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Bitcoin News Mash-Up: Coinbase Blog; Film Production; and More

Following are the major Bitcoin news of the day

Hollywood Production House Starts Accepting Bitcoin Payments

Lionsgate Films, a Canadian-American production house, recently formed a partnership with GoCoin to enable Bitcoin payments on its online stores. “We,” said the company’s Senior Vice President Peter Wilkes, “continue to explore innovative new technologies for connecting with next generation consumers, and we’re intrigued by the possibilities offered by Bitcoins in our media space.” You can read the full report here.

Coinbase Criticizes BitLicense for Unfriendly Laws

American Bitcoin company Coinbase recently published a blogpost in which it openly criticized the upcoming Bitcoin regulatory framework BitLicense for being flawed, especially after two commenting periods. The Bitcoin exchange and wallet service providers asked NYDFS Superintendent Benjamin Lawsky to eradicate policies that conflicting and duplicative to the exists state and national laws. You can read the full report here.

BitNational Acquires Bitcoin Brains

BitNational acquired Bitcoin Brains for $2.1 million in a deal to become the largest Bitcoin ATM network all across Canada. BitNational offer a variety of new ways to buy bitcoins anywhere in the North American country. “Our goal has always been to provide the safest and easiest access to bitcoins for Albertans,” said Bitcoin Brains representative Dave Bradley. “This deal makes it easier than ever to buy bitcoins anywhere in western Canada. The guys from BitNational offer the kind of knowledgeable, professional service that our customers have come to expect.”


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BitReserve May Soon be opened in India

If everything goes right, BitReserve, the Bitcoin wallet from CNET would be available in India to disrupt the market for existing players in that business. The company is interested to cater the customers in India after successful tie ups with Mexican billionaire Ricardo Salinas Pliego of Group Salinas to access the remittances market in Mexico.

When asked about his meeting with the banking regulator, Halsey Minor, an American serial tech entrepreneur from the 1990s dotcom boom era and now the founder and CEO of BitReserve says that RBI has the understanding of how to look at the Bitcoin companies from the regulatory point of view whereas some others did not know where the companies fit in.

Minor also admitted that his meeting with the banking regulator was quite successful and he is quite optimistic about the outcome as his company seeks to extend the banking system at zero cost. He is of firm belief that five years no financial intermediary will make money while moving money.

According to Minor banking is the last bastion that will get disrupted by technology. He admitted that after the US, UK and China, he wants to now set up operations in India and for that he is talking to regulators and potential partners on a range of internet-based finance offerings.

Showing his confidence he says his brand will be operational in India before it takes off in the US. There are several rich features associated with BitReserve; for instance, customers can hold their Bitcoin as stable money can send them to anyone as Bitcoin and spend it anywhere Bitcoin is accepted from any of their money cards.

Conversion from Bitcoin to Other Currencies Easy

BitReserve makes conversion from Bitcoin to Bitmoney easy as customers can do this with ease and get USD, Euros, pounds, yen, Yuan and more with no delays. The company offers instant, low-cost currency conversions.

Bitreserve’s Bitmoney is backed by a full reserve of real money wherein it publishes a real-time, verifiable proof of solvency, so users always know their value is safe. A cloud-based digital money platform, BitReserve enables users to hold and transfer virtual assets whose value is substantiated by a reserve of real assets by the company in financial institutions.


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Litecoin Breaks Channel Support, Hinting Further Lows

After enjoying an uninterrupted rally in past few days, Litecoin went back being depressive thanks to a notable buying pressure that occurred at peak. Lets have a look:

Litecoin 4H Chart

There seems to be a strong bearish bias in the market, explains the technical indicators. The Litecoin price is clearly holding below the 50-, 100- and 200-H SMA, while the 4H RSI has also dropped inside a selling region. The MACD, on the other hand, is just dipping inside the negative territory, while staying below the signal curve.

At this point of time, traders’ focus should be more on downside risk levels, the pivot of which is near 1.40. As you can see the 4H chart above, the Litecoin price has already broken below the 1.40 level, and is clearly looking towards extending its downside momentum. This automatically puts pressure on the next downside risk near 1.35.

However, a break above 1.40 would bring back the old-gold bullish signals back to Litecoin market. There, the in-term resistance near 1.45 will be back in sight, sighting upside risk near 1.50 — the intra-week peak.

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Bitcoin News Mash-Up: Bitcoin and Gold; Coinzone in Europe; and More

Canadian Company Announces New Banking Platform for Gold

Canadian company BitGold, Inc. recently announced the launch of its new Gold-based banking platform. The platform, as stated in the company’s press release, will allow people to create free vault storage accounts. It will further help users to spend and receive payments in Gold, just with the help of a text message. You can read the full story here.

Bitcoin Wallet Company Coinzone to Entertain European Currencies

Romania based Bitcoin wallet company Coinzone recently announced to launch specific wallets for European currencies. The summer-scheduled launch has been confirmed right after ensuring the existing legal framework and privacy policies of the Euro zone, Coinzone said. The company also informed of including best-grade security solutions in the wallet, including the multi-layer verification service. You can read the full story here.

Ukrainian Bitcoin Exchange Hacked

Ukrainian Bitcoin Exchange BTCTRADE.COM.UA recently went offline following a security breach that took away an undisclosed number of Bitcoins. The company’s official threat informed as stated below:
“Unfortunately, today we experienced yet another hack. We’re clearing up amount of losses, please be patient. Don’t send money to the exchange’s wallets.”
This was the second time when BTCTRADE faced a successful hacking attempt, something that automatically raises suspicions over its poor security management practices. You can read the full story here.

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Last 24 hours in the cryptocurrency market showed Bitcoin attempting some further upside corrections. It however continued to respect its moderately stretched trading parameters, while testing the in-term resistance level near 236.86. As it continues to hold itself near the aforesaid level, let’s check out how today’s trades will gonna play out.

Bitcoin 4H Chart



The 4H BitFinex chart is showing Bitcoin within a comfortable trade range, with price trading right above the 50-H and 200-H SMA curves. The 4H RSI meanwhile has been fluctuating between 49 and 59, confirming an equally strong selling and buying pressure in the market. The MACD indicator has also stretched itself above the normal line, indicating some attractive long trades in last few hours. These technical indicators jointly indicates a near-term bullish bias in the market.
Initially, the Bitcoin price is attempting to surpass above the in-term resistance level near 236.86. If this level is crossed, it will simply validate the primary upside risk level near 238.57 fiat, while keeping 240 in mind. The long opportunities are therefore open, but make sure to put your stop loss near 234.60 in case the upside corrections gets invalidated.

Conversely, if the Bitcoin price bounces back from the in-term resistance level, it would open decent opportunities towards the in-term support near 233.76 fiat. If this level is broken to the downside, the pressure will fall on the secondary level near 231.78 fiat.


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Sweden Brings New Bitcoin Regulations, Puts Income Tax on Bitcoin Mining

Though some countries have banned Bitcoin, some others are trying to regulate the digital currency. The new entrant to the list of the countries that regulate Bitcoin is Sweden as the country has brought in Bitcoin regulation that sets guidelines for imposing income tax on those who are doing Bitcoin mining.

Nonetheless, the latest regulation by the authorities in Sweden at least shows it is not going to be banned anytime soon. In a release, Library of Congress says that on April 24, 2015, just days before the May 4 tax filing deadline, Sweden’s Tax Authority published guidelines on how to declare income from Bitcoin mining.

Titled, ‘Guidelines on the Taxation of Mining of Bitcoins and Other Virtual Currencies’ this instrument of communication from the government says that mining of Bitcoins, or of other virtual currencies, is generally set up so that it can be done from a server; because there are only a limited number of Bitcoins that can be mined.

It further says that there is a race to mine them before another party does and successful Bitcoin mining is therefore not guaranteed. However, it makes clear that under Swedish tax law there are three main forms of income: income from employment e.g. income from hobby activities; income from economic activity e.g. personal business; and income from capital.

Interestingly, income is considered to be derived from employment if it is not considered income of the other two types. However, economic activity must be carried out “professionally and independently.” It is also interesting to note that taxing Bitcoin mining would not really be easy as the law makers had not imagined such thing can also be there.

Definition of Economic Activity, Whether Bitcoin Mining Falls into It?

Even the Tax Authority explains that because of the limited potential for profit in light of the cost of the equipment needed, it is unlikely that income from Bitcoin mining can be considered economic activity. He also admits that it is not consistent over time for a sufficiently long period as prescribed by the legal provisions characterizing such activity.

However, he makes it clear that if the person mining the Bitcoins or other digital currency carries out the mining in a professional and cost efficient manner over a longer period with appropriate equipment, or if the activity is expected to create a surplus as measured over the full financial calculation period, it can be called economic activity.

Further, the computing capacity can be expected to generate more than 25 Bitcoins a year or the equivalent value in form of transactional fees or other virtual currency.

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Bitcoin Exchange OKCoin Accused of Tampering Contract, Money Laundering




Bitcoin Exchange OKCoin yesterday announced to discontinue its advertising services for bitcoin.com, following a contractual conflict with its owner — Mr. Roger Var.

In its blog, the Chinese exchange recalled Var’s involvement in the recent Ripple Labs case, where the payment protocol company was fined by FinCEN over some suspicious activities. This particular case, alongside Var’s earlier federal felonies, forced OKCoin to take such a drastic measure — as per their version of truth.

“In light of the recent FinCen actions against Mr. Ver, OKCoin has taken the stance that it can no longer make contractual payments to Mr. Ver and therefore must end its current version of its management contract of bitcoin.com,” the exchange had said. “To continue management of Bitcoin.com, OKCoin must face a different counterpart.”

Another Version of the Story

Var never wasted a moment to make his case before the Bitcoin community. The celebrated Bitcoin investor posted evidences against OKCoin, and ended up giving a different twist to the company’s aforesaid allegations. Here is the reworded summary of the entire conflict:

According to the initial contract between Roger Var and OKCoin, the former was to manage and develop bitcoin.com for the period of five years. The original draft of this agreement was signed by Rogar Var himself and the CEO of OKCoin, Mr. Changpeng Zhao, granting the former a right to earn monthly cuts from the website’s revenue from advertising. The agreement further agreed to pay Mr. Var a sum of $10,000, even when the website generates less than $40,000 a month.

After failing to pay Var for consecutive months, OKCoin allegedly forged the original transcript of their agreement and added a new clause without other party’s consent, saying that the exchange will be in rights to cancel the contact after giving 6-months prior notice to Roger.

OKCoin meanwhile gave some amusing explanations through their CEO Star Xu. It said that their attorney was not in good terms with an English-based contract and could have misunderstood it in some parts. According to the exchange, their attorney was using Google Translate to reword an English contact into Chinese. We wonder why a company like OKCoin could not here a professional legal translator.
While these accusations were not just enough, a former OKCoin employee took Reddit to post further evidences against the exchange. “The intention of the CEO, Star Xu, was to use bitcoin.com to advertise OKCoin,” he wrote.

“I know this because he rejected my first wireframe and asked me to add 2 links to OKCoin, one on the homepage just below the navbar and another just a few hundred pixels down. I still have the wireframes. Xu’s micromanagement of this project was among the reasons I left weeks later. There was no plan for quality content at any point. No plan to add value to the bitcoin ecosystem. There was only a plan to advertise OKCoin.”

Despite being one of the most successful Bitcoin exchanges to have come out of China, OKCoin is definitely losing credibility before the digital currency community. The foul practices has ripped it naked before the world, a damage that won’t be restored for a long time.

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In a pleasing announcement through a press release BTC Flap says that it has brought in 24-carat gold Bitcoin gifts for its customers. The customers will get the gift on Bitcoin purchase wherein they will not just be getting 10% more than Blockchain’s official rate for each Bitcoin they purchase, but they are also putting a surprise gift on transactions amounting 10+ BTC.

Nonetheless, as the company does not charge fee’s it pays all of them including PayPal//WesternUnion/MoneyGram/Bank Transfer customers will feel at home when transacting with it. BTC Flap’s Marketing Manager Jim Walsh showed his enthusiasm with their latest gift idea to the potential customers.

Additionally, he admitted that he is positive about people involved in the cryptocurrency market as according to him they are definitely welcoming a jewelry-like item engraved with the Bitcoin logo, being offered to them for doing business with BTC Flap. This he admits is perhaps for the first time that a materialized version of Bitcoin available for customers.
Jim Welsh was quoted saying:

“In this way, we are offering our customers a somehow materialized version of this virtual, non-material coin. We think it’s pretty cool to put your hands on a coin carrying the Bitcoin’s logo, especially if you’re passionate about the cryptocurrencies.”

This will definitely be a good collection for those who want to savor in the memories of the digital currency. Interestingly, the press release informs that the creative team at BTC Flap has attached a special gift to each and every transaction amounting more than 10 BTC as they are offering a 24-karat gold coin with the Bitcoin engraved on both sides.

Provides Competitive Services for Customers

Regarding the mechanism that is to be used while disbursing Bitcoin the company informs that it is simple i.e. each customer selling over 10 BTC within one transaction is asked to provide a mailing address and the company delivers the gift via a courier. The New York, USA, based company was founded and developed by few bold investment professionals.

The company operates in an effective manner with competitive team of professionals who help customers get a user-friendly platform. Additionally, it ensures that customers get easy contact means through the company’s website and via e-mail, with 24/7 assistance through a Live Chat Section offered.

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Bitcoin ATM Reaches to British Columbia’s Simon Fraser University (SFU)

Bitcoin ATMs make Bitcoin accessible for ordinary users, this may be a major reason that their demand is growing up from university campuses, restaurants, hotels, market complexes, etc. The latest addition to the list of the places where Bitcoin ATMs have been installed is British Columbia’s Simon Fraser University (SFU).

According to an announcement that has come from British Columbia’s Simon Fraser University (SFU), the campus bookstore would begin accepting Bitcoin payments starting 26th May. The official release informs that as part of the initiative, SFU will install Bitcoin ATMs at its three bookstore locations in Burnaby, Surrey and Vancouver.

British Columbia’s Simon Fraser University (SFU) also ensures that the units are provided by Ontario-based ATM operator BitSent. Interestingly, those who know about the Bitcoin landscape in Canada, this is the same company that boasts eight ATM locations across Canada. Thus, BitSent is quite experienced when it comes to Bitcoin ATMs.

According to SFU executive director of ancillary services Mark McLaughlin the decision was made as part of an effort to increase conversation about innovation on campus. He was quoted saying that the only way to have an opinion about digital currencies is to learn about it, and everyone is providing a firsthand experience in that regard.

Promotion of the Launch

The press release from the organization informs that to promote the launch, events will be held on 27th and 28th May marking ATM debuts at SFU bookstores in Burnaby and Surrey. There are several special rewards for customers. For instance, the first 100 customers who spend CA$20 or more in Bitcoin, will receive CA$5 gift cards.

Nonetheless, the announcement marks the latest effort from Simon Fraser Bitcoin Club, the on-campus student interest group. According to some observers they helped encourage the university to accept donations in Bitcoin last August. Interestingly, the news has come at a time when the number of new Bitcoin ATMs being added to the BTC network appears to be slowing.

Several data collection show a 69% decrease in new Bitcoin ATMs from Q4 2014 to Q1 2015. This may also be because banks and ATM providers typically pay retail outlets a fee to have their machine installed on a property which at times could be expensive. In such a situation it becomes important to install more Bitcoin ATMs at various locations.

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Assemblyman Mukherji (D-Hudson), and Assemblyman Gordon Johnson (D-Bergen) are proposing for Bitcoin regulation. The 30-page bill (A4478) would create a regulatory framework for the companies that deal in digital currency and offer taxes breaks to companies that service or exchange it.

Assemblyman Mukherji (D-Hudson), who introduced the measure, admitted that he wants to encourage innovation here in New Jersey. He thinks there’s an opportunity for job creation as well in the entire digital currency ecosystem. Interestingly, companies that work with digital currency tend to oppose stricter regulation like the plan put forward in New York.
However, a lot of people who have been observing the BitLicense proposed by Ben Lawsky and the one that is being proposed by the two lawmakers in North Jersey believe that the latter is drafted better. They are pushing for the type of regulation contained in the New Jersey legislation, dubbed the “Digital Currency Jobs Creation Act.”

The one proposed by the North Jersey legislators is friendlier to the industry than the one that was proposed by Ben Lawsky. The bill would prohibit municipalities from putting their own regulations or taxes on digital currency. At the same time the companies who deal in the industry would have to register with the state Department of Banking of Insurance.
The business plan, registration fee, etc. will be set by the commissioner, and fingerprints and photographs of “key members” of the organization, among other things would also be taken care of. Looks like, the legislators want Bitcoin ecosystem to have some order, something concrete that not just gives cyber security but also ensures some norms are followed.

The Bill Incentivizes Job Promoting Bitcoin Companies

If the bill is passed, the companies would be required to establish and maintain an effective cyber security program and designate an employee as a chief information security officer to oversee it. The bill says that they would be required to keep records of their activity for at least five years.

The bill not just talks about regulation but also about incentives as well. The incentives are aimed at drawing the companies into New Jersey. For instance, companies that create at least 10 jobs would get favorable treatment under the state’s tax credit program, qualifying for up to $5,000 for each new job they create in addition to the base tax credit they qualify for.

Similarly, the companies which often use energy-consuming computer equipment would be exempt from paying taxes on money they spent on electricity.


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