Race towards the First “Crypto-Country” in the World

The small European country of Estonia aims to become the first crypto-country in the world. The country is already in the midst of digitizing its government services using Blockchain technology, the tech behind digital currencies like Bitcoin.

The Estonian government’s digitization project reached a whole new level in 2014, with the government’s e-residency program. Under the initiative, any individual around the world can file an online application to become a virtual Estonian citizen. As a digital citizen, he/she can access the same online platforms that Estonia’s physical economy is based on, and the same online public services that domestic Estonians use.

The adoption of Blockchain has also allowed Estonia to introduce an online voting system during national elections. However, only physical residents are allowed to vote under the system. The country is also involved in various public services projects that are powered by Blockchain, including health services, and originally planned for its own digital currency.

Other Blockchain developments worldwide

Aside from Estonia, various countries around the world are also adopting Blockchain in public-sector applications, with the latest EU country vying for the same position being Slovenia.

In the UK, the government is currently piloting a Blockchain-based system for the payment of health benefits claimants. In Russia, Vitalik Buterin has signed a deal with a Russian state-owned bank for the creation of a special national system called Ethereum Russia.

The government of China, meanwhile, has developed a prototype of a prospective national cryptocurrency in the country since June 2017. By September, China decided to better regulate ICOs by banning them and eventually considering licensing options down the line.

In her report, Georgetown University cyber-lawyer, Dr. Clare Sullivan, claimed that the government of Australia is studying ways to replace its separate passport and birth certificate databases with a single Blockchain-based system.

“It is not necessarily cybersecurity concerns that have prevented the increased digitization of government services up to this point, though Blockchain is indeed much more secure than existing systems. Rather, it has been the importance of ‘know-your-customer’ protocols — the need for governments, banks, and other institutions to verify individuals’ identities using physical ID documents and in-person interactions.”

Source : Cointekegraph 

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Vladimir Putin: Cryptocurrency Poses 'Serious Risks'

Russian president Vladimir Putin said in a meeting today that cryptocurrencies pose significant risks related fraud and money laundering.

Quoted by Russian state news service TASS, Putin was speaking during a meeting that was focused on the subject of cryptocurrencies and financial tech more broadly. In the meeting, he formally voiced his support for new rules around cryptocurrency trading, stating that Russia should look to international examples as a guide when developing those regulations.

Indeed, the meeting represents some of Putin's most comprehensive comments on the subject to date. He first spoke about cryptocurrencies in the summer of 2015, remarking at the time that there were "serious, really fundamental issues related to its wider usage." In his new statements, Putin highlighted the rising profile of the technology, while also echoing those 2015 comments.

Putin was quoted as saying:

"Virtual [currencies] or cryptocurrencies are becoming and have already become more popular. They have already become or are turning into a full-fledged payment instrument and an investment asset in certain countries. At the same time, use of cryptocurrencies also carries serious risks."

On the subject of the rules themselves, Putin threw his support behind regulations that would protect consumers and facilitate the development of new financial products.

"We should develop such a regulatory system on the basis of international experience that will make possible to make relations in this sphere systemic, definitely protect interests of citizens, business and the government, and provide legal guarantees for work with innovative financial instruments," he said.

His comments come after a senior official for Russia's central bank stated publicly that his institution will support efforts to block access to external websites that offer cryptocurrency brokering services in the country. Representatives from the Bank of Russia were also present at the Putin meeting, according to sources.

Source : CoinDesk

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Russia's Central Bank Support Efforts to Ban Access To Bitcoin Websites

The first deputy governor of Russia's central bank, Sergei Shvetsov, has said that his institution will support efforts to block access to external websites selling cryptocurrencies in the country.

Speaking at a conference on Tuesday, Reuters reports that Shvetsov cited the "unreasonably high risks" involved in cryptocurrency investment as a reason for the proposed measure, adding: "We cannot give direct and easy access to such dubious instruments for retail (investors)."

As such, the Bank of Russia will be working alongside the judiciary to ensure the closure of websites offering these services – a crackdown that he indicated will extend to "all cryptocurrency derivatives."

Russian news agency TASS quotes Shvetsov as stating:

"We consider all cryptocurrency derivatives to be a negative development on the Russian market and do not consider it possible to support it, and will even assume measures to restrict potential operations with such instruments made by the regulated part of the Russian market. Meanwhile, we assume efforts aimed at closing external websites that allow Russian citizens to acquire such assets together with the General Prosecutor's Office."

Shvetsov further added that, with bitcoin being an asset that can generate high returns very quickly, it shows signs of being a pyramid scheme.

The move to block access to cryptocurrency trading websites follows a number of warnings from Russian authorities in the past few months.

Alexey Moiseev, the country's deputy finance minister, said in September that he expects upcoming legislation to feature a flat-out ban on payments made in cryptocurrency. Earlier the same month, deputy governor of the Bank of Russia Dmitry Skobelkin told Bloomberg: "China doesn't recognize cryptocurrency as payment and forbids ICOs. Our views are absolutely similar."

N.B. Several days ago Russia's foreign ministry has sharply criticized a Greek court's decision to extradite Alexander Vinnik to the US for his alleged role inlaundering funds through the BTC-e bitcoin exchange.


Source: Coindesk

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Russia Decides To Extradite Suspected Bitcoin Money Launderer

Russia's foreign ministry has sharply criticized a Greek court's decision to extradite Alexander Vinnik to the US for his alleged role in laundering funds through the BTC-e bitcoin exchange.

In a statement, the Ministry for Foreign Affairs said today that they "noted with regret" that the court opted to comply with the US's extradition request for Vinnik, who was arrested in Greece in late July and was accused of laundering billions of dollars in bitcoin through the exchange.

Both Vinnik and BTC-e were later charged by US prosecutors, with FinCEN handing down a $110 million fine after the sealed indictment was unveiled.

Since then, Vinnik has remained in Greece pending the outcome of the extradition process. During that time the Russian government moved to extradite Vinnik on unrelated charges, a move that was later endorsed by Vinnik himself in a statement to Russia Today.

To date, Vinnik has maintained that he is innocent of the charges, though he claims to have worked for BTC-e in the past. BTC-e, for its part, has denied Vinnik's involvement and, since the exchange's site domain was seized by US agents, has moved to establish a new cryptocurrency exchange.

But this week's ruling by a Greek judge was met with dismay by the Russian foreign ministry, which in a statement urged the court to reconsider the decision.

The Russian government said:

"We deem the verdict unjust and a violation of international law. A request from the Russian Prosecutor General's Office on extraditing Mr Vinnik to Russia was submitted to the Greek authorities. Based on legal precedent, the Russian request should take priority as Mr Vinnik is a citizen of Russia."

The statement notably makes no mention of BTC-e or the specific crimes for which Vinnik has been accused. That said, it does make note that Vinnik's legal team will appeal the decision, potentially leaving it up to the Greek Justice Ministry to decide on where the Russian national will be sent.

The foreign ministry also expressed hope that Vinnik will ultimately be extradited to Russia.

"We hope the Greek authorities will consider the Russian Prosecutor General's Office request, and Russia’s reasoning, and act in strict compliance with international law," the ministry said.

Source: Coindesk

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