The bitcoin sale in Kenya can have troubles

LocalBitcoins Kenyan traders are accused of fraud in selling bitcoin to thief
01 December 2017   255

From I&M Bank and a Safaricom Pay Bill account was stolen 10.2 million KEH (approximately $100,000). In the course of the investigation the police detained three peer-to-peer LocalBitcoins brokers. They was selling bitcoins to the individual who was attempting to launder the funds. But a real thief was a user LocalBitcoins who named BADASS20.

Traders say they did not know who this user is, and that he wants to launder the stolen money. These data are confirmed by correspondence to LocalBitcoins chat. However, the investigative commission for investigating fraud in Kenya (BFIU) froze the bank accounts of these traders, they were also arrested, but then released on bail.

Strangely, BADASS20 was not identified or arrested, although transfers showed his / her bank account. The profile on LocalBitcoins was still active, although it was not visited for a week. Other users have left negative reviews, warning other users that you can not trade with this account.

This case can set a negative precedent for bitcoin Kenian traders if the government prosecutes these bitcoin traders for bank fraud only though they were unaware of the theft and their only connection to the perpetrator was through LocalBitcoins. Also it could have a negative effect on the Kenian cryptocurrency industry.


Wyoming Passed Bill Exempting Utility Tokens from Securities Laws

The Wyoming House of Representatives has unanimously approved a bill exempting utility tokens from securities laws  
20 February 2018   78

On Monday, House Bill (HB) 70 passed the House 60 to 0 and will now head to the Senate. The bill exempts utility tokens from securities laws. This will attracts ICO’s launches to the state and will make the state a favorable environment for blockchain startups.

According to the bill, the utility token must meet three conditions:

  1. The token’s issuer must not market it as an investment;

  2. The token must be exchangeable for goods and services, for example, startups must have a working product or service at the time the tokens are issued;

  3. The token’s issuer must not actively make efforts to create a secondary market for the token by entering into a repurchase agreement or agreeing to locate buyers for the token.

It is important to note that there are four more cryptocurrency and blockchain-related bills currently moving through the Wyoming legislature.

HB 19 passed the House of Representatives on Monday and is now awaiting introduction in the Senate. The bill exempts cryptocurrency from the state’s money transmitter act.

HB 101 has passed its second reading in the House and, if it passes its final hearing, will then go to the Senate. This bill will allow companies to create and use blockchains for the purpose of storing records and conducting inter-office communication.

HB 126 has just passed its second reading in the House. It will allow the creation of series LLCs.

Senate File (SF) 111 passed a vote to introduce on Friday and is now headed to a committee hearing. This bill will exempt cryptocurrency assets from state property taxes.