Multi Level Marketing: The Best Work From Home Business If you are new to work from home business, and in particular network marketing then stay tuned because you are going to like what’s here. You are in the right location for some MLM business info to change your life. We strongly think that building a network marketing business is one of the smartest things you can do with your money and time in today’s volatile economy.
Home-based companies are quite quickly coming to be the fastest growing type of business start-ups. Working from home allows for adaptability that is difficult to have when renting or acquiring office space, plus there a massive convenience that just can’t be put into words. Working at home requires self-control, but the advantages can be considerable, specifically in the start-up years.
As corporate down-scaling remains in the news and also the web makes communicating a lot more effective, an increasing number of business owners are enjoying the advantages of running a MLM business from their house. If you are wanting to leave the daily grind, to invest more time with family and friends, and also to live an extra balanced life, then a work from home business might be the ideal choice for you. The question is “what is the best network marketing company for me?”
Operating a MLM home business is the ideal way to gain economic freedom. It’s ingenious since it resists the conventional business model of depending on advertising to create slow-building item sales. It’s superior because as opposed to high pressure sales techniques and pricey advertising and marketing, it counts on the principle of helping yourself by aiding others.
In order for you to be truly effective in multi level marketing, it is essential to understand your reasons for wanting to put in the effort. The reality is that it takes time, initiative and energy to develop and grow a business. Many people are rather comfy with where they are, so why bother? That’s the question you need to answer. Everyone has their reasons, it’s just a matter of being real with yourself and finding out how badly you really want the benefits. The number of individuals beginning a home business has been on the rise considerably. With even more individuals having accessibility to technology than in the past, it’s become very easy to work from anywhere and market services and products to international audiences at really low costs. This, paired with a falling economic climate has actually left a lot of people with cash worries as well as a lot of insecurities.
MLM What is MLM or Multi Level Marketing In reality its something everyone does every day without even realizing it or monetizing it. It’s referrals. You share something with someone (referral) and if they are interested they’ll check it out and take action, if it’s not for them they won’t. You see an amazing recipe on Facebook so you share it with a bunch of your closest family and friends. You potentially generated business (or page views) for someone elses business. A friend is looking for a car and you love the one you bought last year. You tell them about your make and model and they buy one. That’s a referral (by way of your opinion or enjoyment or belief in that product). The only problem with that is you don’t get anything from it.
Network marketing is simply sharing products and your business idea that you love to people you know. If they like it they’ll buy some from you or they’ll start a business with you and replicate what you are doing. In this way you build a team as they build a team and its win, win for all involved.
The internet makes things so much easier these days. All you need to do is share your pre-made and personalized website with people and they can check it out on their own time without you having to pitch it to them. They’ll likely have questions and they’ll engage you. It’s a lot of fun. Check out this philantrophic platform.
Below are the reasons why taking advantage of a MLM opportunity right now is among the most intelligent things you can do. However, first we have to understand that we are currently in a new age, which is called the information age.
For the last 2000 years of human history, we lived in the “Agrarian Age”. This was a time when it was all about farming. Whoever had the farms and the land, controlled the wealth. In the 20th Century, we moved in to a new age called the “Industrial Age”. These initial huge company giants controlled the business world. It was whoever had the manufacturing facilities that controlled the wealth.
From the year 2000 onward, with the surge of the Net, we now find ourselves in a new age. “The Information Age”. Businesses like Twitter, Instagram and Facebook are altering business all around the globe. Networks are the new currency for control. This has actually leveled the playing field. There has actually never been a better time in history to own your very own business.
Simply look around you; traditional organizations are shutting down all over the place. People have borrowed or invested massive amounts of cash to open their very own business only to find stiff competition, high overhead prices, theft and a lot more. They discover that the business dreams they had can be a really big headache. Instead, many people are opting to start an MLM business so they can work from home. Sound good? If you are ready to start just click here.
Cloud Token is the first e-wallet in the world to integrate all crypto assets on the same blockchain platform. The goal of Cloud Token is that it is an ecosystem including electronic wallet using the most advanced 4.0 blockchain technology today, along with the mobile payment system entirely through Cloud Token wallet.May 21, 2019
Cloud Token is a decentralized digital wallet integrating all digital assets into one platform and functions as social and wealth management tool. It has adopted the latest 4.0 generation blockchain technology which has the ability to execute encrypted trading and payment using inter blockchain technology.
How to join Cloud Token Wallet?
Cloud Token Mobile App.
Here you can enter the Referral ID.
Enter the alpha-numeric password of your choice.
Here You will get the 12 words Mnemonic Phrase.
You need to enter these 12 words in a correct sequence or order.
Cloud 2.0 wealth management products are jointly created by top financial institutions, asset management teams and senior cryptocurrency experts from around the world.
The Cloud 2.0 JARVIS intelligent trading system intelligent trading robot will track and capture big data and high efficiency in all trading platforms in real time with market analysis and real-time intelligent arbitrage trading.
Maximize risk reduction, achieve stable income, and truly achieve zero risk to incite asset leverage.
Cloud 2.0 JARVIS intelligent trading system intelligent arbitrage system automatically recognizes the volume, activity and spread of the world’s major trading platforms. It will buy at a low price in the first time and sell at a high price in a few tenths of a second. 24 hours automatic brick arbitrage, stable income, safe and reliable. In one day, users can get up to 10% of the daily arbitrage gains.
Multiple Encryption Secure Storage Technology
Cloud 2.0 encrypts the hot wallet, separates the hot and cold end, and stores multiple cold wallets in multiple places to form a multi-center multi-center cryptographic signature scheme.
At the same time, multiple signals such as P2SH and financial privacy BIP32 are used for all data. The information is transmitted encrypted.
In addition, Cloud 2.0 also uniquely creates multiple signature algorithms such as rate limiting, address whitelisting, webhooks, etc., and combines with the financial process system and the approval authorization system to not only ensure the security of digital assets in all aspects, but also make the entire coin-coin process more efficient and convenient.
Since the successful development of Cloud 2.0, it has been brewing for four or five months, and has undergone hundreds of anti-theft tests to maximize the security of users’ funds.
Cloud 2.0 JARVIS Expert Advisors Futures Option Arbitrage System
Futures option arbitrage means according to the band trend of BTC, ETH and other currencies, the leverage is 10 times to 100 times, and the two-way transaction can make profits regardless of the ups and downs.
With 10 to 100 times leverage, the benefits far exceed the spot trading market.
All arbitrage systems have an accuracy rate of 99.9% and the error is almost zero. The system writes the proceeds into the program and automatically enters the Cloud 2.0 JARVIS intelligent trading system to generate dividends and promote rewards. The platform is validated by CTO as the central medium.
CLOUD 2.0 — A SUPER DIGITAL ASSET WALLET
Cloud 2.0 is the world’s first social wealth wallet to integrate all blockchain cryptographic assets into one platform.
It is developed using the latest 4.0 blockchain platform technology, capable of performing cross-chain encryption exchange and payment from the famous encryption market AI arbitrage engine for manufacturers, e-commerce and other products.
Our goal is to provide our members with a focused social wealth generation ecosystem and become the de facto standard token for the blockchain industry.
NO .1 Infrastructure
Building the strongest infrastructure in the digital asset industry
NO .2 Service System
Providing the highest quality of safety and efficient service to owners of digital assets
NO .3 Application Landing
Popularization of blockchain technology in all walks of life
NO .4 Asset Management
Revolutionize the new era of digital economy with life, social and wealth management in blockchain
CLOUD 2.0 FEATURES
• Decentralized digital asset wallet
• Decentralized trading platform
• Support multi-currency storage, such as Bitcoin, Ethereum and other digital currencies
Cloud investment trading system
• Deposit and quantification
• A quantitative gift service
• Risk-free brick arbitrage
• High frequency hedge
Market expansion award
• Setting the direct push award
• Setting bonuses
•Basic wallet function
CLOUD 2.0 — FUNCTIONS AND SERVICES
Cloud 2.0 Artificial Intelligence wallet
Cloud 2.0 Smart Mobile Wallet can store different underlying technologies such as BTC, ETH, DOGE, XRP, LTC, EOS, etc., to achieve one-stop storage management for multiple currencies.
It is simple and easy to operate, with hundreds of compression tests, powerful anti-theft technology to maximize the security of digital assets.
Crypto-to-Crypto exchanges are located between different digital currencies and rely on real-time ratio redemption.
All of Cloud Token DAPP’s digital assets, such as Bitcoin (BTC), Ethereum (ETH) and other supported digital currencies, can be seamlessly exchanged with CTOs. To a certain extent, users can trade digital assets or implement digital assets faster and easier without having to make complex pending orders through different exchange platforms.
New support for digital assets have also been added.
Over-the-counter (OTC) refers to transactions conducted by market trading entities on the basis of bilateral credit through independent bilateral investigations and bilateral liquidation.
The transaction is not traded within the trading platform, but ends privately at a price above or below the trading platform price or other conditions.
Through the opening of the mall system, users can enjoy the digital experience of online consumption at Cloud 2.0 Mall with CTO.
Purchase everyday items such as books, clothing, shoes, hats, toys, software, home appliances, and other home delivery platforms.
CLOUD 2.0 FEATURES
• Decentralized digital asset wallet
• Decentralized trading platform
• Support multi-currency storage, such as Bitcoin, Ethereum and other digital currencies
Cloud investment trading system
• Deposit and quantification
• A quantitative gift service
• Risk-free brick arbitrage
• High frequency hedge
Belgium’s financial watchdog has made an additional update to its blacklist of crypto-related websites associated with fraud.
Belgium’s Financial Services and Markets Authority (FSMA) has made an additional update to its blacklist of cryptocurrency-related websites associated with fraud.
On Oct. 29, Belgium’s financial watchdog updated its list of cryptocurrency trading platforms for which it has detected indications of fraud, by adding nine new suspect sites, bringing the total of suspected crypto scams to 131.
The financial authority said that it continued to receive new complaints from consumers who made crypto investments on those trading platforms, adding that cryptocurrency fraud continues to find new victims in Belgium, despite prior warnings.
The FSMA has issued previous warnings to Belgian crypto investors to be wary of companies that claim to hold authorizations from supervisory authorities, adding:
“This is a very frequently used technique. However, these are often cases of identity theft. Feel free to ask the FSMA to confirm the information you have received.”
Many of the blacklisted crypto firms purportedly offer financial services without complying with Belgian financial legislation. However, most of these crypto firms mentioned in the list operate outside the jurisdiction of the FSMA, which makes it near impossible for the agency to legally charge them.
Although the FSMA cannot charge the suspected websites of fraud, an alert could still minimize the risks for potential cryptocurrency investors.
The FSMA added that the blacklist is based solely on the findings of the authority and warns that it does not include all of the crypto companies that might be operating illegally in Belgium.
Raising awareness of risks associated with crypto investment
In June 2018, the Belgian financial authority FPS Economy (FPS) launched a website to raise awareness of the risks associated with cryptocurrency investments. Belgian investors reportedly lost about $2.5 million in crypto scams in 2017, which accounts for only 4% of overall crypto fraud cases, with the total losses estimated at $152 million.
Bitcoin (BTC) has been trading sideways for the better part of the day and continues to circle around the $9,100 price mark. The coin bounced off a local low of $8,960 earlier today before moving to its current trading price at $9,149, showing a small loss of 0.74% on the day.
Bitcoin is fighting hard to hold on to its current trading levels, but traders apparently are starting to wonder whether or not last week’s so-called “Xi pump” to $10,540 was a fluke driven by Chinese President Xi Jinping’s call for China to accelerate the development of blockchain technology.
Bitcoin analyst and guest contributor at Forbes and CNBC, Jacob Canfield, just took to Twitter to point out that the “order books on Coinbase glitched out to be non existent” and that Bitcoin exchange Deribit suffered a BTC flash crash to $7,700. “Investigating what happened, but it is still unclear,” he tweeted.
Ether (ETH), meanwhile, is currently sitting at $182.5 per coin. The number one altcoin saw a small dip in sync with BTC and is showing a loss of around 0.75% at publishing time.
Cointelegraph contributor Rakesh Upadhyay recently said that Ether is facing strong resistance at $196.483. If the Ether’s price dips below the 20-day EMA, it may remain range-bound between $161.056 and $196.483 for the next few days. If Ether can pick up momentum above $196.483, it will likely move up to $235.70.
XRP has been trading relatively flat for the better part of the day. The third-largest coin by market capitalization is currently trading at $0.295 per coin, down 0.47% at press time. The recent news that the daily XRP transactions are going through the roof, nearing an all-time high of 1.70 million, has had little to no effect on the price of XRP.
Do you have a diverse portfolio that contains digital currency? The United States Internal Revenue Service also wants to know your answer.
On Oct. 9, 2019, the United States Internal Revenue Service issuedRevenue Ruling 2019-24 and a series of frequently asked questions, identifying rules governing U.S. taxation of digital currencies. Taxation in the U.S. is unbelievably complex, but the new IRS guidance takes a step-by-step approach to address some of the most common issues facing holders of digital currency.
The basics are as follows: If you hold digital currency and you sell or exchange it, you are subject to U.S. tax. If you are granted digital currency in the form of salary or as a result of a hard fork, you have taxable income. If you receive digital currency as a result of a gift, there is no immediate tax.
U.S. taxation of digital currency is limited to U.S. persons. Who is a U.S. person? U.S. citizens, U.S. green card holders and individuals who spend more than 183 days in the country (measured using a formulaic three-year lookback). If that is you, a tax obligation may exist.
How do you measure your gain or loss from a sale or exchange of currency? It’s the difference between your digital currency cost basis and the fair market value of the property you received in exchange. How do you know what your cost basis is? The FAQs provide detailed guidance, but essentially, the IRS allows two methods for identifying your basis:
1) You can specifically identify the exact currency sold, traced to the ledger, and use the cost of that specific currency to determine your gain or loss.
2) Or you can use the “first in, first out” method, meaning your basis is computed based on the cost of the oldest currency acquisition in your wallet, moving forward in time as you continue to sell currencies.
What about digital currency provided as compensation for services? That type of distribution is treated as ordinary income, not a capital gain, similar to cash paid in the form of salary and wages.
What about cryptocurrency forks? The Revenue Ruling holds that when a taxpayer does not receive units of a new cryptocurrency as a result of a hard fork, the taxpayer also does not have gross income. That is the good news.
However, when units of new cryptocurrency are distributed (either as a complete currency replacement or split with the new currency being issued but old currency still valid), the Revenue Ruling holds that the taxpayer has accession to wealth and therefore has ordinary income. The amount included in gross income is equal to the fair market value of the new cryptocurrency measured as of the date that the distribution (usually via airdrop) is recorded on the distributed ledger.
While the IRS materials provide much-needed guidance, there are some concerns about unexpected hard forks. Many times you find out about a hard fork after the fact. Nevertheless, the IRS takes the position that taxpayers must track and account for hard fork transactions. Thus, it places the burden on individuals to watch their wallet and trace activity throughout the year.
Also, there is no “de minimis” exclusion. Meaning, every transaction involving digital currency must be reported. What about a purchase of a cup of coffee with crypto cash? This payment gives rise to a taxable exchange. The value of the coffee you just bought less the basis in your currency you provided must be computed and reported to the IRS as a gain or loss.
When did you have to start complying with these basis rules and coffee purchases? Forever. In July 2019, the IRS announced through a news release that it had begun sending “educational” letters to taxpayers with digital currency transactions that have either potentially failed to report income or did not accurately report their transactions. By the end of August, over 10,000 taxpayers had received these letters. There are three letter versions: Letter 6173, Letter 6174 and Letter 6174‑A.
Letter 6173 informs the taxpayer that the IRS has “information that you have or had one or more accounts containing virtual currency and may not have met your U.S. tax filing and reporting requirements for transactions involving virtual currency.” This letter requires the taxpayer to provide a direct response by taking one of three possible actions:
1) File delinquent returns, reporting any digital currency transactions.
2) Amend returns to properly report any digital currency transactions.
3) Provide a statement that explains why the taxpayer believes it is in full compliance, signed under penalties of perjury.
Letters 6174 and 6174-A inform the taxpayer that the IRS has “information that you have or had one or more accounts containing virtual currency.” Though neither of the two letters requires a direct response from the taxpayer, Letter 6174-A expressly warns the taxpayer that the IRS may pursue further enforcement activity in the future.
The three versions of the letters show that the IRS is mining the information it has in its possession and forming views about which digital currency holders it believes are noncompliant, and to what degree. Although the IRS stated in its announcement that “all three versions of the letters strive to help taxpayers understand their tax and filing obligations and how to correct past errors,” Letter 6173 seems to presume that the taxpayer in question already understands the digital currency reporting requirements and has chosen not to comply with them. Letter 6174-A is a step down from Letter 6173, but it still assumes a higher level of knowledge on the part of the taxpayer than Letter 6174 does.
John Doe summons
The letters followed the IRS’s issuance of a “John Doe” summons to Coinbase, one of the largest platforms for exchanging Bitcoin and other forms of digital currency. Through the John Doe summons, the IRS sought information regarding all Coinbase customers who conducted transactions on the Coinbase platform between 2013 and 2015. Coinbase resisted the summons and sought to narrow its scope.
In late 2017, the U.S. District Court for the Northern District of California ordered Coinbase to produce the taxpayer identification number, name, birthdate, address, records of account activity, and all periodic statements of account or invoices. Ultimately, Coinbase produced documents for approximately 13,000 customers. While it is widely speculated that the IRS identified the initial group of more than 10,000 taxpayers to receive compliance letters using the data provided by the Coinbase subpoena, any taxpayer with dealings in digital currency should anticipate increased IRS scrutiny.
Revised draft Form 1040
Following the issuance of the October Revenue Ruling and FAQs, the IRS also released a draft Form 1040, Schedule 1 — which, if adopted, will require taxpayers to answer whether at any time during the year the taxpayer sold, sent, exchanged or otherwise acquired any financial interest in digital currency. The change in Form 1040 would place taxpayers in the position of having to think about their digital currency holdings and inquire whether there have been taxable events that need to be reported and taxed.
Methods of coming into compliance
In light of increased enforcement and compliance efforts on the part of the IRS, it is especially important for taxpayers who have held digital currency in the years preceding 2019 to seek advice from a competent tax professional to determine if there have been any taxable transactions associated with the acquisition or disposition of digital currencies. If there was a reportable transaction left off an income tax return, the IRS could impose significant penalties and interest charges. The IRS is also reviewing income tax returns to determine if the noncompliance was due to willful conduct. Such review can result in criminal referrals and prosecutions for filing false tax returns.
There is good news in the face of the potential enforcement of noncompliance. Most taxpayers can take advantage of the IRS’s voluntary disclosure policy, which mitigates penalties. And for those taxpayers who received letters directly from the IRS, options for taking affirmative action are outlined in the letter. The bottom line is this: If you have held digital currency at any time, you should contact a qualified tax professional to assist you in evaluating your tax situation.
The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
James N. Mastracchio is a partner resident in New York and Washington, D.C. and heads Eversheds Sutherland’s federal tax controversy and criminal tax practices.
Sarah Paul is a partner at Eversheds Sutherland who practices in the firm’s litigation, federal tax controversy and criminal tax groups. Prior to joining Eversheds Sutherland, Sarah was an assistant United States attorney in the Southern District of New York, where she supervised all of the district’s criminal tax cases.
Katie Sint is an associate in the tax practice of Eversheds Sutherland’s Washington, D.C. office. She counsels clients in an array of federal income tax matters, including domestic and international tax planning, mergers and acquisitions, accounting and controversy.
Futures trading volumes creep up on spot trading in crypto, with futures now amounting to half of the value of more traditional buy-sell trades.
Crypto futures trading volume now reportedly amounts to nearly 50% of the value of spot trading on crypto markets, according to Bloomberg.
13 exchanges analyzed
Citing volume data from 13 major global crypto exchanges, Bloomberg reported on a massive growth of cryptocurrency futures markets Oct. 31.
The analyzed exchanges include institutional digital asset platform Bakkt, the Chicago Mercantile Exchange Group (CME), Binance, Bitfinex, the Huobi Derivative Market (DM), Kraken, FTX, Bitz, Deribit, CoinFlex, Bybit, OKEx and BitMEX.
First ever Bitcoin futures launched in late 2017
Spot trading is simply buying or selling a commodity or, in this case, a crypto asset at the moment of the trade. Prior to the launch of the first Bitcoin (BTC) futures platform back in 2017, spot trading was the principal option available for crypto trades. The Chicago Board Options Exchange (CBOE) launched the first trading of BTC-based futures contracts on Dec. 11, 2017, just a week before the launch of a similar product by the Chicago Mercantile Exchange (CME).
The Bloomberg report follows a new Bitcoin futures volumes record on major digital asset platform Bakkt, which launched its service on Sept. 22. On Oct. 26, Bakkt traded 1,183 Bitcoin futures contracts worth of $11 million after hitting a previous all time record of 441 Bitcoin futures on Oct. 23.
On Oct. 29, OKEx, the world’s 5th-largest crypto exchange by trading volume, announced plans to start trading Tether (USDT) futures.
Canada’s volatile history of mainstream adoption and fraud is directly impacting the future of cryptocurrency in the country.
Recently, Canada’s central bank has been leading working groups with global partners exploring a blockchain future. Their crypto presence has soared with Ernst & Young’s announcement that it is using Toronto to test its public government expenditure blockchain. But what is the cryptocurrency landscape currently like in Canada?
The history of crypto in Canada may seem as volatile as a token with a small market cap, yet mainstream use and adoption have been on a consistent incline since 2013, when Canadians started pushing mainstream adoption. Now, the Canadian government is leading working groups. What else has the country been up to in the blockchain space?
The first thing that comes to everyone’s mind when it comes to the Great White North is that the founder of Ethereum, Vitalik Buterin, grew up in Canada — but Etherum isn’t all the country has provided to the crypto space. Here are some more notable stories from Canada’s blockchain history.
The world’s first Bitcoin ATMs
Canada contributed to Bitcoin’s (BTC) mainstream use early on by opening the world’s first Bitcoin ATM at a coffee shop in Vancouver in 2013. The ATMs were released by Bitcoiniacs and Robocoin. Bitcoin was trading at around $200 at the time and, during the first day, the kiosk performed 81 Bitcoin transactions equaling around 81 BTC.
The ATM is considered a strong driver for attracting new people to cryptocurrency, with around a third of its users new to Bitcoin. In an interview with Cointelegraph back in 2013, Robocoin CEO Jordan Kelley marveled at how easy it was for people to get started with Bitcoin. According to industry monitor CoinATMRadar, there are at least 715 cryptocurrency ATMs in Canada, with 85 in Vancouver and 227 in Toronto.
It is easy to agree that the initial coin offerings (ICOs) craze produced more losers than winners, as many took advantage of the hyped-up funding method to conduct scams. In response, state and provincial securities regulators in the United States and Canada launched probes into potentially fraudulent crypto investment programs as part of the North American Securities Administrators Association’s Operation Cryptosweep in 2018. The initiative is reportedly the largest coordinated investigation held by state and provincial officials targeting suspicious crypto investment products, and has resulted in over 200 investigations of ICOs and crypto-related investment products.
Operation Cryptosweep has issued at least 77 actions against crypto programs, including the infamous BitConnect, which has gone down in history as one of the largest cryptocurrency scams.
Vancouver mayor suggests a ban on Bitcoin ATMs
The mayor of Vancouver, Kennedy Stewart, suggested a complete ban on Bitcoin ATMs in the summer of 2019 due to Anti-Money Laundering (AML) issues associated with the ATMs. The associated police report claims that criminals could purchase a Bitcoin ATM for their own needs for a few thousand dollars, and then deposit their cash into that ATM “as many times as required” to profit from or eliminate the transaction fees.
While many Canadian governing bodies have already taken steps against cryptocurrency, British Columbia’s review into the alleged money laundering activities is ongoing. Canada saw the amount of money laundering claims triple last year to 2,466 claims.
When speaking to Cointelegraph, Andrey Peshkov, the CEO of money transfer app USDX Wallet, dismissed the concerns surrounding money laundering using cryptocurrency in Canada, remarking:
“I do not think that cryptocurrency holders try to laundering money in Canada because they are obligated to pay taxes. Many countries do not require holders to pay taxes from their crypto income making them more attractive to bad actors.”
Flexa and Coinsquare integrate physical retail payments for Canada
However, not all news surrounding Canada recently has been negative.The Winklevoss-backed cryptocurrency payments service Flexa, which allows merchants such as TopGolf to accept cryptocurrency, has seen strong acceptance around the country.
Current estimates show that over 7,500 businesses have signed up on the platform to offer crypto payments to their customers, indicating that business owners in Canada see a need to provide payment solutions in crypto.
Canada audits QuadrigaCX exchange
A review of Canada in cryptocurrency would not be complete without talking about QuadrigaCX, a defunct Canada-based exchange. The company began grabbing headlines ever since its CEO Gerald Cotten was declared dead in India without ever having revealed the keys to access the company’s cryptocurrency reserves. When these reserves were discovered inaccessible, the business became insolvent, declaring bankruptcy.
The Canadian company’s bankruptcy trustee was Ernst & Young, a Big Four accounting agency. A bankruptcy trustee oversees the exchange’s insolvency proceedings focusing on auditing from a tax and creditor perspective.
Recently, the widow of QuadrigaCX Founder Gerald Cotten, Jennifer Robertson, paid $9 million in assets to the users of QuadrigaCX through EY. Robertson wrote in a personal statement, “The vast majority of my assets and all of the Estate’s assets are being returned to QCX to benefit the affected users.”
While the widow may not have been aware of her husband’s alleged malfeasance, what happened suggests that Canada is determined to rid cryptocurrency of fraud to protect both investors and holders. According to EY, Robertson’s late husband created fake accounts under several pseudonyms and used them to trade users’ money on the QuadrigaCX platform to show artificial income. The auditor also said that much of the funds were eventually transferred to personal accounts that he controlled.
High-paying employment in Blockchain Consensus report
The Blockchain Consensus report was released on Oct. 4, 2019 by the Chamber of Digital Commerce Canada, exploring the blockchain ecosystem in Canada. The report takes a closer look at Canada’s blockchain ecosystem, breaking down insight by region and company size. The report also states that government commitment is desperately needed to move this highly innovative technology sector forward by providing legal clarity.
Further, the report includes statistics that highlight the average annual blockchain salary in Canada sitting at more than $98,000 Canadian dollars, making blockchain careers among the highest-paying in the country. The CEO of Shortex, Vladimir Prosvirkin, remarked on this report to Cointelegraph:
“Canada is one of the leading countries adopting blockchain technology on a corporate level. Every second company is invested in blockchain somehow last year. Due to the country’s low energy cost, high internet speeds, and favorable regulations, blockchain and cryptocurrency industries have always prospered here.”
Piloting government spending tracking in Toronto
In an effort to increase transparency, EY started tracking how public funds are spent in the capital city of Toronto. As reported by Cointelegraph on Oct. 16, the system can track the government’s public funds as they move through different state agencies, providing transparency to the public.
According to EY, data provided by the platform can potentially be used to better inform future decision making on policies. Upon the pilot program’s launch, EY issued a statement, “Blockchain technology can positively impact processes from tax collection to open data to public spending.” A Bitcoin-conscious and highly functioning city like Toronto may benefit from greater transparency in government spending and provide an important use case.
G-7 working group on stablecoins
On Oct. 13, 2019, the Bank of Canada released results from the G-7 working group on stablecoins that was tasked with “investigating the impact of global stablecoins” as a whole. While much has been written about the strong language in the report, such as “Stablecoins pose a threat to financial security,” it also outlines ways in which governments and digital securities can work together. Participants included the Bank of England, the Bank of Canada, the Bank of France, the European Central Bank, the Bank of Italy, the Bank of Japan and the United States Department of Treasury.
On the eve of the G-7 working group, Anthony Pompliano, co-founder and partner at Morgan Creek Digital, noted that it has taken only a decade from Bitcoin’s creation for the “decentralized digital currency to go from basically the fringes of the internet to now being discussed at the G-7 and other regulatory offices.”
Challenges lie ahead for stablecoins
The report goes on to outline the challenges that stablecoins need to overcome in order for them to remain in compliance. Focusing on private stablecoins, the report highlights that stablecoins, regardless of size, pose some major risks such as regulatory, security, and those relating to financial reporting and misconduct.
Further, the paper addresses challenges and risks that globally adopted stablecoins like Tether (USDT) pose to monetary policy, financial stability, the international monetary system and fair competition. Jude Regev, the founder of Element Zero, an open-source network that provides branded stablecoins and a fee-free on-chain SmartSwap, noted to Cointelegraph:
“Private stablecoins will need to be more similar to a shield that protects purchasing power and provides security against hacking. When Central Bank’s like Canada issue their own digital currencies and other countries do the same, being able to create stable interoperability between each countries’ fiat onboarding will add the most value to the ecosystem.”
Based on international conversations and the working session led by Canada in conjunction with other countries, it is clear the country sees both value and risk in stablecoins. The working document shows a future where digital currency will utilize banks only as a means for fiat onboarding. The document seems to address two known stablecoin protocols, an algorithmic stablecoin like DAI and asset-backed stablecoins like Tether.
Toward the future
Canada’s blockchain history is marked by triumph and struggle. The Crypto Canucks are constant drivers and mass adoption is incoming through all the perceived barriers. From the first Bitcoin ATM to considering banning Bitcoin ATMs to leading the international community toward adoption, the Great White North has been at the forefront for both cryptocurrencies’ benefits and risks.
While adoption continues to increase, inappropriate regulation could potentially hinder some projects in the country. Guidelines may end up forcing private stablecoins to comply with securities laws in big countries or to even become banks, significantly raising the barrier to entry. Alternatively, countries may turn to outlawing private stablecoins altogether for fear of harm coming to their existing banking systems.