Wyoming Introduces Bill That Offers Crypto Assets Legal Clarity in a Bid to Lure Blockchain Business

In a bid to demonstrate the significance of advancing and legitimizing virtual currencies and Blockchain-based businesses across the U.S, the state of …
cryptocurrency

In a bid to demonstrate the significance ofadvancing and legitimizing virtual currenciesand Blockchain-based businesses across the U.S, the state of Wyoming hasproposed the introduction of a new bill. This bill is designed to clarify ormake members of the cryptocurrency and Blockchain communities understand thelegal position of virtual assets and offer digital asset custody via banksinstead of financial institutions, as is the case in the current framework.

Bitcoin (BTC) Price Today – BTC / USD

Name Price 24H (%)

bitcoin
Bitcoin(BTC)

$3,679.12

The new Bill proposed by the Wyoming legislature offersthree classifications regarding what digital assets should be tagged. They includedigital securities (which will receive similar treatment as uncertificatedsecurities under the UCC), digital customer tokens (which will get the sametreatment as general intangibles under the UCC) and virtual currencies (whichwill give digital currencies similar treatment with fiat currency in Wyoming).

New Bill: Banks in Wyoming Could be Authorized to Adoptan Enhanced Supervision Program for Digital Asset Custody

Looking at the custody side of the endeavor, the activation of the new Bill means that the state ofWyoming could give banks the authority to initiate an enhanced supervisionregime regarding digital asset custody. Thisis designed to satisfy the SEC’s requirements regarding who should be the“qualified custodians” of cryptocurrencies.

The custody advancement for virtual assets in the U.S stateis also significant because it would beinitiated through banks. Although the bank wouldn’t take deposits ofdigital assets, the assets would be regarded as “assets under administration”instead of bank deposits.

Digital Assets Could Have A Similar Legal Status as Fiat

Money has “super-negotiability” stipulations under the UCC(Uniform Commercial Code) Article 9, and now Wyoming is looking give virtualcurrencies a similar structure.

This classification will benefit coin lending businesses inWyoming. It will give crypto and Bitcoin (BTC) more legitimacy. Bitcoin (BTC)would have the much desired legal status without involving an intermediary.Which is why it is safe to say the new legislation is a reflection of thepeer-to-peer nature of cryptocurrencies without the involvement of anyintermediary.

There is no debtor/creditor relationship without theintermediary, and the owners ofcryptocurrencies would have their property rights recognized under state law.

Classifications Will Give Legal Status to Digital Assets

These new classifications under the new legislation are important because they offer digital assetslegal status which is something that hasn’t been offered by any region in the country. Startups like FidelityInvestments, Coinbase, Bakkt, Kraken, and SALT Lending, to name a few aretaking some degree of legal risk. The reason for this is because no one can really determine how a judge in a bankruptcycase or litigation will classify digitalassets without clearly stipulated laws.

Overall, the securities custody sector has at least $114trillion of assets under its administration, which are being issued on the Blockchain with startups like FidelityInvestments delving into the business, Bakkt with its futures exchange is doingthe same thing. However, in the state of Wyoming, it will be done under a bank,and not a trust company under the new legislation. This could operate nationwide, and make the SEC happier becausebanks have more unambiguous wind-upprovisions in insolvency that trust companies don’t.

Top 10 Friendly Countries for Blockchain Startups

Blockchain has been a revolution in the digital market for the last couple of years. It has occupied an important place in the digital currency revolution.

Blockchain has been a revolution in the digital market for the last couple of years. It has occupied an important place in the digital currency revolution. The growth of technology has touched various fields such as smartphones, vehicles, shipping and a small sector in the sector of banking.

Although there is no country in the world which is not aware of this technology, there is a huge difference of opinion among countries regarding this revolution. There are various factors a blockchain startup has to look up before deciding it as a host country such as the jurisdiction regulations of the country, political views, tax system etc as these factors are going to affect the growth of any startup. While some countries are allowing blockchain startups to set up legally, while some are in no mood for any such beginning in the country and there are also some countries which are not sure about it.

Let us take a glance at the top 10 friendly countries for blockchain startups:

1. Malta:

This small Mediterranean country is on the verge of becoming the ‘island of blockchains’. The beginning of all these was when the biggest cryptocurrency exchange of world, Binance chose to inaugurate its office in this country. Also, they have informed all to set up a ‘crypto’ bank on this island.

Malta has been improving and enhancing new regulations that are friendly for blockchain startups. The country is so much dedicated to this technology that even the head of the country, the Prime Minister has predicted that the country will be the best place for this kind of startups throughout the world. The regulations are mainly focussed to evolve and encourage the investors to start this kind of projects in the country.

2. Switzerland:

The settling up of a crypto valley in one of its town, Zug, is sufficient to describe how much amiable this country to blockchain startups. It is one of the famous center of blockchain technology across the globe. Adding to the ice, they have imposed a tax-free regulation for the investors who want to invest in this kind of startups. Apart from it, their laws and regulations are very attractive and appreciated by investors as well as developers.

It has been the host of several blockchain projects including DFINITY, Xapo and of course, Ethereum. The privacy rules and protection of data are also appreciated by the blockchain startups.

3. Japan:

Japan is one of those countries which have approved cryptocurrency such as Bitcoin as a legal tender. It has been home of several blockchain traders, even some of the stores in the country have no problem in taking payments from users as Bitcoin currency. After six months of recognizance of cryptocurrency as legal, Japan is now accountable for more than half of total such trades.

Although there are various regulations regarding blockchain startups, they are friendly and easy to be acceptable and it’s not difficult to stary sich any startup in the country.

4. Singapore:

This country is a home of a huge number of triumphant startups in the field of blockchain technology. This country is nearer to two super giant technology rival countries Japan as well as China which makes it a more suitable center for startup of blockchains. The rules and regulations of this country are also very amiable and favorable bt the cryptocurrency. It has already a lot of exchanges of blockchain currency. So if a blockchain startup is willing to start and want to be in touch of both China and Japan clients and government, Singapore is the best country.

5. Belarus:

Two years back itself in 2017, this country made several rules and regulation affecting blockchain and crypto industry. As per these laws, they have made these digital currencies as the legal one in the country. The restrictions in the trade related to blockchain technologies are so friendly that the investors almost feel free to start any such startup or invest in this kind of organizations. Also, as per the rules, these kinds of trades are tax-free in the country until 2023. Due to the friendly rules and success, it is one of the preferable countries for blockchain startups.

6. Estonia:

Estonia is a developing country which has always tried to adopt new technologies in order for the benefits of the people and finance of the country. It has imposed several acts that attract the investors of the country as well as other countries to set up a blockchain startup in this country. It has declared itself to be a remarkable country in blockchain technology very soon. Also, they have established a new kind of citizenship known as e-residency which also attracts blockchain startups.

7. South Africa:

This country has depicted a tremendous interest in blockchain technology. They have made the crypto transactions as legalized one in the country. They have made several initiatives in order to attract the investors to start such startup in South Africa. The rules and regulation related to this crypto market in this country are also not so harsh, they always tend to welcome these industries. It is becoming as one of the most profitable countries for blockchain startups in Africa subcontinent.

8. Denmark:

Denmark has already announced a regulation stating complete relaxation in tax for any kind of blockchain trade. It is one of the most amiable countries for welcoming these types of startups in the country. The rules of the country are very friendly for the crypto industry making it one the interest for blockchain startups.

9. United States:

When it comes to adopting new technology in the market, this country is always in the front. The rules and regulations vary across different states of the country. Despite the oppose in some state, there are Bitcoin ATMs in the country. The friendly states of the county, Montana, Texas, etc. have very amiable regulations while welcoming the blockchain startups. Apart from it, no other country in the world can be better for any technology to start other than the US itself.

10. United Arab Emirates (UAE):

This Arabian country is also one of the most friendly nations. They have already used their own digital currency since 2016 and now welcoming global cryptocurrencies. The jurisdiction is very cooperative towards the blockchain and crypto industry. They are planning to be the first country in the world as a government powered by blockchain by next year. Due to these reasons, UAE is also one of the most preferable countries for blockchain startup.

The market conditions of countries continue changes. The expansion of crypto and interest in blockchain startups is so high that many countries are willing to accept it in their country. There are various factors to establish the startup in the country and initial requirement would be an amiable regulation and legalization. Apart from above-mentioned countries, UK, Sweden, China, South Korea etc. are also preferable.

Related Posts:

  • No Related Posts

Justin Sun Wants to Use BitTorrent and Blockchain Games to Decentralize the Internet

Sun planned to take advantage of the blockchain since the decentralized ledger is transparent and secure. It will be combined with the decentralized …

Researchersat Satis Group have tagged at least eighty percentof the firms that raised funds through initial coin offerings. However, the28-year-old CEO of Tron, Justin Sun, wants to prove that this statement doesn’tapply to his company.

TRON(TRX) Price Today – TRX / USD

Name Price 24H (%)

bitcoin
Bitcoin(BTC)

$3,678.74

tron
TRON(TRX)

$0.024166

Sun becamewealthy after creating Peiwo, the Chinese equivalent of Snapchat. Since then, he has been working on a toughbattle to earn trust for his company and the cryptocurrency. The company raisedabout $58 million two years ago in an initial coin offering.

Last summer,the founder of Tron acquired BitTorrent for $140 million. This company is aboutfifteen years old and is one of the largest decentralizednetworks in the world. Sun planned to take advantage of the blockchain sincethe decentralized ledger is transparentand secure. It will be combined with the decentralizedfile sharing app and offer crypto rewards to users who share their PCs for filesharing.

Justin Sun’s interview

This week,Tron’s founder appeared on stage at the Nitron Summit. The summit drew in morethan a thousand attendees, and he made anappearance with basketball legend, Kobe Bryant. Tron created a $100 millionfund in a bid to convince the game developers to make games, which use Tron’sprotocol as well as TRX, the cryptocurrency. He promises to create a cryptonetwork that is reliable and fast.

Tron wasinterviewed by Venture Beat, andhe says that he wants his company to be the main blockchain which could be thealternative to centralized internetnetworks of Facebook, Google and Apple. For this to happen, Sun must getmainstream users such as the 100 million BitTorrent users to begin to trustcryptos despite the coin market slide that has sliced the value of cryptos inhalf. Tron is not excluded from this downslideas its value has dropped from $20 billion to $1.6 billion.

Integration with bit torrent

Sun plansto find a better solution for the protocol of BitTorrent to improve its efficiency.Presently, most people seed for goodwill may not have the incentive to seed. Swarms and trackers become obsolete quicklyafter they are abandoned. Sun believesthat the first step is making BitTorrent’s cryptocurrency available to userswho contribute to the network.

The CEOof Tron also said:

The second step will be a move to decentralized storage plans, decentralized CDN, decentralized live streaming. But this is the first step. Right nowwe have 800,000 to 1 million already testing the BTT. We’re supposed to launchto 20 million users in Q1 with the test mode. In Q2 we’ll move to productionmode, so other people can enjoy the protocol.”

A sharing economy

Sun was asked what the company would do with thecryptocurrency, and he replied sayingthat they plan to give it to BitTorrent users who will get tokens for testing. This will be a new experience and hopes tobring up to 100 million new users of crypto.

He alsosays that they will discover that if the tokens arespent on bandwidth and transfer, they will have a faster download speed.They will be able to find more seeds and swarms. Sun says,

Sometimes you download a torrent and youfind out a movie is great, the content is great, but there aren’t any peopleseeding it. You can’t download it. But with this, a lot of people will be continuouslyseeding. It’s a mutually beneficial environment. In the future, if youcontribute to shared storage or shared CDN, you can get even more rewards.

India’s Syndicate Bank to Expedite ATM Reconciliation Using Blockchain Technology

One of India’s oldest lenders–Syndicate Bank–will leverage its private blockchain network to simplify and shorten the ATM (Automated Teller Machine) …

India’s Syndicate Bank to Expedite ATM Reconciliation Using Blockchain Technology

January 20, 2019 by Akshay Makadiya0 Comment1029 Views

One of India’s oldest lenders–Syndicate Bank–will leverage its private blockchain network to simplify and shorten the ATM (Automated Teller Machine) reconciliation process. It is a move that could prove instrumental in bringing DLT into the mainstream in the country.

Also read: The Unique Consensus Mechanism of Decred–Is This True Decentralization?

Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts

Turning ATMs Into Blocks

According to local media outlet the Times of India, the Manipal-headquartered Syndicate Bank is developing a blockchain-powered ATM network to accelerate the validation of transactions to almost real-time, while concurrently expediting the procedures for ATM reconciliation.

For instance, in the case of an ATM malfunction while dispensing cash, a customer has to raise a complaint to the bank of the failed transaction. Following the complaint, the bank will implement a series of cumbersome manual workarounds, whereby a bank executive will physically collect data from the cash machine and then reconcile it with the failed transaction data. The process is slow and the customer has to wait for about a week to receive their funds.

Under the new private blockchain model, the ATM will act as a block within the network, hence, ensuring that transactions at the cash dispenser are reconciled every 24 hours. In the blockchain system, in the event of an ATM malfunction, the customer will receive an instant notification of a refund, with the transaction reversed within two days.

Syndicate Bank’s managing director Mrutyunjay Mahapatra said that by using the blockchain-powered system “the amount will be credited back to the account within 2 working days”.

However, for now, the bank has not revealed any technical information on how it will incorporate ATMs into its distributed ledger infrastructure.

Syndicate Bank India street

The Banking Sector’s Blockchain Fever

While Syndicate Bank is the first Indian lender to use blockchain technology for ATM reconciliation, other payment processors and banks globally have mulled over the idea in the past.

Only weeks ago, the United States’ second biggest lender, the Bank of America, filed a patent for blockchain-powered ATMs that would speed up transactions and improve the general operation of cash handling devices. Apart from that, the patent application also stated that it will use blockchain technology for real-time reconciliation when settling transactions between financial institutions.

In the past, payment card giant China UnionPay, the only interbank network that connects ATMs of all the banks in China, filed a patent to develop a blockchain-powered network of automated teller machines.

Apart from using blockchain technology with ATMs, a number of Indian banks have worked to introduce the technology into various banking operations. Last year, seven private Indian banks partnered with India’s biggest software service exporter Infosys to develop a blockchain-based trade finance network.

Also, the country’s third-largest private sector lender Axis Bank, Kotak Mahindra Bank, and IndusInd Bank are all looking at RippleNet to speed up and reduce the costs of cross-border payments.

Can blockchain technology revolutionize the banking industry? Share your views in the comments section below.


Images via Pixabay

Related Posts:

  • No Related Posts

What Should be Expected from the Blockchain Technology in 2019?

Businesses both old and new adopted the technology. Through different blockchain consensus came new innovative ideas which are getting set for …

Though 2018 was a year when the prices of all cryptocurrency dipped, it could not be denied that the same year witnessed many new cryptocurrency innovations. Businesses both old and new adopted the technology. Through different blockchain consensus came new innovative ideas which are getting set for implementation.

Blockchain Innovations in 2018

Last year recorded the peak of ICOs as funds raised reached a new all-time high. 2018 also taught a very worthy lesson to some startups- that Initial Coin Offering is losing its value gradually. This was the reason for the Vitalik’s Suggestion for Decentralized Autonomous Initial Coin Offering (DAICO) which many start-ups did not seem to value.

DAICO is targeted at making investors actively part of thedevelopment process of a project. This is through the Tap policy, whereInvestors can determine the amount of funds that will be released to theproject team per time. This is to keep them motivated and not run away with allthe funds. Though with its own vulnerability like 51% attack, ICOVO revamped the idea adding some restrictions.This made it the first startup to implement Vitalik’s suggestion of DAICO. Thequestion is: will it be successful?

2018 also revealed some other cool innovation like IOVO,which believe that human data is human value, and it should be protected. IOVOsuggests that all human personal data should be stored on the blockchain and atthe sole disposal of the owner. Companies should pay for this kind of data,instead of taking these data without the consent of the owners.

Currency Of The Internet (COTI) was rated to have run one of the best ICO last year, investors are still waiting earnestly for its mainnet. COTI is creating its own blockchain for more efficient, fast, and secure remittance of funds. COTI wishes in its vision to be the actual currency of the internet.

The list of cool innovations will never be completed unless PIGZBE is mentioned. Pigzbe wishes to helpparents teach their children the most important lesson in life- Financialeducation. Through the Wollo wallet, parents can easily send payments to theirchildren to incentivize them when they complete assignments in the house.Regular payments for savings and relative gifts through the supervision of theparents can be sent to the children. Pigzbe will be helping parents keep aclose eye to how the children spends.

The CurrencyAnalytics is one of the success story of the blockchain technology. Thoughit conducted no ICO, it brought an innovation that is unprecedented to all. TheCurrency Analytics (TCA) views the essence of real news to the cryptocurrency ecosystemas important. TCA provides real cryptocurrency news to readers with zerotolerance for fake news. This will help them take wise decisions in theirinvestments. It also helps them connect with their favorite projects, byallowing projects to publish their press release by paying TCAT.

2019?

The record book for a list of blockchain innovations for 2019 remains almost blank for now. The world is waiting for blockchain based projects to create and execute their visions, learning from the past mistakes of the fallen. Investors and the whole cryptoverse is still waiting for the long awaited Ethereum’s Constantinople which has now been postponed to late February.

2019, What is it goingto be for blockchain Technology and Cryptocurrency? Head or Tail or Both.

Don’t ever forget tovisit https://financialreport24.com for more news and articles about cryptocurrency.