Pine Gap plays crucial role in America’s wars, leaked documents reveal – ABC Online

Updated August 20, 2017 13:09:45

Intelligence from Australia's Pine Gap base is being used on US battlefields, leaked documents from the US National Security Agency have revealed for the first time.

The documents reveal that the base outside Alice Springs, officially titled Joint Defence Facility Pine Gap, provides detailed geolocation intelligence to the US military that can be used to locate targets, including for special forces and drone strikes.

The use of lethal unmanned drones by the US military has been blamed for hundreds of civilian deaths across countries like Pakistan, Afghanistan Syria, Yemen and Somalia.

The documents, which Background Briefing is publishing for the first time, come from the massive archive of classified documents leaked by NSA whistleblower Edward Snowden.

One document, titled "NSA Intelligence Relationship with Australia" is marked "top secret", and demonstrates that the role of Pine Gap, referred to by its NSA codeword RAINFALL, has become more military-focused over time.

It says: "Joint Defence Facility at Pine Gap (RAINFALL) [is] a site which plays a significant role in supporting both intelligence activities and military operations."

Another document reads: "One of RAINFALL's primary mission areas is the detection and geolocation of Communications Intelligence, Electronic Intelligence and Foreign Instrumentation signals."

Locating the source of signals is crucial for targeting military action, including the lethal unmanned drone strikes.

Richard Tanter, a professor at the University of Melbourne's school of political and social studies and the co-author of a recent Nautilus Institute report on Pine Gap, says the documents confirm the facility's military role.

"Those documents provide authoritative confirmation that Pine Gap is involved, for example, in the geolocation of cell phones used by people throughout the world, from the Pacific to the edge of Africa," he said.

"It shows us that Pine Gap knows the geolocations, it derives the phone numbers, it often derives the content of any communications, it provides the ability for the American military to identify and place in real time the location of targets of interest."

Another secret NSA document, a "site profile" of Pine Gap, explains that the facility's role is not only to collect signals, but to analyse them.

"RAINFALL detects, collects, records, processes, analyses and reports on PROFORMA signals collected from tasked target entities," the profile says.

These PROFORMA signals are the communications data of radar and weapon systems such as surface-to-air missiles, anti-aircraft artillery and fighter aircraft vital tactical information that is provided in near real-time to US forces on the battlefield.

David Rosenberg, a 23-year veteran of the NSA who worked inside Pine Gap as team leader of weapon signals analysis for 18 years until 2008, confirms the base's geolocation capability.

"We're talking about the ability of satellites to geolocate particular electronic transmissions," he says.

"The tasking we get at Pine Gap, is [to] look for this particular signal coming out of this particular location. If you find it, report it, and if you find anything else of interest, report that as well.

"That is the kind of tasking we are looking for. It would be up to the recipients who get this kind of intelligence to make these types of decisions to say, 'Is that relevant? Is that what we are looking for? Are these the people we are targeting?'"

But Mr Rosenberg says preventing civilian casualties is a high priority.

"One thing I can certainly tell you the governments of Australia, and the United States would of course want to minimise all civilian casualties," he says.

"Pine Gap does help to provide limitation of civilian casualties by providing accurate intelligence."

Not everyone is sure things are that clear cut.

Emily Howie, the director of advocacy and research at the Human Rights Law Centre, believes Pine Gap's potential role in drone strikes may leave Australians open to prosecution.

"The legal problem that's created by drone strikes is that there may very well be violations of the laws of armed conflict, or war crimes as it's called colloquially, and that Australia may be involved in those potential war crimes through the facility at Pine Gap," she says.

"Australia, in so far as it is locating suspects that the US targets, is assisting the US. So it could be liable for any crimes committed by the US, in terms of aiding and assisting in that.

"The question then is: is the killing that's done by the United States a war crime or not?"

Ms Howie argues there is an urgent need for greater public knowledge and debate about the Pine Gap base.

"What we have here are credible and really serious allegations made against the personnel at Pine Gap that they could be involved in assisting international crimes war crimes and we have absolutely zero transparency around what's happened," she says.

However, Peter Jennings, the executive director of the Australian Strategic Policy Institute, an independent thinktank in Canberra funded largely by the Department of Defence, says Pine Gap's role is a natural part of Australia's alliance with the US.

"If you accept that the USA and Australia, we're fighting in necessary conflicts in the Middle East, then it's appropriate that our intelligence facilities support those conflicts," he says.

"It reflects a reality that both Australia and the United States and a significant number of other countries besides, are engaged in military operations against a fairly entrenched enemy in the form of extremists or terrorists that are operating in a number of countries in the Middle East. So I think it's perfectly reasonable that we should be using our intelligence resources to support our military operations in in those countries."

According to Cian Westmoreland, who worked for four years as a US Air Force signals relay technician for lethal drones in Afghanistan, it's difficult to say who is responsible for any one piece of targeting information.

"All of this information that's getting sucked up is being used to basically develop targets and find out where the next strike is going to be," he says.

"You have different countries doing different things all working together. You have stations in Great Britain and the Australians would be working with the Americans and the British.

"It's collaborative, and it's really hard to say 'the Australians are responsible for this' or 'the British are responsible for that'.

"Everybody is working together and if the Australians were involved in one piece that happened to be used in a strike, they're essentially complicit with whatever the end result is."

This report was prepared in collaboration with The Intercept, a US investigative news website. The leaked NSA documents are available on the Background Briefing website.

Topics: defence-and-national-security, security-intelligence, defence-forces, wireless-communication, information-and-communication, treaties-and-alliances, unrest-conflict-and-war, alice-springs-0870, australia, united-states

First posted August 20, 2017 08:14:25

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Pine Gap plays crucial role in America's wars, leaked documents reveal - ABC Online

Food for thought: UAE ambassador’s hacked mails feed crucial policy debates – HuffPost

The hacked email account of Yousef al-Otaiba, the influential United Arab Emirates ambassador in Washington, has provided unprecedented insight into the length to which the small Gulf state is willing to go in the pursuit of its regional ambitions.

Mr. Al-Otaiba is unlikely to acknowledge the contribution the insight has made to understanding the ten week-old Gulf crisis and diplomatic and economic boycott of Qatar that was engineered by the UAE. The ambassador may, however, have greater appreciation for the contribution his private email exchanges have made to the theory and policy debate about the place of small states in an increasingly polarized international order.

Similarly, Mr. Al-Otaiba is unlikely to see merit in the fact that his email exchanges raise serious questions, including the role and purpose of offset arrangements that constitute part of agreements on arms sales by major defense companies as well as the relationship between influential, independent policy and academic institutions and their donors.

To be sure, Mr. Al-Otaiba is likely to be most concerned about the potential damage to the UAEs reputation and disclosure of the Gulf states secrets caused by the hack. No doubt, the selective and drip-feed leaking of the ambassadors mails by Global Leaks, a mysterious group that uses a Russian email address, is designed to embarrass the UAE and support Qatar in its dispute with an alliance of nations led by the Emirates and Saudi Arabia.

Mr. Al-Otaiba as well as his interlocutors have not confirmed the authenticity of the mails. The UAE embassy did however tell The Hill that Hotmail address involved was that of the ambassador. Moreover, various of the leaks have been confirmed by multiple sources.

The UAE is hardly the only government that donates large sums to think tanks and academic institutions in a bid to enhance soft power; influence policy, particularly in Washington; and limit, independent and critical study and analysis. While Gulf states, with the UAE and Qatar in the lead, are among the largest financial contributors, donors also include European and Asian governments. Think tank executives have rejected allegations that the donations undermine their independence or persuade them to do their donors bidding.

The latest leaks, however, raise the debate about the funding of think tanks and academic institutions to a new level. Mails leaked to The Intercept, a muckraking online publication established by reporters who played a key role in publishing revelations by National Security Council whistle blower Edward Snowden, raise questions not only about funding of institutions, but also the nature and purpose of offset arrangements incorporated in arms deals. Those deals are intended to fuel economic development and job creation in purchasing countries and compensate them for using available funds for foreign arms acquisitions rather than the nurturing of an indigenous industry.

The mails disclosed by The Intercept as well as The Gulf Institute, a Washington-based dissident Saudi think tank, showed that a UAE donation of $20 million to the Washington-based Middle East Institute (MEI) involved funds funnelled through Tawazun, a Abu Dhabi-based investment company, and The Emirates Center for Strategic Studies and Research (ECSSR) that is headed by UAE Crown Prince Mohammed bin Zayed, that had been paid to the UAE in cash rather than projects by defense contractors as part of agreements to supply military equipment.

The US embassy in Abu Dhabi reported as far back as 2008 in a cable to the State Department published by Wikileaks that reports as well as anecdotal evidence suggested that that defense contractors can sometimes satisfy their offset obligations through an up-front, lump-sum payment directly to the UAE Offsets Group despite the fact that the UAEs offset program requires defense contractors that are awarded contracts valued at more than $10 million to establish commercially viable joint ventures with local business partners that yield profits equivalent to 60 percent of the contract value within a specified period (usually seven years).

The cash arrangement raises questions about the integrity of offset arrangements as well as their purpose and use. In the case of MEI, it puts defense contractors in a position of funding third party efforts to influence US policy. In an email to Mr. Al-Otaiba, MEI president Wendy Chamberlain said the funding would allow the institute to counter the more egregious misperceptions about the region, inform US government policy makers, and convene regional leaders for discreet dialogue on pressing issues.

The UAE has been a leader in rolling back achievements of the 2011 popular Arab revolts that toppled the leaders of four countries, promoting autocratic rule in the region, and opposing opposition forces, particularly the controversial Muslim Brotherhood.

The donations by countries like the UAE and Qatar to multiple think tanks as well as the source of the funding links to the even larger issue of strategies adopted by small states to defend their independence and ensure their survival in a world in which power is more defuse and long-standing alliances are called into question.

The leaked emails provide insight into the UAEs strategy that is based on being a power behind the throne. It is a strategy that may be uniquely Emirati and difficult to emulate by other small states, but that suggests that given resources small states have a significant ability to punch above their weight.

US intelligence officials concluded that the hacking of Qatari news websites to plant a false news report that sparked the Gulf crisis in early June had been engineered by the UAE. The UAE move was embedded in a far broader strategy of shaping the Middle East and North Africa in its mould by turning Saudi Arabia into its policy instrument.

Leaked email traffic between Mr. Al Otaiba and three former US officials, Martin Indyk, who served in the Clinton and Obama administrations, Stephen Hadley, former President George W. Bushs national security advisor, and Elliott Abrams who advised Presidents Bush and Ronald Reagan, as well as with Washington Post columnist David Ignatius documents what some analysts long believed but could not categorically prove. It also provided insight into the less than idyllic relationship between the UAE and Saudi Arabia that potentially could become problematic.

In the emails, Mr. Al-Otaiba, who promoted Saudi Crown Prince Mohammed bin Salman in Washington as Saudi Arabias future since he came to office in 2015, was unequivocal about UAE backing of the likely future king as an agent of change who would adopt policies advocated by the UAE.

I think MBS is far more pragmatic than what we hear is Saudi public positions, Mr. Al-Otaiba said in one of the mails, referring to Prince Mohammed by his initials. I dont think well ever see a more pragmatic leader in that country. Which is why engaging with them is so important and will yield the most results we can ever get out of Saudi, the ambassador said. Change in attitude, change in style, change in approach, Mr. Al-Otaiba wrote to Mr. Ignatius.

In another email, Mr. Al-Otaiba noted that now was the time when the Emiratis could get the most results we can ever get out of Saudi.

In a subsequent email dump, published by Middle East Eye, an online news site allegedly funded by persons close to Qatar, if not Qatar itself, and also sent to this writer, Mr. Al-Otaiba, makes no bones about his disdain for Saudi Arabia and his perception of the history of Emirati-Saudi relations.

Writing to his wife, Abeer Shoukry, in 2008, Mr. Al-Otaiba describes the Saudi leadership as f***in coo coo! after the kingdoms religious police banned red roses on Valentines Day. The powers of the police have been significantly curtailed since the rise of Prince Mohammed, who has taken steps to loosen the countrys tight social and moral controls.

In one email, Mr. Al-Otaiba asserts that Abu Dhabi has battled Saudi Arabia over its adherence to Wahhabism, a literal, intolerant and supremacist interpretation of Islam, for the past 200 years. The ambassador asserted that the Emirates had a more bad history with Saudi Arabia than anyone else.

Taken together, the leaked emails involving multiple other issues, including the UAEs military relationship with North Korea as well as its competition with Qatar to host an office of the Afghan Taliban, serve not only as a source for understanding the dynamics of the Gulf crisis, but also as case studies for the development of more stringent guidelines for funding of policy and academic research; greater transparency of military sales and their offset arrangements; and the place of small states in the international order as well as the factors that determine their ability to maintain the independence and at times punch above their weight.

To be sure, that was not the primary purpose of the leaks. The leaks were designed to further Qatars cause and undermine the UAEs arguments as well as embarrass it. The jury is still out on the degree to which the leakers may have succeeded. Nonetheless, one unintended consequence of the leaks is that they raise issues that go to the core of a broad swath of issues, including accountability, transparency, economic and social development, and international relations.

Dr. James M. Dorsey is a senior fellow at the S. Rajaratnam School of International Studies, co-director of the University of Wrzburgs Institute for Fan Culture, and the author of The Turbulent World of Middle East Soccer blog, a book with the same title, Comparative Political Transitions between Southeast Asia and the Middle East and North Africa, co-authored with Dr. Teresita Cruz-Del Rosario and four forthcoming books, Shifting Sands, Essays on Sports and Politics in the Middle East and North Africa as well as The Gulf Crisis: Small States Battle It Out, Creating Frankenstein: The Saudi Export of Ultra-conservatism and China and the Middle East: Venturing into the Maelstrom.

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Food for thought: UAE ambassador's hacked mails feed crucial policy debates - HuffPost

Is Trump going to pardon Julian Assange? – The Week Magazine

Could President Trump be considering a pardon for WikiLeaks founder Julian Assange? That is the latest rumor after California Rep. Dana Rohrabacher (R) met with Assange earlier this week to discuss "what might be necessary to get him out" of asylum, The Daily Caller reports.

The rumors reignited Friday morning when an account that tracks who the Trump family follows shared that Donald Trump Jr. followed Assange:

Assange faces sexual assault charges in Sweden and if he returned there, he could be deported to the U.S. where he could face a potential death penalty for leaking documents with Edward Snowden. To avoid the charges, Assange has lived in the Ecuadorian embassy since 2012.

In his interview, Rohrabacher suggested that Assange might be pardoned in exchange for information about the Democratic National Committee email leak last year. "[Assange] has information that will be of dramatic importance to the United States and the people of our country as well as to our government," Rohrabacher told The Daily Caller. "Thus if he comes up with that, you know he's going to expect something in return. He can't even leave the embassy to get out to Washington to talk to anybody if he doesn't have a pardon."

Assange notably has argued that Russia was not involved in the DNC hack, contrary to reports by U.S. intelligence. Rohrabacher has been criticized for being too soft on Russia.

Rohrabacher added, "I can't remember if I have spoken to anybody in the White House about this," but "there has already been some indication that the president will be very anxious to hear what I have to say if that is the determination that I make." Read the full interview at The Daily Caller. Jeva Lange

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Is Trump going to pardon Julian Assange? - The Week Magazine

Calls for FBI investigate to Dana Rohrabacher’s meeting with Julian Assange grow – Salon

Just to be clear, I am an advocate of political and corporate transparency. So too, I would imagine, are manyof Julian Assanges supporters.

Do you know who doesnt support transparency, though? Julian Assange.

Sure, he supports transparency forspecific groups when doing so fits withhis personal ideological agenda the Democratic National Committee, the American military-industrial complex, etc. But a true advocate of transparency believes that all powerful institutions should be held accountable.

They are consistent.

As a new report reveals, consistencyjust isnt Assanges bag. The most likely explanation for this (aside from his right-wing biases) is that he seems to be a tool of the Russian government. According to a new report by Foreign Policy, Assange refused to publishat least 68 gigabytes of data with documents that contained damning information about the Russian government. This decision occurred in the summer of 2016, around the same time that Assange was publishing Democratic National Committee emails to damage Hillary Clintons campaign emails which are believed to have been obtained by a Russian hack (a story by The Nation attempts to cast doubt on that but is currently under review by the publications editors).

According to partial chat logs reviewed by Foreign Policy, WikiLeaks came up with a number of excuses for not publishing the documents. Initially, they claimed that the documents were already public, even though the data that had been previously published (all the way back in 2014) was less than half of what was presented to Assange two years later. Later, WikiLeaks told the source that they wouldnt publish the documents because they wanted to focuson the 2016 presidential election (i.e., destroying Hillary Clinton).

Is there an election angle? Were not doing anything until after the election unless its [sic] fast or election related. We dont have the resources, WikiLeaks wrote, adding that doing so would be diversionary.

WikiLeaks confirmed this in a direct message on Twitter to Foreign Policy, writing that WikiLeaks schedules publications to maximize readership and reader engagement.During distracting media events such as the Olympics or a high profile election, unrelated publications are sometimes delayed until the distraction passes but never are rejected for this reason.

They also claimed that WikiLeaks rejects all submissions that it cannot verify. WikiLeaks rejects submissions that have already been published elsewhere or which are likely to be considered insignificant. WikiLeaks has never rejected a submission due to its country of origin.

As the source of the messages told Foreign Policy, Many Wikileaks staff and volunteers or their families suffered at the hands of Russian corruption and cruelty, we were sure Wikileaks would release it. Assange gave excuse after excuse.

More recently, Assange made his alliance with Russias totalitarian regime crystal clear bymeeting on Wednesdaywith Republican Rep. Dana Rohrabacher of California. Rohrabacher, you may recall, has earned the nicknamePutins favorite congressmandue to his bizarre fixation with and support of the Russian authoritarian regime. In case you think this story is all about Russia, take a look at the other person who attended the Assange-Rohrabacher meeting: Charles C. Johnson, anotorious white supremacist, who claims he helped arrange the meeting. Johnson was banned from Twitter for encouraging his supporters for help in taking out a civil rights activist.

The Washington Post reported on Friday thata Democrat running against Rohrabacher has asked the FBI to probe the Republican congressmans political and financial ties to Russia

This isnt the first time that Assange has opposed leaks which embarrass Russia. Back in 2014, when the Panama Papers exposed widespread corruption among the Russian elite, Assange denounced those leaksas an American plot (without evidence). Nor is Assanges apparent connection with a virulent racist his only association with the far right. He has also favorably retweeted posts from alt right pundit and discredited journalist Mike Cernovich, expressed support for alt right darling and fired Google engineer James Damore and, as far back as 2013, endorsed a slate of far right political parties in Australian elections.

And, of course, one must not forget that Assange has repeatedly demonstrated that misogyny is one of the main ideological fuels that drives his various crusades. This fact has been evident for years primarily in the fact that Assange is accused of raping two women, which he blames on feminism, and only avoided accountability by running out the clock but most recently became clear in the documentary Risk.

I am certain that I will receive numerous angry emailsand comments from Assange fanboys insisting that, by virtue of criticizing their dear leader, I must be opposed to the goal of transparency. To this, I simply respond that unless those supporters are also sympathetic to the alt right and/or Putins Russia (which is essentially fascist itself) they need to seriously reevaluate their hero worship for the man.

Transparency is a noble and vital cause. Assange is, to put it generously, a severely compromised individual, one whose moral and ideological shortcomings make it impossible for people of good will and genuine intellectual detachment to support him.

The latest revelations from Foreign Policy, as well as his meeting with Putins favorite congressman and his white supremacist ally, only reinforce that point.

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Calls for FBI investigate to Dana Rohrabacher's meeting with Julian Assange grow - Salon

California politics updates: Rohrabacher says he’ll take info he learned from Julian Assange back to President Trump – Los Angeles Times

Orange County GOP Rep.Dana Rohrabacher confirmed that he met Wednesdaywith WikiLeaksfounder Julian Assange, who is still living in asylum at the Ecuadorean Embassy in London.

In a statement, Rohrabacher'soffice said theAustralian fugitive "emphatically stated that the Russians were not involved" in the theft ofDemocratic National Committee emails during the 2016 presidential campaign. The emails, which were published by WikiLeaks, putDemocratic candidate Hillary Clinton on the defensive.

The conversation between Rohrabacher and Assange, which was first reported by the Daily Caller,"ranged over many topics," according to thestatement. The statement didn't reveal much more, but said "the congressman plans to divulge more of what he found directly to President Trump."

Multiple U.S. intelligence agencies have agreed Russia was involved in the theft of Democratic Party emails and tried to influence the 2016 election to benefit Trump.

The Justice Department, along with multipleHouse and Senate committees, are investigating potential ties between Trump's campaign and election meddling.

Rohrabacher, who has long been criticized for his fondness forRussia, believes he is the only congressman who hasvisited Assange. Rohrabacher's name has repeatedly come up in discussions of the investigation into Russian interference.

His spokesman did not respond to requests for additional comment, including questions about how the trip was funded and whether the White House was aware of the trip.

Assange has been hiding out in the Ecuadorean Embassy since 2012 to avoid sexual assault allegations against him in Sweden. That investigation wasdroppedthis year, but British authorities have said he could still be arrested for jumping bail if he leaves the embassy.

In April, CIA Director Mike Pompeodismissed Assange as a "narcissist" and called WikiLeaks a "non-state hostile intelligence service often abetted by state actors like Russia." House Speaker Paul Ryan has criticized Assange as a "sycophant for Russia."

Trump himself has expressed an affinity for Assange in the past, tweeting praise for the fugitive.

The Washington Post reported in April that federal prosecutors were weighing whether to bring charges against members of WikiLeaks, in part over information leaked by Chelsea Manning, the U.S. soldier convicted of handing over diplomatic cables to the organization.

The Democratic Congressional Campaign Committee is demanding that Rohrabacherresign from his seat on the House Foreign Affairs Committee.

"Democrats and Republicans alike agree that Julian Assange is a threat to America's national security and has aligned with the Kremlin to undermine our elections," said DCCC spokesman Drew Godinich, who called Rohrabacher'sbehavior "completely shocking."

Rohrabacher is one of the top Republican incumbentsCalifornia Democrats are hoping to topple in 2018. He has already attracted nine challengers, most of them Democrats, including real estate broker Harley Rouda, who released a campaign ad criticizing the 15-term Republican for his repeated defense of Russia.

Rohrabacher, who once worked for the Orange County Register,told The Hillthat he also planned to convey a request from Assange to Trumpfor a WikiLeaksseat inside the White House press room.

Julian passionately argued the case that WikiLeaks was vital to informing the public about controversial though necessary issues," he told The Hill. "As a former newsman myself, I can't see a reason why they shouldn't be granted news status for official press conferences."

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California politics updates: Rohrabacher says he'll take info he learned from Julian Assange back to President Trump - Los Angeles Times

10 Reasons Why Central Banks Will Miss the Cryptocurrency Renaissance – CoinDesk

Eugne Etsebeth is an ex-central bankerwho was employed as a technologist at the South African Reserve Bank from 2013 to 2017. During his time at the reserve bank, he notablychaired the virtual currency and distributed ledger working group.

In this opinion piece, Etsebeth outlines why he believes central banks won't be able to adapt to innovations in cryptocurrency, arguing they simply aren't set up to compete with sea changes in technology.

It's a familiar trend, one that happened in communications (internet), and that is now playing out in energy (solar), manufacturing (3D printing)and finance (cryptocurrency) power and control are moving into the hands of the individual and away from nation states.

This has huge implications for central banks, which today enable nation states to maintain their monopolies over the issuance of notes, coins and sovereign bonds. While communications and manufacturing are not their focus, cryptocurrencies and initial coin offerings (ICOs) fall predominantly in the realm of central banks.

In these systems,central banks don't issue legal tender. Rather, miners and algorithms now control the issuance of tokens effectively, the money supply. Whereas previously banks were licensed to store, send and spend currency, now wallet providers and exchanges allow the same features.

The currency renaissance has arrived and central banks are studying cryptocurrencies, though some central banks are more open to change than others.

Singapore has been investigating the notion of using distributed ledger technologies to settle cross-border transactions in real time, and the Bank of England has experimented with Ripple. Central banks are even looking to build their own versions of central bank-issued digital currency (CBDC).

Even still, central banks are not well equipped to deal with the cryptocurrency renaissance.

In fact, there are10 good reasons why most central banks will find cryptocurrencies insurmountable. Sure, a small number of forward-thinking (and acting) central banks willmaintain monetary competiveness with the burgeoning cryptocurrencies and ICOs that have reared their decentralized heads.

Still, most will succumb to a mix of the following issues:

Central banks will need to attract and retain fresh talent that will enable them to deal with the new openness and transparency demands, as well as digital transformation and the increasingly complex global world.

Decision-making in central banks is like wading through treacle decisions take months because of numerouslayers of hierarchy.

Working groups need to compile voluminous and detailed documents that need to be reviewed and signed by all parties before they can proceed to the heads of departments or the deputy governors.

Academics, economists and big-picture thinkers excel in central banks. The academics ponder on conceptual issues andthe economists make interpretations from data, whereas the policy makers and regulators mull over the cause and effect of promulgating laws.

However,technologists are generally not part of the discussion when it comes to policy and economic decisions for currency.

Although some central banks are engaging in experimentation, there is a fear of going from proof-of-concept to pilot phase.

This is natural, should a central bank make an error, it may turn out to be a reputation buster and reputation is the cornerstone of central banks. There is also some trepidation that the early regulation of cryptocurrencies, and associated new technologies, may legitimize their adoption.

Central banks are similar to conglomerates in that they have a number of different and distinct departments that require diverse skills and outputs.

These differences make it difficult to approach a new technology and economic tour de force like cryptocurrency, because it doesnt fit neatly into any one of the industrial-style conglomerate domains.

To highlight the conglomerate type nature of central banks, the core departments and skill sets are listed below:

Most central banks do not have substantial software development capability. Therefore any new project will have to buy its technology. There is an acute shortage of central bankers who can explain or use Merkle trees.

A large portion of central bankers are career central bankers, so the desire and ability to change arenot incentivised. Change is often considered a threat to staff, and threats are met with jelly-like stickiness to the status quo.

Banks are licensed to operate by central banks, giving them the ability to create money from customer deposits.

The central bank asks the banks to protect depositor's hard-earned money and to serve as many customers as it can: i.e. maximizingfinancial inclusion. The task of banks is therefore to service anation's citizens at the behest of the central bank.

These relationships and licenses are expensive to buy and will not easily be changed to include new members.

Just as the departments within central banks tend to be siloed, so too are the intergovernmental departments that look at currency matters.

They cover treasury, financial intelligence (KYC), financial services conduct authority, central bank, tax revenue and secret service units. Each of these units may have different acts and regulations that overlap cryptocurrencies and ICOs.

Internationally the nation-state must get guidance from a multitude of organisations like the G20 or G7, International Monetary Fund (IMF), Bank of International Settlements (BIS), Financial Action Task Force (FATF) and INTERPOL. International coordination often requires prolonged diplomacy and mismatched agendas.

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10 Reasons Why Central Banks Will Miss the Cryptocurrency Renaissance - CoinDesk

Australia Weighs Jail Time for Cryptocurrency Exchange Offenders – CoinDesk

New details have emerged about Australia's proposed cryptocurrency exchange law.

As reported yesterday by CoinDesk, Australia is moving ahead with plans to formalize the government's oversight of the domestic exchange space. Specifically, the government wants to update existing anti-money laundering statutes to account for the tech.

A draft text of the bill has since beenposted to the website of the Australian Parliament, offering key details on how the country plans to regulate the industry.

Of particular note are the penalties for operating an unlicensed cryptocurrency exchange offenders could face as many as seven years in prison, depending on the severity of the violation and whether they've received prior warnings from regulators.

First-time offenders could be hit with prison sentences as long as two years and as much as $100,000 in fines. Repeat offenders may also receive fines as high as $400,000.

"A person...must not provide a registrable digital currency exchange service to another person if the first person is not a registered digital currency exchange provider," the bill states.

The measure also outlines the creation of a so-called "Digital Currency Exchange Register", which would be overseen by the Transaction Reports and Analysis Centre (AUSTRAC), the Australia's foremost financial intelligence agency.

The registration process could take as many as 180 days, according to the bill's text, depending on the outcome of AUSTRAC's approval process and if subsequent filings are required by the applicant.

In statements yesterday, the Australian government positioned the measure as one that would close a "gap" in the regulatory structure for cryptocurrency businesses.

"The bill will ... close a regulatory gap by bringing digital currency exchange providers under the remit of AUSTRAC," officials said.

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Australia Weighs Jail Time for Cryptocurrency Exchange Offenders - CoinDesk

SEC Statements Spur ShapeShift to Review Cryptocurrency Listings … – CoinDesk

Cryptocurrency exchange service is reviewing its listings in light of recent statements on initial coin offerings (ICOs) from the US Securities and Exchange Commission.

In a new blog post, the exchange said that it was launching the review, which could see it delist some of the trading pairs it offers, in a bid to avoid being "mischaracterized as a securities exchange."

As CoinDesk previously reported, the SEC revealed last month that it had been investigating The DAO, the ethereum-based funding vehicle that raised more than $150 million through a token sale. The agency ultimately ruled that those tokens which were sold and later freely traded on cryptocurrency exchanges qualify as securities, and that other token sales may fall under this definition as well.

It's in light of this statement that ShapeShift has asked its lawyers to examine whether the Howey Test a long-standing test used to determine whether certain assets qualify as securities applies to the tokens it lists. It's a notable development whichsignals that the SEC statement is having at least some impact on the startups that facilitate the exchangeof blockchain-based tokens.

ShapeShift explained in the blog post:

"This means that we may need to delist some types of tokens from the platform, which is unfortunate for our users who have enjoyed the ability to participate in these experimental and innovative technologies. We have thus instructed our counsel to examine the tokens available on ShapeShift, especially through the lens of the Howey Test, which is the test the SEC applies to determine the presence of a security."

As the statement goes on to suggest, US-based customers of ShapeShift may be the ones that feel the biggestimpact as the review moves ahead.

"As that analysis is done, certain tokens may be removed from the service for individuals within the United States, who will then no longer be able to interact with these technologies safely or transparently through the ShapeShift platform," the startup said, going on to add that it may "consider the application of the Howey test to all new tokens we list."

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in ShapeShift.

SEC image via Flickr

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [emailprotected].

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SEC Statements Spur ShapeShift to Review Cryptocurrency Listings ... - CoinDesk

Sentencing Guidelines, Wikileaks’ Biases and the PDB Quiz – OZY

Know This:Inmates in Tennessee were offered shortened sentences in exchange for agreeing to be sterilized, in a practice critics are likening to eugenics. Some are questioning Wikileaks motives for reportedly refusing to publish a cache of documents about the Russian government during the 2016 U.S. presidential campaign. And studies of mice show memories of fear could potentially be permanently erased from the brain.

Try This:Feeling presidential after a week of briefings?Prove itwith thePDBquiz.

Answer This:Tell us how you really feel. OZYs next TV show,Third Rail With OZY,is launching on PBS this fall! To kick things off, were shelving the PC and whipping up debates. Each Wednesday, well post a provocative question, focusing on topics that might make it onto the show. This week: Should government leaks always be illegal?Why or why not? Go deep. Emailthirdrail@ozy.comwithyourthoughts or a personal story, and we might featureyour answer next week.

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Sentencing Guidelines, Wikileaks' Biases and the PDB Quiz - OZY

Chelsea Manning released: The past ‘is only my starting point …

Chelsea Manning was released from military prison today after seven years of incarceration at the U.S. Disciplinary Barracks at Fort Leavenworth, Kansas, a free woman after President Obama commuted her sentence three days before he left office. Her imprisonment was longer than any whistleblower in U.S. history.

Army spokeswoman Lt. Col. Jennifer Johnson confirmed to ABC News that Manning left Fort Leavenworth's disciplinary barracks at 2 a.m. central time.

In an exclusive statement to ABC News, Manning said, I appreciate the wonderful support that I have received from so many people across the world over these past years. As I rebuild my life, I remind myself not to relive the past. The past will always affect me and I will keep that in mind while remembering that how it played out is only my starting point, not my final destination.

Manning released another statement hours after her release, saying, After another anxious four months of waiting, the day has finally arrived. I am looking forward to so much! Whatever is ahead of me, is far more important than the past. Im figuring things out right nowwhich is exciting, awkward, fun, and all new for me.

We are able to confirm that Chelsea Manning has been released safely from military prison," Manning's clemency and appellate lawyers Nancy Hollander and Vincent Ward said in a joint statement. "Thank you to everyone for ensuring her safe release and respecting her privacy as she starts to adjust to life outside of prison and rebuild her life following seven years of confinement. Chelsea has expressed her deep appreciation to her supporters and looks forward to the future.

In the summer of 2013, Manning was convicted by a military tribunal under the Espionage and Computer Fraud and Abuse Acts and sentenced to 35 years in prison for releasing approximately 750,000 documents to WikiLeaks, of which only small amount of those documents ultimately lead to her conviction (some of them were published by The New York Times, The Guardian, and Der Spiegel). Manning at that time was a 22-year-old United States Army private named Bradley Manning. The information she disclosed included low level battlefield reports from Iraq and Afghanistan, evidence of civilian deaths in Iraq and Afghanistan, Guantanamo prison camp detainee profiles and U.S. diplomatic correspondence.

After he commuted her sentence, President Obama said, It has been my view that given she went to trial, that due process was carried out, that she took responsibility for her crime, that the sentence that she received was very disproportionate relative to what other leakers had received and that she had served a significant amount of time, that it made sense to commute, and not pardon, her sentence.

I feel very comfortable that justice has been served, Obama added.

Two days after her commutation, Manning tweeted (@xychelsea) Thank you @BarackObama for giving me a chance. =,). While Manning cannot physically tweet from Fort Leavenworth, she is in editorial charge of her Twitter handle as well as her website, Luminairity.com, per her legal team.

Manning began a tweet countdown to freedom starting with 105 days and a wake up =) To soft sheets, puffy blankets, and foam pillows. ^_^"

She gave a nod to Star Wars on May 4th posting: 12 more days! Celebrating a new hope, and a return of the sun. <3 #MayTheFourthBeWithYou.

Her 35 year sentence was the heaviest handed down to a whistleblower or leaker in U.S. history. She was convicted of 17 of the 22 charges against her but acquitted of charges alleging she aided the enemy or that she intended to harm the national security interests of the country.

Lauren C. Anderson, a former FBI executive and international consultant, is a 29-year veteran of the agency who worked extensively in national security arena. She told ABC News, I understand why Chelsea was outraged about the mistreatment of people in U.S. custody but (leaks) put people at risk, adding, (Chelsea) didnt have the authority to decide which classified information should be in the public, because she didnt understand the bigger picture in terms of impact, of releasing all that classified information.

Days after Manning was sentenced, she came out as transgender on August 22, 2013. The military would not provide her with any treatment for her gender dysphoria, which she claimed resulted in her escalating distress. Her ACLU lawyer, Chase Strangio, filed a lawsuit on her behalf in September 2014.

Ultimately, we negotiated with the military and Chelsea was provided with cosmetics, grooming items available to other women in custody and hormone therapy, Strangio told ABC News. On February 11, 2017, Manning tweeted: Wow, I can't believe today marks two years since starting hormones =o.

The military continued to enforce the male grooming standards against her, forcing her to cut her hair every two weeks. The part of the lawsuit challenging the restrictions on her hair is ongoing but will become moot once she is released, Strangio added.

According to Strangio, Manning became the first military prisoner to receive health care related to gender transition and was part of a shift in practice that lead to the elimination of the ban on open trans service in the military. Strangio has been a part of her advocacy team for the past four years providing support on a range of issues from prison disciplinary matters to the petition for clemency to general support around her transition.

Manning was held in solitary confinement for most of the time following her arrest in May 2010 until she was sent from Quantico to Leavenworth in March 2011. She was held in solitary in Kuwait and at Quantico. She was also placed in solitary several times during her incarceration at Leavenworth following her sentencing.

In her letter to President Obama asking to commute her sentence, Manning wrote: The Army kept me in solitary confinement for nearly a year before formal charges were brought against me. It was a humiliating and degrading experience - one that altered my mind, body and spirit. I have since been placed in solitary confinement as a disciplinary measure for an attempted suicide despite a growing effort - led by the President of the United States - to stop the use of solitary confinement for any purpose. Manning attempted to end her life two times in the years since her 2013 sentence.

Strangio noted that while Manning herself has been the key force behind the campaign for her freedom, she was greatly aided by a team who have fought relentlessly, from her court martial attorney, David Coombs, to her appellate team of Nancy Hollander, Vince Ward, and Dave Hammond. Christina DiPasquale, founder of Balestra Media, has also been working for Manning pro bono for years to help elevate her story and as have friends across the country, including Evan Greer from Fight for the Future.

In December 2013, Manning wrote Hollander a letter asking if she would handle her appeal of her conviction and her sentence through the military courts. Hollander and her partner Ward immediately agreed. Manning later asked them to also assist her in applying for clemency, which they did. Ward believed representing Manning was simply the right thing to do. Ward noted that Manning took responsibility for disclosing classified information, a fact many people forget. What she fought was the allegation that she disclosed the materials to aid the enemy or to harm the nations national security interests. The evidence indisputably shows she thought she was doing the right thing.

On January 17, 2017, Hollander was in her office when she got a call from President Obamas counsel at the White House: He asked if I was Chelsea Mannings lawyer and I said yes. He then said the President has commuted her sentence to time served plus 120 days and will announce it in two minutes. I think I screamed Oh my God! Hollander expressed her gratitude to President Obama saying the military claims to always take care of its Soldiers but no one ever had taken care of Chelsea until her Commander-in-chief commuted her sentence.

Manning is still considered to be on active duty in the Army until her criminal appeal is complete. Hammond explained that when service members are sentenced to a punitive discharge (in Mannings case, a dishonorable discharge), that part of the sentence is not executed until the appellate process is complete. Thus, Mannings dishonorable discharge is not effective until the Army Court of Criminal Appeals has issued a decision and the Court of Appeals for the Armed Forces has either denied a petition or granted it and issued a decision.

According to Hammond, Manning is in the middle of her appeal, she is still very much in the Army, on active duty, subject to the Uniform Code of Military Justice. When Soldiers are in the middle of an appeal and not in confinement, the Army places them on involuntary excess leave, otherwise known as appellate leave i.e. unpaid leave. They are not discharged until the appeal is done.

Manning is now Private E-1, explained Hammond. Part of her sentence reduced her in rank from a PFC (E-3) to a PVT (E-1). According to Hammond, Manning will have all of the military benefits of an active duty soldier upon her release because she will not be dishonorably discharged until her appeal is complete (and that is assuming the appellate court affirms the punitive discharge).

Not many people can talk about Manning on a personal level. The Army prohibited visitors with the exception of her lawyers - unless they knew her prior to her arrest. Nevertheless, she accrued, while behind bars, staunch supporters and friends.

DiPasquale worked pro-bono for the past year and a half with Manning. I believe in her and I believe in everyones right to open and affordable communications, she explained. Chelsea fought to communicate and her ability to stay connected and express herself was, in many ways, key to her survival and freedom, noted DiPasquale. She described Manning as a person driven by her values and her conscience. Despite everything she has been through, she starts every call by asking how I am doing. Her laugh is contagious and her spirit is unbreakable.

Strangio is one of the few who speaks to Manning regularly and has met her in person. He sees her as a funny, kind, and brilliant person who unusually empathetic and earnest. Despite all she has been through she retains a positive attitude and a beautiful and hopeful vision for the future.

Singer-songwriter Evan Greer organized an online benefit album, entitled Hugs for Chelsea, which was compiled by a group of prominent musicians to show their support and raise funds to cover Chelseas living expenses as she transitions out of prison. She said they have raised more than $6,000 to date.

"Chelsea and I would often talk about music. We have different tastes, but we both love it," Greer told ABC News. "This album was sort of my 'getting out of prison' surprise gift for her. I wanted to make sure she had a reminder of just how much love and support she has from so many different people from all over the world. As a transgender musician and activist, I'm always looking for ways to use music and art as a tool to support grassroots movements for justice and liberation.

ABC's Sarah Kolinovsky and Lauren Effron contributed to this report

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