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UK Police Lobbying for New Laws Allowing Them to Freeze Cryptocurrencies – News Bitcoin News

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UK police are urging the government to change the laws to allow them to freeze cryptocurrencies. Scotland Yard detectives say account lockout orders do not currently apply to cryptocurrency wallets, making it difficult for police to prevent criminals from transferring funds.

The UK police want new laws so they can freeze cryptocurrencies

Scotland Yard detectives are campaigning for new laws that will allow them to freeze criminals’ crypto assets, the Times reported last week.

Mick Gallagher, a retired detective chief superintendent with the Metropolitan Police, stated that asset freezing laws are out of date and therefore cryptocurrencies, including Bitcoin, cannot always be frozen or seized by the police. Gallagher, who had spent 37 years with the Metropolitan Police, retired late last month.

“The talks we’re having is about how we can align cryptocurrency with the same approach we have with cash-based crime,” he told the publication, noting that “cryptocurrency is invisible, it is instantly available , she goes around the world ”. , it’s intangible. ”The retired detective noted that“ one of the answers we have is legislation, ”and emphasized:

With cryptocurrency and crypto-related crime moving so fast, and with legislation being so slow, we are now in talks about realigning some of the laws currently applied to laundered cash to cryptocurrencies.

Gallagher explained that checking account freezing orders and other money laundering laws apply to cash and other assets, but not cryptocurrencies, making it difficult for police to prevent criminals from transferring funds from bank accounts.

He and other high-ranking detectives are campaigning for the government to change asset freeze laws. Gallagher noted that based on their discussions so far, the government was supported and interested in helping them fight organized crime.

Gallagher said, “It’s about definitions” and states:

In some account freezing laws, the word account is a critical word. But there is no account in the cryptocurrency world as they use wallets. So all you need to do is make minor legislative changes to include Wallet in the wording.

Do you think the police should be allowed to freeze cryptocurrencies? Let us know in the comment section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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

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Ethereum Might Dethrone Bitcoin as Best Crypto Store of Value, Study Argues – Bitcoin News

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A recent paper authored by members of several universities including Sydney and Macquarie argues that recent changes in Ethereum’s monetary policy make it a better store of value than Bitcoin. The deflationary effect that the EIP 1559 proposal caused on the issuance of the currency is believed to be the main cause.

Ethereum in the spotlight

A new paper released last month by members of Australian universities puts the spotlight on Ethereum and its possible future as a store of value. The paper entitled “Better than Bitcoin? Can cryptocurrencies defeat inflation? ”Is written by Ester Félez-Viñas from the University of Technology in Sydney and other scientists and compares the issue of Bitcoin with the new issue model of Ethereum, which makes the currency deflationary.

The paper says:

We show that after the recent change in its transaction protocol, the digital currency Ethereum has a significantly lower net emission rate of tokens than Bitcoin, which is achieved through the annihilation of the fees
associated with every transaction.

This has to do with the activation of EIP-1559, a proposal that burns Ethereum in proportion to the use of the network. While this proposal encountered resistance when it was presented – mainly from miners and mining pools – it is now contributing to this new appreciation of Ethereum as a potentially deflationary currency in the future.

Burning fees

The implementation of EIP-1559 resulted in the network burning a significant amount of Ethereum in fees. This change has resulted in more than a million ETH being withdrawn from circulation after just three months of its implementation on the mainnet. The study notes:

In many cases, the amount of Ethereum burned exceeds the creation of new tokens by the network, resulting in Ethereum potentially becoming the world’s first deflationary currency. We argue that this offers better inflationary hedging properties than Bitcoin, and therefore Ether may offer better long-term storage of value than Bitcoin.

Other cryptocurrency projects use similar burning schemes in hopes of recreating the same effect. Binance Coin recently activated an update for its network that also implemented fee burning. However, Binance Coin and Ethereum differ fundamentally: the latter has no upper limit for the issue, while Binance Coin has a hard upper limit for spending.

What do you think of “Better than Bitcoin? Can Cryptocurrencies Beat Inflation? ”Paper And Its Conclusions? Let us know in the comments section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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

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mark mobius: Don’t consider cryptocurrency an investment: Mark Mobius

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I don’t think cryptocurrencies fall into the viable investment category. It’s speculation that you could play with it, have fun with it, but not consider it an investment, says Mark Mobius, founder of Mobius Capital Partners.

Are the markets secretly praising tapering when it starts?

Tapering was in the foreground just a few weeks ago and is now taking a back seat because we are becoming aware that the Fed may be aware of this new Covid variant and may not tighten the screws as tightly as we expect.

If the Covid variant spreads, what happens then? How do you think the markets would adapt?

When this Covid situation struck last year, there was panic. The market collapsed dramatically but recovered very quickly. People have heard of Covid, big disaster, big problems and now they are starting to say that last time it wasn’t that bad, the market did well. So why should I panic at this situation?

Yes, the new variant is highly contagious, but not necessarily fatal. In other words, the deaths so far are minimal. So there may be times when people find that this new variant is not that serious, but people tend not to react as strongly as they did when they first panicked.

Her exposure to India was limited to three stocks. Did you do it four or five?

No, we are sticking to these stocks and are very happy with them. We’re still reviewing options, but we’re not making any changes so far.

Is there a reason you chose a persistent rather than a frontline name like TCS or Infosys?

Yes, the whole idea of ​​the fund was to differentiate itself from the indices. The ETFs are instruments that many investors use as they are based on indices. So if we offer something different from what people have now, that means doing something that the index is not involved in. It is important to us not to invest in companies in the index.

In our portfolio of three stocks, there may be two in an index rather than the main index. So that’s one of the top principles we have in our portfolio. The second thing is that we want to target midsize and small businesses that people haven’t noticed.

People don’t imagine these companies will grow. You will, of course, gradually see the value of the companies, then prices will rise.

PolyCab and Apollo, two stocks you own, are in some ways commodity consumers. At a time when we are experiencing a re-evaluation of the raw material complex and companies are struggling to maintain costs, does it make sense to rely on raw materials, consumers and not producers?

Not necessarily. If you look at the two manufacturers, yes they use steel and steel prices have gone up, but that’s only part of their total cost.

The other part is the work and other aspects of manufacturing. So the pricing implications are not that big.

Also, the good news is that the power of quality allows you to get a premium price point. You can raise prices without influencing demand too much. It depends on the individual company.

You will find that many commodity consumers continue to do well simply because the demand for their products is so great and their quality is good that they can hold the market while increasing prices.

Is there any reason for you to be concerned about your engagement in India?

We only care about one thing – the companies in which we invest. How is the situation in the company? How does the macro environment affect you? We don’t focus on the index or what ICICI or Reliance are doing. We focus on companies we invest in and find that price behavior differs from these and other companies.

Are you surprised by the kind of IPO euphoria we’ve seen with some of the emerging tech companies? Have you looked at names like Zomato or Paytm or skipped them completely?

We’re going to skip for two reasons. We don’t get into IPOs too often as they are perfectly priced. Their prices are not necessarily a bargain. Second, many of these IPOs, especially in the tech space, are based on hope and low money while companies are still losing money. We have a policy not to invest in companies that are losing money. Well, prices might not go through the roof if people are excited about technological innovations or get excited about the company and their hopes and fears, but at the end of the day we find that it’s better to stick with companies, which has a solid foundation, low debt and good income.

Many global investors investing in India are buying into private banks or buying into financial stocks. Why did you skip this?

Financial stocks are often included in the index, so we avoid them. It is often difficult to find out what is happening to the banks. So if you go to a bank to interview management and ask about the number of bad loans, they won’t tell you what happens. You don’t want to look bad.

Let’s say bad loans are 2% or 3%, but the reality is it’s probably closer to 20%, so that kind of opacity makes it very difficult to invest in banks. You have to be extremely careful. Those are the two reasons why we cannot favor banks. That doesn’t mean we’ll never go to a bank, maybe a small bank that is growing fast and solid for one reason or another, and where we can get the information we want, but otherwise one has to be very careful.

Would You Buy Bitcoin? So if you had to buy, sell and hold different asset classes, how would you classify them?

People should have some gold, maybe 10% of the emergency fortune. Gold, a currency in human history, is something you can have. Bitcoin or cryptocurrencies belong to the class of religions, it is a belief that if other people believe as you do, it will rise, but otherwise it is not an investment. It is not something that makes money, pays dividends, produces something. It is not just a currency but can be used for industrial purposes.

I spoke to a semiconductor manufacturer and said, have you ever used gold? He said yes we love gold to connect semiconductors, but the problem is its price. It’s a little too high. If it goes down we will switch from copper to gold because gold is far superior to copper. So I don’t think cryptocurrencies fall into the viable investment category. It is speculation that you could play with it, have fun with it, but not consider it an investment.

Do you think a bubble is emerging across the EV space?

In some cases there is a bubble. Every buyer rushes into this room. New electric car companies are listed or formulated.

It’s like the California gold rush. Many, many years ago, the people who made the money were the people who sold shovels and tools for the miners, and those are probably two of the people in the EV who make components for batteries or certain gear shafts that are likely to make money will. but a lot of auto companies won’t do very well.

What data point would you monitor that will convince you that it is time to sell or exit your India portfolio?

The most important thing would of course be state regulations. For example, says the Indian government, we will now impose a heavy tax on foreign investors or restrict the ability of foreign investors to limit their income. Things like that would panic and worry us very much.

That would be the number one problem. Others like the issues with income, company characteristics. We can deal with that so far. We can partner with the companies or sell, depending on what we think they will do. In general, we tend not to turn our portfolio very much. We have very, very little turnover because we have companies that we believe in and that we know will do well over the long term.

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The U.S. seized a record $1 billion of bitcoin a year ago. Its value has tripled.

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The largest ever seizure of cryptocurrency by the U.S. government has proven to be a godsend for taxpayers.

It’s about thousands of bitcoins seized in November 2020 in connection with the illegal Silk Road Marketplace, a dark web forum where drugs and other illegal products were bought and sold using the digital currency.

The bitcoins are still owned by the government for bureaucratic reasons. And the year after that, the price of Bitcoin tripled.

So what was once worth $ 1 billion is worth around $ 3 billion today.

That’s a little less than when Bitcoin hit its all-time high of $ 67,000 last month. But with Bitcoin hovering at around $ 55,000 – up from around $ 18,000 in November 2020 – Uncle Sam has still done pretty well.

The government will auction the bitcoins, an Internal Revenue Service spokesman told NBC News. The proceeds from such auctions are typically paid into the Department of Justice’s Treasury Forfeiture Fund or Assets Forfeiture Fund and used to aid future investigations.

Most of the government’s handling of cryptocurrency has been far less profitable. In fact, it is mostly a story of missed opportunities.

The US Marshals Service says it has sold 187,381 bitcoins in nine auctions since 2014. A spokesman declined to provide the appropriate sums of money, but based on the price of Bitcoin on the day of each sale, NBC News estimated total revenue would have been around $ 179 million.

At today’s price, these coins would fetch more than $ 10 billion – nearly 56 times as much.

When it was first seized related to the Silk Road in 2014, the government seized 29,657 bitcoins and sold them for around $ 18 million. Today it would be worth more than $ 1.6 billion.

Back then, it wasn’t easy to sell Bitcoin, a digital currency created using blockchain technology and stored in what are known as digital wallets. The government is concerned that there will be no buyers, said Sharon Cohen Levin, who headed the money laundering and asset deterioration division of the US Attorney’s Office for the southern borough of New York for two decades.

“It was insanely difficult figuring out how to do it,” she said.

In hindsight, simply storing the bitcoin would have made a fortune, but for better or for worse, the government is unable to hold cryptocurrencies for investment purposes.

Silk Road was an anonymous marketplace for criminal activity. Its founder, Ross Ulbricht, was sentenced to life imprisonment in 2015 after being convicted of money laundering and drug trafficking.

The $ 1 billion seizure last year came after the IRS used software company Chainalysis to identify 54 previously undiscovered Bitcoin transactions carried out by Silk Road, the IRS said.

Those funds were traced back to a Bitcoin address belonging to an unidentified person who hacked into Silk Road and stole the money, according to court records.

“Following this investigation into the hack, law enforcement officials confiscated several thousand bitcoins on November 3, 2020. On November 4, 2020, the confiscated Bitcoin was valued at over $ 1 billion, ”the complaint said.

And now it’s worth a lot more.

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