Cryptocurrencies

Millennial and Male: 3 Crypto Card Issuers Profile Their Average User

24/01/2020 by Idelto Editor

Platforms offering debit cards that can be topped up with cryptocurrency have enjoyed growing popularity in the crypto community. They provide a payment solution for those who earn and own digital coins, enabling in-store and online crypto payments. Their expanding user base provides a snapshot of the kind of people who spend crypto on a daily basis and what they like to buy.

Also read: Crypto Debit Card Targets Generation Z With a Promise of Financial Freedom

Highly Educated, Overachieving Foodies

Three European companies with crypto card products shared what they know about their users with news.Bitcoin.com. Madrid-based fintech startup 2gether provides banking services to residents of the Eurozone through its mobile app. The company issues a debit Visa linked to its wallet which supports about a dozen cryptocurrencies. Major ones such as BTC, BCH, ETH, and XRP account for over 90% of the platform’s crypto payments. Its customers can spend them like they would traditional currencies and also withdraw cash at ATMs through conversion to fiat. 2gether recently released statistical data profiling its crypto card users and their spending habits.

The debit card allows holders to pay with cryptos and euros, which 37% and 63% do respectively. The everyday crypto user is a highly educated millennial male, shows the analysis of the spending behavior of more than 10,000 customers. The majority of cryptocurrency spenders, 56%, are between 26 and 45 years old and 77% of them are male. The most common professions among them are lawyers, accountants, and economists (15.64%), followed by students (11.20%), operators and transporters (9.82%), and senior executives and businessmen (8.82%), the company detailed this week.

The study covers a period from April to December 2019 and 19 Eurozone countries where the crypto card is available. It’s mostly used at restaurants and hotels (32.71%), supermarkets and grocery stores (19.13%), and to pay communication bills (11.91%) and transport expenses (11.85%). On average, users spend €112.56 worth of cryptocurrency monthly and €132.65 in fiat. “In comparison with European consumption habits based on euros, the consumption at restaurants and on food receives fourth place in the ranking, with house supplies being the first expense,” 2gether noted, quoting information from Eurostat. CEO Ramon Ferraz further commented:

It is extremely beneficial for us at 2gether to know exactly who our customer is and how they change every year. Our goal is to enable the mass adoption of cryptocurrency and enable users to spend crypto in their everyday life. This data we’ve compiled takes us one step closer to making our goal a reality in 2020.

Bitsa is another European platform striving to provide an alternative to traditional banking. It offers prepaid Visa cards linked to a mobile wallet that can be topped up with cryptocurrencies like bitcoin cash among other payment options. BCH, BTC, LTC, DASH, XLM, XRP, and ZEC can be deposited and converted to euros to spend the balance in stores and online. The Bitsa cards come in virtual and plastic forms and there’s also a product targeting Europe’s Generation Z, Bitsa Young, which allows parents to order a card for their children and provide them with some financial freedom thanks to crypto.

Although it issues its cards through the same partner, the Spanish regulated electronic money institution Pecunpay, Bitsa takes a different approach. The Monaco-based company tracks less card usage data and isn’t very keen on revealing what it knows for a good reason. “We don’t have it because it’s private and we take the privacy of our users very seriously,” CMO Roberta Quintiliano explained. Nevertheless, she was kind enough to pull the curtain a little bit for news.Bitcoin.com and share that the majority of Bitsa users, 74.5%, are aged between 25 and 44 years old and 75.8% are male. The majority of Bitsa card holders are people interested in technologies and mobile applications, she added.

Groceries, Fast Food, Coffee and Travel

A report on crypto card usage in Europe wouldn’t be complete without taking a look at the numbers gathered by a major player. U.K.-based Wirex has over 3 million registered users across 130 countries and has processed more than $3 billion in transactions to date. The platform allows users to spend leading cryptocurrencies such as BTC, LTC, ETH, and XRP among 10 digital coins.

Around 60% of Wirex Visa card users are millennials, aged between 18 and 37, and approximately 39% are members of Generation X, between the ages of 38 and 53 years old, revealed Amelie Arras who is responsible for PR and media communications. An analysis conducted by Wirex in 2018 showed that people choose its platform for the convenience and versatility it offers and because it allows them to pay with either regular fiat currencies or cryptocurrencies.

The service lets crypto enthusiasts exchange their digital currency in-app and spend it anywhere Visa is accepted. Arras also emphasized that “This is reflected in how people use Wirex. It’s particularly suited to those who frequently travel and who therefore want a single place to manage multiple currencies and get the best market rates when exchanging them.” Grocery stores, fast food outlets, coffee shops and travel are at the top of the spending charts for Wirex cards, with a split of roughly 25% online and 75% in-store. Around 80% of account deposits are made in cryptocurrency.

The latest 2019 data available shows that 25% of all currency transactions, fiat and crypto, were recorded in the United Kingdom, followed by Italy with 13%, Spain and Germany with close to 10%, then France with 7%. Around 21% of all crypto to fiat exchanges were made in the U.K., followed by Italy with 14%, Spain and Germany with 10%, and France with 8%. At Wirex, BTC is the most traded coin, representing close to 70% of all crypto conversions, and almost 50% of all currencies, followed by the euro with 20% of all exchanges, then the British pound and ethereum – below 10%. The top five currencies frequently spent by Wirex users, historically and in 2019, are BTC, EUR, GBP, ETH and USD.

What are your thoughts on the data provided by these crypto card issuers? Do you use a debit card that can be topped up with cryptocurrency? Tell us in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images courtesy of Shutterstock, 2gether.

Do you need a reliable bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy bitcoin with a credit card.

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Uzbekistan Prepares Crypto Tax Exemptions, Launches Licensed Exchange

22/01/2020 by Idelto Editor

A new presidential decree in Uzbekistan envisages the introduction of tax exemptions for income obtained from operations involving crypto assets. The draft document published recently also incorporates proposals for the establishment of a blockchain valley and licensing regime for cryptocurrency miners. The country has just launched its first licensed crypto exchange.

Also read: Uzbekistan to Create National Mining Pool, Launch Licensed Exchange

Tax Free Crypto Operations

The Central Asian Republic of Uzbekistan legalized cryptocurrency trading and introduced licensing for crypto exchanges with a decree signed by President Shavkat Mirziyoyev in the fall of 2018. An earlier decree issued by the head of state in the summer of that year laid the legal grounds for other related activities in order to develop the country’s digital economy.

Uzbekistan now prepares to exempt income obtained in cryptocurrency operations from taxation. A draft-decree containing provisions to that effect has been published last week for public discussion. Furthermore, Presidential Decree ID-12538 “On the measures for further development of the circulation of crypto assets in the Republic of Uzbekistan,” excludes crypto transactions from the scope of the nation’s foreign currency regulations. The draft document details:

Operations of legal entities and individuals related to the circulation of crypto assets, including those carried out by non-residents, are not objects of taxation, and income received from these operations is not included in the tax base for taxes and other obligatory payments.

Earlier this month, the National Agency for Project Management (NAPM), a regulatory body responsible for the oversight of the digital economy including the crypto sector, announced its plans for 2020. One of the key priorities of the agency working under the presidency is to establish a “national mining pool” for all private miners who will enjoy preferential electricity rates. Also, all industrial-scale mining operations, according to the latest decree, will be subject to licensing starting from Feb. 1.

The government in Tashkent also intends to create a regulatory sandbox for testing crypto technologies called Uzbekistan Blockchain Valley. Authorities want to allow entities involved in the development of new financial products and services to implement them and conduct experiments without violating applicable laws. The proposals for the establishment of the pool and the sandbox came from NAPM, the Central Bank of Uzbekistan, the Ministry of Development of Information Technologies and Communications, and the Ministry of Energy.

Licensed Crypto Exchange Launched

Uznex, Uzbekistan’s new digital asset trading platform, is operated by the Korean company Kobea Group. Its launch was announced Monday, Jan. 20 during an opening ceremony in Tashkent where the Korean Cultural Center hosted an international blockchain conference. The event gathered representatives of crypto companies from South Korea, Japan, and Singapore as well as officials from Uzbekistan’s ministries and government agencies, the country’s national information agency Uza reported. Kobea Group also opened its first office in the region.

According to another report, by the local edition of Sputnik, Uzbekistan citizens will be allowed only to sell cryptocurrencies on Uznex.com, while foreign entities and nationals residing in the country will have full access to its services within the framework of the country’s legislation. For the time being, Uznex is the only cryptocurrency exchange operating legally in Uzbekistan and possibly in the whole region.

The platform is now online and offers several trading pairs against bitcoin core (BTC) and the stablecoin tether (USDT). These include bitcoin cash (BCH) and ethereum (ETH). According to the announcement quoted by local media, Uznex should support several fiat options such as Uzbekistan’s national currency, the som (UZS), U.S. dollar (USD), and credit cards. However, the fiat payment and withdrawal methods are not currently available on the Uznex website, which is still in beta.

The exchange will also serve global users in the future who want to invest in digital financial assets, make international transfers or need access to credit. The Korean operator intends to play an active role in Uzbekistan’s socio-economic life. Its plans include the establishment of blockchain departments in the country’s leading universities.

Do you expect Uzbekistan to become a regional leader in the crypto space? Tell us what you think in the comments section below.

Images courtesy of Shutterstock, Uza.

You can now purchase bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH directly from our trusted seller and, if you need a bitcoin wallet to securely store it, you can download one from us here.

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How Is Bitcoin Cash Different From Bitcoin Core?

20/01/2020 by Idelto Editor

The crypto space can be hard to break into for those unfamiliar with the jargon, lingo, and foundational knowledge taken for granted by the already initiated. Adding to this difficulty is the fact that there are several different cryptos which bear the name “Bitcoin.” Convoluted as this all may seem, the differences are pretty easy to understand. This article seeks to explain in simple terms the difference between two of the most popular cryptocurrencies: Bitcoin Cash (BCH) and Bitcoin Core (BTC).

Also Read: An In-Depth Look at the Multi-Currency Cold Storage Card Ballet

Bitcoin’s Genesis

Just before the first version of Bitcoin launched in 2009, Satoshi Nakamoto described his creation in the Bitcoin whitepaper, or foundational document, as “A purely peer-to-peer version of electronic cash,” which “would allow online payments to be sent directly from one party to another without going through a financial institution.” The ticker symbol for this currency was eventually set as BTC.

Over the years, however, as disagreements among community members and developers about scaling grew, it became clear that differences were irreconcilable, and that a split in the bitcoin community via a fork in the protocol would occur.

The Bitcoin Cash Hard Fork

One group wished to increase the block size significantly to allow for faster processing of transactions, elimination of high transaction fees, and greater ease-of-use as cash for everyday spending and payments. The other group argued that such high fees were necessary and even desirable, and that extremely slow transaction speeds were a tradeoff for a more secure network. Arguments have been made in favor of both sides regarding the issue of security and centralization, as this Twitter thread demonstrates.

On August 1, 2017, Bitcoin Cash (BCH) split from Bitcoin Core (BTC) via a hard fork, and the former now features 32MB blocks, whereas BTC has a theoretical capacity for a max “block weight” of 4MB via a controversial solution known as Segwit. Popular bitcoin core narratives have since evolved saying BTC is like “digital gold” that should not be spent, but only held and saved. This presents a clear problem where Satoshi Nakamoto’s vision was specifically for a “purely peer-to-peer version of electronic cash.”

Onchain Scaling vs. Second Layer Solutions

Adding to the specialized language, buzzwords and other crypto terminology that inundates newcomers to the space is the idea of a second layer. This is exactly what it sounds like: a new layer on top of a blockchain where transactions and settlements can be made prior to being set in stone in the underlying chain. One such popular and developing second layer for BTC is known as the Lightning Network.

“Wait a minute,” a crypto newb might interject, “if the idea of bitcoin is to increase transparency, simplicity and trustlessness in transactions, wouldn’t a second layer only complicate things?” In this case the neophyte would be onto something. While second layer solutions such as the Lightning Network are often touted as being the answer to all of BTC’s scaling and congestion issues, as with Segwit, there are numerous criticisms and potential problems. One of which being the necessity of trusting unknown parties with the transmission of one’s funds, prior to said transaction being written into a block.

The Bitcoin Cash network does not rely on such a second layer as it has more capacity and speed for processing transactions directly onchain. Though there are critics of this approach as well, when it comes to the ability to use crypto as cash — and a readily-navigable user experience — the principle that unnecessary complications mean more potential problems comes into play, which is part of the reason BCH separated from BTC.

Trying Both Coins

The best way to understand the fundamental differences between Bitcoin Cash (BCH) and Bitcoin Core (BTC) is to dive in and try the two currencies out. By sending small amounts back and forth with a friend, across multiple wallets, or using them to pay for goods and services, one gets a feel for how they work, can compare fees and transaction times, watch market value fluctuate, and begin to understand overall security and convenience, unique features, benefits and drawbacks.

The Bitcoin.com Wallet supports both BCH and BTC, is freely downloadable, and can be loaded with free bitcoin cash from the Bitcoin Cash Faucet. BCH and BTC can also be bought with a credit card, and more privacy-minded users might utilize local.Bitcoin.com, an encrypted-chat and blind escrow trading platform that allows the purchase and sale of bitcoin cash for several payment options including cash, with no invasive KYC (know your customer) policy.

Getting a feel for permissionless money and real economic freedom without a middleman or third party is exhilarating, and speaks to the movement of money into a new era as Satoshi Nakamoto, among many others, imagined. Whatever one’s preference when it comes to crypto — whether it be one coin or many — most in the space agree the vision that “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution” is something worth fighting for.

What do you think about the differences between Bitcoin Cash and Bitcoin Core? Do you have another crypto that you like? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Image credits: Shutterstock

Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

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New Guidelines Subject Canadian Crypto Exchanges to Securities Laws

18/01/2020 by Idelto Editor

New Regulatory Guidance Subjects Crypto Exchanges in Canada to Securities Laws

Canadian regulators have issued new guidance determining when current securities legislation applies to operations conducted by cryptocurrency exchanges. According to the clarifications in the document, many domestic and foreign entities serving Canadian users, for example those that provide custodial services, will have to abide by the country’s securities laws and act like securities dealers.

Also read: Canadian Company Commissions 3 Bitcoin Mining Units to Restart Oil Well

CSA Tries to Explain When Cryptos Are Securities

The Canadian Securities Administrators (CSA), a council of the regulatory bodies of Canada’s provinces and territories, published on Thursday Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets. The legal interpretation, which comes after a consultation paper proposed a framework for crypto asset trading platforms in March, is supposed to help operators identify situations where Canadian securities laws may or may not apply to their activities.

The CSA explains that in certain cases crypto assets clearly represent securities. A tokenized security, for instance, carries rights that are traditionally attached to common shares such as voting rights and rights to receive dividends, the organization notes. A crypto asset can also be a derivative, the CSA remarks, like when a token provides an option to acquire an asset in the future. The regulator points out:

Securities legislation may apply to platforms that facilitate the buying and selling of crypto assets that are commodities, because the user’s contractual right to the crypto asset may itself constitute a derivative, a security or both.

The agency notes that the relevant determination will depend on the specifics, including “the obligations and intention to provide immediate delivery of the crypto asset.” Trading platforms would not be subject to securities legislation if “the underlying crypto asset itself is not a security or derivative,” or when the contract for the purchase, sale or delivery results in an obligation to make immediate delivery of the asset to the user.

In an attempt to define what constitutes ‘immediate delivery,’ however, the CSA admits there is no “bright-line test” to determine whether a contract or an instrument results in an obligation to make and take immediate delivery of a crypto asset. At the same time, a crypto transaction may be subject to securities laws if it does not clearly result in such an obligation.

The CSA staff will examine the terms of the contractual arrangements between crypto exchanges and their users as well as their typical commercial practices to establish if they create an obligation for immediate transfer of ownership, possession and control of crypto assets. The organization which coordinates the regulation of capital markets across Canada also details:

As part of this analysis, we will consider whether the platform and the user intend, at the time the contract or instrument is entered into, to make and take delivery of the crypto asset on which the contract or instrument is based.

Custodial Platforms to Operate as Securities Dealers

Then there’s the question of how to establish not only whether but also when exactly a crypto asset has been delivered. According to the guide, an immediate delivery occurs when ownership, possession and control is immediately transferred by the exchange and the user is afterwards free to deal with the asset without further participation of the platform. Also, the exchange must not retain any security interest or other legal right to the asset and the user should not be exposed to any risks related to the platform in the future.

Relations with exchanges, domestic and foreign, providing custodial services will be subject to securities regulations as there’s no obligation for immediate delivery of the assets to a user-controlled wallet. Clients remain reliant on the platform and exposed to insolvency, fraud, and other risks on its part. This means that following the new guidance, many of the hundreds of crypto exchanges operating globally will have to apply and be licensed as securities dealers to work in Canada, if they maintain their current business models, the Globe and Mail noted in an article.

The notice issued by the CSA contains many abstract statements such as “focus on substance over form,” “typical commercial practice,” and “intention to make and take immediate delivery.” This highlights how difficult it is to produce clear definitions and apply the traditional set of terms and rules to the trading and exchange of cryptocurrencies and other crypto-related activities. The regulator acknowledges that “new fintech businesses may not fit neatly into the existing framework” and invites such companies to join its regulatory sandbox. Participants in the initiative will enjoy a faster application process for exemptive relief from Canada’s securities law requirements, the CSA promises.

What do you think of Canada’s new regulatory guidance regarding the application of securities laws to crypto trading? Share your thoughts on the subject in the comments section below.

Images courtesy of Shutterstock.

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Russia’s New Prime Minister Has an Opinion of Cryptocurrencies

17/01/2020 by Idelto Editor

Russia’s New Prime Minister Has His Opinion on Cryptocurrencies

The Russian Federation has a new prime minister, Mikhail Mishustin, with a track record of statements regarding cryptocurrencies and an affection for digitalization. A stated goal of his government will be to turn the country into a digital platform “for the people.” Time will tell, however, whether his plan encompasses the legal use of decentralized digital currencies.

Also read: Direct Democracy Party to Solve Issues With Crypto Rights in Russia

Russian President to Lose Powers, After Putin

Mishustin was appointed head of the Russian government shortly after his nomination this week and the resignation of Dmitry Medvedev’s cabinet. Medvedev, a long-term political ally of Vladimir Putin, is leaving the post after the Russian president announced a constitutional reform during his annual address to the Federal Assembly this past Wednesday.

Russia’s New Prime Minister Has an Opinion of Cryptocurrencies — Vladimir Putin during his address to the Federal Assembly

The changes will give the State Duma, the lower house of Russia’s parliament, more powers and limit those of the president after Putin’s fourth and last term ends in 2024. While the current head of state presently chooses the Russian premier, in the future lawmakers will take the responsibility to select and appoint a candidate and all of their ministers.

The amendments are expected to pass public discussions and eventually be approved in a referendum. Some Russian media reports suggest that Medvedev is leaving because he failed to agree with Putin on the reforms. In his resignation announcement, he noted that when the changes take effect, they will shift the general balance of power in Moscow, saying:

It is obvious that we as the government of the Russian Federation should provide the president of our country with the opportunity to make all the necessary decisions.

According to the Kommersant business daily, Medvedev favored a scenario in which the presidential institution and the government merge, thus giving the president full executive power. Quoting an anonymous source close to the Kremlin, the independent TV channel Dozhd reported that he proposed establishing the post of vice-president and that he might’ve wanted it for himself. Medvedev has now been appointed deputy head of the Russian Security Council under Putin.

What Does This Mean for Cryptocurrencies?

The proposed constitutional amendments can be interpreted differently. Supporters would say they will bring democratization with the Duma, the collective organ of power, gaining more influence in Russia’s internal affairs. Critics fear, however, that these have been designed to allow Vladimir Putin to maintain control even after his last presidential term expires by becoming prime minister again, for example.

Until that happens, the revamped composition of the government can bring other changes to the country, including some that concern the crypto space. At a meeting with members of the parliamentary group of the ruling United Russia party before his appointment, Mikhail Mishustin said he wanted to get on with the “Digital Economy” national project and declared:

The state should undoubtedly be a digital platform created for the people.

Before his appointment as prime minister, Mishustin served as director of the Federal Tax Service (FTS) for 10 years and has been credited with the digitalization of Russia’s tax system. Now he says his first urgent task is to “seriously engage in institutional reforms” and introduce “the most modern information technology.” With a PhD in economics and professional background in IT, he might well be the right person to lead the charge towards achieving these goals.

As the head of the Russian tax agency, Mishustin has made comments about cryptocurrencies on multiple occasions, crypto news outlet Forklog reminded. Nobody trusted paper money when it was introduced into circulation and it had to be backed with the gold reserves of central banks, he noted in 2017 pondering on the moneyness of cryptos. He also made it clear he viewed digital currencies as financial instruments and thought they should be taxed as such.

In February 2019, Mikhail Mishustin spoke in favor of regulating the crypto industry in Russia, stressing that the government has to deal with cryptocurrencies and other forms of payment which the state, in his words, doesn’t notice. Also during his administration, the FTS accepted registering crypto investments as part of a company’s capital, as news.Bitcoin.com reported. And while other institutions like the Central Bank of Russia view bitcoin as an illegal money surrogate, 13% tax on crypto-related incomes is nevertheless due to Mishustin’s administration.

So far, the State Duma has incorporated the concept of “digital rights” that relates to tokens into national law through amendments to the country’s civil code. It also adopted a “crowdfunding law” which entered into force in the beginning of this year. But a key bill, the law “On Digital Financial Assets” which was voted on first reading in the spring of 2018, is yet to be adopted. Earlier this week, the Chairman of the parliamentary Financial Market Committee, Anatoly Aksakov, stated that this is “99.9%” going to happen during the spring session of the Duma.

What kind of changes do you expect in Russia’s policy towards cryptocurrencies after the latest political developments in Moscow? Share your thoughts in the comments section below.

Images courtesy of Shutterstock, Kremlin.ru.

Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

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