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high school
Yelp Director of Public Policy Luther Lowe has donated $10,000 in bitcoin to his high school alma mater as part of an effort to create a computer science course on bitcoin for students. Lowe, who graduated from Arkansas School for Mathematics, Sciences and the Arts (ASMSA) in 2001 and is currently serving his final year as the school’s Board of Visitors chair, indicated that the donation will help the ASMA keep pace educating students on what he feels is a revolutionary technology. Speaking to CoinDesk, Lowe lauded bitcoin and its potential to help boost the educations of students at the ASMSA, saying: “If bitcoin as a technology is going to change everything, then what better place and what better time to teach people about this?” The donation marks the first time either the ASMSA Foundation Fund or the University of Arkansas Foundation, of which the ASMA is part, have accepted a donation denominated in digital currency. In order to accept the donation, the school set up a wallet through BitPay. However, it is not the first donation to a US school, as Blockchain CEO Nic Cary donated $10,000 to the University of Puget Sound in February, while a $25,000 bitcoin donation was made to Florida Gulf Coast University (FGCU) in March. Notably, Lowe’s interest in the bitcoin space was previously established when his name surfaced on a list of individuals said to be participating in the US Marshals Service’s (USMS) Silk Road auction. At the time, Lowe told CoinDesk that while he was interested in the auction, his inquiry was not issued on behalf of Yelp. Increasing Arkansas awareness As for why he chose to make the donation in bitcoin, Lowe said his main goal was to raise awareness for both bitcoin and the initiative in Arkansas. Lowe added: “This will definitely start to raise awareness in a place that might see fewer merchants using it and have less familiarity with bitcon.” Lowe went on to confirm he will have no direct involvement in the course development, but that he is confident that the Board of Visitors will be able to craft the program with a level of excellence. “I trust that they’ll do a good job of it,” Lowe said. “My high school math classes were a lot harder than my college courses, so I think whatever they put together is going to be great.” Bitcoin interest grows Though careful to stress that his bitcoin interest remains personal, Lowe also opened up about his bitcoin-related work at Yelp. For example, he noted that he did help encourage the company to add bitcoin to its business attribute pages for merchants this April. While Lowe does not identify as an evangelist, he did state that he is enthusiastic about developments in the space, and that he continues to keep a close eye on the industry. He concluded: “I mean I just think it’s an exciting area to watch, and I think that it’s telling that every smart VC that I know in Silicon Valley is extremely bullish on it.” High school classroom via Shutterstock educationyelp
Original author: Pete Rizzo

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The Bitcoin Foundation has thrown its weight behind efforts to extend the 45 day-long comment period for the BitLicense proposal drafted and recently released by the New York Department of Financial Services (NYDFS). In an open letter to the NYDFS, Global Policy Counsel for the Bitcoin Foundation Jim Harper said that there needs to be greater cooperation with the bitcoin community and more transparency for the process as a whole. The organization’s efforts to advocate for a more growth-oriented BitLicense proposal builds on a previous grassroots-level initiative in which roughly 400 signatories, according to The New York Times, called on the NYDFS to hold a longer comment period. The Foundation requested in its letter that the state regulator provide it with the risk assessments drawn up during the BitLicense development period. The NYDFS has since responded that it would provide this information in the next 20 days, and the Foundation pledged on 6th August that it will make this information available for review prior to the close of the comment period. Harper argued in the letter that, ultimately, the NYDFS has much to gain from collaborating with the bitcoin community on the issue, saying: “A truly open rulemaking would allow participation far richer than the ability to comment once or twice on draft regulations. The department could take comments and amendments, and interact with commenters, in a better organized and more interactive fashion.” Harper added in the letter that the Foundation will be submitting further comment on a range of issues related to the BitLicense, although it remains to be seen what the organization will focus on. He went on to urge the NYDFS to engage both industry leaders and the grassroots-level supporters, who Harper said can provide unique perspective if tapped as a resource. The community itself, for the most part, remains divided on the BitLicense question. For many, the regulations represent either an opportunity to bring bitcoin companies in the mainstream or a potential barrier to innovation in the space. Image via Shutterstock Bitcoin FoundationBitLicenseNew York Department of Financial Services
Original author: Stan Higgins

e-commerce, online shopping
Electronic transaction processing specialist Global Payments has announced a new partnership that will find the firm referring select US and international customers to bitcoin payment solutions provider BitPay. Global Payments, which saw revenue of $2.4bn in 2013, boasts more than 1 million merchants globally. These customers are distributed throughout the US, Spain, Central and Eastern Europe, Russia, Canada, the UK and 11 Asia-Pacific countries. Amy Corn, senior vice president of marketing and communications at Global Payments, told CoinDesk that the move is one that will allow the company to supply its customers with innovative solutions, while better serving emerging markets. Corn further elaborated on Global Payments’ position on bitcoin, but declined to state whether this was part of a larger company push to integrate bitcoin more completely in its services, telling CoinDesk: “We’re a service business and we’re agnostic to payment types, so it’s important for us to provide our partners and merchants with the ability to accept any payment anytime, anywhere.” Notably, the company will not offer a specific in-house e-commerce tool to its merchants, as it does for businesses that who want to accept card-based payments. Rather, should Global Payments customers inquire about bitcoin services, they will be referred to BitPay to seek more information. Emerging markets Corn did not comment specifically on how long Global Payments has been monitoring the bitcoin market, but rather framed the referral program as part of the company’s commitment to the larger payments ecosystem. “We work very hard to ensure that we stay on top of market developments and changes, and we work hard to continue to evaluate our value proposition,” she said. However, Corn suggested one of the core reasons behind the referral program would be to strengthen Global Payments’ position in developing countries, adding: “We believe that by offering this service to our customers, we can meet the cross-border demands of our global merchants by presenting a great opportunity for bitcoin acceptance, and allowing both companies to reach more customers in emerging markets.” BitPay executive chairman Tony Gallippi characterized the partnership as one that would help extend his company’s reach to more global customers and more markets. “The cross-border demands of global merchants present a great opportunity for bitcoin acceptance and will allow us to reach more customers in emerging markets,” he added. Expanding services Although Global Payments is a more traditional electronic payments provider, the company has recently indicated it is seeking to embrace innovation, and that this goal would be a key part of its fiscal year 2014 strategy. For example, in its 2013 annual report, Global Payments CEO Paul Garcia hinted that the company may be seeking new and novel ways to expand its core merchant services. “In this ever-changing payments environment, we continue to innovate and provide our merchants with new and enhanced services that will fuel future growth,” Garcia said. “These improvements will ensure that your company remains forward looking, globally informed and customer driven.” In the full report, the company also mentioned a desire to focus on user privacy, another area in which bitcoin could be beneficial. Disclaimer: CoinDesk founder Shakil Khan is an investor in BitPay. Online shopping image via Shutterstock BitPayGlobal Paymentsmerchant processing
Original author: Pete Rizzo

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Security firm Kaspersky Lab has found that bitcoin is the target in more than one fifth of all malware attacks aimed at victims’ money. According to Kaspersky’s latest threat report, entitled ‘IT Threat Evolution Q2 2014’, bitcoin mining malware accounted for 14% of attacks in the second quarter of 2014, while bitcoin wallet stealers accounted for 8%. Keyloggers, which can be used to compromise both bitcoin and banking services, also made the list, with 4% of all attacks attributed to various forms of key logging malware. Traditional banking malware still leads the way with 74%, but considering the size of the bitcoin economy it is clear that bitcoin users and operators face a significant likelihood of being subjected to an attack. Bitcoin attacks declining “Fraudsters are also happy to use computing resources to generate crypto currency: bitcoin miners account for 14% of all financial attacks,” the report warns. “Criminals also use keyloggers to collect user credentials for online banking and payment systems in another bid to access bank accounts.” Although the figures are disturbing, the relative number of bitcoin-related malware attacks has actually gone down since Kaspersky’s last annual report. In the 2013 report, bitcoin wallet stealers accounted for 20.18% of all financial malware attacks, while mining malware accounted for 8.91%, giving a combined total of 29%. In the meantime, the number of threats has gone down, but the threat landscape has evolved – as wallet stealers fell out of favour, mining malware took their place as the predominant form of bitcoin-related malware. The rise and fall of mining malware Several security firms have issued reports mentioning bitcoin malware in recent months, with the number of attacks rising sharply since early 2013 in parallel with bitcoin’s massive peak in popularity. Malware makers have been experimenting with various forms of bitcoin malware, ranging from programs designed to create elaborate mining botnets, to ransomware like CryptoLocker that uses bitcoin as a form of payment. Fortunately, it did not take long for security firms and the authorities to catch up. Numerous bitcoin mining botnets have been dismantled since late 2013, including CryptoLocker in June. Even without law enforcement and security specialists dedicated to combating financial malware, bitcoin mining malware is facing an uphill struggle as it is essentially an obsolete concept, thanks to basic maths and economics, rather than a concerted effort to combat the spread of mining malware. mcafee-mining-botnet-roi McAfee’s latest report found that bitcoin mining botnets are going mainstream due to the widespread availability of mining malware online, but it also said that they are obsolete and practically futile. The simple fact is, bitcoin’s difficulty level is simply too high to effectively mine bitcoin on non-specialised hardware. So, although mining malware is abundant and cheap to procure, it is being increasingly redundant with each new bitcoin difficulty cycle. Furthermore, enabling cryptocurrency mining functionality on a botnet can easily alarm the users of infected systems, drastically increasing botnet attrition in the process. In other words, rather than making money, botnet operators who decide to use mining malware run the risk of having their operations discovered and losing potential profits through attrition. Malware image via Shutterstock Kasperskymalware
Original author: Nermin Hajdarbegovic

george
Chancellor George Osborne has announced a new initiative that will explore the potential role of cryptocurrencies in Britain’s economy, with an emphasis on the financial sector. Osborne has commissioned the Treasury to produce a programme of work on cryptocurrencies, looking at their potential risks and benefits. The study will be published in the Autumn and it could pave the way toward a new regulatory framework for cryptocurrencies in Britain. “These alternative payment systems are popular as they are quick, cheap and convenient [...] I want to see if we can make more use of them for the benefit of the UK economy,” he said during his speech at the launch of Innovate Finance, formerly FinTech UK, a group that promotes the interests of the UK Fintech industry. Backed by the City of London Corporation and Canary Wharf Group, the organisation aims to be a main point of access for industry influencers, regulators, tech and talent. Cementing Britain’s leading role in finance Speaking at the London conference, Osborne said the key to the Government’s long term economic plan is “cementing Britain’s position as the centre of global finance.” Osborne explained: “It’s only by harnessing innovations in finance, alongside our existing world class knowledge and skills in financial services, that we’ll ensure Britain’s financial sector continues to meet the diverse needs of businesses and consumers, here and around the globe, and create the jobs and growth we all want to see in the future.” The Government’s current position on cryptocurrencies has been somewhat ambiguous, although the UK has managed to attract a number of bitcoin businesses so far. Besides HMRC’s tax guidance, there has been little in the way of a comprehensive regulatory initiative. Osborne also used the opportunity to make a statement of a different kind. He attended a demonstration of a Robocoin ATM operated by Cointrader.net and purchased an undisclosed amount of bitcoin. Cointrader.net said the Chancellor greeted the demonstration with great enthusiasm. Hugh Halford-Thompson, head of UK operations at Cointrader.net, described the purchase as a “great step” towards bitcoin’s political and regulatory acceptance. A British BitLicense? London is one of the biggest financial hubs in the world, second only to New York in terms of competitiveness and sheer volume. It is by far the biggest financial centre in Europe. In June the UK’s Financial Conduct Authority (FCA) announced a similar project dubbed Project Innovate to ensure “positive developments” like bitcoin are supported in the region. A representative from the FCA held that the regulatory agency has yet to determine its stance on digital currencies. In March the the UK Digital Currency Association (UKDCA) launched as the voice for the local bitcoin community. Should Britain choose to follow in the footsteps of New York State, it would open up new possibilities for bitcoin businesses in Europe and across the globe. For the time being other jurisdictions in Europe have not expressed an interest in regulating cryptocurrencies, at least not in a similar fashion as the NYDFS. George OsborneinnovationUK
Original author: Nermin Hajdarbegovic

Douglas, Isle of Man
Lieutenant Governor and the British Queen’s personal representative Adam Wood is set to headline the first annual Crypto Valley Summit on the Isle of Man next month. The event, set for 17th and 18th September, will spotlight a diverse crowd of bitcoin thinkers, government representatives and business leaders will include BTC China founder and CEO Bobby Lee, House of Keys Member John Shimmin and GoCoin CEO Steve Beauregard. Discussions will focus on local regulation, adoption within the community, and the unique challenges that startups may face in the local economy. Peter Greenhill, Director of e-Business Development for the the Isle of Man Government’s Department of Economic Development, said that the event provides the community a chance to lay the foundations for what its growing bitcoin economy will look like, stating: “This is an opportunity to cement the Isle of Man’s reputation as a nimble, well-regulated jurisdiction for cryptocurrencies. The Island has a track record for innovation and high quality service in the financial services industry that will be enhanced by events like this.” He added that the goal of the Crypto Valley Summit is “making it very clear exactly what’s on offer to entrepreneurs” who establish bitcoin companies on the island. Focus on the Isle The event will come weeks after the Isle of Man government offered broad clarification of its regulations for digital currency. At the time, the government stated that businesses not classified as money transmitters will be regulated under existing laws. Over the course of two days, various speakers and panels will touch on key issues facing bitcoin today, both on the island and abroad. Wood’s opening remarks will touch on the broader nature of digital currencies and the potential they hold in the local economy. The first panel, hosted by Counting House Managing Director Paul Davis, will offer some context on the existing payments ecosystem and its infrastructure. Isle-based payments companies have adopted a restricted policy toward digital currencies, as shown by the recent bitcoin prohibition announced by Douglas-based online gambling payments processor NETELLER. Other highlights of the day will include Simon Dixon and Max Keiser, who will discuss crowdfunding and their crypto-themed fundraising platform StartJOIN, and Steve Brennan, Chief Executive of the Isle of Man’s Gambling Supervision Commission, who will moderate a panel on the role of digital currencies in gaming. Colin Tansley, Intelligence Consultant for Expol, will share his perspective on the cybercrime landscape. Looking to the future The second day of the Crypto Valley Summit will feature Member of the House of Keys John Shimmin’s keynote address on the local perspective on bitcoin and what the future might hold should digital currency adoption grow on the Isle. Furthermore, BTC China chief Lee is expected to give a detailed breakdown of the bitcoin environment in China. Notably, the second day will feature a two hour-long expert tables seminar, where delegates will have the opportunity to discuss and ask questions of the assembled business leaders and bitcoin thinkers. Taxes, law and the Isle itself are expected to be key topics during the session. Chris Corlett, the Department of Economic Development’s CEO, will offer closing remarks. With the local community moving toward a broader digital currency integration in the months and years, the Crypto Valley Summit is expected to set the course for future bitcoin developments on the Isle. Douglas, Isle Of Man image via Jim Linwood/Wikimedia Commons  Crypto Valley SummitIsle of Man
Original author: Stan Higgins

Vietnam TV report
Despite repeated statements from central bank representatives that bitcoin remains illegal in Vietnam, the country has a flourishing bitcoin ecosystem including exchanges, miners, and a few merchants. Now one of Vietnam’s state-owned TV networks, VTV1, has broadcast an informative report on bitcoin and interviewed some of its main local identities. In the report, the co-founders of the Bitcoin Vietnam and VBTC exchanges, husband and wife team Dominik Weil and Nguyen Tran Bao Phuong, demonstrated how people could go online to buy bitcoins with local currency, the dong. The programme also featured an interview with a State Bank of Vietnam (SBV) official who said the bank does not view bitcoin as money or a legal method of payment. He reportedly also said, however, that he reads the Bitcoin Vietnam blog and is trying to learn more about the cryptocurrency. See the video of the VTV1 report below (the bitcoin segment begins at the 14:30 mark.)   Curious about bitcoin Weil said the report showed people were still genuinely interested in hearing more. The reporter’s questions focused mainly on bitcoin’s current legal status in Vietnam, its potential use by criminals, the advantages of using bitcoin, and where he saw bitcoin, both in Vietnam and globally, within the next few years. He told CoinDesk he welcomed the opportunity to practice explaining bitcoin to the uninitiated, saying: “It seems like we can change the attitude step by step – the VTV report demands regulation on bitcoin, not an outright ban because [of] criminals, terrorists, tax evaders, money launderers etc. It seems like the long discussions with the journalists came to some fruition – and they understand a bit more, that this technological innovation could indeed have some positive outcomes as well.” The local media “went crazy” after Bitcoin Vietnam sent out a simple press release, he said. Bitcoin and his company also featured in major national economic newspapers and “basically every tech-related website out there”. Weil added that his wife Phuong helped put the media more at ease by putting a local face in bitcoin, showing it was not just an expat phenomenon. Weil himself is from Germany and the team’s exchanges are built using technology from Israeli startup Bit2C. Conditions are changing This is all just a step away from the concerns surrounding Bitcoin Vietnam’s release of its open-book trading exchange VBTC just a month ago, when one central bank official called for bitcoin business operators to be arrested. The company, and other similar ones, have tried to maintain open communication with officials to prevent such a crisis, and, in the end, no such arrests occurred. TV reports such as this demonstrate that curiosity about bitcoin remains high around the world, even in jurisdictions that have initially appeared ‘unfriendly’ towards digital currencies – like Vietnam, Thailand, and China. They also hint that large government institutions in countries like Vietnam and China contain a range of opinions on how to approach bitcoin. Even so, digital currency operations continued to grow despite adverse statements. Crypto scene larger than it looks Weil said that regulatory uncertainty probably meant there was a lot more interest and activity surrounding cryptocurrencies in Vietnam than it appeared. As well as bitcoin mining facilities, the community was also embracing Jed McCaleb’s new ‘stellar‘ protocol. Statistics reveal Vietnam ranked third in the world for visits to the stellar website, after the US and Indonesia. Weil said: “This confirms our research results, that there is much more going on in the underground in Vietnam, than you can see on the surface.” “The volume of the underground bitcoin trading market is probably close to two orders of magnitude higher than on our public platform so far,” he added. Video and image via YouTube AsiaVietnam
Original author: Jon Southurst

robocoin, atms Las Vegas-based bitcoin financial services provider Robocoin has released a new YouTube video that offers a first glimpse of its previously announced banking and remittance platform, Robocoin 2.0. Revealed on 10th June, Robocoin 2.0 finds the bitcoin ATM manufacturer seeking to refine its user experience and broaden its market base in a bid to attract a more global, mainstream audience. Robocoin CEO Jordan Kelley characterized the video as evidence that the company is following through on its promise to deliver a user-friendly product in line with these goals, telling CoinDesk: “A lot of people call [Robocoin] the onramp to bitcoin. So, with that comes an enormous responsibility to get as many people to use bitcoin and make it as useful as possible.” The three-minute video demonstrates a number of Robocoin 2.0 features, including the platform’s instantaneous bitcoin buying and selling capabilities, Robocoin.com’s cross-platform money management features and its remittance capabilities.   Robocoin indicated that while it is eager to share its latest work, the final product is not yet ready for the general public. The company said it is conducting internal testing, and that this phase will be followed by external penetration testing and migration to a high-security data center before the product finally reaches market. Building a two-sided global network Kelley went on to explain how Robocoin will leverage its existing services, including its ATM operator base, to support its larger goals. Robocoin will offer two types of wallets, one for its customer checking accounts and another for its bitcoin ATM operators. In his remarks, Kelley explained how these two integral offerings will function together to provide benefits to both parties, saying: “What we’re doing is our operators are providing liquidity to our customers. They’re selling bitcoin out of their bitcoin operator wallet, and because all we’re doing now is an internal ledger change, we can now provide customers instantaneous access to bitcoin without having network confirmation.” Operators, Kelley continued, will be protected from speculation through its Robocoin Exchange Connector, an API that connects operators to sources of liquidity around the world. Kelley added: “With that, operators can connect to Bitstamp, BitPay, Vault of Satoshi or Cointrader and after every single transaction, Robocoin will replenish their account from the exchange.” Equating security with familiarity A pillar of the Robocoin 2.0 service, Kelley says, will be smaller improvements that aim to make Robocoin’s service – and bitcoin – more user-friendly and secure across platforms, from its kiosks to its desktop and HTML5 wallet. The video, for example, shows how Robocoin is personalizing its kiosk service with custom greetings at log-in. While a minor detail, the feature will serve to further emphasize the company’s palm-vein scanning technology. robocoin “Now, when a customer walks up to the machine, they go through our enrollment process, and that palm scan, it’s not just a compliance feature, but it’s a security feature,” Kelly said. “It’s the mark that nobody has access to your bitcoin except for you and that is ensured by your biometric authentication.” Also on display is Robocoin’s improved web wallet and Robocoin.com banking service, offerings it aims to bring to more novice bitcoin users by allowing them to deposit and send money overseas on-the-go and with ease. robocoin Kelley concluded: “We’ve been really focused on trying to cater to the 99.9% of people around the world who may be not as tech savvy, but at the same time, we still want to engage them in what bitcoin has to offer.” Robocoin aims to release the final product by the end of this summer. Images via YouTube ATMsjordan kelleyRobocoin
Original author: Pete Rizzo
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