Cryptocurrencies

National Cryptocurrencies (CBDC)

Main article: National Cryptocurrencies (CBDC)

Cryptocurrencies

• Bitcoin
• Ether
• Solana (SOL)
• ADA ( Cardano )

• Sbercoin (Sberbank cryptocurrency)
• UAX (cryptogriva)

• Dogecoin
• Shiba Inu (SHIB)

• Barca Fan Tokens ($BAR)
• Bitcoen Kosher cryptocurrency
• BitTorrent (cryptocurrency)
• Kodakcoin (cryptocurrency)
• MobiCoin (cryptocurrency)
• MUFG Coin (cryptocurrency)
• RBI Coin (cryptocurrency)
• Venus (cryptocurrency)
• Wells Fargo Digital Cash (cryptocurrency)
• XSGD (digital currency)

Stablecoins

Main article: Stablecoin

Stablecoins are cryptocurrencies whose value is tied to a particular fiat currency (that is, the usual currency - dollar or euro) or physical asset (for example, gold).

• Stablecoin (Norilsk Nickel cryptocurrency) - metal supply
• Tcoin (cryptocurrency) - metal provision

Closed currencies

• Squid

In the first 9 months of 2022, more than 12 thousand cryptocurrencies practically stopped trading. Since 2021, their number has increased 3 times. Many of these projects are still alive, but of no interest to investors. Because of this, their coins, if trading on them for a month does not show volumes, were nicknamed zombie coins.

Cryptocurrencies in countries around the world

• Cryptocurrencies in Russia
• Cryptocurrencies in Ukraine
• Cryptocurrencies in Belarus
• Cryptocurrencies in Kazakhstan
• Cryptocurrencies in Uzbekistan

• Cryptocurrencies in the European Union
• Cryptocurrencies in Britain

• Cryptocurrencies in China
• Cryptocurrencies in Japan

• Cryptocurrencies in India
• Cryptocurrencies in Turkey

Cryptocurrency exchanges

Main article: Cryptocurrency exchanges

Cryptobanks

Main article: Crypto banks

Mining cryptocurrencies

Main article: Cryptocurrency mining

• Mining cryptocurrencies in Russia
• Mining cryptocurrencies in Kazakhstan

Cryptocurrency fraud

Main article: Cryptocurrency fraud

Dependence on cryptocurrencies

Main article: Dependence on cryptocurrencies

Investments in cryptocurrencies

Cryptocurrency ETFs

Main article: Cryptocurrency ETFs

DeFi

Main article: DeFi (Decentralized Finance)

Decentralized finance, or DeFi, is a financial instrument in the form of services and applications built on the blockchain. The main task of decentralized finance is to become an alternative to the banking sector and replace the traditional technologies of the current financial system with open source protocols. That is, to open up to a large number of people access to decentralized lending and new investment platforms. And allow them to receive passive income from cryptocurrency assets, as well as save on commissions for transfers, loans and deposits.

ICO

Main article: ICO (Initial Coin Offering)

• How to estimate ICO

Initial Coin Offering is a mechanism for raising funding for projects or companies in order to develop and release a product (service) to the market. Attracting investments occurs in cryptocurrency (bitcoins, ether, lightcoins, etc.). Unlike the IPO (public offering), the process of placing tokens is not regulated: almost no financial investments are required to carry it out, there are no minimum requirements for the issuer, audit and other related IPO procedures.

An analogue of trading in shares on IPO the cryptocurrency market opened up a new opportunity for investors to increase their investments hundreds or even thousands of times. At the same time, at the initial stage, digital coins are extremely cheap.

Problem

There are also a lot of startups looking to make money on ICOs. According to Blackmoon estimates, by the end of 2017, about a thousand ICOs will take place in the world. At the same time, no one gives guarantees - the industry is not yet regulated at the state level. As a result, among the projects there are scammers who take money from investors and simply disappear. And there are also unprofessional teams, perhaps well-intentioned, but with no relevant experience to successfully implement the project. The ICO market is very risky: you can make good money on it and lose everything.

Decision

First, consultants are already working here to help you choose the right project for your investment. Secondly, this can be done on your own by analyzing this or that project for its viability. It is important to assess the stage of its development at the time of ICO. If this is just a raw idea, then the risks are great. If an existing or successfully tested project, there are much more chances to earn money. The second is the idea itself: how relevant and viable it is, how much the project will be in demand in real life. It is also important to have a thoughtful business plan: why the project needs this money, how it will spend it and how much it will earn. The professional team that this business plan can bring to life is also important. These should be specialists not only in the world of IT and their startup, but also in business, economics and finance.

Cryptocurrency millionaires

Main article: Cryptocurrency millionaires

2022

BNY Mellon begins accepting cryptocurrencies for storage

On October 11, 2022, BNY Mellon (Bank of New York Mellon), the oldest American bank, began to accept cryptocurrencies for storage and provide them with the same list of services as for other assets. Moreover, a single platform is used for this. Read more here.

Institutional investors are increasingly paying attention to cryptocurrency

Amid the events of the last two to three years investors , they are looking for new opportunities to earn money: the consequences pandemics COVID-19 and geopolitical risks are pushing them to find new markets, and many of them are seriously considering cryptocurrencies. This situation is observed not only in Western, countries but also in - Russia if the regulation bill is loyal and allows qualified investors to legally invest in, cryptocurrency the market will see a strong inflow of funds and an increase in prices for major coins. This was announced on June 13, 2022 by Huobi Global. Representatives State Duma and are actively Ministry of Finance RUSSIAN FEDERATION working on loyal regulation of digital currencies. The deputy head of the working group on the legislative regulation of cryptocurrencies under the State Duma of the Russian Federation noted Andrei Lugovoi that the bill is being finalized and can be considered and adopted as early as 2022.

2021 clearly demonstrated an increase in interest from institutional investors: Wall Street Journal it reports that on the the American Coinbase Global crypto site, the volume of trading in institutions amounted to 1.14 trillion, dollars which is almost ten times more than a year earlier - for comparison, the volume of trading in institutions in 2020 did not exceed $120 billion.

Moreover, the volume of trading in institutions at Coinbase Global exceeded the volume of trading in retail investors by more than two times - at the end of 2021, the turnover in retail trade in crypto assets amounted to $535 billion. The rise in professional investors highlights the spread of cryptocurrencies in recent years. Starting in 2018-2019, venture capital funds invested billions in cryptocurrencies, while frustrated retail investors began to withdraw from the market during a protracted "cryptosima."

Of course, retail investors are still present in the market, but are no longer its only driving force. It is assumed that every year the number of institutional investors interested in cryptocurrency will grow, as well as the amount of invested funds. Venture funds, hedge funds, registered investment advisers, family offices and so on have entered the cryptocurrency world. The buyer of bitcoin in 2021 was the first state - El Salvador. Also in 2021, the first futures bitcoin ETFs were launched. In Russia, there are officially no institutionals investing in Bitcoin - the lack of regulatory standards affects - however, large financial companies such as Sberbank are showing high interest in cryptocurrencies and blockchain technologies.

According to to data Bloomberg Intelligence, the number of investment instruments for cryptocurrencies worldwide more than doubled - from 35 to 80 during the previous year. Assets under management at the end of 2021 grew to $63 billion, compared with $24 billion at the beginning of the year. According to a report by the analytical company Crypto Fund Research, this figure is about $69 billion.

At the end of 2021, Grayscale Investments LLC is the largest manager in the field of digital assets, and its Grayscale Bitcoin Trust is rated as the world's largest crypto fund. At the beginning of March 2022, Grayscale manages assets equivalent to more than 33 billion US dollars. Also among the largest funds are Galaxy Digital Holdings and Bitwise Asset Management. In total, according to analysts at Crypto Fund Research, there are 856 crypto funds on the market.

Among the largest corporate holders of bitcoin are MicroStrategy and Tesla. At the beginning of March, the analytical platform CoinGecko reports that Microstrategy owns about 121,000 bitcoins, Tesla - 48,000 bitcoins.

In addition to bitcoin, institutional investors are starting to pay attention to ethereum. According to a study by the American bank JP Morgan, from mid-2021, institutionals began to invest more often in ETH. One of the factors in the growing popularity of the coin is its dynamic growth, as well as the rapid development of decentralized finance (DeFi) sectors, as well as non-replaceable tokens (NFT).

It is likely that demand from investors would be even higher if physical security funds were allowed to be launched in the United States - regulation of this procedure for June 2022 is considered the most pressing issue in the industry within the United States.

American entrepreneur and star of the show "Shark Tank" Kevin O'Leary notes that many representatives of the US Senate positively assess the possibilities of regulation and want to enable institutional investors to invest in cryptocurrency instruments. According to the expert, with a positive outcome, a colossal inflow of funds into the industry can be expected on the horizon of 2-3 years.

The importance of regulation is also emphasized by representatives of trading platforms and crypto exchanges. Huobi Global also believes that the positive attitude of regulators, as well as the gradual adoption of investment laws, will open the way for even more institutional investors. For June 2022, most expect signals from supervisory authorities.

According to experts, this situation is observed not only in the United States, but also in Russia - if the regulation bill is loyal and allows qualified investors to legally invest in cryptocurrency, the market will see a strong inflow of funds and an increase in prices for major coins.

Thus, clarity in the regulation of the cryptocurrency sector will only contribute to the arrival of new institutional funds in the industry. Those investments that are being made are only a small fraction of the volume that is just waiting for a clear regulatory framework to enter promising markets. The digital economy so far is only at the very beginning of its development.

History

2023

Deutsche Bank will store customers' cryptocurrencies

On June 20, 2023, it became known that Deutsche Bank AG applied to German regulators for permission to provide services for storing digital assets of customers. This may include cryptocurrencies. Read more here.

Visa and MasterCard curtail crypto projects after FTX collapse and other industry scandals

At the end of February 2023, payment systems Visa Mastercard decided to suspend projects based on - blockchain technology due to the fall in the cryptocurrency market and the outflow of capital from the industry. More here.

Rwanda imposes ban on cryptocurrency transactions on banks

The Rwandan government in February 2023 ordered banks to block operations related to the purchase and sale of cryptocurrencies. The National Bank refers to the unregulated status of crypto assets and the fact that this leaves users "without guarantees." Although, most likely, the regulator is more concerned about the growing interest of Rwandan citizens in the crypt.

Brazil's oldest bank starts accepting tax payments in cryptocurrency

Brazil On February 10, 2023, one of the largest and oldest banks, Banco do Brasil, announced that its customers can now pay tax fees with. cryptocurrencies More here.

2022

Canada's largest pension fund dissolves cryptanalyst team after investing in collapsed crypto exchanges

On December 7, 2022, it became known that Canada's largest pension fund CPP Investments (CPPI) had curtailed a project to study the possibilities for developing a cryptocurrency business and dismissed the corresponding team of specialists. Read more here.

About 900 million people in the world regularly make transactions in cryptocurrency

Crypto companies around the world laid off more than 10 thousand employees

In early December 2022, it became known that cryptocurrency companies on a global scale sharply reduced personnel: more than 10 thousand employees in the relevant area were laid off around the world.

As reported, the state began to reduce exchanges, investment companies, mining operators and other organizations specializing in cryptocurrencies. For example, Compass Mining and Core Scientific carried out reductions among mining companies: for example, the first got rid of about 15% of employees, and the second laid off 10% of staff.

It is said that serious reductions have affected the Crypto.com, Coinbase and Kraken platforms. In particular, the Crypto.com fired 260 people in June 2022 and 2 thousand workers in October 2022: thus, the staff was reduced by about 40%. Coinbase laid off 1.1 thousand employees - about 18%, Kraken - 1 thousand people (30%). Huobi's platform has cut staff by 300 employees (30%), and OpenSea's NFT marketplace has laid off 20% of its staff. BitMEX exchange twice carried out reductions: 75 people in April 2022 (25% of the team) and 53 more people in early November 2022 (20%).

Due to financial difficulties, the Hodlnaut crypto lending platform reduced its staff by about 80%: about 40 employees were left without work. The Bybit exchange is also forced to lay off employees due to the difficult situation in the cryptocurrency market. The platform will reportedly cut about 30% of its workforce. This will be the second reduction in the exchange's staff in 2022: in June, it already reduced its team by about 20-30%, laying off 400 to 600 people. Thus, the so-called "cryptocurrency winter" hit almost all market participants. In general, companies in the industry, according to various estimates, reduced up to 80% of their staff.^[1]

Argentina began to accept tax payments in cryptocurrency

In Argentina, began to accept tax payments in cryptocurrency. The innovation was announced on August 27, 2022 by the tax authorities of the province of Mendoza. This is the seventh largest province in the country with a population of more than 2 million people. Mendoza's economy is considered the fifth largest in Argentina. Read more here.

The capitalization of the global cryptocurrency market fell below $1 trillion

By June 17, 2022, the capitalization of the global cryptocurrency market fell below $1 trillion.

Wikimedia refused to accept cryptocurrency for donations

On May 3, 2022, it became known that Wikimedia refused to accept cryptocurrency for donations. Read more here.

Central African Republic legalizes cryptocurrency

On April 27, 2022, it became known that in the near future the Central African Republic Central Bank will approve the financial mechanism for the circulation of cryptocurrency.

Associate Professor of the Department of World Financial Markets and Fintech REU named after G.V. Plekhanova Maxim Markov said that developed countries will create their digital currencies, and developing ones will use existing cryptocurrencies until the development of technologies allows them to create their own

{{quote 'Despite the long opposition of the authorities of most countries, cryptocurrencies have taken a solid position in the world financial markets, thereby showing that cryptocurrencies as a phenomenon took place and will remain in the world seriously and for a long time. Understanding the growing role of the digital economy and digital money, the monetary authorities of many countries, including Russia, began to work on the release of their own digital currencies operating on the same technologies as cryptocurrencies. Maxim Markov said ^[2]/. }}

Panama allowed to pay taxes with cryptocurrency

At the end of April 2022, lawmakers in Panama, a Latin American country with a reputation for tax havens, approved a bill that would regulate the use of bitcoin and eight other cryptocurrencies and approve their use to pay taxes and for private transactions. Read more here.

Twitter will pay authors in cryptocurrency

Twitter and digital payment service Stripe will pilot cryptocurrency payments for some users of content monetization products. This became known on April 26, 2022. Read more here.

Bison gets permission from Portugal's Central Bank to work with cryptocurrencies

In mid-April 2022, Portuguese bank Bison received permission from the Portuguese Central Bank to operate as a virtual asset service provider. The bank became the first in the country to receive the green light from the regulator to work with cryptocurrencies. Read more here.

Bolt Financial acquires cryptocurrency startup Wyre for $1.5 billion

In early April 2022, Bolt Financial, a specialist in payment financial technologies, announced the purchase of the cryptocurrency startup Wyre. The transaction amount will be about $1.5 billion. According to market research firm Dealogic, the takeover was the largest deal in crypto industry history to go ahead without the involvement of a dedicated targeted mergers and acquisitions company. Read more here.

Facebook finally closes its cryptocurrency project

More than two years after the first announcement, the project, formerly known as Libra, is closing. The Diem Association, formed by Facebook to manage digital tokens, is selling off its assets after regulators harshly opposed the initiative and made clear it could not be implemented in any way. This became known on January 26, 2022. Read more here.

Cryptocurrencies banned in Indonesia

In mid-January 2022, Indonesian financial institutions were banned from carrying out or promoting the sale of cryptocurrencies. The corresponding decree was issued by the Office of Financial Services of Indonesia (OJK). Read more here.

Puerto Rico has become a new mecca for crypto millionaires

By mid-January 2022 Puerto Rico , fast becoming a popular destination for crypto-millionaires from. USA Businessmen with their families are rushing to move more quickly to the island, which is relatively close to the United States, reports. CNBC This trend has intensified due to the fact that the authorities of the island states conduct a policy friendly to cryptocurrency investors and provide profitable tax breaks for those who spend at least 183 days a year on the island. More. here

2021

The number of vacancies in the cryptocurrency sector in the United States has grown 5 times

On January 12, 2022, LinkedIn published a study according to which the number of job advertisements related to cryptocurrencies in 2021 increased fivefold compared to 2020. Read more here.

Gartner: By 2024, 20% of big companies in the world will use digital currencies

By 2024, 20% of large companies in the world will use digital currencies for payments, as a means of saving or collateral. This is stated in the Gartner report, published at the end of December 2021.

Analysts believe that digital currencies will increasingly be used in business transactions and their economic importance will increase in the coming years.

The growing recognition of cryptocurrencies on traditional payment platforms and the development of digital currencies of central banks (CBDC) will push many large enterprises to introduce digital currencies into their applications in the coming years, said Avivah Litan, an analyst at Gartner. - Digital currencies will primarily be used by these organizations for payments, as a means of saving, as well as instruments of high-yield investments in decentralized financing (DeFi).

Gartner experts recommend that companies first clarify specific use cases for digital currencies before evaluating the appropriate IT stacks for use within the enterprise. Each use case includes many technological, regulatory, legal, and strategic nuances that need to be evaluated by both CFOs and application team leaders.

Since the beginning of the year, we have noticed a surge in the interest of CFOs in digital currency and blockchain applications, "said Alexander Bant, head of research at Gartner. - While cryptocurrency volatility is still a concern, waiting for clearer regulatory guidance and the emergence of CBDC now offers CFOs more options to test digital currency use cases.

Gartner's forecast for a broader adoption of digital currencies by 2024 is partly driven by the already existing supportive environment of service providers and off-the-shelf solutions available to large businesses that have identified a specific use case for digital currencies.

Avivah Litan explains that most companies will not need to develop an individual stack of applications based on blockchain technology to conduct operations with digital assets. Many big banks, payment platforms, institutional investors and digital currency storage solution providers have already done the hard work in this area, which should provide large businesses with a minimum of challenges when deploying their own applications.

Among the factors that in the next 12-24 months can also affect the interest of large companies in digital currencies: certainty with the regulation of digital currencies, the possibility of hedging risks, the beginning of the use of digital currencies by employees, consumers, suppliers.

Macroeconomic pressures associated with continued high inflation and its impact on fiat currencies could push more CFOs to study certain digital currencies for their continued use as a potential means of saving for a portion of their assets, according to Alexander Bant.

The use of blockchain and digital currencies for CFOs has always been theoretically attractive as a means of reducing costs, increasing transaction processing speed, reaching new global customers, moving to continuous accounting and auditing, and creating an unmistakable, fraud-proof system, "Bunt noted. - Now that congressional oversight is changing, and the potential exists for even more central banks to join China in launching CBDC, digital currency use options appear more predictable and stable going forward.[3]

The crypto industry attracted a record $30 billion in investments over the year

At the end of 2021, cryptocurrency projects around the world attracted a total of $30 billion in venture capital investments, which is a record value and four times the previous maximum ($8 billion in 2018). This is evidenced by data from PitchBook analysts specializing in the study of the investment market. Read more here.

Market volume over $2 trillion

In 2021, the volume of the cryptocurrency market approximately tripled and at some point approached $3 trillion.

Bitcoin, the world's largest cryptocurrency, held 70% of the market at the beginning of the year. By mid-December, that share had declined to less than 40%, in part because of Ether's growing popularity.

The yield on cryptocurrencies significantly exceeded the yield on traditional assets in 2021.

The number of owners of crypto assets reached 295 million people

Visa launched customer consultations on cryptocurrency

On December 8, 2021, it became known that the global payment system Visa began to provide cryptocurrency advice for its clients. More. here

Growing interest in crypto assets from institutional investors. 856 crypto funds work

2021 clearly demonstrated an increase in interest in crypto assets from institutional investors: the Wall Street Journal reports that on the American crypto site Coinbase Global, the volume of trading in institutions amounted to $1.14 trillion, which is almost ten times more than a year earlier - for comparison, the volume of trading in institutions in 2020 did not exceed $120 billion.

Moreover, the volume of trading in institutions at Coinbase Global exceeded the volume of trading in retail investors by more than two times - at the end of 2021, the turnover in retail trade in crypto assets amounted to $535 billion. The rise in professional investors highlights the spread of cryptocurrencies in recent years. Starting in 2018-2019, venture capital funds have invested billions in cryptocurrencies, while frustrated retail investors have moved out of the market during a protracted 'crypto-zima'.

Of course, retail investors are still present in the market, but are no longer its only driving force. It is assumed that every year the number of institutional investors interested in cryptocurrency will grow, as well as the amount of invested funds. Venture funds, hedge funds, registered investment advisers, family offices and so on have entered the cryptocurrency world. The buyer of bitcoin in 2021 was the first state - El Salvador. Also in 2021, the first futures bitcoin ETFs were launched. In Russia, there are officially no institutionals investing in Bitcoin - the lack of regulatory standards affects - however, large financial companies such as Sberbank are showing high interest in cryptocurrencies and blockchain technologies.

The number of investment instruments for cryptocurrencies has more than doubled globally, from 35 to 80 during 2021, according to Bloomberg Intelligence. Assets under management grew to $63 billion at the end of the year, up from Aktivs billion at the beginning of the year. According to a report by the analytical company Crypto Fund Research, this figure is about $69 billion.

At the end of 2021, Grayscale Investments LLC is the largest manager in the field of digital assets, and its Grayscale Bitcoin Trust is rated as the world's largest crypto fund. At the beginning of March 2022, Grayscale manages assets equivalent to more than 33 billion US dollars. Also among the largest funds are Galaxy Digital Holdings and Bitwise Asset Management. In total, according to analysts at Crypto Fund Research, there are 856 crypto funds on the market.

Among the largest corporate holders of bitcoin are Microstrategy and Tesla. At the beginning of March 2022, the analytical platform CoinGecko reports that Microstrategy owns about 121,000 bitcoins, Tesla - 48,000 bitcoins.

In addition to bitcoin, institutional investors are starting to pay attention to ethereum. According to a study by the largest American bank JP Morgan, from mid-2021, institutionals began to invest more often in ETH. One of the factors in the growing popularity of the coin is its dynamic growth, as well as the rapid development of decentralized finance (DeFi) sectors, as well as non-replaceable tokens (NFT).

It is likely that demand from investors would be even higher if physical security funds were allowed to be launched in the United States - regulation of this procedure at this time is considered the most pressing issue in the industry within the United States.

American entrepreneur and star of the show "Shark Tank" Kevin O'Leary in his twitter account notes that many representatives of the US Senate positively assess the possibilities of regulation and want to enable institutional investors to invest in cryptocurrency instruments. According to the expert, with a positive outcome, a colossal inflow of funds into the industry can be expected on the horizon of 2-3 years.

The importance of regulation is also emphasized by representatives of trading platforms and crypto exchanges. Huobi Global also believes that the positive attitude of regulators, as well as the gradual adoption of investment laws, will open the way for even more institutional investors. At the moment, most expect signals from supervisory authorities.

According to experts, this situation is observed not only in the United States, but also in Russia - if the regulation bill is loyal and allows qualified investors to legally invest in cryptocurrency, the market will see a strong inflow of funds and an increase in prices for major coins.

Thailand began to develop cryptotourism

At the end of November 2021, the Tourism Authority of Thailand announced that it was working with the country's regulators and the local cryptocurrency exchange to pave the way for the adoption of digital tokens for travel. According to Governor Yutasak Supasorn, this can help a country dependent on tourism to reimburse part of the income lost due to coronavirus infection in the amount of $80 billion. Read more here.

Twitter opens division to handle cryptocurrencies

A division has been created Twitter - Crypto, which will deal cryptocurrencies with and, NFT possibly, decentralization. social networks This became known in November 2021. More. here

Indonesia: Cryptocurrencies banned for Muslims

Cryptocurrencies are banned for Muslims, the National Religious Council ruled in November 2021. Indonesia

The National Ulema Council, or MUI, has declared cryptocurrency haram, or banned, because it contains elements of uncertainty, gambling and harm.

MUI has authority to comply with sharia norms in the country where the world's largest Muslim population lives, and the Ministry of Finance and the Central Bank consult with it on Islamic finance issues.

New York launched its cryptocurrency

On November 10, 2021 CityCoins mining , the municipal began on the platform. cryptocurrencies New York NYCCoin It will be used to implement city projects and finance various events in the metropolis. Developers will be able to create smart contracts and decentralized applications (dApps) based on NYCCoin. More. here

Banks got the opportunity to issue Mastercard cards with support for cryptocurrencies

In mid-October 2021, Mastercard signed an agreement with the cryptocurrency firm Bakkt, under which all banks and retail outlets in the payment network will be given the opportunity to integrate cryptocurrencies into their products. Read more here.

US Department of Justice creates anti-money laundering group in cryptocurrency

The US Department of Justice has formed a team of investigators to investigate the use of cryptocurrency for criminal purposes. This became known on October 9, 2021.

The group, codenamed NCET, will deal with cases committed by virtual currency exchanges, groups and individuals involved in money laundering.

Members of this team will also investigate services that charge customers to send cryptocurrency to an address and also hide the source of funds. In addition, they will work to track and recover assets lost through fraud or extortion through. programs extortioners

{{quote 'Cryptocurrency exchanges want to be the banks of the future, so we need to make sure that people can trust the systems used and we need to be prepared to stop abuse. The bottom line is consumer protection, "the deputy attorney general told Lisa Monaco. }}

In recent years, there has been an increase in cybercrime, including ransomware attacks, in which attackers target companies from different industries to hold their networks hostage in exchange for payment through cryptocurrency https ^[4]].

BBVA Bank launched global investment accounts in cryptocurrency for everyone

In early September 2021, Swiss bank BBVA launched the New Gen. account system. These are digital investment accounts for stocks and cryptocurrencies that can be available to any investors. Read more here.

Cuba's government allows cryptocurrencies to be used for payments

In August 2021, the government Cubes officially allowed the use of digital currency for payments on the island, guided by "socio-economic interests." The country's central bank announced that it will soon establish new rules for handling cryptocurrency. The most popular digital currency in Cuba has become - bitcoin about 10,000 Cubans use it.

In September 2021, Cuba entered into force resolution 215 of 2021 of the Central Bank of Cuba, which regulates the use of certain virtual assets or cryptocurrencies in commercial operations.

Since cryptocurrency is officially recognized by the Central Bank, now Bitcoin and other cryptocurrencies can be used in the country for commercial transactions and investments.

The resolution also provides for the licensing of virtual asset service providers to conduct financial transactions in Cuba. To this end, the resolution defines as a virtual asset a digital representation of value that can be traded or transmitted digitally and used for payments or investments.

Footballer Messi will receive part of the salary in cryptocurrency

In early August 2021, information appeared that football star Lionel Messi in his new club Paris Saint-Germain (PSG) will receive part of the salary in cryptocurrency. Read more here.

Cryptocurrency capitalization $2 trillion

PayPal launches cryptocurrency wallet

At the end of July 2021, PayPal announced the launch of its own cryptocurrency wallet. We are talking about the creation of the so-called super application, which will support tools for working with high-yield savings accounts, investment services and other services. Read more here.

Sotheby's auction allowed cryptocurrency painting to be paid for the first time

In early May 2021, the auction house Sotheby’s announced that it would begin to accept cryptocurrency as payment at the upcoming auction the paintings of street artist Banksy "Love is in the Air." More. here

Meitu invested $90 million in cryptocurrency

In mid-March 2021, the Hong Kong company Meitu, which develops photo editing software, announced new investments in cryptocurrency. This time, the company acquired 386.08 bitcoins through its Miracle Vision subsidiary for $21.6 million and 16 thousand. Ethereum for $28.4 million. The crypto assets were purchased for cash on the open market as part of transactions completed on March 17. Read more here.

2020

Russia ranked second in the percentage of the population owning cryptocurrency

Russia ranked second in terms of the percentage of the population owning cryptocurrency. Such data at the end of 2020 were provided by analysts of the Triple A payment platform in early October 2021.

It is reported that by the end of 2020 in Russia there were about 17.4 million users of bitcoins and other digital currencies, or about 11.9% of the total number of officially registered people in the country. A higher figure was recorded only in Ukraine - 12.7% (about 5.6 million Ukrainians noticed cryptocurrency).

In third place among the countries with the largest share of citizens using cryptocurrency is located Venezuela with a result of 10.34% (2.9 million people). The top five also included Kenya and. USA

It is noted that in 2020, Ukrainians earned about $400 million from investments in bitcoins, which made Ukrainian investors one of the richest in the world in this indicator. The craze of Ukrainians with bitcoins is not limited to ordinary citizens, it was supported by civil servants of Ukraine. It is alleged that by the end of 2020, bitcoins worth more than $2.6 billion officials in Ukraine, and "the largest number of cryptocurrency owners work in city councils, the Ministry of Defense and the National Police."

From July 2019 to June 2020, Ukraine conducted cryptocurrency transactions with the world in the amount of $8.2 billion and received back cryptocurrencies in the amount of $8 billion.

As for Russia, according to Triple A analysts, cryptocurrency is one of the five most popular investment instruments in Russia with a share of 17%, ahead of gold (16%), as well as shares (10%). Data from the Paxful marketplace indicate that the P2P cryptocurrency trade in Russia in 2020 soared by 350% with an average monthly volume of transactions of $4 million.^[5]

Russians earned $600 million on cryptocurrency in a year. This is the fifth indicator in the world

At the end of 2020, Russians earned $600 million on bitcoins. This is the fifth indicator in the world. Such data in June 2021 led to the analytical company Chainalysis.

The leading country in cryptocurrency income was the United States: American investors raised $4.1 billion. In second place is China ($1.1 billion), in third - Japan ($900 million), in fourth - Great Britain ($800 million).

As part of the study, analysts calculated profits based on information about deposits, withdrawals and Internet traffic on cryptocurrency exchanges. Experts stressed that earnings on digital assets are difficult to calculate due to the decentralized nature of the industry.

As prices rose, Bitcoin holders around the world sold coins to new investors. Analysts suggested that residents of the United States traded cryptocurrency at higher prices.  

Cryptocurrency owners in almost all countries recorded the largest increase by the end of the year. It was then that American investors "broke away from the pack" and most of their profits came from activity on Coinbase, the Chainalysis report said.

According to the researchers, historically the highest volume of transactions with cryptocurrency is recorded in China, but at the end of 2020 it was the US crypto exchanges that received a large inflow of funds. American investors on Bitcoin in 2020 earned three times more Chinese colleagues.

Analysts also note that the development of the economy of a particular country is not always associated with the popularity of cryptocurrencies there. Thus, Vietnam in terms of profit from investments in bitcoins at the end of 2020 took 13th place ($351 million), and in terms of GDP - 53rd ($262 billion). In the first indicator, Vietnam was ahead of such developed states as Australia, Saudi Arabia and Belgium.^[6]

Introduction of 20% tax on cryptocurrency revenues in South Korea

On July 22, 2020, it became known that South Korea is introducing a 20 percent tax on revenues from cryptocurrency trading. This was announced by the country's Finance Minister Hong Nam Ki during a speech in parliament.

According to him, South Korea continues to carry out a reorganization of the tax system in order to comply with changes in market conditions. 2020 will be devoted to determining the list of taxation objects, as well as tax types. For tax purposes, cryptocurrencies were included in the category of "other income."

According to the Cryptotips portal, over the past few years in South Korea there has been an increased interest in cryptocurrencies, including bitcoin and Ethereum, from local investors who want to quickly make money on the volatility of coin rates.

The Ministry of Finance said that the plan to introduce a 20 percent tax on income from cryptocurrency trading has been approved. The innovation will primarily affect those citizens who, using crypto tools, earned over 2.5 million won ($2 thousand) per year. Income below this amount is not subject to taxation. Authorities classified revenues from cryptocurrency trading as other revenues rather than capital gains. Until now, in South Korea, other income included income from lectures, lottery purchases and prizes.

Hong Nam Ki noted that the introduction of a tax on cryptocurrencies will increase tax revenues to the country from foreign firms. Meanwhile, non-residents and foreign companies that trade on South Korea's exchanges will also be forced to pay tax. According to the amendments, local exchanges will be responsible for deducting tax from the profit from the transaction and depositing it into the accounts of Korean customs.

The new rules will come into force on October 1, 2021.

Hong Kong equates cryptocurrencies with precious metals and jewelry

In early March 2020, it became known that Hong Kong decided to equate cryptocurrencies with precious metals and jewelry. Thus, the special administrative region of the PRC tightens the regulation of the cryptocurrency market.

Anti-money Hong Kong laundering (AML) and terrorism financing (CTF) requirements are being strengthened as recommended by the international Financial Action Development Group (money laundering FATF), Finance Minister Paule Chiang said.

Hong Kong is the first jurisdiction in the Asia-Pacific region to successfully pass the FATF assessment. The government will continue to work to boost the AML/CTF regime and is considering including virtual currency service providers and dealers in a regulatory framework covering precious metals, stones and jewellery, he stated.

Hong Kong is considered one of the main jurisdictions in the cryptocurrency industry, as it is here that many crypto companies are located, including exchanges and OTC platforms. The activities of these companies are controlled by the local financial regulator SFC (Hong Kong Securities and Futures Commission). Amid protests in Hong Kong, cryptocurrencies have gained immense popularity as tools to move away from government oversight.

According to the SFC requirement, if an investment fund has 10% or more of digital assets, it needs to obtain a license. And even then, companies will only be able to sell their products to professional investors.

The SFC wants to create a voluntary scheme where exchanges can test their digital assets in what is considered a "temporary regulatory" sandbox, after which they can decide whether they need to obtain a licence^[7]

2019

Switzerland began issuing licenses to cryptocurrency banks

In late August 2019, the Swiss financial market watchdog (FINMA) granted banking and securities trading licenses to two crypto-specific firms - SEBA Crypto and Sygnum. These institutions will be the first cryptocurrency banks with government support. Read more here.

Companies in New Zealand allowed to pay salaries in cryptocurrency

In August 2019, New Zealand became the first country to officially allow companies to pay salaries in cryptocurrency. The innovation will enter into force on September 1, but some organizations have already begun to use it.

The New Zealand Tax Office has legalised digital money and provided detailed guidance on how to regulate the area. In order for cryptocurrency to be used for remuneration, it must be tied to at least one fiat currency, be able to freely convert to the standard form of payment, and payments must be made in the form of regular fixed amounts, the Financial Times reports.

Currently, cryptocurrencies are not directly accepted to pay for goods or services. Therefore, crypto assets that are not available for direct conversion into fiat on the exchange cannot be considered wages, since they do not have sufficient monetary characteristics, the Tax Department said in August 2019.

Only full-time employees of companies will be able to receive salaries in bitcoins and other cryptocurrencies. This innovation will not apply to the self-employed. In addition, it will not lead to an increase in the tax burden on business, the New Zealand authorities said.

The resolution also provides an example of calculating taxes for employees who receive a salary in bitcoin. If the employee's salary is NZ $10,000, then half of the amount will be credited to his bank account, and half - to the cryptocurrency wallet. The tax will be calculated from NZ $10,000.

The resolution also provides an example of calculating taxes for employees who receive a salary in bitcoin. If the employee's salary is NZ $10,000, then half of the amount will be credited to his bank account, and the rest - to the cryptocurrency wallet.

Despite the fact that the salary in digital currency will correspond to a fixed amount, this will not protect the employee from fluctuations in crypto assets in price. Experts advise to cash out such payments immediately after receipt.

Back in 2017, the New Zealand Financial Conduct Authority equated cryptocurrencies with securities.^[8]

Bitfury fund investors will be able to invest in cryptocurrency mining facilities

April 24, 2019 Bitfury Group announced the creation of a regulated fund, mining thanks to which investors will be able to invest in facilities for production. - cryptocurrencies Blockchain the company launched this project together with the Swiss investment firm Final Frontier. More. here

2018

Lifting ban on Facebook and Google cryptocurrency ads

In September 2018, it became known about the lifting of Google's ban on advertising cryptocurrencies after Facebook. On this news, the rate increased by more than 10%. Read more here.

Ethereum creator Vitalik Buterin predicts crypto puzzle bursting

On July 31, 2018, the creator of the Ethereum blockchain ecosystem, Vitalik Buterin, expressed his opinion on Twitter about the current state of the cryptocurrency market, responding to a tweet that indicates a drop in web traffic on the Coinbase exchange that has occurred since the beginning of 2018. Read more here.

Bitcoin collapse destroyed 800 cryptocurrencies

In early July 2018, it became known that the value of more than 800 cryptocurrencies fell to almost zero, partly due to the fall in the exchange rate of the most popular cryptocurrency - bitcoin.

According to CNBC, citing experts, the cryptocurrency market is being optimized. The collapse of so many cryptocurrencies in a short time is caused by the fact that some of the failed projects were fraudulent, others had honest intentions, but they did not achieve their goals and did not fulfill the promises made to investors. In addition, competition is growing from new projects for the primary placement of cryptomonets (ICO). Obviously, older coins that were ineffective are now considered "dead" or "dying" and are currently trading below 1 cent, the channel notes.

At the end of 2017, the cost of bitcoin soared to $20 thousand to the great delight of cryptocurrency owners. Industry experts predicted further cryptocurrency growth to $50,000 by the end of 2018. However, since the beginning of the year, the rate has decreased by 70% compared to its record price.

According to the Cryptodisrupt website in early July 2018, over the previous 1.5 years, a huge number of new cryptocurrencies and ICO projects have appeared. Experts compare the current situation with the collapse of the dot-com market in 2000.

CoinSchedule - a website that monitors the market situation and the progress of new ICO projects - reports that the value of ICO in 2017 reached $3.8 billion. Although 2018 is not over yet, the results have already surpassed last year's figures and $11.9 billion is measured by early July.

Although experts compare the sharp fall of Nasdaq at the turn of the millennium with the current situation in the cryptocurrency market, a critical mark has not yet been reached. The fact that the ICO market has raised 300% more funds this year compared to the whole of 2017 confirms that the market situation is favorable.

Despite the pressure placed on the cryptocurrency industry and the ICO market by regulators, the competitive nature of the market means that new ICO projects have a good chance of implementation and prospects for investors and the industry as a whole.^[9]

Scotland opens first centre to treat 'cryptocurrency addiction'

In May 2018, she opened a course of treatment for "crypto-dependent" in the Scottish county hospital of Scottish Borders. According to Sky News^[10], this practice of treating addiction to gaming on cryptocurrency exchanges was developed for the first time^[11]

Scotland's Castle Craig Clinic, one of Europe's leading rehabilitation facilities specialising in treatment for harmful addictions such as alcoholism, drug addiction and gambling addiction, has announced the start of admissions for patients with an addiction to online cryptocurrency trading.

As explained in the clinic, addiction to trading bitcoins and other cryptocurrencies refers to behavioral addictions, the same as gambling and an insurmountable attraction to online trading on the stock market.

According to the channel, the same methods that are used to get rid of gambling addiction are used for treatment. The Qasl Craig Hospital also implemented programs for the rehabilitation of alcohol and drug addicts. Experts estimate that "crypto-dependence" has similar symptoms to gambling attachment. "High risk, sharp fluctuations in the cryptocurrency exchange rate are all similar to what casino players experience," said hospital attending physician Chris Burn, citing the well-known cryptocurrency bitcoin, whose course has experienced several significant ups and downs over the past year.

In his opinion, with the help of a game on a crypto exchange, "people are trying to escape from reality."

In the first stage of treatment, patients go to group therapy, where they share stories from their lives with each other. This helps them understand that their problem is not unique, and they are not alone, "said Bern.

One of the psychologists at the clinic is Tony Martini, who in the past himself defeated his addiction to cocaine and gambling.

I myself went through all this and my experience gives me an understanding of how to better help those who experience similar problems, "he said, noting that the key aspect of treatment is to show all the diversity and versatility of the real world, to demonstrate that there are much more pleasant and useful ways of self-realization and leisure.

Known psychological programs and techniques are offered to treat the problem at Castle Craig, including "12 Steps," cognitive behavioral therapy, trauma therapy, hippotherapy (rehabilitation through curative horse riding) and others.^[12]

The addiction to trading cryptocurrencies is formed due to constant price fluctuations in the market. A bargain to buy or sell virtual money gives the trader a buoyant cheer. This excites the blood, but at the same time leads to addiction, the same as occurs in gambling lovers. Also, like gambling, such an addiction can have catastrophic financial consequences, experts warn.

We consider this a kind of gambling game, but the addiction to cryptocurrency trading is even stronger due to the high excitement that arises in players. Spending around the clock watching cryptocurrency jumps, addicted people run away from reality and strive to continue their occupation for as long as possible. At the same time, they do not like the feeling of victory with a good deal, but the process itself. People are ready to repeat transactions again and again. It tickles their nerves. There are those who "sit down" to trade in ordinary currencies, such as the dollar or the pound, but in this case the dependence is not as strong as with cryptocurrency, because there are no such sharp jumps in rates, - said Chris Burn.[13]

Law on countering money laundering with cryptocurrencies to come into force in Israel

From June 1 Israel , the first law will come into force, regulating the activities of financial service providers and defining measures to counter money laundering using cryptocurrencies.

Since the law came into force, brokers, banks, cryptocurrency exchanges and all operators that provide access to digital assets will be required to comply with AML/KYC norms and report suspicious cryptocurrency transactions of their customers, including using monero and zcash, ForkLog reports^[14].

The draft also states that service providers are required to keep documentation for at least five years, which includes digital wallet addresses, IP addresses and the number of each specific cryptocurrency.

Previously, many Israeli banks refused to accept money received from cryptocurrency transactions, arguing that there was no relevant legislation.

Thailand bans cryptocurrency transactions

The Thai government has banned local financial companies from conducting transactions with digital currencies, Rosbalt reported in February 2018^[15].

Now the country's banks do not have the right to trade such assets and even issue loans to customers if their goal is to acquire cryptocurrency. The country's authorities, as well as their colleagues from other countries, cite the fact that digital money carries great risks, in particular in the field of financing terrorism and laundering funds obtained by crime.

Cryptocurrency exchange tax in South Korea

In January 2018 South Korea , the introduced an exchange tax, cryptocurrencies continuing to tighten measures to regulate a fast-growing but unstable market. The tax rate exceeds 24%.

South Korea's South Korean government approved a 22 percent corporate tax and 2.2 percent as local income tax on cryptocurrency exchange operations, news outlet Yonhap reported. The innovation concerns exchanges with annual profits of more than 20 billion won ($18.8 million).

According to analysts at Yujin Investment & Securities, in 2017, the revenues of the country's largest cryptocurrency exchange Bithumb reached 317.6 billion won, so that, taking into account tax innovations, it will have to pay about 60 billion won ($56 million).

The introduction of a tax on cryptocurrency exchange became known after the completion of an unprecedented investigation into the fight against  money washing in six large South Korean banks, which showed a 36-fold increase in commission virtual accounts related to crypto operations - from 61 million won ($57 thousand) in 2016 to 2.2 billion ($2 million) in 2017.

Yonhap, citing an unnamed official, writes that the government intends to oblige crypto exchanges to transfer transaction data to banks, which will further increase tax collection.  

 The Financial Services Commission of South Korea (FSC - financial regulator) said that the possibility of blocking all cryptocurrency exchange transactions or at least those transactions that violate the law is still being considered.

Despite a number of restrictive measures introduced by South Korea (one of the world's three largest markets for cryptocurrency transactions) in 2018, the bitcoin rate stopped fluctuating greatly in the early second half of January, stopping at $11,500 .^[16]

South Korea bans anonymous cryptocurrency transactions

On January 23, 2018, South Korea announced a ban on anonymous cryptocurrency transactions to reduce the number of financial crimes.

The legislative innovation, which will come into force on January 30, 2018, assumes that all owners of anonymous virtual wallets will have to link them to their bank accounts.

It is not allowed to make deposits in their wallets with cryptocurrencies if the name of the bank account holder does not match the name of the cryptocurrency exchange account, said   Kim Yong-beom, deputy chairman of the Financial Services Commission of South Korea (FSC) at a press conference in Seoul.

No one, including the government, guarantees the value of cryptocurrencies. Given the high volatility characteristic of cryptocurrencies, please be careful when making decisions about investments in them, he said.

Experts call South Korea the third largest market in the world for transactions with bitcoin and other cryptocurrencies. This status means that Seoul's decision to ban anonymous cryptocurrency trading could lead to sharp fluctuations in its value in the market.

It is noted that this decision was made in connection with the desire of the country's leadership to stop the use of virtual currencies for illegal activities, primarily for money laundering. Six South Korean banks will be connected to the registration system of the genuine name.

In addition, the South Korean authorities have banned the opening of virtual wallets to minors and foreigners.

In early January 2018, it became known that the South Korean authorities began to develop a bill prohibiting the trading of cryptocurrencies on special exchanges. Prior to that, last September, South Korea's Financial Services Commission banned all primary token placements (ICOs) in the country.^[17]

Brazil bans investing in cryptocurrency

Financial the authorities Brazil have notified the country's investment funds about the ban on placing funds in cryptocurrencies, Bits.media reports^[18]

The ban will apply at least until the local regulator - the Brazilian Securities and Exchange Commission (CVM) - develops a procedure for regulating digital currencies.

"Cryptocurrencies cannot be considered financial assets controlled by the financial regulator CVM, so direct investment in assets such as bitcoin is prohibited for investment funds," the Commission's circular says.

Many public hearings have already been held on this occasion, but officials did not come to a consensus and could not finally agree on the details.

The emergence of malicious cryptocurrency applications

In the Apple App Store, Google Play and other online stores, you can easily find malicious cryptocurrency applications with which hackers steal money and personal data of people. This is evidenced by the data of the information security company RiskIQ, published on January 24, 2018.

Experts analyzed more than 18 thousand applications in order to find among them potentially dangerous and blacklisted information security specialists. A study on the pages of 20 online stores, including popular ones such as the App Store and Google Play, found 661 cryptocurrency applications that pose a threat. Most of all - 272 - met on Google Play. Another 54 were available for download on the ApkFiles site, and 52 on the 9Apps app store.

2017

Cryptocurrency capitalization exceeded Buffett's company value

On December 13, 2017, the total market capitalization of all world cryptocurrencies for the first time in history exceeded half a trillion. dollars USA

On December 12, 2017, exchange rates of cryptocurrencies ether and lightcoin (Ethereum and Litecoin) updated records, and the next day, December 13, at about 15:40 Moscow time, the market value of all digital currencies reached $506 billion, reports CNBC with reference to the portal data Coinmarketcap.com.

The result was obtained by multiplying the price of cryptocurrencies by the total amount of digital tokens in circulation, the agency explained.

Investors are showing unprecedented interest in cryptocurrencies, and as of December 13, 2017, all digital money was ahead of Warren Buffett's investment company Berkshire Hathaway, whose market capitalization is estimated at $491 billion.

In addition, all cryptocurrency is now more expensive than the Americanbanks Citigroup Wells Fargo combined (the cost of each on the 13.12.2017 was $201 billion and $297 billion).

Charles Hayter, chief executive and founder of Crypto Compare, a cryptocurrency analytics service, expressed concern about the situation in an emailed comment to CNBC:

We are entering unexplored territory, with huge risks, both in terms of regulation and technology. There is a clear analogy with the internet bubble. Our servers struggle to cope with the load that over 1 million users generate daily. The cryptocurrency market is largely ruled by fear and greed, but if we abstract from this, then in the virtual world the concept of value is now being reassessed and new mechanisms for determining the exchange rate are being introduced.[19]

Review of cryptocurrency regulation in countries around the world

In the world for 2017, bitcoin and other cryptocurrencies are completely banned in three countries: Iceland, Ecuador and Bolivia. The reason: the problem of preserving capital and controlling its movement. ^[20]

The most advanced countries in the regulation of cryptocurrency in the world:

USA 1..

In the United States, cryptocurrency is usually interpreted as a commodity, but the lack of VAT does not imply big problems for miners and those who use cryptocurrency.

In 2016, one of the US courts decided to recognize cryptocurrency as a means of payment, when using which, in order to legalize criminal income, there are appropriate legal consequences. New York State introduced a special license regulating certain activities (mining and exchange) - New York Bitlicense.

Vermont is developing a bill in which smart contracts will receive legal force.

2. European Union.

The EU regards cryptocurrency primarily as a means of payment, which does not allow it to be taxed, which is welcomed by startup companies, in particular mining companies.

In its approach, the EU authorities adhere to the following principles:

• objectively consider all the possibilities of cryptocurrency;
• evaluate business models working with cryptocurrency;
• market monitoring and analysis.

These criteria are used to further determine who and how to regulate, reduce the risks of illegal use of cryptocurrency.

2.1. Germany.

Cryptocurrency received the status of "private money," that is, the rules of fiat currencies apply to it, but there is no regulation at the interstate level.

2.2. Spain.

The main definition of cryptocurrency is a means of payment, in accordance with the will of the EU. However, the Spanish authorities obliged mining companies and miners to register as individual entrepreneurs, as well as pay tax for making profits from the production (mining) of cryptocurrency.

3. China.

• individuals are fully allowed all operations with cryptocurrency;
• legal entities, first of all - banks, operations with cryptocurrency are completely prohibited.

4. Canada.

The Canadian authorities have established a number of criteria that cryptocurrency must meet as a means of payment, including:

• must be used as a means of payment;
• shall be subject to exchange;
• must be a means of saving, etc.

5. Australia, Israel, Scandinavian countries. Cryptocurrency received the status of a tangible asset capable of being taxed.

6. Russia.

In Russia, cryptocurrency regulation is fragmentary and not systematic:

• In 2014, the Central Bank of the Russian Federation published an information letter prohibiting banks from having any relationship with bitcoin business. As a basis, the arguments are given: Bitcoin is a money surrogate (prohibited in the Russian Federation), as well as the statement that cryptocurrency can be used in laundering money obtained by criminal means.
• Rosfinmonitoring confirmed the conclusions of the Central Bank of the Russian Federation.
• MingFin bills with administrative and criminal liability for actions with cryptocurrency.
• deputy bills involving administrative punishment for any actions with cryptocurrency.
• 2016 (October) - a letter from the Federal Tax Service of the Russian Federation (which can be considered as the official position of the state): operations with cryptocurrency are not prohibited; cryptocurrency transactions are similar to foreign exchange transactions, so they will be considered by the Federal Tax Service as foreign exchange transactions. Conclusion: The Federal Tax Service looks at cryptocurrency as an object with which to make transactions; but without the claim that cryptocurrency can be used as a means of payment.

Scenarios for the development of cryptocurrency regulation

• Pessimistic: the legislator will ban the use of cryptocurrency and impose liability. Business, as after the letter of the Central Bank of the Russian Federation, will try to withdraw its assets from the country.
• The likely option: there will be no clear position of the state on this issue, consideration of the issue will be postponed. Wait-and-see attitude.
• Optimistic scenario: Cryptocurrency will be recognized as legal tender. The state will consider all points of view, hear business, take into account world practice, analyze them.

World Cryptocurrency Distribution Map

China:

• mainly - exchange transactions;
• the popularity of cryptocurrencies is associated with the stock crisis of 2015-2016;
• renminbi depreciation;
• the ability to withdraw funds due to excessive state control over the movement of capital.

UNITED STATES:

• investments;
• purchases in stores (offline and online), web services;
• gambling.

Germany:

• mainly investments and savings;
• payment of goods in cryptocurrency.

Canada:

• thousands of merchants accepting payments in cryptocurrencies;
• users receive bonuses when paying for goods and services with bitcoin;
• 5 out of 6 people prefer to pay with contactless payment methods when possible (growing trend).

Philippines:

• one of the best platforms in Asia (coins.ph);
• money transfers, payment of goods\invoices, etc.

The total damage from targeted hacker attacks on the crypto industry exceeded $168 million

According to the results of the Hi-Tech Crime Trends 2017 annual report published by Group-IB on October 10, 2017, the total damage from targeted hacker attacks on the crypto industry exceeded $168 million, and income from attacks on crypto exchanges ranges from $1.5 (Bitcurex) to $72 million (Bitfinex), while as a result of a successful attack on the bank, criminals on average earn only $1.5 million. In addition to higher returns, hackers are attracted to anonymity, which is one of the basic principles of the cryptocurrency industry.

According to experts, banks, power plants, crypto exchanges are the most likely targets of hackers in 2018. Cryptocurrencies and related services are a dynamic and highly profitable market, Group-IB said. With this speed of development and the flow of money, security issues often become secondary to blockchain startups, which is what hackers use. At the same time, attackers use a wide range of already known techniques - from banal phishing and intercepting control over domains to vulnerabilities in source codes and targeted attacks in order to gain access to the company's local network.

Hacks of cryptocurrency exchanges are carried out according to the same scheme as targeted attacks on banks. For example, attackers receive SIM cards using fake documents to recover passwords and gain control over an account in cryptocurrency services.

According to Group-IB, hackers were able to automate phishing for banks and payment systems, phishing now occurs without the direct participation of a cybercriminal in every theft. More than 900 bank customers become victims of financial phishing in Russia every day. On average, 10-15% of visitors to phishing sites fall for the trick of criminals and enter their data.

As the study showed, out of 22 new malware for embezzlement of funds, 20 (91%) are created and managed by people who speak Russian. Damage from Trojans for Android in Russia increased by 136% and blocked damage from Trojans for personal computers by 30%.

According to Dmitry Volkov, head of the investigation department and cyber intelligence service Threat Intelligence, co-founder of Group-IB, the number of threats to cryptocurrency and blockchain projects recorded by the Threat Intelligence system took off along with the bitcoin exchange rate. Vulnerabilities in the source code of smart contracts are successfully exploited. Received access to secret wallets of crypto exchanges. There were leaks of user databases, hijacking of domain names. Owners of botnets track the circulation of infected devices to web and mobile applications of wallets, exchanges, funds. The creation and promotion of phishing clone sites to intercept access to client accounts is already on stream.

According to Chainalysis, hackers managed to steal 10% of all funds invested in ICO projects in Ethereum in 2017. The total damage in dollar terms amounted to $225 million, 30 thousand investors lost an average of $7,500.

We observed a similar scope at the dawn of the development of online banking - after all, hackers always follow the money, Volkov added. - The fact that attackers are "reconfiguring" popular banking Trojans such as TrickBot, Vawtrak, Qadars, Tinba, Marcher to collect cryptocurrency user logins and passwords suggests that they have found a new niche for themselves, and in the near future we can expect a decrease in their activity in the traditional banking sector.

According to Dmitry Volkov, increased interest in the cryptocurrency industry will lead to the fact that more and more attacks will be carried out not only by financially motivated hackers, but also by groups sponsored by states that will try to use this financial instrument both to obtain additional income and for general monitoring of the situation in the cryptocurrency market.

According to experts, the main danger for banks will not be money theft, but the destruction of their IT infrastructure as the final stage of a targeted hacker attack. If earlier only cybercriminals attempted on banks, now these are increasingly pro-state hackers. By destroying the IT infrastructure, cybercriminals are trying to cover their tracks, and state hackers are trying to maximize the damage to the bank and stop banking operations. In both cases, the damage to the bank can be even greater than from embezzlement of money.

One of the possible scenarios of sabotage, experts believe, may be trading on exchanges on behalf of the bank in order to influence exchange rates. This can lead to the launch of avalanche-like operations carried out by trading robots after sharp fluctuations in exchange rates.

New Zealand equates cryptocurrency to securities

The corresponding decision was made in October 2017 by the Financial Conduct Authority (FMA) of the country^[21].

The department noted that all operations carried out using cryptomonets and tokens fall under the regulation of this legislation. This means that all enterprises, companies or individuals offering services for the exchange of cryptocurrencies, the creation and maintenance of cryptocurrency wallets and providing brokerage services fall under the law on securities. Therefore, all participants in this market must register in the unified Register of Financial Services Providers of New Zealand, as well as in the National Financial Dispute Resolution Service (FDRS).

The authorities have not yet decided on the regulation of the ICO procedure. At the same time, the department recommends that projects planning to issue tokens contact the regulator. The regulator intends to conduct an individual analysis of each appeal and, based on a risk assessment, issue a permit for the procedure or impose a "veto" in order to protect investors.

Vietnam bans cryptocurrency

The Socialist Republic of Vietnam does not recognize cryptocurrency. From January 1, 2018, the circulation of cryptocurrency as a means of payment in the country will be prohibited^[22]. The corresponding amendments to the document were made by the Central Bank of Vietnam and supported by the Government of^[23].

Since 2018, citizens and financial organizations of the republic will not be able to use digital currency as a means of payments and transfers. And the operations themselves will be equated with fraudulent actions and money laundering. For non-compliance with the law, penalties of $9,000 will be applied to violators.

Bank cards, checks, collection and payment orders and others are still recognized as legal payment and transfer systems in the country. But operations with mining have not yet been banned in the country.

Japan legalized cryptocurrencies

The authorities Japan in April 2017 passed a virtual currency law, according to IEEE^[24] Currencies^[25]Thanks to the new law, cryptocurrencies Bitcoin and are now legalized in the country. Ethereum Thanks to this, this virtual money in Japan can be used for mutual settlements. At the same time, despite the adoption of the law, cryptocurrencies in Japan did not become legal tender^[26]

In most countries of the world, cryptocurrencies are not recognized as legal means of payment, which can be used to buy goods and services and mutual settlements, and also cannot be part of the currency exchange system. At the same time, there is no legislation that firmly prohibits the use of cryptocurrencies as means of payment.

Such an ambiguous status led to the circulation of cryptocurrencies in the "shadow" - semi-legal financial offices appeared, providing services for the exchange of cryptocurrency for legal currency and making payments with conversion when buying goods or services. Some such firms are also registered in Japan.

Thanks to the adopted law, Japanese firms whose internal rules allow working with cryptocurrency can now use Bitcoin and Ethtereum for mutual settlements with each other. In addition, companies and individuals can buy this virtual money as a commodity that is not subject to a mandatory eight percent consumer tax.

Japan's consumer tax is a kind of value-added tax analogue. In Japan, consumer tax is paid on the purchase of most goods and services and is a tool for balancing the state budget. For example, to counter the financial crisis and support low-income families, the tax was raised from five to eight percent in 2014.

Meanwhile, despite the adoption of the law on virtual currencies, Bitcoin and Ethereum, indicated in it, did not become legal tender in Japan. This means that companies and individuals cannot use this currency to directly purchase goods and services. Instead, they are obliged to resort to the services of registered exchange points.

In order to obtain the status of a registered cryptocurrency exchange point, a company in Japan, according to the new law, must have a authorized capital of at least ten million yen (88.2 thousand dollars) and a secure computer system for conducting financial transactions. In addition, such an organization is obliged to undergo an audit every year.

2016: Four major banks plan to create new digital currency

The Swiss bank UBS , with the support of the ​ispanskogo Bank, Santander German, Deutsche Bank the American Bank of New York Mellon Corporation and British broker ICAP, intends to issue a new digital currency based on blockchain technology (), blockchain which is used in settlements in bitcoins, reports Four Financial Times^[27]

In 2017, the project participants intend to obtain all the necessary permits from central banks and other financial market regulators, and in 2018 to begin commercial use of the new digital currency.

"Today, settlements between banks and financial institutions are complex, time-consuming and costly, which is why we all have large back offices. It's about streamlining and making the process more efficient, "Julio Faura, who is in charge of research and development at Santander, explained to the publication

.

2013: Vitalik Buterin launches Ethereum

In 2013, the development of blockchain technologies was seriously pushed by a programmer of Russian origin Vitalik Buterin.

He realized that, in addition to monetary transactions, information about absolutely any events can be recorded in the program code: from legal documents to personal data.

So appeared Ethereum - - blockchain platform. Buterin, like Nakamoto, introduced its own currency, the platform name of the same name. At the end of 2015, Ethereum issued * in the amount of $18.5 million.

2008: Satoshi Nakamoto publishes an article describing the algorithm for the operation of the "electronic currency"

Bitcoin appeared at the end of 2008, when the programmer Satoshi Nakamoto has ^[28] published an article on the Internet describing the algorithm for the operation of the "electronic currency."

Notes