legislation

EU Proposes End of Cryptocurrency Anonymity

Since the inception of Bitcoin, Governments have been left with the question of how to manage and regulate digital currencies. In the EU, the stance has always been to learn more and wait. However, this week could mark a change in thinking after the European Commission proposed an amendment to its AML Directive. The proposed reform could see digital currency users tracked, with their details held on a database. Therefore, anonymity in cryptocurrency use could become a thing of the past.

What is AML?

For anyone not familiar with the legislation, AML stands for Anti-Money Laundering Directive. The purpose of the legislation is to prevent money from funding illegal activity. The AML directive sets out guidelines for financial institutions, ensuring that their internal processes are set up to prevent money laundering. It provides examples of red flags and the subsequent steps to take, should suspicious activity arise.

Proposed AML reforms will endeavour to ensure that cryptocurrencies are legally recognised as money and would prompt the creation of a database to link user IDs to their respective wallet. As a result, transactions would become traceable. It is unclear at the moment whether the EU plans to hold all information on a central database or whether the task would be segmented by jurisdiction.

How will this affect my Scotcoin?

Providers of digital currency wallets- which we will be in the very near future- would be required by law to ask all European users to register with their real information. This data must then be made available to financial intelligence agencies, should they require it. The talks come after many cases of money laundering have been thrown out of court due to the fact the defendant’s use of digital currency did not contravene current law.

Our Stance

So, how do we feel about this proposed legislation change? At Scotcoin, our aim has never been to actively or passively assist anyone engaging in illegal activity. Therefore, should the proposed AML directive reform become law then we will welcome the change. The overall aim of the legislation to discourage people from using our channels to fund illicit activity such as terrorism and/or tax avoidance. Scotcoin was not created to be used as such and so we will comply with any EU changes fully if/when the time comes.

Brexit Impact?

Given the recent vote for Britain to leave the EU, it could be the case that Scotcoin is never regulated as such. The European Parliament has stated that it will vote on the proposed changes before 2016 is out. However, we are all aware that regulation changes take time to pass through any parliament. Therefore, it could be some time before new laws are enforced. By which point, Brexit may have already occurred.

Scotcoin is, as we all know, a Scottish cryptocurrency. Scotland is in flux at the moment, with a huge push taking place for independence. So, where Britain goes, Scotland may not follow. With this in mind, we are still paying very close attention to the conversations taking place in the European Parliament. Anonymity was just one of the many benefits held by digital currencies such as ours. We firmly believe that Scotcoin is strong enough and provides a significant number of user features that the proposed changes will not impact its success

Why Accepting Scotcoin makes Sense for Businesses

Since our inception, we have been inviting businesses to become Scotcoin merchants. There are many reasons why it makes financial sense for businesses to do so, especially given our current economic climate.

In the wake of the Brexit vote, the pound sterling has taken a huge hit. There has never been a better time to look to other, more viable safe havens. Scotcoin could, in fact, benefit from the strains currently placed on traditional currencies. As it makes more sense than ever for people to own and use Scotcoin, it is pivotal that merchants begin to accept the currency.  This is where you come in.

Why Accept Scotcoin?

Scotcoin is not governed by any central bank and as such is not dependent on their operation in order to complete transactions. Scotcoin transactions are carried out extremely quickly, as Scotcoin itself is a peer to peer payment system. You will never face delays in receiving your funds.

Scotcoin transactions are extremely secure. The open blockchain system which facilitates the transactions is constantly being improved upon. Scotcoin sits on the counterparty platform on the Bitcoin blockchain which houses all the security benefits enjoyed by the Bitcoin currency. Safety is not an issue.

Most decisions tend to come down to the impact on the bottom line, which is why we must impress upon you that adopting Scotcoin makes financial sense. Many firms lose profit on sales due to the fees levied by services such as Amex, PayPal and MasterCard. Often these fees are dependent on the size of the transaction, which can be between 2.5-4%. This is not the case with Scotcoin. All of our transactions are charged a flat fee of 10p, irrespective of their size. The margin that you would’ve lost to other service providers, is then kept by you- the retailer.

The Set-Up Process

You’ll be pleased to know that including Scotcoin as a payment method is extremely easy. We’re committed to continuous improvement, which is why we’re also working on ways to make it even easier as we speak.

Quite simply, to begin accepting Scotcoin, all you need is a wallet. Set up a wallet using our recommended applications and you’ll be ready to go. You can find detailed information on how to set up your wallet here.

After it has been established, all you need to do is ensure that you publicise your wallet ID and/or its respective QR code. It’s not essential to publicise the QR code, however, it does make it easier for mobile users to complete the transaction.

How do I accept a Scotcoin payment?

Online Retailer

If you are an online retailer then be sure to publish your Scotcoin price equivalent. The customer will have your wallet address and the cost of the item, all that’s left is for them to transfer the coins to you. After doing so, their wallet will issue the customer with a confirmation code which you will ask them to send to you.

Once you receive the confirmation code, you know that your funds are on their way. All you need to do now is look out for the incoming funds.

Physical Premises

Should you own physical premises, the process will be very similar. However, in this case, you must ensure that the customer shows you the code with the correct information and wallet address before handing over any goods.

For instance, if you own a bar then make sure that your bar staff are checking that the recipient wallet address is that of the bar. Also, that the correct number of scotcoins are being transferred. Then at the end of the night, you can tally up the total of scotcoins taken in the same way you would for other takings to get your total profit.

Making transactions using Scotcoin is convenient for both consumers and businesses. The extremely low transaction fees also make it a cost effective and financially sound decision. At present, we are working on developing a specially adapted ‘till’ style wallet, which we hope to debut in the near future. If you are interested in accepting Scotcoin and would like more information, contact us. Also, if you have begun accepting Scotcoin and want to let consumers know then we can help. Just get in touch with us via the website or one of our social media channels.

We believe that we can revolutionise the way that payments are made in Scotland. Are you ready to join the movement?

5 Reasons to Buy Scotcoin

We know that interest in cryptocurrencies, and indeed Scotland’s cryptocurrency Scotcoin, has grown over recent years.  It is also clear that many of those people who are interested in Scotcoin don’t fully understand the financial benefits of buying it now.  In this blog, we will go over some the top economic reasons for purchasing Scotcoin today.

1 – Scotcoin Value is Stabilising

Over the last year, we have seen the price of Scotcoin fluctuate, but still steadily increasing its value in relation to Bitcoin.  This rise has seen Scotcoin value rising from roughly 0.15 of a Bitcoin per million with an increase of nearly 25 times to 3.5BTC per million; and against the value of US Dollar and British GBP the rise has been even greater with a growth of nearly 35 times to its present value of USD 2200 and GBP 1750 to a million Scotcoin. The rise has seen Scotcoin gain credibility as a financial instrument, which allows for a greater trust in the longevity and integrity of the currency. As the pound sterling has fallen in the wake of the Brexit vote, Scotcoin has gained friends and value too.

2 – Unstable Global Economy

All around the world, we have seen an ever more unstable economic climate, but during this uncertainty, cryptocurrencies like Scotcoin have been stable, or increasing in value, as their value is not directed correlated with the stock markets.  In 2008, this instability led to an economic collapse due to debt levels being too high and unsustainable.  Since the collapse, the levels of debt have continued to increase, and over the next few decades, we may see another collapse, which would see many of your traditional investments decrease in value.  This collapse would not affect Scotcoin, and in fact, the worse traditional economies get the better it is for cryptocurrencies.  That is why it makes smart economic sense to invest in Scotcoin as part of your investment portfolio.

3 – The Number of Scotcoin is limited

We know that there will only ever be one billion Scotcoin in existencefor people to purchase.  This is a fixed amount and won’t change, so as we see the use of Scotcoin grow as it becomes increasingly accepted, so it is simple economics to expect the value to rise accordingly.

4 – Strong Growth over the Year

If we take a look at the value of Scotcoin over the last year we can see that the value has grown strongly, although with a volatile last few months.  This volatility has led to a decline in price, however, this decline can be attributed to a pause as market participants wait for the next big rise in value.

5 – Looking for an alternative to Cash

In many Western countries around the world, we have seen an increasing desire to do away with cash in favour of digital payment methods.  This is good for Crypto Currencies like Scotcoin as  payments through the present system lack the privacy that cash offers.  Crypto Currencies , on the other hand,are digital cash and offer the privacy that consumers desire and can’t get from usual payment methods.  So, with the trend that cash will increasingly be sought to be done away with, we will see an increased demand for Crypto Currencies which can only lead to the value of Crypto Currencies like Scotcoin increasing.