order one of their virtual and plastic cards. The platform promises unlimited online spending and ATM withdrawals as well as fee-free POS purchases. You can top up your balance with a staggering number of coins and tokens, a total of 89 so far, including bitcoin cash. Your digital assets can be converted to British pounds, euros and U.S. dollars. The card is not offered in the United States, however, and you'll be able to determine if your country is eligible only after logging in to your account. Creating one is free of charge but ordering the physical card will cost you up to $17, depending on the fiat currency you've chosen.

Bitnovo buys and sells more than 20 major cryptocurrencies. The trading platform has a mobile app and issues debit cards with which you can pay in stores and online with coins converted to euros. To use it you don't need to have an associated bank account and you can top up with crypto. Bitnovo added BCH to its options in September last year. It also supports bitcoin core, dash, litecoin, ripple, zcash and stellar. Bitcard allows you to withdraw fiat from ATMs for €1 per transaction and there's a monthly fee of €1.20. The card is currently available only for EU residents. Ordering a Basic Level card does not require any registration but you can only load up to €250 on it. The Level Plus (up to €2,500 per year) and the Premium Level cards (maximum €15,000) do come with the obligation to share personal data.

An offering known from before the Wavecrest saga is now returning to the market. Belize-based company Advcash is preparing to launch its virtual and plastic cards in the European Union, Russia and other countries. The fiat currency of the ADV Cards will be either euro or U.S. dollar but holders will be able to withdraw any currency at teller machines around the globe. You'll be able to fund your card with the ADV wallet which supports BCH along with other leading cryptocurrencies such as BTC, ETH, LTC, HRP, and ZEC. Advcash promises free shipping for their cards and no maintenance fees but you need to pay 14.99 in euros or dollars for the card. Detailed information about other fees and limits can be found on the issuer's website.

A new player in the niche is the Spanish fintech startup 2gether, which is targeting its products and services at the crypto community in Europe. The platform released its prepaid Visa card in April and its holders can use it in any of the 19 members of the Eurozone with plans to expand availability to the rest of the EU. It allows you to spend your digital coins anywhere Visa is accepted through instant conversion to EUR, which is the common fiat currency of the Eurozone countries. Bitcoin cash (BCH) is one of seven supported cryptocurrencies along with ETH, BTC, XPR, EOS, XLM, and LTC. 2gether lets you hold and manage euro and crypto balances in the same app as well as to buy and sell digital coins.

Philippine central bank warns public to be wary of cryptocurrencies

The Philippine central bank has issued a warning to the public about the possible risks associated with the use of cryptocurrencies. The Bangko Sentral ng Pilipinas (BSP) also pledged to continue addressing these risks.

Speaking during a recent event, BSP's governor Benjamin Diokno expressed his concerns on the use of digital currencies, especially in regards to the financing of terrorism activities. The country must therefore be cautious with cryptos, he stated according to a report by Philstar Global.

The governor's views were backed by his deputy, Diwa Guinigundo. He believes that cryptocurrencies are a limited substitute for fiat currency as a medium of exchange, a store of value and a unit of account. The volatility in value of most cryptos further compounds to the challenge.

But while cryptos may be limited in use, blockchain technology could revolutionize the banking industry, Guinigundo stated. Peer-to-peer payment systems built on the blockchain could "potentially bypass the banks and banking system in general," he stated.

Even then, the functions of a central bank will still be needed. He explained: "For this reason, game theory dictates possible dysfunction when there is market breakdown, when everyone may distrust one another. There cannot be a total disregard for a central bank or a third party that provides lender of last resort facility."

The deputy governor further revealed that with any new technology, the BSP uses the regulatory sandboxes approach. This allows it to encourage and foster innovation, all while protecting the consumers.

The report by Philstar also revealed that the crypto market in the country has flourished, with transactions almost doubling in value. According to data from the BSP's Technology Risk and Innovation Supervision Department, the value of crypto transactions in 2018 hit $390.37 million, up from $189.18 million in 2017. Of this, $8.77 million resulted from international remittances.

The BSP has been closely monitoring the crypto industry. In 2017, it released a circular that required all crypto exchanges to register as remittance and money transfer companies. This would help combat many of the risks that the industry poses, the regulator said at the time. It would also enable the regulator to enforce measures that minimize risk of money laundering and terrorism financing. Under the new regulatory regime, the BSP has approved the registration of 10 crypto exchanges. They include Coins.ph (Betur Inc.), Virtual Currency Philippines Inc., Coinville Phils Inc. and Remittance International Corp.

US, Japan and South Korea lead the world in crypto interest: Report

The U.S., Japan and South Korea lead the world in crypto interest. This is according to the latest study into cryptocurrency trends worldwide. The study, conducted by crypto outlet The Block, showed that five countries account for half the traffic for the 48 most popular digital currency exchanges.

The U.S. was the undisputed leader of the pack, the poll found. The country accounted for 24.5% of the total traffic to the exchanges over the six months that the poll was conducted. The country has always been a world leader in the adoption of new technology, and cryptocurrencies have proven to be no different.

In second place was economic giant Japan. The country, which was the first major economy to recognize cryptocurrency as a legal method of payment, had a 10% share of the traffic. South Korea at 6.5%, Indonesia at 4.5% and India at 4.2% rounded up the top five. China, Germany, the United Kingdom, Russia and Brazil were the other countries in the top ten.

However, the rankings changed significantly when the researchers took the population of a country into consideration. With a population of 327 million, the U.S. was no longer at the top. Instead, Singapore came out top. The Asian country is recognized as one of the top global financial hubs and it has lived up to its name according to the study. In second place once again was Japan, with Switzerland ranking third.

The study also ranked crypto interest by regions and as expected, North America came out top. With Canada and the U.S. quickly taking to digital currencies, the regions is way ahead of its peers. Europe was second, with Oceania, Asia, South America and Africa rounding up the list respectively.

While the study provided an insight into the interest levels in cryptos, its data wasn't a perfect representation of the crypto market. For one, in some countries, the cryptocurrency exchange industry hasn't quite matured. Moreover, the established crypto exchanges have shunned some regions and thus crypto enthusiasts turn to peer-to-peer trading platforms such as LocalBitcoins. For instance, Coinbase still doesn't provide its services to African countries despite expanding to 60+ countries globally.

The data was also skewed by the fact that some countries have either outlawed cryptos completely or have discouraged their citizens from trading. China is a prime example, with the country becoming hostile to cryptos in the past few years. Citizens in such countries turn to VPNs to avoid the censorship, skewing the data against them and for some other countries.

Bitcoin Cash and SLP-Fueled Badger Wallet Launches for iOS

On June 3, the popular bitcoin cash (BCH) light client Badger Wallet launched its open beta version for iOS mobile devices. Now Apple users can download the wallet in order to store, send and receive BCH alongside the ability to do the same with Simple Ledger Protocol (SLP) tokens in a noncustodial manner.

Testing the Badger Wallet for iOS
Over the last few months, the noncustodial Badger Wallet has become one of the most versatile light clients within the Bitcoin Cash ecosystem. The wallet allows people to not only hold bitcoin cash in a secure fashion but also store SLP-based tokens built on the BCH chain. The application is very similar to the Ethereum-based Metamask wallet because it also acts as a gateway to a multitude of other BCH platforms. For instance, Badger seamlessly connects to applications like Sideshift.io and the popular website Satoshi Dice. The Badger light client originally launched for Chrome and Firefox and worked as a browser wallet but now Apple users can enjoy the benefits of Badger too.

The first thing you need to do is head on over to the official Badger Wallet URL for the App Store and download the 11.3MB application. The open source Badger client requires iOS version 9.0 or later and works for iPhone, iPad, and the iPod Touch. The download will only take a few seconds depending on internet speeds and after it's complete you can open the app using the Badger icon. After you open the platform you will be prompted with two actions in order to get started: creating a new wallet and restoring an existing wallet. To restore an existing wallet you will need a 12-word seed phrase to enter and if the phrase is correct, funds from an existing Badger or another wallet should appear. Creating a new wallet takes only a few seconds after pressing the "New wallet" tab.

After creating a new wallet, the platform will open the home section of Badger and you will notice an empty BCH wallet. Underneath the BCH balance section, the wallet will let you know that Badger's Simple Token Vault has "no SLP tokens in the vault yet." From here, I added some bitcoin cash to the wallet by sending $0.05 worth of BCH to the address that can be found in the "Receive" section. There, there are two addresses you can copy and paste — a BCH cashaddr formatted address or an SLP-based address. I chose to copy and paste the BCH address and sent myself a nickel because it's not possible to send such a small amount of satoshis on other networks. After receiving the $0.05 worth of bitcoin cash I opened up my Badger extension for Chrome and sent myself two different tokens. I sent 5 billion Zelda tokens that I created on the Memo.cash platform and I sent another 400,000 Satoshi Cash (STC) to my iOS Badger client too.

Badger iOS: A Simple and Versatile BCH and SLP Light Client
Almost immediately my Zelda and STC tokens appeared in my Simple Token Vault on the Badger iOS display. The latest version of Badger is very simple to use and getting familiar with the features only takes a minute. For backup purposes, the "Menu" section of the wallet displays the wallet's backup phrase when you select "Reveal seed phrase." It's important to write the seed phrase down, don't share it with anyone, and write it down alone. The wallet will display a "Wallet not backed up" warning the entire time to get you to backup the seed phrase, but once you do this the warning will disappear. Moreover in the "Menu" section, if you experience issues with the wallet there's a "Contact us" tab which will display a support email address and a link to the Badger Wallet Group on Telegram.

If you're not an Apple owner, you can also store SLP tokens on the Android light clients Crescent Cash and Monarch Wallet, as well as the Electron Cash SLP version (Mac OS, Windows, and Linux) and the existing Badger extensions for Firefox and Chrome browsers. The latest Badger addition for iOS brings a high performance, simple to use light client to those wishing to store SLP tokens on Apple mobile devices. With Badger, everything is done onchain and the wallet allows you to have full control and custody over your bitcoin cash or SLP tokens

South Korea’s Bitcoin Trading Volumes on LocalBitcoins Reach New Record Levels

Bitcoin (BTC) trading volumes in South Korea have recently reached new levels on peer-to-peer (P2P) exchange LocalBitcoins, according to charts on BTC statistics service Coin Dance.

According to the data, bitcoin weekly trading volumes have surged over the past two weeks, with the latest week recording a new high of around 219 million South-Korean won ($185,000).

Founded in Finland in 2012, LocalBitcoins offers over-the-counter trading of local currency for bitcoin and operates as a P2P trading platform. The Finnish crypto trading platform is especially popular in Latin America, with Venezuela and Colombia having reportedly accounted for 85% of LocalBitcoins's trading volumes by February 2019.

According to data from crypto analytics website Coinhills, the South-Korean won is one of the most popular national currencies trading against bitcoin. Accounting for around 20,000 btc ($173 million) in daily trading volumes against bitcoin, the won is ranked the third largest national currency traded versus BTC after the U.S. dollar and the Japanese yen.

In mid-April, major South Korean crypto exchange Coinnest started closing its services, which was reportedly a result of the extended 2018 bear market. Subsequently, Cointelegraph reported that the number of South Koreans buying cryptocurrency with fiat money has significantly increased, while the amount of crypto investment in 2018 surging by 64% over 2017.

Last week, LocalBitcoins banned Iranian residents from using its service, as the exchange purportedly had to restrict Iranian transactions to comply with financial regulations in Finland, as well as with the sanctions imposed by the United States.

China Releases New Crypto Rankings

China's Center for Information and Industry Development has released its latest rankings of 35 crypto projects that were evaluated over the past two months. While several top positions remain unchanged, Bitcoin has climbed up the overall ranking.

New Rankings From China
The Center for Information and Industry Development (CCID), under China's Ministry of Industry and Information Technology, released the 12th update of its crypto project rankings Thursday. The number of projects evaluated was unchanged from the previous rankings published in March. The center also announced that starting this month the rankings will be adjusted every two months instead of monthly.

In addition to the overall ranking, the CCID published three others based on basic technology, applicability, and creativity sub-categories. EOS tops the list overall, followed by Tron, and Ethereum. The center started ranking Tron in February, debuting at number two overall and has remained at that position ever since. BTC now ranks 12th, up three places from the 15th place in the previous ranking. BCH has also improved, currently occupying the 29th spot overall, up from the 31st place previously.

"The results show that the world's three major Dapp platforms — EOS, Tron, and Ethereum — remain ranked in the top three, [and] the scores are 148.5, 144.1 and 136.6," the CCID wrote.

The center describes itself as "a first-class scientific research institution directly under the administration of the Ministry of Industry and Information Technology of China." The first crypto ranking was released in May last year. The assessment is carried out by the CCID (Qingdao) blockchain research institute, an entity established by the CCID, in collaboration with multiple organizations such as the CCID think tank and the China Software Evaluation Center. "The result of this assessment will allow the CCID group to provide better technical consulting services for government agencies, business enterprises, research institutes, and technology developers," the center previously explained.

Sub-Rankings
The overall ranking is based on the total index scores of 35 crypto projects. The total index of each crypto project is the weighted average of its three sub-indices: the basic technology index, the applicability index, and the creativity index. The basic technology sub-index accounts for 64% of the total index, while the applicability sub-index accounts for 20% and the creativity index 16%.

"The basic technology sub-index mainly assesses the level of technical realization of the public chain," the center described, adding that the key areas evaluated under this category "include the function, performance, safety and decentralization of the public chain." The top five crypto projects in this category are EOS, Tron, Steem, Bitshares, and Gxchain.

The creativity sub-index "focuses on continuous innovation in the public chain, including developer size, code updates, and code impact," the center detailed. In this category, the top five crypto projects are Bitcoin, Ethereum, Lisk, EOS and Tron.

The applicability sub-index "mainly evaluates the comprehensive level of public chain support for practical applications," the center continued. "The assessment includes four aspects: node deployment, wallet application, development support and application implementation." For this category, the top five crypto projects are Ethereum, Neo, Nebulas, Tron, and Ontology, which are unchanged from the previous ranking for this sub-category. "However, the data shows that the applicability indices of only 11 of the 35 public chains have increased, and the overall index has declined compared to the previous period," the CCID noted.

Dutchman arrested for alleged crypto mining fraud of $2.2 million

Dutch authorities arrested a 33-year-old businessperson for allegedly defrauding investors through a crypto mining fraud.

According to local reports, Dutch tax authority's investigative department, FIOD, made the arrest. The suspect was a director of two private limited companies, which he allegedly used for money laundering, fraud and forgery activities.

The man started his company back in 2017. Through the company, the suspect received money from investors who thought they were buying computers for buying bitcoins. The suspect collected about €2 million ($2.2 million) from the investors. Investors were promised returns of 0.3 Bitcoin Core (BTC) per month (about $2,389 at current prices). Investors became worried when they failed to get the returns or their mining computers.

Upon investigations, authorities discovered that the BTC mining machines were probably never even purchased. Initially, police had searched his house in November 2018 and discovered luxury goods such as bags, dirt bike, and shoes, and understand that he also used the money on motorbikes and gambling.

Notably, one of the suspect's BTC mining companies, Koniz Trading, was declared bankrupt last year after customers' accused him of fraud, according to reports by the NL Times.

The FIOD added that fighting money laundering is the priority for the government as it is one of the "serious" crimes in the country.

Earlier this year, De Nederlandsche Bank (DNB), the nation's central bank, and the Netherlands Authority for the Financial Markets published a report that suggested that fiat-to-crypto exchanges and custody solution providers must be licensed as cryptocurrencies carry "high financial crime risks." In their report, these authorities explained:

"These risks must be addressed effectively, which can be achieved as a result of the international coordination of countermeasures that AMLD5 [the Fifth European Anti-Money Laundering Directive] provides."

Other countries, notably Malta, have already started to warn its investors on crypto fraud. Late last month, authorities in that country came out to issue guidelines that will help investors identify fraudulent crypto projects. This was done through a report released by the Malta Financial Services Authority (MFSA).

Among the issues addressed in the report, is the need for investors to protect themselves from engaging in suspicious projects, especially those that promise huge returns.

Israeli Court Rules Bitcoin Is an Asset

An Israeli court has ruled that bitcoin is an asset, confirming the central bank's stance. The case involves the country's tax authority and the founder of a blockchain startup who argues that profits from the sale of cryptocurrency should be tax-free. The court has ruled in favor of the tax authority, endorsing the central bank's definition of currency.

An Israeli central district court reportedly ruled in favor of the country's tax authority Monday, recognizing bitcoin as a financial asset and not a currency. Profits on its sale in Israel are therefore subject to capital gains tax.

Judge Shmuel Bornstein simultaneously rejected an appeal by the founder of a blockchain startup who argues that bitcoin should be considered a currency, so the proceeds from its sale should not be subject to taxation. Globes daily financial newspaper reported Tuesday:

The Central District Court in Lod accepted the tax authority's interpretation, and held that bitcoin is an asset and not a currency, and that the transaction in question is therefore taxable.

Emphasizing that the status of bitcoin is still undefined in the country, the judge stated in his ruling that "it was hard to envisage a result whereby bitcoin would be considered a currency for tax purposes in particular," the news outlet conveyed, noting that the case could reach the supreme court.

Itay Bracha, managing partner at Israeli law firm Bracha & Co. and the head of the firm's tax department, shared his thoughts with local daily business newspaper Calcalist. He said: "The ruling is a signal to all those who have yet to report cryptocurrency-related profits or based their actions on differing legal advice … The ruling is unequivocal, and since it is not new legalization but a judicial interpretation, it applies retroactively."

The Case
According to reports, the case involves Noam Copel, founder of blockchain startup DAV. "We're building a decentralized infrastructure to revolutionize the transportation industry on the blockchain," the company's website explains.

Globes reported that Copel bought BTC in 2011 and sold them in 2013 for a profit of approximately NIS 8.27 million (~$2.29 million). Asserting that his profits should not be subject to capital gains tax, he told the court:

Bitcoin should be classified as a foreign currency, and that his profits should be seen as exchange rate differences received by an individual not in the course of a business, and therefore should not be taxed.

However, the Israel Tax Authority disagreed, proclaiming that bitcoin is not a currency under the central bank's definition, so it cannot be a foreign currency as suggested by Copel. Instead, the agency claims that cryptocurrency falls under the definition of an asset, therefore profits on its sale are subject to capital gains tax. Monday's court ruling obligates Copel to pay tax of about NIS 3 million, the news outlet estimated.

Central Bank's Definition of Currency
The court accepted the tax authority's position that the definition of "currency" should be the one defined by the country's central bank which does not apply to crypto assets. The agency affirmed that bitcoin is not a currency from both accounting and economic aspects, stating that "its valuation is extremely volatile, any related investments carry high risk, its use is severely limited and restricted mostly to unlawful entities, and it is not used as a benchmark for value," Calcalist wrote.

Copel, on the other hand, believes that from both aforementioned aspects, "the trust users put in bitcoin and its use as both a payment method and to benchmark value means it should be considered a currency."

After listening to both sides of the argument, the judge rejected Copel's appeal and ruled that he "had failed to demonstrate that bitcoin met this definition [of currency], or that it represented a real alternative to coins and notes in any country," Globes described.

Bittax founder Gidi Bar Zakay, former Deputy Director of the Israel Tax Authority and currently director of the Israeli CPA Association, said that Monday's ruling was based on current law, elaborating:

In my view, what will ultimately determine whether bitcoin is a currency is the reality test. As soon as its use becomes widespread, the legislature will have to rewrite the law in such a way as to accommodate this.

He added that when that happens, "we shall all benefit from these technological and monetary developments and from the ability of bitcoin and other cryptocurrencies to serve as efficient, trustworthy, and widely accepted means of payment." He further opined: "the way to that lies through the regulator. If the enforcement agencies feel comfortable with the coin, and use blockchain analysis tools that make it possible to meet standards of money laundering prevention and tax avoidance prevention in a more reliable and efficient way than is the norm today, the road to it becoming a widespread means of payment will be open."

Cryptocurrency Taxation
The Israel Tax Authority has long considered cryptocurrency an asset subject to capital gains tax. In December last year, Calcalist reported that the agency had been cracking down on the unreported crypto earnings of hundreds of Israelis, sending notices to those whose activities raised suspicion. "The authority will continue to seek out unreported [crypto] earnings," said Eran Yaakov, the head of the Israel Tax Authority, in reply to the news outlet's request for comment. The publication explains:

Cryptocurrencies are not defined as a currency but as a financial asset in Israel. As such, trading in cryptocurrencies is subject to a capital gains tax of 25%-30% in the country.

In July last year, the tax authority reportedly reached an agreement on obtaining information on crypto transactions with Bits of Gold, an Israeli cryptocurrency exchange with about 50,000 users. The exchange will share information about traders who have made transactions of $50,000 or more over a 12-month period. The authority has also approached other platforms for the same purpose.

While Israeli law requires financial institutions to report fraudulent transactions and suspicious activities to the Israel Money Laundering and Terror Financing Prohibition Authority, sharing data with the tax authority is not mandatory. Tomer Niv, Chief Growth Officer at Bits of Gold, clarified that his exchange only transfers "the information we are required by law … in order to protect the privacy of customers on the one hand, and [comply with] the provisions of the law on the other."

Central Bank's Position and Global Standards
Nadine Baudot-Trajtenberg, who served as Deputy Governor of the Bank of Israel from March 2014 to the end of February, said in January last year that the central bank had been studying cryptocurrency. However, she revealed that not much had been learned from other countries' regulations "since no regulator anywhere in the world had issued guidelines to the banking system on how to act in relation to customers' activity in virtual currencies," Reuters conveyed. She was further quoted as saying:

There is a real difficulty in issuing sweeping guidelines to the system regarding the proper way to estimate, manage, and monitor the risks inherent in such activity … Beyond the risks to the customer there are also compliance risks to the bank.

In December last year, Israel became a full member of the Financial Action Task Force (FATF), an intergovernmental organization which focuses on developing policies to combat money laundering and terrorism financing. The FATF currently has 36 member jurisdictions and 2 regional organizations, including the European Commission. In February the organization urged its member countries to regulate crypto exchanges like commercial banks, elaborating:

For the purposes of applying the FATF recommendations, countries should consider virtual assets as property, proceeds, funds, funds or other assets, or other corresponding value.

SEC Commissioner Says Time Is Right for Bitcoin ETFs — 3 Funds Pending

The U.S. Securities and Exchange Commission (SEC) is currently reviewing three bitcoin exchange-traded funds (ETFs), one of which was filed last week to track the prices of two cryptocurrencies. An SEC commissioner said at the Consensus conference on Monday that the time is right for a bitcoin ETF, as the commission is due to make a decision on one of them next week.

At the Consensus 2019 conference in New York on Monday, SEC Commissioner Hester Peirce, also known as "crypto mom," discussed the regulatory environment for bitcoin ETFs. Expressing her dissatisfaction with the current law, she asserted that the SEC should do more to provide a regulatory framework for cryptocurrency including rules around safe harbor. Decrypt quoted her as saying:

I thought the time was right a year ago — even longer than that … My first chance to comment on it was a year ago … Certainly the time is right, but there are still questions floating around the SEC that need to be answered as much as possible by you all.

Peirce then encouraged the audience to write to the SEC to help them understand the market. One issue she noted was market manipulation, which "is a concern that people keep raising at the SEC," she shared. "Other issues like custody issues [also] come up a lot."

Her comments at Consensus echo her speech at the Securities Enforcement Forum which took place on May 9. "The problem is that the securities laws do not cease to operate as a new industry develops," she explained. "Consequently, individuals and companies in the industry must comply with our securities laws or risk becoming the subject of an enforcement action. It is therefore our duty as a regulator to provide the public with clear guidance as to how people can comply with our law. We have not yet fulfilled this duty." The commissioner additionally described:

It is not the SEC's overzealous action that has stifled the crypto industry, but its unwillingness to take meaningful action at all.

Peirce also expressed concern that the U.S. is falling behind other forward-thinking countries. "Our country has always been a country where innovation can really thrive," she opined Monday. "I worry that a lot of the activities are now happening offshore. I want the US to be the market for innovation."

The SEC staff recently issued a 14-page document detailing a framework to assist issuers with conducting a Howey analysis to evaluate whether token offerings are securities. It details features of an offering and actions by an issuer that could signal that the offering is likely a securities offering. Peirce expressed her worry, however, that this framework "could raise more questions and concerns than it answers."

The commissioner previously said she believes the SEC has no jurisdiction to look at the underlying asset when considering whether to approve a proposed rule change for an ETF. She has also emphasized that excessive regulation could hurt innovation such as cryptocurrency.

The SEC's Senior Advisor for Digital Assets and Innovation, Valerie Szczepanik, explained that the agency is moving slowly on cryptocurrency regulations and cryptocurrency-based products because it needs to be cautious. Szczepanik coordinates efforts across all SEC divisions and offices regarding the application of U.S. securities laws to emerging digital asset technologies and innovations, including cryptocurrencies and initial coin offerings.

In his speech at the SEC Sparks conference on April 8, Chairman Jay Clayton said one of the areas the commission has focused its attention on due to heightened risks is "digital assets, including cryptocurrencies, coins, and tokens." At the Consensus Invest conference in November last year, he revealed the key upgrades he needed to see before the SEC could consider approving its first bitcoin ETF such as better market surveillance and safe custody of crypto assets.

SEC Chairman Jay Clayton

Bitwise Bitcoin ETF: August 14

One of the proposals being reviewed by the SEC is for the listing and trading of shares issued by Bitwise Bitcoin ETF Trust filed by NYSE Arca Inc. on Jan. 28. This proposed rule change was published in the Federal Register on Feb. 15. On March 29, the SEC designated May 16 as the day to make its decision on this proposal. However, on May 7, the exchanged filed Amendment No. 1 to the proposed rule change, replacing the original one in its entirety. According to the amended registration statement filed with the SEC:

The trust will hold bitcoin … [and] will store its bitcoin in custody at a regulated third-party custodian, and will not use derivatives that may subject the trust to counterparty and credit risks.

Furthermore, the company explained that "the trust will not directly purchase or sell bitcoin. Instead, authorized participants will deliver bitcoin to the trust in exchange for shares of the trust, and the trust will deliver bitcoin to authorized participants when those authorized participants redeem shares of the trust."

The filing also details that "in seeking to ensure that the price of the trust's shares is reflective of the actual bitcoin market, the trust will value its shares daily based on prices drawn from ten bitcoin exchanges … [which] represent substantially all of the economically significant spot trading volume on bitcoin exchanges around the world."

On March 22, Bitwise tweeted clarifying that "The exact methodology largely mirrors the settlement pricing methodology of CME futures, which we believe has the correct construction." The company added that the exchanges are Binance, Bifinex, Bitflyer, Bitstamp, Bittrex, Coinbase Pro, Gemini, Itbit, Kraken, and Poloniex, noting that five of them "have implemented sophisticated market surveillance tools to prevent market manipulation and bad behavior."

Since the company filed an amendment, the commission began soliciting public comments on the new proposal on May 14. So far, 25 comments have been received on this proposal. Securities lawyer Jake Chervinsky remarked:

The new deadline is August 14. The SEC can delay one more time to a final deadline of October 13.

Vaneck Solidx Bitcoin ETF: May 21

The next proposal for a bitcoin ETF under review by the SEC is the high-profile Vaneck Solidx bitcoin ETF. Cboe BZX Exchange Inc. originally filed the proposed rule change to list and trade shares issued by the Vaneck Solidx Bitcoin Trust in June last year. However, it withdrew the proposal on Jan. 22 due to the U.S. government shutdown which affected the SEC.

The exchange refiled the proposed rule change for the same ETF on Jan. 30 which was published in the Federal Register on Feb. 20. On March 29, the commission extended the time period to review this ETF to May 21. At press time, 24 comments have been received for this new proposed rule change, far fewer than the 1,600 plus comments received for the previous filing that was withdrawn. The registration statement explains:

The investment objective of the trust is for the shares to reflect the performance of the price of bitcoin, less the expenses of the trust's operations.

This trust intends to achieve its objective by investing all of its assets substantially "in bitcoin traded primarily in the over-the-counter markets, and may also invest in bitcoin traded on domestic and international bitcoin exchanges," the filing states. "The trust will be responsible for custody of the trust's bitcoin."

Solidx Management Llc is the sponsor of the trust, with Delaware Trust Company as the trustee and the Bank of New York Mellon as the administrator and transfer agent. The bank will also serve as the custodian with respect to cash of the trust since it will occasionally hold cash for short periods in connection with the purchase and sale of bitcoin, and to pay trust expenses. Van Eck Securities Corporation will provide assistance in the marketing of the shares.

Crescent Crypto Index Fund: Just Filed

The third bitcoin ETF-related filing which the SEC is reviewing at press time is by the United States Commodity Index Funds Trust. The company filed a registration statement with the SEC on Thursday for Crescent Crypto Index Fund, sponsored by the United States Commodity Funds (USCF). It will be traded on the NYSE Arca stock exchange under the symbol XBET. According to the document:

The investment objective of XBET is for the daily changes in percentage terms of its per share net asset value to reflect the daily changes in percentage terms of the Crescent Crypto Core II Index (the 'CCINDX'), less XBET's expenses.

The new index seeks "to track the performance of a market capitalization weighted portfolio of bitcoin and ether," the company describes, noting that it "has limited history and is currently under development and subject to further input from the Crescent Crypto Index Committee." This index "is based on various inputs which may include price data from various third-party exchanges and markets."

The trust and fund are managed and controlled by USCF, a limited liability company that is registered as a commodity pool operator with the Commodity Futures Trading Commission and is a member of the National Futures Association. USCF will employ Crescent Crypto Manager Llc, a wholly owned subsidiary of Crescent, as co-portfolio manager to XBET.

SEC Decision Timeline

Whenever a proposed rule change is filed with the SEC, it will be published in the Federal Register which serves as the key start date for the SEC's ETF approval timeline.

The proposal for the Vaneck Solidx ETF was filed on Jan. 30 and published in the Federal Register on Feb. 20. The Bitwise ETF proposal was filed on Jan. 28 and published in the Federal Register on Feb. 15. The rule change for the Crescent ETF has yet to be published in the Federal Register.

After the proposed rule change has been published in the Federal Register, Section 19(b)(2) of the Securities Exchange Act provides that "within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days … the commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved."

According to the Securities Exchange Act of 1934, the SEC can extend the time to make a decision on an ETF up to 240 days after the date of its publication in the Register. If the SEC has not made a decision after 240 days for any reasons, the ETF would be automatically approved.

However, Chervinsky explained that it is extremely unlikely the SEC will let such a decision go to automatic approval, noting that the SEC would likely have measures in place to avoid missing such important deadlines. Further, if a bitcoin ETF is automatically approved, it can easily be undone after the emergency that prevents the agency from making a proper decision is over. The lawyer elaborated:

The SEC doesn't have the power to extend the 240-day deadline. The statute absolutely prohibits any further delays.

As for the three proposals in consideration, the SEC is due to make a decision to either approve, deny, or delay its decision on the Vaneck Solidx bitcoin ETF proposal on May 21, having just delayed its decision on the proposal for the Bitwise bitcoin ETF. Chervinsky estimates that if the commission decides to further delay its decision on the Vaneck Solidx ETF, then the new decision date will be Aug. 19. The final dates after 240 days will be Oct. 13 for the Bitwise proposal and Oct. 18 for the Vaneck Solidx proposal. He also emphasized that the agency could ask the sponsors to withdraw and refile, which will start the clock all over again.

Crypto Spring Brings Strong Profits to Next-Generation and Older Mining Rigs

Over the last few weeks, cryptocurrency markets have been on a tear accumulating considerable gains following the notorious 'crypto winter.' Since the recent price hike this spring, mining digital assets with next-generation miners has allowed participants to secure significant gains and even older mining devices are turning a profit.

After the price of bitcoin core (BTC) and bitcoin cash (BCH) started seeing significant gains miners that process the SHA-256 algorithm have started to pull in decent profits. The trend has changed since last December when news.Bitcoin.com reported on how only five SHA256 miners were profiting at the time. Now a large majority of devices are doing quite well and according to data at an average of $0.10 per KWh the top ten most profitable miners are clearing more than $10-15 a day per unit.

The top 10 available SHA-256 miners and their 2019 profits per day. Picture shown is set at a rate of $0.10 per KWh.

This includes mining devices such as the Asicminer Pro (76TH/s), Antminer S17 (56TH/s), Innosilicon T3 (52TH/s), and the Bitfury Tardis (80TH/s). Moreover, if the miners are located in mainland China and are getting $0.04 per KWh then those using next-generation machines are pulling in $15-21 a day per unit. And now with the wet season in China, the cost of electricity in Sichuan can be as low as 0.08 yuan ($0.01), which means mining pools with high performing rigs can profit by $25+ a day per miner.

According to statistics, China is one of the cheapest places on the planet in 2019 to mine SHA-256 coins like BCH and BTC. This is followed by countries like India, Canada, and Russia, while countries like the U.S. and much of Europe have average electricity prices. The worst regions to mine in the world include Germany, Denmark, Belgium, and Italy as each country has around $0.15-0.30+ per KWh. In regions like China where cheap electricity is rampant, mining rig vendors who sell second-hand machines are selling a ton of older devices.

Three regions in the world that offer some of the cheapest electricity rate per KWh — China, Canada, and India.

Zhang Xilin, a mining equipment vendor in Huaqiang North detailed last week that "the price of second-hand mining rigs doubled." For instance, data shows that old Antminer S9s that pull in 13-14.5 TH/s will give a miner $0.25-0.50 per unit at 13 cents per KWh if the person was mining in the U.S. or Europe. And those profits exceed well over two thirds the global average if the mining operation is in Sichuan, China with a facility full of old S9s. In the U.S. there's been a lot of second market ASIC sales as well on sites like Craigslist and Ebay.

With crypto exchange rates up, even older generation mining rigs are pulling in a profit. Picture shown is set at a rate of $0.10 per KWh.

Obelisk & Cuckatoo Miners and 112 Profitable Devices

Mining rigs that mine the SHA256 algorithm processing either BTC or BCH, however, are not the most profitable miners today. Devices that mine coins like sia and grin are raking in much larger profits over the last month. For example, miners that can process the Obelisk or Cuckatoo31+ algorithm can manage to capture $30-50 a day per unit.

Some of the top mining rigs gathering the most profit process the Obelisk or Cuckatoo31+ algorithm. Picture shown is set at a rate of $0.10 per KWh.

Next generation miners who mine Obelisk and Cuckatoo which have been announced but haven't been manufactured yet could profit by $50-250 a day per unit. This includes devices like the Obelisk GRN1 Immersion (Oct. 2019), and the Innosilicon G32-1800 (Aug. 2019). An X11 miner like the Strong-U STU-U6 due to go on sale in July claims to offer 660 GH/s which is close to $40 a day per unit with an average electricity cost of about $0.10 per KWh.

At today's crypto exchange rates, 112 mining devices that are available to the public that mine various types of cryptocurrencies are at least profiting by $0.10 a day per unit, with electric costs at $0.10 per KWh. This includes a slew of much older Canaan, Bitmain, GMO, Bitfury, Innosilicon, and Ebang miners. A lot has changed since the low prices last year in November and December and when miners were tossing old mining devices to the curb or selling them for pennies on the dollar. At the moment the two top SHA-256 cryptocurrencies BCH and BTC have seen significant hashrate increases and it's likely due to the magnitude of fresh profit coming in.