Police Seize Bitcoin ATM in Brisbane

Australian police have raided a Brisbane coffee shop with ties to a biker gang, seizing a bitcoin ATM in the process.
Police suspected the gang, which goes by the name of the Bandidos, was involved in high-level drug trafficking – allegedly trafficking meth and cocaine, as well as dealing in controlled substances used in the production of certain drugs.
The raid, which was the culmination of a two-year drug investigation, was one of a series of 19 raids across Brisbane, Logan, Cairns, Ipswich and the Gold Coast.
The police operation, codenamed ‘Juliet Wave’, also resulted in the seizure of $2.6m-worth of drugs. A total of 61 people being charged in connection with the case so far.
The investigation was spearheaded by Taskforce Maxima, a squad formed specifically to tackle crimes involving motorcycle gangs.

Bandido ATM?

The bitcoin ATM was seized from the Roastery Cafe in South Brisbane, along with delivery vans and other objects of police interest.
Brent Carall, the proprietor of the cafe, and alleged senior member of the gang Senad Ćatić have been arrested, reports the Brisbane Times.
The seized machine, which was Queensland’s first bitcoin ATM, is now in the process of being forensically investigated, according to Taskforce Maxima superintendent Mick Niland.
It remains to be established whether the ATM was indeed employed by gang members as part of their drug trafficking network.

Global operations

The Bandidos are a ‘one percenter’ motorcycle gang with more than 200 chapters around the world.

Read more:
http://www.coindesk.com/australian-police-seize-bitcoin-atm-2-6m-drug-bust/

Bitcoin Developers and Miners Exempt from BitLicense

Developers, miners and individuals using bitcoin will generally not be regulated by the impending ‘BitLicense’ proposals, according to Benjamin Lawsky, superintendent of the New York Department Financial Services (NYDFS).
Speaking at the Benjamin N Cardozo School of Law, New York, Lawsky clarified that many individuals and companies working within the bitcoin space will not need regulatory approval or a BitLicense to operate in New York State.
“We are regulating financial intermediaries. We are not regulating software development,” he said, adding:

“To clarify, we do not intend to regulate software or software development. For example, a software developer who creates and provides wallet software to customers for their own use will not need a license. Those who are innovating and developing the latest platforms for digital currencies will not need a license.”

However, Lawsky stressed that companies involved in safeguarding customers’ money will not be exempt. “We do not, for example, let someone run a bank out of their garage,” he said.

Banking and tech ‘collide’

According to Lawsky, the banking industry and the tech industry are starting to “collide” and create new challenges for regulators.
The NYDFS was forced to operated with money transmitter regulations drafted at a time when there was no Internet or cryptocurrencies, he said, explaining that the department has an obligation to license and regulate such companies.
On a positive note, Lawsky said the NYDFS quickly recognised the potential of block-chain technology:

 “As we began looking at bitcoin last year and getting deeper into it, we began to see the power of the technology that underlies it.”

The technology has the potential to provide cheaper fees and remittances, he said.
New York residents who send money abroad usually pay fees of 8-9%, while digital currencies could operate with fees of about 1%, Lawsky pointed out. Digital currencies do not require people to disclose their credit card information and offer faster transactions, he added.

Lawsky clarifies provisions

The NYDFS started working on the first controversial BitLicense drafts following the fall of Mt Gox, earlier this year, said Lawsky.
The comment period for the original proposal was extended following requests from industry leaders. The revised proposal will take those comments into account and, once published, a new comment period for the revised regulation will begin.

EU: Project to Combat Online Dark Markets

European prosecutors are speaking out about a new pan-European project designed to combat dark markets on the web – and they’re addressing bitcoin as a key tool of these illicit bazaars.
The Illegal Trade on Online Marketplaces (ITOM) was initiated by the Dutch Public Prosecution Service, the Openbaar Ministrie.
Kicking off with a meeting in April this year, the project draws together law enforcement from various European countries in an attempt to stop the illegal trade of goods online. Agencies involved include Europol and law enforcement from the UK, Portugal, and Germany.
The project has identified bitcoin as a key pillar supporting illegal trade, and will focus on the digital currency as part of the dark market ecosystem.
Wim de Bruin, a spokesperson for the Openbaar Ministrie, mentioned the value of cryptocurrencies for the global economy, but made a point to address their use in illicit activities:

“We consider the bitcoin and other cryptocurrencies as a good addition to the world of economic trade. Sadly though, they seem to provide great benefits for illegal trade, illegal international money transfers and money laundering.
We hope we can stimulate the ‘bitcoin community’, as you call it, to help us keep the bitcoin [system] as free of illegal usage as possible. Our ultimate goal is that the bitcoin system will become as self regulating as possible.”

De Bruin added that the organisation was already talking to bitcoin exchanges and banks, among other third parties.

Multidisciplinary interventions

The ITOM held a plenary meeting on ‘multidisciplinary interventions’ in June. Although de Bruin wouldn’t comment on operational matters, a document published by the Ministrie outlining the project’s focus may give clues as to what these interventions are, or who might be targeted for prosecution.
The document outlines what the group sees as the ecosystem for financial trade, breaking it down into seven main steps: obtaining goods, connecting to the Internet, offering goods for sale, contact with buyers, shipment, payment and financial services to deal with the revenues.
It describes the illegal players in these seven steps, including dealers, bulletproof hosting providers, web admins, website sellers and customers and money mules. The document also outlines a list of partners that the prosecutors presumably want to work with in targeting dark markets. These include ISPs, customs, drug prevention groups, logistics services – and, specifically, the bitcoin community.

Read more:
http://www.coindesk.com/european-prosecutors-launch-project-combat-online-dark-markets/

Rich and Poor

One day a very rich man took his young son on a trip to the country to show his son the poverty, so he never forgets the importance of being rich. They spent an entire day and night on the farm of a very poor family.

When they got back from their trip, the father asked his son,
“How was the trip?”

“Very good, Dad!” the son replied.
“Did you see how poor people can be?” the father asked.
“Yeah!” said the son.
“And what did you learn?” asked the father.
The son answered,
 “I saw that we have a dog at home and they have four on their farm. We have a pool that extends to the middle of the garden; they have a creek that has no end. We have imported lamps in the garden; they have the stars. Our patio reaches to the front yard, while they have a whole horizon.” When the little boy finished his father was speechless. The son added,
“Thanks, Dad, for showing me how poor we are!”

Moral:
It is indeed true that everything depends on the way one looks at things. If one has love, health, good humor and a positive attitude towards life – he has everything! One can't buy any of these things. But with regular spiritual practice they can definitely grow within oneself. One can have all the material possessions he can imagine, provisions for the future, etc., but if he is of poor spirit, he has nothing! Regular spiritual practice such as chanting God's Name enables us to have this sort of positive outlook towards life.

Bitcoin Helps Us Promote Free Speech, Independence

Greenpeace, a non-governmental campaigning organisation focused on environmental issues, announced it would begin accepting bitcoin donations last month, becoming the latest not-for-profit group to embrace the digital currency.
The move, which followed a similar announcement by United Way, is especially notable because Greenpeace does not accept donations from governments or corporations – it relies largely on small donations from the public.
CoinDesk spoke with Greenpeace chief information officer Tom Camerlinck, who explained that there were many “practical things” that motivated the organisation to adopt bitcoin into its fundraising efforts – things like lower transaction fees, the privacy of its donors and having a payment channel that allows the fraud and security team to worry less.
Camerlinck explained to CoinDesk that due to the nature of its donor base, the organisation strives to diversify and add different communities into the mix of people that funds its work.
“We like to stay nimble and go after what we see is the next major thing that’s going to make the biggest difference,” he said.
In learning about bitcoin, though, it became evident that the community values seemed very much aligned with those of Greenpeace, he said, citing privacy as a frequent concern of its donors as well as independence, free speech, sustainability and “taking chances on innovation”.

Fighting corporations

When asked why Greenpeace chose BitPay as its payments processor, Camerlinck said: “We are Greenpeace and part of our independence is that we don’t tend to promote corporations because we spend a lot of time fighting corporations.”

Read more:
 http://www.coindesk.com/greenpeace-bitcoin-helps-us-promote-free-speech-independence/

Spain’s Bitcoin Boulevard

More than 20 merchants in Madrid’s busiest shopping district will open for a Bitcoin Boulevard-style event today.
While streets in Arnhem, The Hague and Cleveland have all hosted similar bitcoin awareness initiatives, organiser Félix Montero says his event, Calle Bitcoin, will be the world’s biggest yet.
Around 200 bitcoin users are expected to attend the two-day spectacle, which is to feature a pub crawl, treasure hunt and photo competition, alongside giveaways in the digital currency.
While Spain’s bitcoin community is small, Montero hopes the outdoor event will showcase the currency’s purchasing power and utility to those in the “offline” world.
“We thought a bitcoin street was the best way to prove that bitcoin payments stand up even to the pressure of a crowded bar or shop in speed and flexibility,” he said.

Gold mile

The ‘calle’ itself is located at luxury shopping hotspot Serrano Street – also known as the city’s ‘Gold Mile’.
Besides the usual coffee shops, bars and restaurants, the 1.5 km area also features an international fashion boutique, a design hotel, an architect practice and – bizarrely – a gynaecologist.
Montero explained:

“Once merchants saw that the bar next door was sporting a ‘Bitcoin Accepted Here’ sticker they lost all fear and wanted in!”

Experimental event

The event is largely experimental, involving all kinds of payment mechanisms, apps and processors, both better- and lesser-known, Montero said.
Though BitPay, Blockchain and Coinbase are ‘gold’ sponsors, smaller regional startups such as Coinffeine, Avatar BTC and Bitcoin Spain, owner of the country’s first Robocoin ATM, will be out in force to greet passers-by.


Read more:
 http://www.coindesk.com/spains-bitcoin-boulevard-aims-worlds-biggest-best/

We’re Not Out to Villainize Bitcoin

The Financial Crimes Enforcement Network (FinCEN) has been to date one of the most active – and more controversial – US federal agencies to address the bitcoin ecosystem, doing so through a number of published rulings aiming to provide clarity to the industry.
Founded in 1990, the US agency is responsible for collecting information about financial transactions that may be used to support money laundering, terrorist financing and financial crimes. FinCEN first addressed emerging virtual currencies in 2008 and has been simultaneously praised for engaging with the bitcoin ecosystem, while facing criticism from those who say its efforts have sometimes stifled innovation.
In a new interview with CoinDesk, FinCEN Director Jennifer Shasky Calvery has moved to counter this narrative, reiterating that while her agency’s foremost goal is to protect domestic businesses and citizens, FinCEN remains committed to minimizing the burden of bitcoin and digital currency startups that are making good-faith efforts to comply with regulation.
Calvery told CoinDesk:

“We don’t start at a product and villainize a product, we villainize the bad actors and find out what they’re doing with their money.”

Further, Calvery said that FinCEN is more broadly seeking to gain the support of the domestic bitcoin ecosystem, suggesting that the industry should seek to demonstrate how the technology could possibly be an aid to law enforcement agencies and organisations such as FinCEN:

“I would try to put the challenge out to the industry itself. [...] We ask that you think about it from an anti-money laundering (AML) perspective, what could you build in [to the technology]? [...] I would challenge your readers to think about it from our perspective and see if they can’t come up with some ideas.”

The comments come as part of wide-ranging interview with CoinDesk in which Calvery discussed developments in the field of digital currency, New York’s BitLicense proposal and what FinCEN expects from bitcoin businesses seeking to serve to the US public.

Bitcoin steps up to crime concerns

Throughout the interview, Calvery sought to make clear her belief that bitcoin as a technology is not more susceptible to criminal misuse than other financial services.
Rather, Calvery said that bitcoin’s status as a newcomer to the financial ecosystem has made it the target of bad actors.
She suggested that FinCEN believes the bitcoin community is taking steps to combat the technology’s use in dark markets and illicit commerce, but that some businesses are actively making it difficult for her agency. Overall, however, her tone was arguably softer than in interviews earlier this year, when Silk Road and its related law enforcement cases dominated headlines.
Calvery said:

“You see industry responding and trying to put controls on this. So you see industry springing up around some of these things, but at the same time, you also see businesses springing up trying to make it more difficult for law enforcement.”

Calvery indicated that FinCEN is currently researching ring signatures, a cryptographic signature in which an action is attributed only to a group, and tumblers, a type of mixing service meant to hide where transactions originate.

Informal bitcoin dealers on radar

Consistent with its mandate as chief AML regulator for the US, Calvery asserted that all members of the bitcoin ecosystem that fall under FinCEN’s guidance should follow its directives.
Of particular concern, Calvery said, are informal bitcoin dealers who may think they can operate outside of the agency’s oversight.

Read more:
http://www.coindesk.com/fincen-director-villainize-bitcoin/