December 7

Ueli Maurer: Switzerland does not get a new Bitcoin profit Blockchain law

There will be no new blockchain law in Switzerland. At least according to Finance Minister Ueli Maurer. This was announced by the SVP member at the Infrachain in Bern. Nevertheless, the country does not want to miss out on European integration.

The Infrachain is a blockchain conference that is somewhat out of line. Instead of the usual focus on the future of (international) financial technology, the Swiss capital will focus on the needs of public administration and infrastructure operators. In short: all areas that blockchain technology can revolutionize with more efficiency and cost reduction. To discuss this potential, representatives from industry and government met in Bern on 3 December.

Ueli Maurer wants to adapt Bitcoin profit laws

Ueli Maurer, Switzerland’s Finance Minister, spoke on the subject of Bitcoin profit regulation. According to, there should be no new law for Bitcoin profit blockchain technology. Rather, the government wants to adapt existing laws in order to meet the new requirements of the technology. The Blockchain Task Force, which was set up in January, now has two weeks to provide the necessary documents.

According to the magazine, a total of six laws are about to be changed. These include the Swiss Code of Obligations and the Bankruptcy Act – according to Ueli Maurer, the necessary adjustments are to be introduced before the end of this year. After all, it is also a matter of not missing out on the European blockchain race.

Don’t miss the Bitcoin profit

Countries such as Malta and Liechtenstein are making efforts to achieve effective and attractive Bitcoin profit. Read the review about Bitcoin profit. They offer tax incentives for young blockchain start-ups. In Germany, the authorities are not yet quite as united as in Switzerland. But at least there is already a plan to bring early regulation to the German Bitcoin scene. In any case, there is plenty of fertile soil for this.

Category: law | LEAVE A COMMENT
December 4

Water on the Blockchain: Austria launches first Security Token Offering

Austria achieves the breakthrough in the area of Security Token Offerings. The Austrian Financial Market Authority (FMA) approved the capital market prospectus of Hydrominer IT-Services GmbH on 26 November. According to the prospectus, the security token can be used to trade profit participation rights for H3O worth up to 75 million euros.

The STOs are not unlike the Bitcoin code

Now that the Bitcoin code funding model has come under increasing criticism, security token offerings should be the next promising investment opportunity. Just a little more secure. With security tokens, companies can issue tokens that can be compared to shares. In contrast to the ICO, investors have ownership rights here. This is not the case with utility tokens (which are distributed with ICOs). The functions and output of the tokens are controlled by a block chain using Smart Contracts. The tokens stored on the block chain ultimately represent the rights of the token owners in the respective company.

Now an Austrian company is breaking new ground in this field. According to a press release of the law firm Stadler Völkel, which is available to BTC-ECHO, the company is the first in the European Union to carry out an STO.

Details on the Bitcoin code Security Token Offering by Hydrominer

The corresponding Hydrominer Bitcoin code tokens are called H30 tokens and secure “qualified subordinated profit participation rights” for the holders: “Holders of Bitcoin code tokens have […] the right to actively participate in Hydrominer’s business decisions. This right of participation [goes] beyond that of shareholders and allows investors to actively participate in decision-making processes. In addition, the Securities Terms provide for a kind of co-sale right in the event that a qualified majority of the owners of Hydrominer sell their shares”.

In addition, the H3O tokens serve as a key to identify themselves to Hydrominer as security holders. This applies to the payout as well as to the exercise of the rights of codetermination associated with the H3O token.

Hydrominer already carried out an ICO last year – with the H2O token one could invest in primarily environmentally friendly Bitcoin mining. The associated tokens then stand for Bitcoin Mining time units.

The H3O security token is therefore a novelty on the crypto market. Hydrominer’s legal department is therefore very pleased with the results:

“With the approval of what is probably the first capital market prospectus for a security token offering within the EU, we have not only set a milestone for the industry, but also for Austria as a business location. We are particularly pleased that we can continuously advise on the legal fine-tuning of blockchain application forms and enjoy the trust of the community as a highly specialised partner in the blockchain sector, explains Arthur Stadler, Stadler Völkel Attorneys at Law.

Subscription is possible from 1 February 2019. The offer will be made exclusively in Austria and Germany on the basis of the capital market prospectus approved on 26 November 2018, which can be found on Hydrominer’s website.

December 1

Telegram Passport – Identification on the blockchain

Telegram is testing a new service for storing data for identification purposes. Telegram Passport will make it possible to store personal data such as ID numbers, bank details and similar data on the TON platform.

That the blockchain technology is not only used to manage crypto currencies like Bitcoin is probably clear to many by now. The management of health data, government documents, elections or shipping industry data is possible with the blockchain – in principle, anything that can be managed in any way can also be stored on the blockchain. This includes identity documents and other personal data.

And that Bitcoin news make sense

Because the decentralized administration of such sensitive information would not only make it forgery-proof. Rather, it also makes it possible to identify oneself more easily, quickly and cost-effectively. Not to mention the large amount of paper that is saved. The Bitcoin news messaging service from Russia now wants to take on this task: Is Bitcoin News Trader a Scam? Read This Review Before You Sign Up! With its planned Telegram Open Network (TON), not only the messaging services will run on the blockchain, but also identification processes.

Only recently, the company announced that they had already collected enough money in the pre-sale for the Telegram Open Network. The amount of money collected from private investors alone is obviously enough to make a public sale unnecessary.

As one can now see from Russian media, Telegram is now using this money, among other things, to use the new service to store identity data. The application will be called Telegram Passport and will be part of TON. Since the platform is supposed to be able to buy goods and services with the currency Gram, one has to be able to identify oneself. The team around founder Pawel Durov is planning the Telegram Passport so that you don’t have to go to the office every time.

Users can upload their personal data and documents such as copies of ID documents, driving licences, electricity bills, bank information and possibly photos. Once they are on the platform, they can be shared with Telegram Passport within the Telegram Open Network. But this should also be possible outside of TON. Only with the respective consent of the owner, of course.

Telegram Passport complies with regulatory Bitcoin formula requirements

In the last weeks and months the Telegram team got problems with the authorities again and again. Above all, the government in Russia expressed concerns about Bitcoin formula anonymity and the associated danger of illegal activities. With the planned identification system the team apparently wants to secure itself. Read more about it:

This apparently also arouses the interest of potential partner companies. According to sources, the Russian service provider Qiwi has already announced a possible cooperation.

Ultimately, the control over the data should lie solely with the users. In the sense of the blockchain, they can authenticate their data themselves and release it at their own discretion. The data can then be viewed by any business partners or companies and can thus be checked again.

There is no exact release date yet. The advance of Telegram can again be seen as an important step towards adaptation of the blockchain technology.

October 28

Ethereum Classic Rise – Bubble or More Behind It?

While Ethereum is moving sideways, Ethereum Classic has been able to recover in the last few days – what are the reasons for the rise?

November was a good month for Ethereum Classic: last week, the price rose from EUR 8.37 to a high of EUR 12.98. This is an important price for Ethereum Classic. This value corresponds to an important resistance, which is defined by temporary minima at the end of July and mid-August. In the meantime, the value has fallen somewhat, but it still ranks at EUR 11.59 at the moment.

Ethereum Classic – a protocol for the Bitcoin trader?

Have Bitcoin trader only discovered a cheap gambling opportunity or could there be more behind it? A glance at the chart leaves you with mixed feelings for the next few days: The price is currently falling and is testing a first support at 11.63 EUR. If this level is finally broken, the support at 10.41 EUR would be a level at which the price could recover and drive a rally up to values of 13.65 EUR by the end of the “Ethereum Classic Summit” conference. So let’s watch the price for Bitcoin trader at the support levels!

Ethereum Classic Summit and Sovereignty at Parity – Reasons for the crypto trader

So much for the chart, but what can be its fundamental reasons? As mentioned before, the Ethereum Classic Summit will take place in a few days. The Hong Kong conference is well attended with participants such as Jihan Wu of Bitmain, various members of the IOHK known for Cardano and representatives of crypto trader Exchanges such as Huobi.

In addition, the trading volume with Ethereum Classic on Asian stock exchanges has increased dramatically. This may also be due to the fact that OKEX, a digital asset exchange from Hong Kong, now allowed Ethereum Classic and Ethereum Futures.

After all, Ethereum Classic is playing the current parity issue into its hands: While the vulnerability is a problem for Ethereum Token Holder, the situation is not critical for Ethereum Classic Holder. This is because two multi-sig wallet optimizations were not implemented by the Ethereum Classic development team. While this meant that Ethereum Classic’s use of multi-sig wallets consumed a little more gas, it showed that suspending these updates saved Ethereum’s little brother a lot of problems.

From a long-term investment perspective, an approach discussed by Grayscale may be interesting. This Digital Asset Investment Trust already wrote an article about the Ethereum Classic investment case in August. According to this analysis, Ethereum Classic is seen as an optimal transaction system for an IoT future.

This thesis, on the basis of which Grayscale assumes a price increase to up to 150 US dollars, can of course be discussed. It is therefore surprising that IOTA is not chosen as the market comparison when considering the Internet of Things use case. Nevertheless, the report is interesting and should be recommended to the interested reader.

October 11

Attack on MyEtherWallet – The day after

Yesterday we reported live about an attack on the users of the site MyEtherWallet (MEW). Meanwhile the hustle and bustle has subsided. What happened? How can you protect yourself?

The MyEtherWallet website offers its users the opportunity to interact with the Ethereum block chain. This means that you can interact with Smart Contracts, for example to participate in an ICO that expires as an ERC20 token. MEW is regarded as one of the contact points on the Internet for these purposes.

Man-In-The-Middle attack on MEW

All the more dramatic were the messages that spread like wildfire through the Internet yesterday: “Attack on MyEtherWallet! Do not use for the time being”. The attack started at about 12 UTC and lasted about two hours.

It was targeted specifically at MyEtherWallet and users had to fear for their Ether (ETH). The attacker used for his purposes BGP a protocol to route Internet traffic between Internet Service Providers (ISP). He used it to redirect traffic to his own DNS and the users to a fake website.

The attack was therefore a classic “Man In The Middle Attack” – a technology that was decades old. The vulnerability was not due to MyEtherWallet, but to the known vulnerabilities of BGP.

Cypherpunk legend Nick Szabo took the opportunity to point out the vulnerabilities of Web Wallets. If you want to keep your money safe, you should definitely not do this online.

This way you can protect yourself

For the security of your own money, there are two – relatively simple – steps:

Always make sure that the SSL certificate to the left of the URL bar is green. If the certificate is red and crossed out, it is a compromised website.
Install MyEtherWallet locally on the computer and run it from there. MEW is a browser application, which means that MEW can also be accessed via the browser of your choice during a download. However, you can be so sure that you will not be redirected to a third website by a malicious attacker.