Cloud-based supply chain company Tradeshift said it would push blockchain development with cash it received from its latest funding round Wednesday, May 30.

The Series E round, which included Goldman Sachs among its major contributors, was worth $250 mln, bringing the total investment funding to over $400 mln.

Identifying key areas for growth, Tradeshift noted both blockchain and artificial intelligence, which it will pursue via its Frontiers innovation lab which it launched in January this year.

"We have always believed that the future of supply chains is 100 percent digital and that connecting trade is just the first step to a digitally connected economy," Tradeshift CEO and co-founder Christian Lanng said in an accompanying press release, continuing:

"This investment will enable us to continue our rapid growth and consolidate our leadership position. We welcome Goldman Sachs and PSP Investments as our newest investors and look forward to their valuable contributions as we enter our next growth phase."

The move paves the way for further integration of blockchain technology into the trade supply chain industry, something which various major corporations, banks and governments are already examining.

Goldman Sachs' investment choice is also pertinent, coming at a time when the conglomerate is seeking to enhance both its blockchain and cryptocurrency exposure. Earlier this month, an executive appeared to confirm Goldman would soon launch Bitcoin futures and subsequently offer more direct investment options.

Ethereum Classic (ETC) has now successfully implemented a protocol upgrade that will ensure that mining remains viable in future, according to ETC Block Explorer data yesterday, May 29.

The fork, dubbed ECIP-1041, has removed the so-called "Difficulty Bomb" feature from the ETC network at block 5,900,000. The 'bomb' was a component of the original Ethereum (ETH) code that was designed to exponentially increase the difficulty of mining to the point where it would become impractically slow, thereby triggering the need to transition to a Proof-of-Stake (PoS) consensus algorithm. This feature has commonly been referred to as the 'Ethereum Ice Age,' because it would essentially 'freeze' block validations.  

Ethereum Classic formed after Ethereum hard-forked from the original blockchain in 2016 over disagreements in how to handle the DAO hack.

The ECIP-1041 protocol upgrade will not result in an AirDrop, nor in the creation of a new token.

For its part, in October 2017 Ethereum acted to postpone the difficulty bomb by over a year, as the Foundation continues to lay the groundwork for the transition to its hybrid PoS system, Casper.

Once Ethereum moves to PoS, ETC's network – which reportedly has no plans to transition to PoS – could potentially hope to inherit a significant part of the mining hashpower dedicated to ETH in its current form.

The PoS-PoW debate continues to divide the crypto community. Just this week, a Brazilian researcher calculated that it could take just $55 mln to hack Ethereum Classic's network to make $1 bln profit, arguing that the network's PoW algorithm was more vulnerable to a 51% attack than previously assumed.

The Irish revenue service has published a manual with guidelines aimed at eliminating the uncertainty surrounding the taxation of crypto transactions. Investors and traders of digital coins, businesses working with cryptocurrency and tax advisors, of course, can now find answers to many but not all of their questions. The notice has been issued at a time when tax authorities across Europe are trying to tap into crypto incomes and profits in the absence of dedicated regulations in most cases.  

Cryptos to Be Treated Under 'Normal' Tax Rules

The "Tax and Duty Manual" issued by authorities in Ireland attempts to clarify matters related to crypto taxation and mostly confirms that the existing regulations apply to the crypto sector. The document provides guidelines on the tax treatment of various transactions involving cryptocurrencies. The Irish Revenue Commissioners, the government agency responsible for customs and taxation, emphasizes that the advisory published this month is to be used as a reference for tax purposes only, as it does not cover regulatory and other aspects.

According to the instructions, direct taxes such as corporation tax, income tax and capital gains tax are applicable but each case should be reviewed separately, according to the individual facts and circumstances. In general, businesses accepting crypto payments for goods or services should keep records of crypto transactions. No special rules have been introduced so far and taxable profits should be calculated according to the current tax legislation.

The profits and losses of a company transacting in cryptocurrency must be reflected in accounts and are taxable under "normal CT rules," the document states. Ireland's Taxes Consolidation Act from 1997 recognizes that some businesses operate and prepare their accounts in a "functional currency" other than euro. The authors of the manual point out, however, that cryptocurrencies cannot be considered functional currencies as defined in Section 402(1) of the TCA. Therefore, accounts for tax purposes cannot be maintained in crypto. Instead, euro or other fiat currency should be used.

Irish tax officials have explained crypto income taxation, as well. "Profits and losses of a non-incorporated business on cryptocurrency transactions must be reflected in their accounts and will be taxable on normal income tax rules," the notice reads. They have also informed taxpayers that gains and losses incurred on cryptocurrencies are chargeable or allowable for capital gains tax if they accrue to an individual, or for corporate tax on chargeable gains for companies.

Bitcoin Is Currency as Far as VAT is Concerned

In the absence of common European guidelines on how to treat cryptocurrencies for tax purposes, many member-states have decided to base their VAT (Value Added Tax) policies on a ruling by the Court of Justice of the EU from 2015. The Luxembourg-based institution has drawn a parallel between "virtual currencies" and fiat money, when they are used for payments. The Republic of Ireland is now joining these countries confirming that bitcoin constitutes a currency for VAT purposes.

In result, cryptocurrencies like bitcoin are regarded as "negotiable instruments" and exempt from VAT in accordance with the Irish VAT Consolidation Act of 2010. The manual notes this applies to companies buying and selling cryptocurrencies and acting as owners of crypto holdings. On the other hand, value added tax is due from suppliers of goods or services sold for cryptocurrencies. The taxable amount, however, should again be calculated in euro and at the time of the supply.

The Irish Revenue Commissioners point out that the value of bitcoin and other cryptos may vary between trading platforms. In the absence of a single exchange rate, a "reasonable effort should be made to use an appropriate valuation for the transaction in question," the manual says, without detailing what "reasonable" and "appropriate" may mean in practice.

Income received from mining operations will generally be outside the scope of the value added tax. Crypto mining is not considered an economic activity for VAT purposes yet. It's worth noting that no instructions have been given on the taxation of incomes, profits and other flows related to initial coin offerings. The document issued by the Irish revenue service does not say anything about digital tokens and token sales.

Bitfinex, an exchange famed for its opaque banking arrangements, has begun ordering its users to submit their tax details. The platform, which is registered in the British Virgin Islands, a known tax haven, will retain this information and may share it with tax authorities in their customers' jurisdiction. The news has caused quite a stir.

Bitfinex Wants Your Tax Details

In an email issued to a portion of its users, Bitfinex has outlined a new KYC policy. Not content with knowing the identity and location of its customers, it now wants their tax details. It has been stated that this is to accord with local laws in the British Virgin Islands (BVI) where the exchange is registered. The platform's tax data gathering won't stop there however: it notes that the BVI government "may then exchange that information with the tax authorities of the customer's country of residence".

Up until a few months ago, Bitfinex didn't even enforce basic KYC for its users. It's now gone from being one of the laxest major exchanges to one of the most regimented, with a tax sharing policy that surpasses anything enacted by the likes of Coinbase or Bittrex. After Bitfinex' new policy was called out on Twitter, the exchange clarified its position, explaining: "We have not sent this message to all users. We have deliberately targeted users that we believe have an obligation to self-disclose. If a user has _not_ received a message from us, she need _not_ self-certify anything to us at this time." There appears to be an inference, however, that all users will eventually be obliged to comply.

Predictably, a number of Bitfinex customers have stated their desire to boycott the platform and take their trading elsewhere. Due to increased regulation, coupled with the transparency that is inherent to blockchain technology, cryptocurrency users are already among the most heavily scrutinized investors in the world. Many feel that Bitfinex' latest policy, regardless of its legal basis, is a step too far. Coming from an exchange synonymous with operating out of tax havens and failing to fully audit its Tether stablecoin, the irony of Bitfinex now wanting to audit its customers is not lost.

Social trading platform Etoro is expanding into the US. Pre-registration has already begun. Initially, 10 cryptocurrencies will be offered, but the company plans to add more throughout the year. The company's crypto business has boomed in recent years, with 70% of its users reportedly trading cryptocurrencies.

Etoro Launching in the US

Social investment platform Etoro has announced that it is expanding into the US market. CEO Yoni Assia unveiled the company's plans at the Consensus conference on Tuesday. According to the announcement:

The launch will initially enable U.S.-based users to invest in 10 cryptocurrencies, with more to be added throughout 2018. Users will have access to a community feed and tools, letting them engage in conversations about cryptocurrencies and follow the investment strategies of other U.S. users.

Investment Platform Etoro Launches in the US with 10 CryptocurrenciesLaunched in 2007, Etoro is regulated in Europe by Cyprus Securities and Exchange Commission and in the UK by the Financial Conduct Authority. The company says it has more than 10 million registered users across 140 countries in Europe, Asia, and Australia, with an accumulated capital funding of more than $162 million. Currently, its website shows 247,387,974 open trades on the platform.

Assia commented, "Etoro will continue to focus on simplicity and user-friendliness so that more diverse groups will feel welcomed into the global crypto community."

Pre-Registration Begins for US Users

The company explained that US users can join the waiting list for the platform starting on May 15. "Users will be able to experience the interface and perform mock cryptocurrency investments via a virtual portfolio," its announcement details, adding:

The 10 cryptocurrencies that will be initially available are: bitcoin, ethereum, litecoin, XRP, dash, bitcoin cash, stellar, ethereum classic, NEO, and EOS. Etoro intends to integrate several more cryptocurrencies throughout 2018.

"The platform will offer U.S. investors three ways to access the crypto markets," Etoro described. The first way is "by manually investing in a coin." The second is "by automatically copying the trades of other traders on the platform to benefit from their knowledge and investment expertise." The third is "by investing in a Crypto Copyfund which provides a diversified portfolio of major crypto assets."

A Copyfund is Etoro's investment product aimed at helping investors minimize long-term risk, its website states. "Once you invest in a Copyfund, your capital is professionally managed by Etoro's investment committee. Each Copyfund's performance is analysed in depth and rebalanced automatically to maximise its gain potential."

Etoro's Booming Crypto Business

In January last year, the platform added cryptocurrencies. According to Fortune, "In recent years, the company's crypto business has boomed with 70% of its users trading digital currency."

Yoni Assia.

In an interview with the news outlet, Assia predicted that Etoro's "unusual social media features would help it gain a foothold" in the US. "Those features let users create a public profile of their investments, which in turn allows others on Etoro to track and copy their trading decisions."

Commenting on the crackdown by the US Securities and Exchange Commission (SEC) targeting tokens that resemble securities, Assia told the publication that he is confident "the digital assets Etoro plans to list are currencies not securities." He expects Etoro will list as many as 15 tokens by the end of the year, the news outlet conveyed, adding that the company also "plans to open a global wallet and exchange service later this year that is aimed at institutional traders."

Currently, the aforementioned ten cryptocurrencies are already being offered on the platform for non-US users.

Vitalik Buterin, Ethereum's cofounder, is increasingly finding himself target of very public rumors about his role in the project's supposed love of secrecy. Charges of lacking transparency are equivalent to mortal sins in the cryptocurrency space. Ethereum too is particularly sensitive about accusations along these lines, especially in the ongoing light of a possible US Securities and Exchange Commission (SEC) crackdown. Mr. Buterin and his supporters are fighting back.

Ethereum's Vitalik Buterin Responds to Critics

The "it" was a recent meeting in Toronto, Canada of Ethereum players, promptly blasted by Catallaxy co-founder and Satoshi Portal CEO (Bylls) Francis Pouliot. He described the event as a "Secret meeting of Ethereum management committee," in a Tweetstorm for the ages, continuing about how "blockchain governance rules were decided by the stakeholders."

The entire Ethereum project of late has come under ecosystem scrutiny due to SEC regulators in the United States set to determine its legal fate. Judged a security, and therefore subject to regulatory jurisdiction as a public company, could conceivably rock much of the crypto world. A healthy majority of initial coin offerings (ICOs) and smart contract platforms are dependent upon ERC20 tokenization.

The not even three-year-old tech is many a developer's choice, allowing for ease of integration and largely trusted. It is unclear, as of this writing, exactly what implications are carried with an unfavorable SEC determination, but most analysts believe it to be negative at least in the short run. Indeed, most ICOs openly forbid US citizens' participation in anticipation of odious regulations and subpoenas.

Ethereum as an Insane, Plutocratic Government

"This is insane," Mr. Pouliot insisted. "They are establishing a plutocratic government. This has provably failed with Bitcoin (UASF/NO2X). Does anybody even care?" The evidence marshalled for the slam came from a lone news source, which described the event in worrying terms, according to Mr. Pouliot's reading.

And it does appear discussions about decentralization, mining, scarcity, and the infamous cases of frozen funds were had in Toronto. However, the cryptosphere seemed unconvinced about a cabal, and took Mr. Pouliot to task. Principal Lane Rettig argued "The event was not secret, in fact we livestreamed a lot of it. We also did a public AMA. There is no 'Ethereum management committee' and no rules were made. Please get your facts right. Your message is intellectually dishonest." Mr. Pouliot shot back paraphrasing attributed to Mr. Rettig, and the thread continued along those lines.

Vitalik Buterin was eventually compelled to address the issue as it gained traction among the other rumors and news surrounding Ethereum. "I was not at this meeting," Mr. Buterin tweeted in response, "it was organized without my permission or even involvement, and I honestly don't really know much about what happened there."

In what might be considered a classic Twitter tangent, Mr. Buterin was sucked, then again, into another side argument about privacy coins and the phenomenon of maximalism. Asked his opinion of Monero, he insisted, "If I was doing anything seriously privacy-demanding I'd probably go for Zcash first." This brought further rebuke from privacy coin guru Rhett Creighton, himself the subject of much derision lately, who snarkily wrote in response, "Says the paid Zcash advisor," landing him in a strange bedfellows situation with polemicist Whale Panda. News of potential regulation and very public Twitter flames might have also contributed to an immediate dip of roughly a 5% in the price of ether, but it seems to have recovered at time of publication.

Do you want to support UNICEF's goal of making the world a better place for less fortunate kids? Turns out now you can, just by visiting a website and volunteering your computer's processing power. UNICEF Australia has turned to crypto mining to fund its humanitarian causes, and it's counting on support from the public. While there have been widespread cases of people's computing power being used to mine cryptos, this initiative is different, as it's dedicated to funding UNICEF as it endeavors to provide humanitarian assistance to children and mothers.

THE HOPEPAGE

UNICEF Australia has launched The Hopepage, a website with a simple interface that calls on visitors to "Give Hope, Just By Being Here." Once one visits the site, he or she is prompted to click a 'Start Donating' button that lets them start donating their computer's processing power right away. One also gets the option to determine just how much of their processing power they will donate, with the maximum allocation being 80%. (It can be dangerous to donate too much of your processing power to mining, as it's a very energy-intensive process.)

The site also explains how the process works. Once you agree to donate your processing power, your computer automatically starts solving algorithms (mining) which earns UNICEF cryptos that it trades to raise funds for its causes. Those funds are used to buy life-saving supplies like vaccines and safe water for millions of children.

For those who would like to contribute to the cause but are wary of mining, the site has an assuring message for them:

Mining is perfectly safe for your computer. If you're ever worried about power consumption, turn down the amount of processing power you're donating.

The site uses Coinhive, a crypto mining service which has in the past been widely associated with cryptojacking, a process in which unscrupulous internet users mine cryptos using people's computers without their knowledge or consent. This is, however, a very noble undertaking for Coinhive, and will have the secondary benefit of restoring some faith in the service, which has gained notoriety for being used to target users of YouTube, Google, and even UK government sites.

A GROWING TREND

While UNICEF Australia is pioneering the use of people's processing power for humanitarian causes, other companies have also turned to using the processing power of their users to mine cryptos, some legally and many more illegally. Among those doing it legally and openly is Salon, a media outlet that is exploring using its visitors' computing power in place of ads. This offer is optional, and one can opt out and instead view ads if they wish.

Among those that have been caught using Coinhive to illegally harvest processing power from users include The Pirate Bay, a digital repository for media content and software. After users found out that the site had been cryptojacking their computers, the site apologized and proposed a more open harvesting of processing power in place of ads. Most of the people who responded to the proposal were supportive of the initiative just so they could avoid ads. Showtime, an American television network, was also found to have been doing the same thing; it had been mining Monero, a privacy-focused crypto, using Coinhive's software.

Bitcoin forks are invariably contentious, but the latest batch could be the most controversial yet. Bitcoin Prime and Anonymous Bitcoin have been labeled as shameless cash grabs that are little more than pump and dumps orchestrated by opportunistic developers. The projects' architects of these schemes, naturally, have hit back.

New Forks Fuel a Furore

The Most Controversial Bitcoin Forks Yet Are ComingRhett Creighton has always been a polarizing figure, but his latest stunt has united a swathe of the cryptocurrency community in condemnation. EOS' Dan Larimer is synonymous with jumping from project to project, but his flitting looks like a lifetime of faithful service compared to Rhett's itchy feet. Having announced a dual fork of bitcoin and zclassic last December, which inflated the price of ZCL and enriched Rhett and his cronies no end, he's now following suit with bitcoin and primecoin to create Bitcoin Prime.

Meanwhile, a separate project is doing another fork of zclassic and bitcoin to create Anonymous Bitcoin which aims to "become the new standard for truly private banking". This means that zlassic will now have forked twice with bitcoin to create a pair of zk-SNARK-based privacy coins – three times if you include zencash, which was also born from a ZCL fork. Zen, to its credit, has since gone on to forge its own community and to differentiate itself from its parent coin. Bitcoin Private, on the other hand, has done little more than infuriate ZCL bagholders, many of whom lost money on the deal. ZCL has now died and been reborn more times than anyone can count, and is currently up 242% in a month.

A Prime Way to Pump a Dead Coin

Primecoin was trading at 80 cents until Rhett Creighton bought a bunch, announced his plan to fork it, abandoned the Bitcoin Private project, and pressed ahead with his latest money-maker. Many of Rhett's claims have stuck in the craw of the cryptocurrency community, who recognize a snake oil salesman when they see one. Some figures, including bitcoin developer Jimmy Song, believe that BTC forks are little more than altcoins or airdrops and don't deserve to be categorized under the bitcoin banner.

Regardless of their status, the approach that developers such as Rhett Creighton have taken to merrily forking coins has come in for censure. He's played heavily, for example, on the fact that Vitalik Buterin once considered building ethereum on top of primecoin, as if this somehow legitimizes the creation of Bitcoin Prime. With primecoin up 350% since the fork was announced, those who got in early – like Rhett Creighton – will profit handsomely whatever happens. At least Rhett is able to see the lighter side of the furore he's caused, tweeting the following:

A Wild Bitcoin Fork Appears

Another bitcoin fork emerged this week, turning up in the unlikeliest of places – Bitfinex. Most major exchanges have given bitcoin forks short shrift ever since bitcoin gold and bitcoin diamond but for unknown reasons, Bitfinex has decided to support Bitcoin Interest (BCI). The coin forked from bitcoin back in January, and Bitfinex intends to issue BCI later this month before launching trading. The utility provided by BCI remains to be seen, whose defining feature is the provision of interest to holders who stake their tokens. Whatever its fate, Bitcoin Interest wasn't born out of a shameless pump of an existing coin, and for that reason alone should prove less controversial than the likes of Bitcoin Prime.