This week, the Chamber of Deputies in Brazil might approve a cryptocurrency bill introduced earlier this year. According to the leader of the Federal Government in the Chamber, Ricardo Barros, the bill is set to be discussed, but there are still no reports on a possible vote as the Chamber is set to also discuss other time-sensitive bills.

Brazil is getting closer to regulating cryptocurrency assets and virtual asset service providers (VASPs). The cryptocurrency bill, identified with the number 4.401/2021, is set to be addressed this week, alongside other time-sensitive bills. The report was made by the leader of the Federal Government in the Deputy Chamber of Congress, Ricardo Barros, who stated that the bill can be voted on this week.

However, Brazil is in pre-election mode, with the presidential ballot set to happen on October 2. As such, the congress might not discuss delicate matters to avoid swaying the electorate towards one side or another. However, if the cryptocurrency bill is finally voted and approved, it would have to be remitted to president Jair Bolsonaro for its final sanction. The Deputy Chamber is also set to discuss other significant laws this week, including a remote work bill.

According to local media, the cryptocurrency bill might be presented this weekend to be reviewed by the Deputy Chamber. This project has had a somewhat complicated history in Brazilian institutions. The current bill is the result of the combination of two different projects as part of the work of its proponents, who wanted to approve a crypto-centric law this year.

The project was approved by the Brazilian Senate in April and seeks to regulate cryptocurrency exchanges by creating a single regulator to deal with the issue. In the same way, the project legalizes cryptocurrency mining, and establishes tax exemption rules for mining institutions that present green projects using 100% renewable energy for the establishment of mining farms.

In earlier interviews, the deputies behind this cryptocurrency bill project have stated that one of the biggest motivations behind the law is to punish cryptocurrency scams in the country. For this purpose, the project also defines a new kind of crypto-related crime and establishes harsh penalties for individuals and companies involved in this kind of crime.

What do you think about the possible approval of a cryptocurrency-centric bill in Brazil? Tell us in the comments section below.

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Diego Grandi / Shutterstock.com

Disclaimer: 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 of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be 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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Brazil Might Approve Its Cryptocurrency Law This Week Regulation Bitcoin News - Bitcoin News

"Well right now there is kind of a downturn in the crypto market," said James Beauchamp with MOTRAN.

MIDLAND, Texas West Texas has ties with cryptocurrency mining using natural gas from things like flares to power machines that mine bitcoin.

In the past month or so, the cryptocurrency market has seen a dip.

"Well right now there is kind of a downturn in the crypto market." Said James Beauchamp with MOTRAN. "Weather you like cryptocurrency or don't, from a Permian Basin perspective it's very unique because your using a product that's fairly expensive to capture and collect and to get into a normal system where you would sell your natural gas in a lot of cases and your providing a secondary market for it."

Here in the Permian basin, oil and gas is used to power cryptocurrency mining. This type of cryptocurrency mining is also important because it doesn't put a strain on the states power grid, especially in these hot summer months.

"I think one of the big concerns from a statewide perspective on cryptocurrency has always been if we already have an overtaxed electric grid, and we do if you're mining crypto off of that grid then that's just another burden in an already overburdened system," Beauchamp said

Mining cryptocurrency does have benefits for both groups.

"It's not just the fact that your utilizing natural gas or for the end user gathering the accumulation of the cryptocurrency they're mining for but also the carbon credits as we talk about air quality issues of that nature," Beauchamp said. "There are a number of credits out there, tax credits so again I think its another way we can be proactive and show our industry and our area is proactive."

From here, things are up in the air but for the Permian Basin things are looking up.

"Where's it going to end up?" Beauchamp said. "Nobody really knows, but at the same time not knowing there's some benefits in the Permian Basin. The good part is even if all the rest of it goes downhill in certain way the Permian wins at least in short term."

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A downturn in the cryptocurrency market and the impacts on West Texas - NewsWest9.com

This summer, Ethereum (ETH 0.94%) is arguably the most exciting cryptocurrency in the world. And for good reason -- its upcoming Merge has enormous implications, not just for the future price of Ethereum but also for the future direction of the broader crypto market. The only problem is that, unless you already have an Ethereum position in your portfolio, you've missed out on this crypto's stratospheric price appreciation. Over its lifetime, Ethereum is up an astounding 155,584.06%.

The good news is that there is another crypto -- Solana (SOL 2.02%) -- that could be just as attractive, if not more so, than Ethereum. And much of the easy money in Solana has not yet been made, with this crypto still trading around $40 right now. While Ethereum has a total market capitalization of almost $200 billion, Solana has a market capitalization of just $14 billion.

Just like Ethereum, Solana is a Layer 1 blockchain, meaning it is a cornerstone of everything being created in the blockchain world right now. In nontechnical terms, it means you can build on top of Solana, just like you can with Ethereum. Ethereum has NFTs (nonfungible tokens) and NFT marketplaces, and so does Solana. Ethereum has smart contracts, and so does Solana. Ethereum has decentralized finance (DeFi)apps and exchanges, and so does Solana. You get the idea: Anything that Ethereum can do, Solana can do also.

Image source: Getty Images.

The only difference, of course, is that Solana is faster, cheaper, and more efficient than Ethereum.You see, while Ethereum is converting from a proof-of-work blockchain into a proof-of-stake blockchain, Solana already has a proof-of-stake blockchain.

The difference between "proof-of-work" and "proof-of-stake" might sound like a minor technical distinction, but it has very important consequences for transaction speeds and transaction fees. It's the reason why Ethereum has gone "all-in" on the Merge. Proof-of-work requires mining, is very energy-intensive, and simply is not scalable for the future. On the other hand, proof-of-stake uses a consensus mechanism for verifying transactions called "staking" and is not energy-intensive at all. There is no need for mining.For now, Solana is superior to Ethereum in just about every regard.For that reason, mainstream media publications routinely refer to Solana as an "Ethereum-killer."

Quite simply, developers and users would rather use a cheaper, faster, and more efficient blockchain. If you've ever used Ethereum, for example, you've probably heard about the onerous "gas fees" associated with just about any transaction. If you're buying an NFT you might pay more in gas fees than for the digital asset. Solana doesn't have those same high crypto gas fees, and that is why Solana is gaining so many new adherents in the world of NFTs.

However, since Ethereum is so entrenched as a dominant market player, many people may not have heard of Solana. That's the perfect situation to be in if you've missed out on Ethereum and are now considering Solana. It means you can gain access to a blockchain upstart with arguably the same prospects as the market leader, all at a discounted price. The time to get in is now, before everyone else figures out why Solana is superior to Ethereum in many ways.

Right now, the Internet is still in its Web 2.0 phase. You can think of this as the era of the big Silicon Valley social media giants. But we are about to enter into a brave new phase of development known as Web3.This is the era of completely decentralized apps running on top of the blockchain. It will likely lead to new social experiences, new gaming and entertainment experiences, and new ways of transferring value across the world.

Obviously, the blockchain that becomes the go-to platform for Web3 is going to get a tremendous boost in the crypto market. Right now, Solana is showing that it can lead and spearhead this new buildout of Web3. Most notably, Solana is going to deliver the first-ever crypto phone soon. This is going to be a mobile device that is completely optimized for the world of crypto and blockchain. And Solana has completely revolutionized the world of blockchain gaming with the move-to-earn game STEPN, which rewards users in crypto for physical exercise.

If you missed out on Ethereum, no worries. Solana could eventually provide the same kind of upside when it comes to price appreciation. If Solana ever becomes the Ethereum-killer that everyone thinks it will be, then you'll be glad you waited for this opportunity to get in.

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Missed Out On Ethereum? Buy This Cryptocurrency Now - The Motley Fool

Scammers have been taking advantage of blockchains decentralized and immutable nature to swindle crypto investors since the advent of the technology.

And, according to the latest FBI fraud report, fraudsters are using fake crypto apps to steal money from unsuspecting crypto investors. It highlights that American investors have lost approximately $42.7 million to swindlers through fake apps.

The schemes reportedly take advantage of heightened interest in cryptocurrencies, especially during bull market runs, to beguile crypto users.

Fake crypto app scammers use myriad techniques to entice investors. The following is a breakdown of some of them.

Some fake crypto app scammer networks use social engineering strategies to entice victims.

In many cases, the fraudsters befriend the victims through social platforms such as dating sites and then trick them into downloading apps that appear to be functional cryptocurrency trading apps.

The scammers then convince users to transfer funds to the app. The funds are, however, locked in once the transfer is made, and the victims are never allowed to withdraw money.

In some cases, the scammers lure victims using outlandish high-yield claims. The ruse comes to an end when the victims realize that they cant redeem their funds.

Speaking to Cointelegraph earlier this week, Rick Holland, chief information security officer of Digital Shadows a digital risk protection firm underscored that social engineering remains a top strategy among crooks because it requires minimal effort.

Relying upon the tried-and-true method of social engineering is far more practical and lucrative, he said.

The cybersecurity manager added that social engineering makes it easy for scammers to target high-net-worth individuals.

Some fake crypto app scammers have resorted to using recognizable brand names to push fake apps because of the trust and authority that they wield.

In one case highlighted in the latest FBI crypto crime report, cybercriminals posing as YiBit employees recently hoodwinked investors out of some $5.5 million after convincing them to download a bogus YiBit crypto trading app.

Unbeknown to the investors, the actual YiBit crypto exchange firm ceased operations in 2018. Fund transfers made to the fake app were stolen.

In another case outlined in the FBI report, phishers using the Supay brand name, which is associated with an Australian crypto company, swindled 28 investors out of millions of dollars. The ploy, which ran between Nov. 1 and Nov. 26, caused $3.7 million in losses.

Such schemes have been going on for years, but many incidences go unreported due to the lack of proper recourse channels, especially in jurisdictions that shun cryptocurrencies.

Recent:How NFTs can boost fan engagement in the sports industry

Besides the U.S., investigations in other major jurisdictions such as India have in the recent past uncovered elaborate fake crypto app schemes.

According to a report published by the CloudSEK cybersecurity company in June, a newly discovered fake crypto app scheme involving numerous cloned apps and domains caused Indian investors to lose at least $128 million.

Fake crypto app scammers sometimes use official app stores to distribute dodgy applications.

Some of the apps are designed to collect user credentials that are then used to unlock crypto accounts on corresponding official platforms. Others claim to offer secure wallet solutions that can be used to store a diverse range of cryptocurrencies but pilfer funds once a deposit is made.

While platforms such as Google Play Store constantly review apps for integrity issues, it is still possible for some fake apps to slip through the cracks.

One of the latest methods used by scammers to accomplish this is registering as app developers on popular mobile app stores such as the Apple App Store and Google Play Store and then uploading legitimate-looking apps.

In 2021, a fake Trezor app masquerading as a wallet created by SatoshiLabs used this strategy to get published on both Apple App Store and Google Play Store. The app claimed to provide users with direct online access to their Trezor hardware wallets without needing to connect their Trezor dongle to a computer.

Victims who downloaded the fake Trezor app were obligated to submit their wallet seed phrase to start using the service. A seed phrase is a string of words that can be used to access a cryptocurrency wallet on the blockchain.

The submitted details allowed the thieves behind the fake app to loot user funds.

According to a statement provided by Apple, the fake Trezor app was published on its store through a deceptive bait-and-switch maneuver. The app developers are alleged to have initially submitted the app as a cryptography application designed to encrypt files but later on converted it to a cryptocurrency wallet app. Apple said that it was not aware of the change until users reported it.

Speaking to Cointelegraph earlier this week, Chris Kline, co-founder of Bitcoin IRA a crypto retirement investment service said that despite such incidents, major tech companies in the space were resolute in fighting fake crypto apps because of the potential damage to their integrity. He said:

That said, the fake app problem is more prevalent in non-official app stores.

Fake cryptocurrency apps are designed to resemble legitimate apps as closely as possible. As a crypto investor, one should be able to discern between legitimate and fake apps to avoid unnecessary losses.

The following is a breakdown of some of the things to look out for when trying to ascertain the authenticity of a mobile crypto application.

The first step in ascertaining whether an app is legit is checking out the spelling and icon. Fake apps usually have a name and icon that looks similar to the legitimate one, but something is usually off.

If the app or developer names are misspelled, for example, the software is most likely phony. A quick search about the app on the internet will help to confirm its legitimacy.

It is also important to consider if the app has a Google Editors choice badge. The badge is a distinction provided by the Google Play editorial team to recognize developers and apps with outstanding quality. Apps with this badge are unlikely to be fake.

Counterfeit apps usually request more permissions than necessary. This ensures that they glean as much data as possible from victims devices.

As such, users should be wary of apps that require off-center permissions, such as device administrator privileges. Such authorizations could give cybercriminals unfettered access to a device and allow them to intercept sensitive data that can be used to unlock financial accounts, including crypto wallets.

Intrusive app permissions can be blocked via a phone systems privacy settings.

The number of times that an app has been downloaded is usually an indicator of how popular it is. Apps from reputable developers typically have millions of downloads and thousands of positive reviews.

Inversely, apps with just a few thousand downloads require greater scrutiny.

If unsure about an application, contacting support through the companys official website could help to avoid financial losses due to fraud.

Furthermore, authentic apps can be downloaded from a companys official website.

Related:Crypto contagion deters investors in near term, but fundamentals stay strong

Cryptocurrencies are underpinned by relatively new technology, so it is only natural that there are teething problems when it comes to use and adoption. Unfortunately, in recent years, black hats have targeted nave crypto enthusiasts using fake crypto apps.

While the problem is likely to persist for several years, increased scrutiny by tech companies is likely to temper the issue in the long run.

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The rise of fake cryptocurrency apps and how to avoid them - Cointelegraph

EXCLUSIVE: Cryptocurrency pioneer Jeff Garzik has launched NextCypher Productions (NxC), a new independent entertainment company that will focus on using the emerging technology of Web3 (NFTs, crypto, blockchain applications) to empower the sci-fi community to turn fantasyinto reality.

NxC is more than just a mere production company. It is a passionate community, defined by the people and projects that it interacts with, said Garzik, who is best known as one of the pioneers of cryptocurrency, having worked on the Bitcoin Core project the first blockchain node as well as Bitcoin mining projects and the Linux operating system. One of our core principles is to enable sci-fi and fantasy fans to do more than simply consume content from the worlds we construct, but to allow them to truly participate in beloved properties in ways they never thought possible. Above all, NxC pledges to always put the needs of the audience first as we create consistently great entertainment.

As part of the launch, Garzik is announcing the companys first two television projects. The first is a one-hour action-drama series calledDeathlands thats based on the bestselling book series. Its being developed for television by showrunner/executive producer Mark A. Altman (Pandora, The Librarians, Agent X) and executive producer Thomas P. Vitale (57 Seconds, Slasher, Pandora).

Deathlands isMad Max: Fury RoadmeetsYellowjacketsin an epic post-apocalyptic sci-fi adventure, said Garzik.Deathlandstells the story of a world ravaged by violence, destruction, and death. Now, only the most smart, cunning, and capable survive as they attempt to navigate the new normal of a world turned upside in the hopes of building a new, more just society for the future.

The other project in the works is Looking Glass thats based on an original concept from Garzik. He describes it as an exciting and thought-provoking new sci-fi action/adventure series in which a young woman whose memory was erased goes on a quest to discover her true identity as agridrunnerwho must save the outcasts of society from a deadly conspiracy that threatens to destroy the future.

Looking Glassmade its premiere as a graphic novel through the NxC subsidiaryNext Cypher Words + Art. The new comic book publisher announced the first issue of theLooking Glassgraphic novel at San Diego Comic-Con last week.

NxC will be announcing its next projects soon with production on Deathlands anticipated to begin in early 2023 in Bulgaria and Looking Glass later in the year.

.

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Cryptocurrency Pioneer Jeff Garzik Launches NextCypher Productions; Focus On Emerging Technology of Web3 - Deadline

Centralized exchange listings can do wonders for a crypto project so finding new cryptocurrency listed on Binance can be a great investment technique.

Throughout this guide, well be taking a look at 5 projects that could be a new cryptocurrency on Binance, before long.

The top 5 new cryptocurrency that could list on Binance

Battle Infinity - Overall best crypto that could list on BinanceBlending fantasy sports, the Metaverse, and play-to-earn, Battle Infinity (IBAT) is one project that deserves to be one of the new cryptos on Binance. Despite currently being in presale, Battle Infinity has managed to raise over $1 million in the two weeks since its release. Furthermore, the project is KYC verified by Coinsniper and audited by Solid Proof eliminating the chance of a rug pull.

Powering the Battle Infinity ecosystem is the BEP-20-based IBAT token. As a BSC-based token, $IBAT is primed to join the list of Binance new crypto listings. The digital asset has a total supply of 10 billion tokens, 28% of which has been reserved for presale investors. The token has a range of uses within the IBAT universe, including rewarding users for gameplay, staking, and advertisements.

While Battle Infinity is yet to join the ranks of new cryptocurrency listed on Binance, it has a high probability of doing so once the project is fully unveiled. Therefore, getting in early on this crypto presale could be the best way to get exposure to new cryptos coming to Binance. Join the IBAT Telegram group in order to find out more.

Visit the IBAT Presale Now

Lucky Block - Exciting crypto project with frequent prize drawsFor Binance to add new cryptos, it would be strange to not at least consider Lucky Block (LBLOCK), the fastest crypto to reach a $1 billion market cap. The project uses blockchain technology in order to create a provably fair and efficient competition platform.

The native Lucky Block token is $LBLOCK. While its currently based on the BEP standard, the token will soon migrate to ERC in order to allow for centralized exchange listings. This migration is due to occur in the near future and could help LBLOCK to make it into the next lot of Binance new crypto listings.

Although LBLOCK hasnt yet become a new cryptocurrency listed on Binance, with the amount of demand for the token, its only a matter of time before the exchange picks up the project.

Visit Lucky Block Now

Woonkly Power - Metasocial network that could list on BinanceWoonkly Power is an exciting new social network that could be the next new cryptocurrency listed on Binance. Its already been enjoying quite some attention on Pancake Swap so it seems only a matter of time before CEX listings begin cropping up.

While Woonkly Power cannot yet claim to be a new crypto coming to Binance US or the global platform, its got a unique concept, a great community, and shows massive promise, meaning it could be the next new cryptocurrency listed on Binance.

DigitalFinancialExch - Insured cross-asset platformThe proprietary token from DigitalFinancialExch is DIFX, a potential new cryptocurrency listed on Binance. While the project is yet to garner widespread attention, it has shown itself to be one of the best cryptos to buy in the crypto winter, leading many investors to snag up some tokens.

With competing exchanges like Crypto.com already showing DigitalFinancialExch some love, it seems to be only a matter of time before the project becomes a new cryptocurrency listed on Binance.

IMOV - Inclusive fitness projectWhen StepN was a new cryptocurrency listed on Binance, the token exploded. Therefore, another project aiming to cash in on the move-to-earn sector could find it easy to get a listing. IMOV is the latest move-to-earn project but it has a difference; a focus on inclusivity.

While IMOV might not yet be a new upcoming cryptocurrency on Binance, the project's well-defined model and focus on inclusivity could help the exchange to consider it.

How to buy IBAT?If Battle Infinity gets listed, it will be the best new cryptocurrency on Binance. Therefore, weve included a guide covering how to buy IBAT.

Step 1 - Register with an ExchangeAs IBAT is a BEP-based token, before buying IBAT an investor must first register with a regulated exchange like eToro.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection

Step 2 - Deposit and buy BNBAfter registering, click on Deposit Funds, decide how much to invest, and press Deposit. Then, click on the search bar, enter BNB, decide on a number of tokens, and press Open Trade.

Visit IBAT Presale

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5 New cryptocurrency that could list on Binance - Economic Times

Cryptomus wants everyone to know that accepting cryptocurrency payments is now in fact easier than ever before, as all that is needed to successfully do it is nothing more than a mere email address or phone number. It is even possible to generate payment links without users needing to have their own websites, and they can also connect to API for more functionality. By having such reliable and quick payment processing, Cryptomus is providing a top payment gateway for ecommerce and online payments.

There are several aspects which make Cryptomus a top choice for crypto payments. For starters, their commissions and fees are comparatively much lower than the various other online payment processing companies which accept payments and they start at 0.4% too, depending on the turnover. Additionally, the crypto payment processors services can be smoothly integrated into any type of business or project.

Moreover, one of the most infamous elements associated with crypto is volatility and unpredictable market behavior. With Cryptomus, however, there is no longer any need to worry about crypto volatility as the rate will be fixed after the users accept it and make the conversion to the coin of their choosing. Apart from this autoconversion aspect, Cryptomus also supports a wide range of different cryptocurrencies like LTC, TRX, DASH, ETH, BTC and more.

Blockchains are widely considered to be safer, more stable and transparent than that of traditional financial institutions, such as banks. With Cryptomus, users can even enable the ability to only withdraw to certain authorized addresses in their personal accounts, which means that any withdrawals to other wallets would be prohibited.

Cryptomus has also enabled 2FA (two-factor authentication), which many believe is a vital feature these days due to the increasing number of fraudulent activities, data hacks, and security risks. This 2FA system is completely flexible, and Cryptomus does not require KYC procedures either as it is a technical platform for developers that offers a convenient and user-friendly interface for the purposes of automating work with crypto.

Cryptomus is a crypto payment system and blockchain payment processor/gateway which provides merchant services for businesses that cater to all kinds of customers. Usually, crypto payment gateways are needlessly complex and have too many limitations which often stifle the customers. With Cryptomus, crypto payments can be accepted from anyone anywhere in the world with low transaction fees and without a website. Cryptomus is also useful if individuals just want to have their own secure crypto wallet for fund storage.

The platform offers an intuitive user interface which is optimized for all devices, and there is quick and reliable support available at all times as well. Furthermore, the money is paid instantly and users can easily track the transaction if need be. More importantly though, the platforms features allow for complete anonymity and all incoming funds will only belong to the user and shall never be frozen or refunded for no reason as is often the case with classic e-wallets and banks.

Ultimately, choosing Cryptomus makes sense as it is an innovative crypto payments platform that also functions as a cryptocurrency wallet. The platform offers plenty of value and utility, and the biggest advantage would certainly be the ability to make extremely fast payments easily. Users can accept crypto by generating payment links and then redirecting the payer to them, which will display a convenient form with the required payment data. Users can also utilize the API integration, which Cryptomus will be helping with.

The platform has also witnessed over 100,000 transactions happen to date, with many more expected to occur before long. Regarding future goals, Cryptomus will implement useful widgets for the site, helpful statistics, auto-withdrawal and auto-split functionalities, Telegram notifications, a P2P exchange, input and output of fiat currencies, and so much more in order to become the best cryptocurrency payment gateway. Ultimately, Cryptomus aims to make crypto payments easier and more accessible, which is something that is desperately needed nowadays as the crypto industry continues to become increasingly popular and mainstream with more and more companies accepting crypto.

For additional information and regular updates, visit the official website along with the Twitter and Telegram channels.

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Cryptomus Simplifies The Process Of Cryptocurrency Payments While Maintaining Safety, Transparency And - Bitcoinist

Over the past 24 hours, Bitcoin Cash's BCH/USD price rose 4.29% to $138.28. This continues its positive trend over the past week where it has experienced a 16.0% gain, moving from $119.15 to its current price. As it stands right now, the coin's all-time high is $3,785.82.

The chart below compares the price movement and volatility for Bitcoin Cash over the past 24 hours (left) to its price movement over the past week (right). The gray bands are Bollinger Bands, measuring the volatility for both the daily and weekly price movements. The wider the bands are, or the larger the gray area is at any given moment, the larger the volatility.

The trading volume for the coin has increased 248.0% over the past week while the overall circulating supply of the coin has increased 0.47% to over 19.14 million which makes up an estimated 91.12% of its max supply, which is 21.00 million. The current market cap ranking for BCH is #31 at $2.64 billion.

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Cryptocurrency Bitcoin Cash Up More Than 4% In 24 hours - Benzinga

In HDR v Shulev and Nexo, the High Court considered the entitlement to a cryptocurrency trading account, and the ownership of its contents, as part of stakeholder proceedings brought under CPR 86 by the operator of a cryptocurrency exchange.1

Stakeholder applications (made under CPR 86) are used as a means of determining entitlement to money or goods held by an entity that does not itself have a claim to the money or goods. Among other things, it permits a stakeholder to apply to the court for a direction as to whom it should pay a debt or money to, in circumstances where competing claims are made, or are expected to be made, in respect of that debt or money by two or more persons. Such proceedings are typically brought by financial institutions where multiple claims are made for a sum of money which they hold.

In this case, stakeholder proceedings were commenced by HDR Global Trading Limited ("HDR"), a company incorporated in the Republic of Seychelles, which operates BitMEX, a cryptocurrency-exchange platform, in order to resolve a dispute over the control and ownership of the contents of a cryptocurrency trading account opened in the name of the First Defendant ("Mr Shulev").

The Second Defendant, Nexo Capital Inc. ("Nexo") is a Cayman Islands company, which operates acryptocurrency-backed lending platform, cryptocurrency exchange and wallets. In May 2019, Mr Shulev(co-founder of the Nexo group, and then a director of Nexo), opened an account on BitMEX (the "Account") using his Nexo email address. Thousands of bitcoin were subsequently transferred into the Account from other Nexo accounts, and various futures contracts were traded on the Account. As at the judgment date, the total value of the Account was approximately 30 million. In September 2019, Mr Shulev's appointment as a director was terminated and his access to the Account was withdrawn.

A dispute then arose between Nexo and Mr Shulev as to the ownership of the assets held in the Account. Mr Shulev claimed that he had opened the Account in his personal capacity, and that some of the crypto-assets held there belonged to him. Nexo, however, argued that the Account was opened by Mr Shulev solely in his capacity as a director of Nexo; it was considered by Nexo to be a corporate trading account used for corporate purposes, and it held corporate assets.

In response to the competing claims, HDR froze the Account and in 2020 commenced stakeholder proceedings under CPR 86 against both Mr Shulev and Nexo.

On the day of the hearing of HDR's stakeholder application, Mr Shulev and Nexo entered into a settlement agreement (the "Agreement"), which purported to resolve the question of ownership of the Account. However, almost immediately the parties fell into a further dispute over the Agreement, disagreeing as to whether it had been complied with, and what effect it had on the stakeholder proceedings.2 After discussing with the parties, the Court allowed HDR to exit the proceedings by ordering HDR to hold the balance on the Account as stakeholder and directing it to transfer the balance (after deducting its costs) to such address as the Court ordered.

While His Honour Judge Henshaw ultimately determined that the question of entitlement to the Account and ownership of its contents had already properly been resolved by the Agreement, the judgment contains an interesting discussion as to how English law approaches these issues.

Nexos central claim was that while it was not expressly or fully identified to HDR as the contracting party, it was still entitled to enforce the Account agreement against HDR as an undisclosed principal.3 Under English law, an undisclosed principal may sue and be sued on a contract made by an agent on his behalf, acting within the scope of his actual authority,4 provided that:

(i) in entering into the contract, the agent intends to act on the principal's behalf, and

(ii) the terms of the contract do not, expressly or impliedly, exclude the principals right to sue, and his liability to be sued.

There was no suggestion by either Defendant that point (ii) applied here. HDR's terms of service for the Account expressly envisaged the possibility that an individual might open and operate an account as agent for another entity. Similarly, neither party claimed that opening a crypto-trading account for Nexo on BitMEX was outside the scope of Mr Shulev's actual authority as a director of Nexo.

The main point in issue was factor (i), namely whether Mr Shulev intended to act on Nexo's behalf when opening the Account, or whether he intended to act in his personal capacity.

The High Court ultimately found that the Agreement was valid, and resolved who was entitled to the Account. However, it also held that (if it were wrong with respect to the validity of the Agreement) Nexo would have been entitled to the Account and its contents. This conclusion was based on a number of key findings:

(a) The purpose of setting up the Account appeared to have been to enable Nexo to obtain a better rate than it was receiving on its other corporate accounts;

(b) Deposits into the Account came from other existing Nexo corporate accounts;

(c) The Account was opened using Mr Shulev's Nexo corporate email address, as opposed to any personal or private email address;

(d) Other employees at Nexo had access to the Account and executed transactions on it, whereas there was no evidence of Mr Shulev having executed any transactions on the Account; and

(e) Various communications sent by Mr Shulev were expressed in terms ("we") which suggested that he viewed the Account as a Nexo account rather than a personal account.5

Overall, HHJ Henshaw considered that these factors indicated that "whether judged objectively or subjectively, Mr Shulev intended to open the Account on Nexos behalf and to hold Nexo assets".6 As such, in relation to the Account Mr Shulev owed, and owes, to Nexo the duties of an agent to his principal, including the duty to act on Nexos instructions and to hold the Account and its contents as fiduciary for Nexo.7

With the English courts increasingly considering crypto-asset related disputes, this decision forms part of a developing body of English case law in this fast moving area. It serves as a valuable reminder of the utility of stakeholder applications, including for cryptocurrency exchanges who may need to resolve disputes over account ownership where various competing claims to assets are made.

1[2022] EWHC 1685 (Comm).2 These matters were also considered as part of the judgment, but are beyond the scope of this summary.3In the alternative, Nexo claimed as disclosed but not (fully) identified principal, on the basis that in using his Nexo corporate email address, Mr Shulev represented to HDR that he was opening the Account in his capacity as a director of Nexo. This secondary claim was not considered in the judgment.4Siu Yin Kwan v Eastern Insurance Co Ltd [1994] 2 AC 199, [207].5 [2022] EWHC 1685 (Comm), [103].6 [2022] EWHC 1685 (Comm), [111].7 [2022] EWHC 1685 (Comm), [112].8 See, for example, Tulip Trading Limited v Bitcoin Association for BSV [2022] EWHC 667 (Ch), our analysis of which is available here.

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Offshore cryptocurrency exchange obtains clarity from the English High Court on ownership and control of trading account - JD Supra

ROCHESTER, N.Y. (WROC) As cryptocurrency becomes more popular, its important to know whats required of you on tax forms. While some people may see cryptocurrency as a virtual currency, in the eyes of the IRS, its not a true currency.

So what does this mean when it comes to reporting cryptocurrency on tax forms? News 8s Ally Peters spoke with CPA David Young, with the New York State Society of CPAs, to know more.

The IRS has taken a very keen interest in cryptocurrency, so keen that on the front page of your tax return, theyre asking: At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in virtual currency? Yes or no?, Young said.

Young says this means if youve transacted with cryptocurrency, you must report it. The IRS considers cryptocurrency to be a property and capital gains and losses should be reported on Schedule D and Form 8949 if necessary.

If you held on to a crypto for more than a year, its a long-term capital gain, and if its less than a year, its a short-term capital gain, which has to be reported on your tax return on your Schedule D, Young said.

Young adds for long-term capital gains, the long-term capital gains rate applies, which varies from 0% to 20%, depending on your ordinary income tax rate. For short-term capital gains, the capital gains from your crypto or Bitcoin transactions are added to your income and taxed at your ordinary income tax rate.

No. If you buy crypto, you do not, Young said. But when you need to report crypto on your taxes is if you were to say you bought crypto a couple of years ago, now you sold the crypto, maybe you sold it, just exchange it, or if you go from one set of crypto to another set of crypto, went from a to b, thats a sale and it does have to be reported on your Schedule D on your tax returns, Young said.

Young said if you dont report crypto on your tax return, its a problem because the IRS is getting a record.

A lot of times the places that hold your crypto, report to the IRS and they should be sending you a 1099 and so the IRS knows you have this crypto. And even if the IRS didnt know it, its still the right thing to do, Young said.

So if you didnt report it in the past, you need to go back and amend, because if you did not, youre setting yourself up for an IRS audit, which means you could have penalties and interest and additional taxes.

Young said a lot of companies will give you the option to go to their portal or website and download everything into a CSV format, which you can put into Excel.

That way you can parse out all your gains and losses, Young said. Now, ultimately, theyre going to give you a 1099, but if you go to their website, many of the larger exchanges will help you as their customer, parse out all your gains and losses. And you can use that spreadsheet or data to prepare your correct income tax return.

To learn more about cryptocurrency and taxes, or to contact a CPA, visit the New York State Society of CPAs website.

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Do you need to report cryptocurrency on your taxes? Heres what you should know: - RochesterFirst