The president of Belarus, Alexander Lukashenko, has signed a decree which legalizes cryptocurrencies, initial coin offerings (ICOs), and smart contracts. All crypto transactions and related income, including from mining, will be tax-free for the next five years.
Legalizing Crypto Transactions and ICOs
President Alexander Lukashenko announced on Friday that the decree “On the Development of Digital Economy” has been signed. He explained, “the main goal of the document is to create such conditions that global IT companies would come to Belarus, open their representative offices, development centers, and create popular products in the world.”
The decree also legalizes cryptocurrencies, ICOs, and smart contracts. Reuters wrote, “Belarus has legalized transactions in cryptocurrencies,” reiterating that it is “part of a drive to foster private sector growth and attract foreign investment by liberalizing parts of its Soviet-style economy.” The news outlet added:
The decree legalizes initial coin offerings and transactions in cryptocurrencies, including their exchange for traditional currencies on Belarussian exchanges. while all trades will be tax-free for the next five years.
“Individuals will be able to store, change, buy, donate, bequeath, mine, and also exchange cryptocurrencies and tokens for fiat currencies,” Rusbase elaborated. In addition, it is not necessary to declare cryptocurrency profits and income from their operations since they are tax-free until January 1, 2023. Reported in November on the first Belarusian cryptocurrency exchange gearing up to launch in the spring of next year.
In 2013, one bitcoin cost $20. In 2017, it costs $20 to send one bitcoin. With record highs, thriving adoption, and media attention, this should be a celebratory time for bitcoin believers. And yet it’s hard to shake the feeling that something isn’t quite right. How did we reach a point where the world’s bank killer and Western Union crippler has become incapable of taking on the institutions it once sneered at? Bitcoin is hot as hell right now. But it’s also a mess.
Bitcoin Fees Have Become Infeasible
By any reckoning, 2017 has been a phenomenal year for bitcoin. Even the currency’s most ardent supporters would have struggled, 12 months ago, to predict the current state of affairs. But neither could they have envisaged, in their worst nightmares, it costing upwards of $20 to transfer a fraction of a coin. To chalk this year up as an unfettered success story calls for moving the goalposts and performing mental gymnastics. Bitcoin has made great leaps alright. It’s just unfortunate that not all of them have been forwards.
It can be debated whether Satoshi’s white paper envisioned bitcoin as a P2P settlement for micro-transactions. What can’t be debated is that bitcoin is effectively now unsendable and undependable for anything under a couple of hundred dollars. From the clearnet to the darknet, the conversation is the same: fees have become untenable. Despite this, bitcoin’s most ardent defenders remain in denial.On some corners of the internet, questioning the gospel of Satoshi and the infallibility of bitcoin is heresy. “I can’t send a friend five dollars without a $15 transaction fee and this is the currency of the future?” raged one Redditor, to which the first three responses on r/bitcoin ran:
- Change the settings on your wallet?
- I upvoted you but often the inputs of a transaction increase the cost due to size significantly.
- There are projects being worked on to lower the transaction fees such as SegWit, Lightening Network, etc. So it will be cheaper, just give it time.
There’s a modicum of truth to these rejoinders, but in the here and now, “muh segwit” or “just wait for LN” isn’t much help. Everyone has their price, a dollar figure at which they’d be willing to sell bitcoin, and also a figure they’re willing to pay to send it. Paying $20 to transfer $10 million of bitcoin seems reasonable. Paying the same amount to send $100 worth seems ridiculous. Bitcoin has been unsuitable for micro-transactions for some time, but it’s now reaching a stage where it’s unsuitable for mid-sized transactions.Is bitcoin a store of wealth because that’s its best use case, or has it simply morphed into one because no one can afford to move it
UK Gaming company Veltyco Group announced today that it has “commenced discussions with blockchain and cryptocurrency providers” about potential partnerships. Afterwards, its stock price leaped 20% at the open on London’s AIM growth market.
Shares Jumping 20%
Veltyco Group, the online marketing company for the gaming industry, said it “has commenced discussions with blockchain and cryptocurrency providers to enter into partnerships”. According to its announcement, Veltyco hopes to create a cryptocurrency wallet that it can market to its customers. The company detailed:
“Veltyco is planning to offer its customers the use of a crypto wallet that can be used across the platforms of all of Veltyco’s partners, allowing customers access to each platform without having to make separate deposits on the individual’s platform as well as enabling Veltyco to cross-sell the different platforms to its customer base.”
In reaction to the news, Veltyco’s shares, which are listed on London’s AIM growth market, jumped 20% at the open. The stock has settled back to a 14% gain.