Ep. 27 KYC. AML. SMH.

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In this episode of The Unhashed Podcast: LocalBitcoins.com has announced great news! That is, if you’re a Finnish lawmaker or a Bitcoiner strangely worried about the fact that you are anonymous on the platform. They’ll be adding KYC and AML thanks toa new law forcing the measures on the platform. How will we Bitcoiners buy and sell bitcoin without being tracked every step of the way now that localbitcoins is basically just a regular exchange except more expensive and less convenient? “Oh Canada!” can now lay claim to the first city now accepting Bitcoin as payment for personal income taxes. Do more and more announcements like these deal a blow to the Krugman style arguments that a fiat currency derives its value from its ability to pay men with guns not to hurt you?And...Peter Todd thinks it might have been a good idea to build in a permanent miner reward when Bitcoin was created, causing a controversy inside crypto twitter, which begs the question: is an uncapped bitcoin really worse than the fiat alternative?

Topic Times:

0:00:00 Intro

0:07:09 Felix Weiss creates Lightning Network -> ATM at HK hackathon

0:10:14 LocalBitcoins adding KYC requirements

0:19:12 Canadian town Innisfil begins to accept taxes in bitcoin

0:26:30 Europol targets illegal buyers and sellers on the dark web

0:32:06 Bitmain's new antminers announced

0:39:11 Bitcoin and a permanent inflation rate?

0:53:18 ICOMG - ASTRcoins

1:02:07 Lightning Round

Weekly News Wrap Up:

  1. At the Bitcoin Association of Hong Kong’s Lightning Hack Day on March 31, 2019, Bitcoin developer and friend of the show Felix Weis presented a successful demonstration of his Lightning-driven withdrawal using a 20 Hong Kong dollar (HKD) bill and a mobile bitcoin wallet on his cell phone. The software plugin was built in Java over the course of the hackathon weekend.

  2. The Finland-based, peer-to-peer cryptocurrency trading platform LocalBitcoins released a statement on March 25, responding to a new act approved by the Finnish Parliament that will require users to verify their identities. The statement reads: “The Virtual Currency Service Providers Act will come into full effect in the beginning of November 2019 creating a legal status for crypto assets, which should improve significantly Bitcoin’s standing as a viable and legit financial network. As announced earlier, LocalBitcoins is working on improvement measures that will allow us to provide a safer and better service conforming to the regulations. On Monday 18th March, we have launched a new account registration process where users can verify basic information already during sign-up, making it easier for the newcomer to find trading partners from day 1 and increasing the number of suitable customers to advertisers as well as inhibiting the creation of illegitimate accounts. As requested by many users, we are also currently developing a more efficient and reliable identity verification process. The new id verification system will introduce 4 individual account levels per trade and BTC transaction volume, that should increase trustworthiness and add distinction to the user profile.” This marks a major change for the service, which had been a primary way for users wishing to protect their anonymity to meet others willing to buy or sell bitcoin in person without sharing details about their identities.

  3. Ohio might have made history as the first state to accept cryptocurrency for corporate taxes, but one Canadian town is adding its name to the books by becoming the first in North America to permit its citizens to pay their personal taxes in bitcoin. The tiny town of Innisfil (with a population of 36,500), situated about 45 minutes north of Toronto, just approved an initiative that will allow its residents to satisfy their income and property taxes in bitcoin, beginning in April 2019. Payments will be processed through Coinberry Pay, a cryptocurrency payment processing solution developed by Coinberry for use by municipalities, charities, merchants and individuals looking to accept payments, donations or tips in cryptocurrency. While the payment solution is hosted by Coinberry, taxpayers will have to go through a government website to pay their taxes, which makes us wonder: will this be the first time paying with Bitcoin will become harder instead of easier?

  4. The European Union Agency for Law Enforcement Cooperation, better known as Europol, announced on March 26, 2019, that it has made an ongoing partnership with law enforcement from Canada, the United States and the member states of the European Union to target buyers and sellers of illegal items on the dark web. This announcement was made on Europol’s website, describing the progress of the crackdown to date, including 61 arrests made and over €6.2 million ($6.9 million USD) worth of crypto assets, fiat currency and gold seized. Europol began gathering international teams of experts to the organization’s headquarters in the Netherlands in July of 2018 and began work in late 2018 and early 2019 to prosecute dark web traffickers of illegal narcotics, counterfeit currency and other such contraband in several nations.

  5. Cryptomining manufacturer Bitmain has revealed the release date for its next-generation Antminer S17 series. The S17 set of miners includes the Antminer S17 Pro, Antminer S17 and the Antminer T17. The Antminer S17 is the latest in the company’s line of fabless mining chips. According to the post, the chips, which are expected to go on sale from April 9, 2019, will provide an energy-efficient means of mining popular cryptocurrencies such as bitcoin and bitcoin cash. The miners will be fitted with the 2nd generation 7nm ASIC BM1397 mining chips which Bitmain claims would provide a 28.6 percent improvement in power efficiency.

  6. Peter Todd recently took to twitter to explain in more detail his thoughts about bitcoins inflation tax.  “I mentioned how Bitcoin should have had a 0.1% or 1% monetary inflation tax to pay for security. Something I didn't mention - and should have - is I think the 21 million BTC limit is so fundamental it's more likely Bitcoin will die than change it.”  So the question is, does Bitcoin need a permanent inflation rate to pay miners?

ICO My God They’re Serious:

ASTRcoin - Disrupting a $700 quintillion industry!

One Final Note:

Make sure you are storing your crypto on something secure like a Ledger and backing it up on something sturdy like a Billfodl. If you buy these items through the links above, we do take a cut of the profits but it also helps support the show - a win/win for all involved.


Colin aulds