Crypto News | Binance and Bermuda memorandum

Are Binance & Bermuda best buddies now? Changpeng Zhao, the founder and CEO of Binance, and David Burt, the Prime Minister of Bermuda, signed a memorandum of understanding (MOU), with Binance pledging to fund educational programs associated with blockchain and fintech startups. According to Burt, Bermuda aims to provide a “well-regulated jurisdiction” that will become fertile ground for the development of fintech companies. Meanwhile, Binance and Bermuda will work on making the latter a global “compliance base” for the company, with Binance creating 30 new jobs, spending up to $10 million on university-level training in blockchain technology, and spending $5 million in funding on Bermudian startups through Binance Labs. The deal between Binance and Bermuda means this nation  will join several nations worldwide, including Malta, Luxembourg and Saudi Arabia, that hope to become world leaders in blockchain adoption, attracting businesses and companies from all over the world.

Meanwhile in the United States, last week the State of North Carolina issued a cease and desist order to Power Mining Pool (PMP), alleging that the mining company violated the Securities Act, offered unregistered securities, and made false and misleading statements related to these securities. Power Mining Pool offered so-called ‘mining pool shares’, which they were not allowed to do without registering with the state first.

Chinese authorities also cracked down on a different mining operation in the city of Tianjin in Northern China. After noticing an unexpected surge in electricity usage, law enforcement officers tracked down the unregistered mining operation, seized 600 computers, and detained 5 individuals who were apparently running the show. Local newspapers are calling the incident a “power theft case”, but it underscores the generally unfavorable attitude of Chinese authorities towards the cryptocurrency industry. Nevertheless, as we have reported on separate occasions, communities in other parts of the world, including the U.S., are concerned about the significant level of power consumption required to mine cryptocurrencies.

Still, it’s not all just bad news all the time. For example, in France, the Conseil d’Etat (Council of State) has lowered cryptocurrency trading taxes from up to 45% to 19% flat. The trading of cryptocurrencies is now classified as capital gains from movable property. Meanwhile, crypto mining will be taxed as non-commercial profits, while professional activity (likely both mining and trading) will be taxed as industrial and commercial profits. Following repeated appeals from French citizens, authorities have been working hard on improving their cryptocurrency regulations, with the Minister of Economy creating a crypto task force earlier this year.

Lastly, a report first published by Reuters indicates that Bitcoin may be entering a period of stability. Experts and economists familiar with the matter feel like the cryptocurrency is maturing. At the moment, Bitcoin is no longer at the top of Google searches, and ICO ads have been banned from most social media websites. Investors call this period an “existential crisis” for Bitcoin, where it has to decide what it wants to be when it “grows up”. In case institutional investors get involved in greater numbers, then Bitcoin and other cryptocurrencies will continue to grow. Binance and Bermuda will certainly love this.

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Author: Max Rothstein

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