Two Russian Regions to Develop Large Scale Crypto Mining

Russian Regions to Develop Large Scale Crypto Mining

The governors of two Russian regions have indicated their readiness to accommodate large crypto mining facilities. Two of the westernmost subjects of the Federation – Kaliningrad and Leningrad – are willing to welcome miners and want to get involved in “bitcoin production”. Local authorities have expressed intentions to take mining out of garages and scale it up to industrial level. They are now pressing Moscow for regulations.   

Also Read: Russia Ready for Migrant Bitcoin Miners Influx

One Huge Mining Farm

Many are interested in cryptocurrencies in Kaliningrad Oblast, its governor Anton Alihanov said on the sidelines of the Russian Investment Forum in Sochi. In the future, the region may become one huge mining farm, he told RIA Novosti.

“We have a lot of people that show interest [in crypto mining]. But doing everything right is pretty complicated and you don’t want to set the house on fire,” Alihanov said. “That’s why we have a ‘mining hotel’, where guys know how to set up the cooling systems, so that nothing gets burned”, the official added, demonstrating technical knowledge of the subject.

If you are a miner, you’ve come to the right place. We can become one huge mining farm.

Russian Regions to Develop Large Scale Crypto MiningAlihanov also noted that Kaliningrad Oblast has developed a booming greenhouse sector producing tons of strawberries. Greenhouses need heating during colder months and mining hardware produces a lot of heat. Mining farms can actually be built close to the strawberry fields to heat the greenhouses.

Still wary of buying cryptocurrencies, the governor admitted he had some “rich experience” with stock trading in the past. “Stocks, bonds, futures – these are very risky things. I don’t have funds that I am ready to part with at any moment. For now I keep my distance,” Anton Alihanov said. He added, however, that when crypto markets become more stable, he may have a second thought.

Miners to Use a Decommissioned NPP

Other local officials have also announced intentions to conduct mining business in their regions. Authorities in Leningrad Oblast, bordering the federal city of Saint Petersburg, plan to create a tech park for cryptocurrency miners. It will be built on the premises of the nuclear power plant in Sosnovy Bor, governor Alexandr Drozdenko revealed. The Leningrad Atomic Electro-Station (LAES, or LNPP) will be decommissioned in 2020-2021.

Russian Regions to Develop Large Scale Crypto MiningA new power plant will replace the RBMK units at LAES, which now produces about 50% of the region’s electricity. LAES-2 will be equipped with the safer, “post-Fukushima” WWER-1200 reactors. LAES is the largest electricity generating facility in Russia’s northwest.

The economic department of the Leningrad administration and Rosatom have already approved the project to mine cryptos at LAES, Drozdenko told RIA Novosti. “What we need for mining is cheap electrical energy, cooling system and reliable transmission grid. We have all that at the Leningrad NPP,” he said.

Russians are mining in their garages. We want to do it on an industrial scale.

According to the governor, two outstanding issues postpone the realization of the project. “First – we have to wait until the old equipment is removed [after the decommissioning]. Secondly, we need some regulatory framework that would allow us to mine, to produce bitcoin,” Alexandr Drozdenko explained. He added that “serious negotiations” on regulation are underway between his administration and the federal government.

With cheap energy, developed electrical infrastructure and cool climate, Russia has what it takes to accommodate local cryptocurrency miners and welcome foreign investors. Authorities in regions with great potential to develop the sector are impatient and expect new regulations from Moscow as soon as possible.

Do you think the government in Moscow will listen to regional authorities and adopt legislation with incentives for crypto miners? Tell us in the comments section below.


Images courtesy of Shutterstock. 


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PR: London Blockchain Startup FarmaTrust Partners with Mongolian Government to Stop Fake Medicine

London Blockchain Startup FarmaTrust Partners with Mongolian Government

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

FarmaTrust, a UK blockchain startup and global tracking system has officially signed a partnership with the Mongolian government to pilot a one-year project aimed at preventing the creation and distribution of counterfeit medications. The project will include both governmental and non-governmental parties in Mongolia, including the Specialized Inspection Agency of Tuv Province of Mongolia and the Mongolian e-Government Center NGO.

The pilot project will kickoff in the Tuv Province, a province outside of the capital city of Ulaanbaatar. Immediate tasks include conducting feasibility reports and helping government monitoring and inspection of pharmacies, and pharmaceutical supply chains, including warehouses and retailers.

FarmaTrust CEO, Raja Sharif, explains, “This project is a great multinational collaboration to mix blockchain and other emerging technologies to secure and optimize the pharmaceutical supply chain. Mongolia is a great starting point. With a population of just 3 million, tracking and implementation can quickly scale on the national level. Mongolia is also important as a strategic middle point between Russia and China, two countries that have experienced large amounts of counterfeit medicine in the past.”

FarmaTrust is providing the knowledge and experience in blockchain supply chain tracking with the goal of creating an immutable ledger that can track and secure pharmaceutical supply chains using big data and artificial intelligence. FarmaTrust has received widespread support from major media and organizations interested in helping eliminate the counterfeit pharmaceutical industry that results in over 120,000 deaths per year.

About FarmaTrust:
FarmaTrust is the most efficient global tracking system which provides security to the pharmaceutical companies, governments, regulators and the public, that counterfeit drugs do not enter the supply chain. Our Blockchain based system utilizes Artificial Intelligence and big data analysis to provide the pharmaceutical industry with value added services which allow for more efficient processes and methods as well as a more transparent supply chain. Our system is safe, secure, encrypted and immutable.

Website and Social Media
Web: https://www.farmatrust.io/
Whitepaper: https://farmatrust.io/sites/default/files/whitepaper/FarmaTrust_Whitepaper_v10.pdf
Telegram: https://t.me/farmatrust
Media Contact: bohuse@farmatrust.com

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not 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 the press release.

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Dollar Regains Ground Ahead of Fed Minutes

Higher US inflation fails to spark dollar revival

The US dollar depreciated across the board versus major pairs despite consumer prices rising more than expected. Inflation anxiety had triggered a sell-off in global stock markets with the Fed expected to ramp up their interest rate hike path yet the dollar did not benefit as higher rates have already been priced in by the market. Fiscal uncertainty driven by political factors continue to confound investors with stock indices rebounding this week and the dollar hitting a 2014 low. The paradox in consumer spending and retail sales continues as Americans remain confident in the economic outlook yet core retail sales remain flat and taking into consideration auto sales they actually dropped by 0.5 percent. The dollar showed some signs of life on Friday as it gained against a basket of major pairs, but not enough to offset the losses earlier in the week.

  • Fed to release minutes of January meeting
  • Kuroda renominated as Governor of Bank of Japan (BOJ)
  • Lower trading activity with start of Chinese New Year celebrations and 3 day weekend in NA

Dollar Recovers on Friday But Still Underwater this Week



The EUR/USD gained 1.62 percent in the last five days. The single currency is trading at 1.2448 with the EUR recovering against the earlier losses versus the USD suffered earlier in the month. US inflation rose more than expected and US treasuries dropped in prices as investors sold them anticipating higher rates this year. Bond yields rose with the 10 year at four year highs (2.93 percent). The correlation between higher yields and a stronger currency is broken at the moment for the USD as the confidence in the stability of the US economy is up for debate. Fundamentals are strong and would point to a higher dollar, but political uncertainty around fiscal stimulus has made it hard to quantify the effects of actual and proposed legislation on the currency. The U.S. Federal Reserve will publish the minutes from its January Federal Open Market Committee (FOMC) meeting on Wednesday, February 21 at 2:00 pm EST. The meeting was the last presided by Chair Janet Yellen and is not expected to bring any surprises, but could prepare the market on what to expect in March when Chair Jerome Powell heads his first FOMC.

The USD went through a topsy-turvy week, with Wednesday’s release of consumer price index data providing the most volatility. The market forecasts were slightly improved with a 0.3 percent monthly gain. The employment report in February 2 was the first data point that suggested a stronger inflationary pressure. Stock markets had already suffered two difficult weeks and the dollar rose as the inflation data was released only to quickly give back all gains and end up in the red.

President’s day in the US will give some investors a much needed rest from a high octane trading week. The Lunar New Year celebrations will also affect trading volumes as Hong Kong and China markets will remain closed until Thursday. Stock markets had a positive week after stronger corporate results erased earlier losses.



The USD/JPY lost 2.38 percent during the week. The currency pair is trading at 106.19 as the JPY keeps gaining. The government issued a statement where it was clear there is no need for intervention and the market took it as a sign to keep buying the yen. The tone changed slightly on Friday as the currency kept appreciating and there were some warning that the trade is one sided. The softness of the USD and uncertainty about how the American government will deal with growing twin deficits and political drama has boosted the JPY due to some safe haven flows.

The reappointment of BOJ Governor Haruhiko Kuroda along with other nominations of economist who favour further easing did not factor into Yen pricing in the short term, but should impact the growing gap between rates in Japan and the United States. In the short term, lack of stability in politics and fiscal uncertainty are overriding higher growth and interest rate expectations in the US.



Oil prices advanced during the week. The price of West Texas Intermediate is trading at $61.21 with most of the gains in energy coming from dollar softness. Oil prices suffered losses earlier in the month as higher production in Canada, Brazil and the United States is anticipated given the high prices and producers in those nations not bound to the Organization of the Petroleum Exporting Countries (OPEC) production cut agreement. Lack of traction of the US currency is keeping prices above $60.

A small rise in oil rigs in Baker Hughes was not enough to derail energy prices specially with an underlying weak US dollar. The OPEC agreement with other major producers has stabilized oil prices after the freewill caused by overproduction. The question remains if demand for energy has recovered to the point that even after the agreement timeline runs out supply will not once again outweigh demand causing another drop in prices.

Market events to watch this week:

Monday, February 19
7:30pm AUD Monetary Policy Meeting Minutes
Wednesday, February 21
4:30am GBP Average Earnings Index 3m/y
9:15am GBP Inflation Report Hearings
2:00pm USD FOMC Meeting Minutes
Thursday, February 22
4:30am GBP Second Estimate GDP q/q
8:30am CAD Core Retail Sales m/m
11:00am USD Crude Oil Inventories
4:45pm NZD Retail Sales q/q
Friday, February 23
8:30am CAD CPI m/m

*All times EST
For a complete list of scheduled events in the forex market visit the MarketPulse Economic Calendar

Five Siberian Power Plants Attracting Crypto Miners With Surplus Electricity

Five Siberian Power Plants Attracting Crypto Miners With Surplus Electricity

Cryptocurrency miners will soon be able to benefit from surplus electricity and the cold climate at five power plants located in Siberia. Russian energy company En+, which owns those power plants, is already in talks with investors to build crypto mining farms near them.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

Five Power Plant Sites

Five Siberian Power Plants Attracting Cryptocurrency Miners With Surplus ElectricityRussian energy company En+ Group is actively preparing to offer electricity to cryptocurrency miners at some of its power plants, Vedomosti reported on Wednesday.

En+ CEO Maxim Sokov was quoted saying, “We are talking about five sites.” They are in the Irkutsk Oblast, a federal subject of Russia, located in southeastern Siberia. Two sites are near the town of Ust-Ilimskin, one is near the city of Bratsk, and the other two are near the city of Irkutsk.

Five Siberian Power Plants Attracting Cryptocurrency Miners With Surplus Electricity
En+ CEO Maxim Sokov.

Near Ust-Ilimsk, on the Angara River, En+ has a hydropower power plant (HPP) with a capacity of 3,840 MW and a coal-fired combined heat and power plant (CHP) with a capacity of 525 MW.

Near Bratsk, “En + has a hydroelectric power plant with a capacity of 4,500 MW,” the publication noted.

Near Irkutsk, which is also the administrative center of Irkutsk Oblast, “there are two sites: a hydroelectric power plant with a capacity of 662 MW and a [coal-fired] combined heat and power plant with a capacity of 655 MW,” the news outlet detailed.

En+ said the cold climate of the region around the three areas and the availability of cheap electricity make the condition attractive for cryptocurrency mining.

Attracting Crypto Miners

Sokov revealed that En+ is currently negotiating with several investors, “including international ones – Chinese and American,” for “the construction of mining farms that will act as consumers of electricity,” Ria Novosti described, adding:

En+ will offer miners to build farms to produce cryptocurrencies next to En+ power plants in Irkutsk, Bratsk, and Ust-Ilimsk.

Five Siberian Power Plants Attracting Cryptocurrency Miners With Surplus ElectricityThe CEO emphasized that his company will benefit from attracting miners from China, where strict prohibitive regulation is now in force.

According to Vedomosti, the total demand for power supplies from cryptocurrency miners could reach 100 MW for En+ Group in 2018, and the group could earn about 980 million rubles (~USD$17.2 million). Natalia Porokhova, Head of Research and Forecasting Group at ACRA estimates that each “100 MW can bring En+ from 10 to 15 million dollars,” the news outlet added.

While Russian aluminum producer Rusal, which En+ has a controlling stake in, is currently the main user of the company’s hydropower, En+ believes that it could use up excess capacity and diversify its customer base by offering electricity supplies to crypto miners.

Cryptocurrency mining is currently unregulated in Russia. However, the regulators are drafting a bill for its regulation. Earlier this month, the Bank of Russia said that it will allow crypto mining in the country but proposes that miners sell their coins overseas.

Do you think crypto miners will move to Siberia to set up mining farms? Let us know in the comments section below.


Images courtesy of Shutterstock and En+.


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Here’s Why You Can’t Judge a Coin by Its Market Cap

Here’s Why You Can’t Judge a Coin by Its Market Cap

Ever heard of a coin called ucash? You should have. It’s in the world’s top 25 cryptocurrencies after all, based on market cap, placing it higher than stratis, omisego, and zcash. Making it to the hallowed heights of 21st, where ucash placed on February 12, calls for mainstream media coverage, a growing user base, and significant adoption you would think. As it turns out, ucash is an outlier – a nothing coin whose ascent is proof that you can’t judge a coin by its cap.

Also read: United Bitcoin May Be the Most Controversial Fork to Date

Fake It Till You Make It

It’s widely accepted that market capitalization – that is, the total value of all coins in circulation multiplied by their last traded price – is a crude reckoner. As an approximate guide to the relative size of respective cryptocurrencies, market cap usually suffices, but there are occasions when it’s glaringly wrong. Ucash is the perfect case in point. The obscure altcoin – or shitcoin, as such offerings are pejoratively described – rose out of nowhere this week to soar into the crypto top 100.

Here’s Why You Can’t Judge a Coin by Its Market Cap

As anyone with a cursory knowledge of market cap metrics will know, gaming the system is extremely easy. All it takes is for someone to create a shitcoin with a circulating supply of 150 billion, list it on an equally shit exchange, sell one coin for $1 and instantly it’s worth more than bitcoin. The same trick that propelled dentacoin into 21st spot in the cryptocurrency rankings last month has now done the same for ucash. The exchange it’s traded on, BTC-Alpha, is a dubious Russian site, registered in the UK, with 600 Telegram followers, less than 2,000 Twitter followers, and a logo that’s ripped off of Maestro. But because it’s listed on Coinmarketcap, it’s eligible for inclusion in what passes for crypto’s “official” ranking system.

Here’s Why You Can’t Judge a Coin by Its Market Cap

Getting High On Your Own Supply

There are 325 billion dentacoins in circulation and 8.6 billion ucash, which explains why they’ve managed to artificially climb so high. Whether or not ucash was the result of a pump and dump is immaterial; on low liquidity exchanges like BTC-Alpha, everyone’s a whale and every coin is ultra volatile.

Here’s Why You Can’t Judge a Coin by Its Market Cap

Coinmarketcap’s extensive range of altcoins often makes for entertaining reading, especially when filtered by percentage gain. This week’s big performer, going by that metric, is unity ingot which is up 3,600%, though like ucash it’s only available on one tiny exchange. Although ucash and unity ingot are extremes, they illustrate why you should never judge a coin by its market cap.

Do you think there’s a better metric than market cap for rating cryptocurrencies? Let us know in the comments section below.


Images courtesy of Shutterstock, and Coinmarketcap.


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FBI Claims Arrested Cyber Crime Syndicate Co-Founder Medvedev Worth $800M+ in BTC

Cyber Crime Syndicate Co-Founder Worth 100,000 BTC Arrested in Thailand

The Federal Bureau of Investigation (FBI) has claimed that Sergey Sergeyvich Medvedev, a Russian national recently arrested in Bangkok, was the co-founder and second in command of the Infraud group – a notorious international cyber crime syndicate. It has been reported that at the time of his arrest, Mr. Medvedev was in possession of more than 100,000 bitcoins.

Also Read: Japan Cracks Down on Foreign ICO Agency Operating Without License

Accused Cyber Crime Syndicate Co-Founder Arrested in Thailand

Cyber Crime Syndicate Co-Founder Worth 100,000 BTC Arrested in Thailand
Sergey Medvedev arrested by Thai police

Sergey Sergeyvich Medvedev is accused of being the co-founder and second in command of the transnational crime syndicate, Infraud. The dark-web marketplace associated with the group was seized and taken offline by U.S. authorities.

Mr. Medvedev, a Russian national, fled to Thailand six years ago. Thailand’s Crime Suppression Division (CSD) identified the thirty-one-year-old as being located in Bangkok following an investigation prompted by American requests for cooperation with the FBI.

Maj. Nathapol Ratanamongkolsak of the CSD stated that “The United States […] requested assistance from Thai police, and the police commissioner ordered the Crime Suppression Division to work on this case in late 2017.”

Mr. Medvedev in Possession of Over 100,000 Bitcoins

Cyber Crime Syndicate Co-Founder Worth 100,000 BTC Arrested in ThailandMr. Medvedev was arrested during a raid on his apartment in the Sukhumvit area, conducted by 30 CSD officers. The CSD officers seized numerous documents and a notebook computer from Mr. Medvedev.

CSD investigators have claimed that Mr. Medvedev was trading illegal products online in exchange for bitcoin. Thai media outlet, Bangkok Post, has reported that “judging by the evidence obtained during the Feb 2 raid, [Mr. Medvedev] had more than 100,000 bitcoin[s]” – at the time valued at approximately $800 – $900 million USD.

Thailand’s Central Investigation Bureau (CIB) chief, Thitiraj Nhongharnpitak, has confirmed that the raid took place. However, the CIB chief has declined to issue further details regarding the operation, stating that such is an international police matter and that more information will be made public soon.

FBI Cracks Down on Infraud

Cyber Crime Syndicate Co-Founder Worth 100,000 BTC Arrested in ThailandIt is alleged that Infraud was created during 2001 by Mr. Medvedev in partnership with Svyatoslav Bondarenko in Ukraine. Infraud has been described as a major hub for credit card fraud, with Deputy Assistant Attorney General David Rybicki stating that the site was “the premier one-stop shop for cybercriminals worldwide.”

Reports have indicated that similar operations designed to arrest 18 members of Infraud have been carried out in over a dozen different countries – expanding on prior efforts by the FBI to crack down on Infraud, which have previously seen the arrest of 32 individuals suspected of criminal involvement with the group.

Maj. Nattapol Rattanamongkol stated “This is an operation by the [US] Department of Homeland Security that involves spontaneous [raids] in 14 countries.”

What is your reaction to the arrest of Mr. Medvedev? Share your thoughts in the comments section below!


Images courtesy of Shutterstock, Khao Sod


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PR: Buying ALT Tokens from Altair VR Offers Special Advantages

ALT Tokens from Altair VR

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Since last year, the volume of content sales in the virtual reality market has grown threefold. What’s more, SuperData Research forecasts that over the next two years the total sales volume for content in this domain will reach 40 billion dollars. Given these circumstances, the future of the Altair VR project looks very promising.

In seven years of working in the supplemental education industry, Altair VR has built the biggest network of mobile planetariums in Russia and the CIS. Thanks to that project, over half a million children have been introduced to astronomy over this period. In early 2017, the Amazing Cinema app was launched, and has already been downloaded by over 300 thousand people.

In the summer of last year, the company began offering franchises for virtual planetariums, which are already operating in 15 cities. The next step is to create a Virtual Encyclopedia for all natural sciences and for various uses, where anyone who wants to can create their own content and share their interpretation of knowledge.

According to Coinschedule.com, last year over 165 million dollars were raised through ICOs in Gaming & VR. Furthermore, various analysts forecast a doubling or tripling of funds raised in this particular domain.

When choosing a project to invest in, however, in addition to the clear market appeal, it is worth looking at the additional advantages offered by the crowdsale initiators.

Altair VR’s Special Offer

For example, Altair VR’s ITO has additional advantages due to the token’s particular economics and varied functionality, making it useful for various groups of users.

First, it is expected that in the community there will be numerous microtransactions among various participants, such as users, writers, content creators, and moderators.

It is for those transactions that the ALT Token will be used, which will not only lower commissions for using the platform, but also serve as an internal unit of settlement.

Second, access to the platform’s apps will only be granted to users who hold ALT tokens.
Third, in order to obtain a franchise, one would have to first purchase ALT tokens on an exchange, which will stimulate the use of the token in various countries where the franchise will operate.
Fourth, having a token will also offer the ability to share one’s own ideas and scenarios, as well as vote for other people’s content. Therefore, in order to actively participate in the life of the community and influence content, you have to buy ALT.

And, finally, fifth, additional growth in interest in the token will be generated by active participants. In fact, the platform includes the roles of moderator and active community participant, which are compensated in tokens. Approximately 10% of all commissions collected on the platform will go to incentives for active users and increase the trading volumes for ALT.

About the Project

The Altair VR team has launched a project to create a global VR platform. It is directed at learning about the world in all its aspects and subjects, using a platform managed by its community through blockchain. The project offers functionality to create and distribute VR experiences through scenarios created by the community members themselves.

The first phase, the Pre-ITO, launched on February 26, 2018, and will extend until March 11, 2018, or until 10,000 ETH is raised. Participants will receive a 25% bonus.

The second phase, the ITO, will begin on April 16, 2018, and conclude on May 31. The ITO will also offer bonuses to early participants.

And the presale, also open to participation, is going on right now.

Contact Email Address
alex.drofa.ra@gmail.com
Supporting Link
altairvr.io

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not 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 the press release.

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Russia Drafts Bill to Accredit ICO Issuers – Public Comments Wanted

Russia Drafts Bill to Accredit ICO Issuers - Seeks Public Comments

The Russian government is drafting a bill to introduce the accreditation of initial coin offering issuers. Accredited organizations must comply with a set of rules, including having 100 million rubles capital, and are subject to inspections every three years. The regulators are currently accepting public comments on the proposal.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

Accrediting ICO Issuers

Russia Drafts Bill to Accredit ICO Issuers - Seeks Public CommentsThe Russian Ministry of Communications and Mass Media has submitted a proposal to accredit the issuers of initial coin offerings (ICOs) “on a voluntary basis for a period of five years,” the document reads.

This proposal details the procedure for accrediting organizations that issue digital tokens. It has been published on the Russian government’s portal of normative legal acts and the regulators are currently seeking public comments on the plan.

A digital token is defined in the proposal as “a record in a distributed information system created using cryptographic (encryption) means that certifies that the holder of the digital token has the right to receive from the person who posted the initial (initial) digital token of the initial (nominal) value token by presenting this token.” Under the proposal, Tass summarized:

The organization must comply with a number of criteria: registration in the territory of the Russian Federation in accordance with the legislation on state registration of legal entities; a charter capital of at least 100 million rubles; a license to develop, produce and distribute cryptographic funds; and a special account with a bank, obtained as a result of the sale of digital tokens.

Mandatory Rules

Russia Drafts Bill to Accredit ICO Issuers - Seeks Public CommentsThe accredited ICO issuers are required to adopt a number of mandatory rules. Firstly, they must “redeem digital tokens at a nominal price from any bearer of a digital token on the basis of an irrevocable public offer,” the news outlet described. Secondly, they are obligated to “issue digital tokens for Russian rubles through a cashless settlement.” In addition, they have a “duty to use funds received from purchasers of digital tokens, only for purposes related to maintaining the ability to fulfill the obligation to redeem digital tokens at a nominal price.”

The publication further noted:

The Ministry of Communications will decide on accreditation or refusal of accreditation within 30 days after receiving the application. Accredited organizations will also be subject to inspections every three years (with the exception of unscheduled inspections) for compliance with the requirements of the provision.

Despite the strict requirements for would-be ICO issuers, the Minister of Communications and Mass Media, Nikolai Nikiforov, commented last week that “it is very important in all projects of the digital economy not to over-regulate what is just emerging,” according to Tass. RBC also quoted him describing:

We decided that we should go the way of accreditation and get some professional organizations to implement the first real projects. Otherwise, our country will become technologically backward.

What do you think of this ICO accreditation proposal? Let us know in the comments section below.


Images courtesy of Shutterstock.


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Chechnya Leader Kadyrov Buys Bitcoin to Follow Evolution

Chechnya Leader Kadyrov Buys Bitcoin to Follow Evolution

Striving to keep up with development, the president of Chechnya Ramzan Kadyrov has bought himself some bitcoins. The outspoken strongman of the once restive Russian republic has bragged about the purchase on social media. Whether that means “yes” to cryptocurrency in the Caucasus is ultimately up to Moscow. Nevertheless, the government in Grozny has been somewhat positive towards the concept of decentralization and has already moved to put some public records on a blockchain.

Also read: Kazakhstan, Kyrgyzstan, and Uzbekistan on the Crypto Radar

Holding a Share of Bitcoin

“I’ve made up my mind to buy a share of bitcoin to follow the evolution of the cryptocurrency”, Kadyrov posted on his VKontakte page. In the constantly changing world of technologies one has to improve oneself to be able to grasp innovations, he told followers on the Russian social network. “I have already stated that blockchain will be introduced in the Chechen Republic and I am also interested in innovative payment Chechnya Leader Kadyrov Buys Bitcoin to Follow Evolutionnetworks”, Kadyrov added.

The Chechen head of state believes the crypto sector should be clearly regulated by federal law, but not banned. “The most important thing is to protect citizens from financial pyramids and other fraudulent schemes”, the president wrote.

Ramzan Kadyrov did not reveal the amount of rubles he spent on bitcoin. However, he took time to warn his compatriots about the risks associated with cryptocurrency investments. “It is a dubious thing”, he said. “You can lose all your money. There is no insurance there”, he added, noting the high rates of fraud in the crypto world.

Crypto Morals Preached

An extended version of Kadyrov’s warning was shared some time ago on a Telegram channel posting “selected quotes” from the president. “In recent months we have heard a lot about the so called cryptocurrencies and I cannot stand aside and keep my opinion to myself”, he said, cautioning Chechens that “super profit” comes with extraordinary risks.

“Media is presenting cryptocurrencies as the new gold, provoking some kind of a bitcoin fever. People take credit, deprive themselves and their families to invest their last money in digital assets”, Kadyrov noted. The Chechen leader admitted he was worried about the moral side of such investments.

“Someone who puts money into cryptocurrencies expects their value to increase many fold… Their price grows only at the expense of investors’ greed. Those people are trying to draw in new investors and then get rich thanks to their greed,” Kadyrov said about 10 days before his bitcoin purchase. He went on to ask followers to share his warnings with friends and relatives that had been “drawn into such adventures”.

Chechnya Decentralized?

Russian media have reported that the Chechen leadership has raised sights on the blockchain technology. About a week ago, again on Telegram, Ramzan Kadyrov announced his government was “actively working” on implementing it in “Rosreestr”, the Russian property register system. Chechnya, Kadyrov wrote, was doing that in cooperation with Vnesheconombank (VEB), a federal institution focused on financing development projects.

Chechnya Leader Kadyrov Buys Bitcoin to Follow Evolution

“We are implementing blockchain in the Republic’s register. A working group has been set up together with Vnesheconombank. I [can’t] say when it will happen, but we are working on it”, the Chechen president stated, quoted by Cryptellect.

Kadyrov put forward the blockchain idea during a meeting with VEB’s president Sergey Gorkov last year. At the time he hinted on Instagram about a series of upcoming innovative projects to be realized in Chechnya. The proposal to decentralize the republic’s property register was the first one on the table.

Social Media Star

From football passions to national healthcare issues, horse riding to motorbiking, Chechnya’s head of state has it all shared on social media, keeping his compatriots well informed about what he is up to. He has been rated as the most quoted blogger among heads of Russian regions. Kadyrov has used his pages to call for Lenin’s body burial and Chechnya Leader Kadyrov Buys Bitcoin to Follow Evolutiondeclare readiness to resign and devote his life to protecting the Al-Aqsa Mosque. He has issued official statements and even posted about his missing cat. Russian media have enjoyed his pictures and videos, including exclusive material from high life events.

Beside Russian channels, the Chechen leader had also maintained Facebook and Instagram accounts before they were taken down in December. Kadyrov had over 3 million followers to his Russian-language Instagram, and another 750,000 on Facebook. He accused the U.S. government of putting pressure on the social networks to close his accounts. Kadyrov has since moved to an Instagram-like Chechen social network called Mylistory, quickly followed by 30,000 new subscribers. He is also actively using his Twitter account.

U.S. authorities imposed travel bans and financial sanctions on Ramzan Kadyrov over multiple allegations of human rights abuses. His administration has been accused of persecuting gay men in Chechnya. In a HBO interview last year he said there were no such people in his republic. A couple of years ago Kadyrov urged Chechen men to ban their wives from using WhatsApp after outrage over the marriage of an underage girl to a 47-year-old police chief spread on the messaging service.

Do you think Kadyrov’s bitcoin purchase is just a PR stunt, or the Chechen strongman has really changed his mind about cryptos? Tell us in the comments section below.  


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