The Coordinator of Mt. Gox largest Creditor Group Steps Down!

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Andy Pag, the founder, and coordinator of Mt. Gox largest creditor group has announced that he will lay down his powers due to the difficulties that have arisen in the process of rehabilitation of stock exchange creditors, which may take another two years.

Postponed Deadlines

Andy Pag, who founded a group of creditors 18 months ago, called Mt. Gox Legal, said that previously announced payout deadlines for creditors (before the end of this year) may be postponed to Mt. Gox’s former partner – Coinlab, which announced its claims to the stock exchange.

Legal Issues

Coinlab, funded by Tim Timer, Barry Silbert and Roger Ver (among others), became Mt. Gox’s partners in 2012 wand basically represented the exchange in the US. In 2013, Coinlab sued Mt. Gox’s. The company claimed that the exchange had failed to comply with the partnership agreement and asked for a compensation of $75 million. Mt. Gox made a counterclaim stating that the agreement had been breached directly by Coinlab, but then, when the exchange was closed, the court did not make a final decision.

“Coinlab originally put in a bankruptcy claim originally of $75 million which people thought was excessive… When we went to civil rehabilitation, everyone refiled the same claim, but Coinlab filed $16 billion,” says Pag.

“It looks like it’s stalled”

Coinlab’s American lawyer Edgar Sargent told that he could not talk about the claim amount before a Japanese court does, and that he was not sufficiently familiar with Japanese law to comment on the matter.

Mt. Gox Curator Nobuaki Kobayashi has to divide the creditor’s votes according to their share, but it is not possible to do so until the Coinlab claims have been assessed and dealt with.

“Because it’s pending and it’s still disputed, the trustee can’t attribute fair voting rights if it’s accepted or zero voting rights if it’s rejected but… until it’s [resolved] the trustee can’t give them voting rights… It looks like it’s stalled,” Pag explains.

The judges may need several months to a year to assess the claim. If Coinlab’s claim is rejected, the company will be able to challenge it, which will take another year. In general, according to the assessment by Pag, the decision on Coinlab may last from 18 to 24 months.


India on the path of legalizing crypto

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Judging by recent reports, India has changed their strict attitude against cryptocurrencies. New India Express reports that the Indian government set up yet another interdisciplinary committee. This second committee is in favor of legalizing cryptocurrencies rather than putting an absolute ban and neglecting them from the economy. The members consist of the revenue secretary, officials from RBI (Reserve Bank of India), SEBI (Securities and Exchange Board of India), and MeitY (Ministry of Electronics and Information Technology). They already have had two meetings with panel discussions.

“There is a general consensus that cryptocurrency cannot be dismissed as completely illegal. It needs to be legalized with strong riders. Deliberations are on. We will have more clarity soon,”

a senior official told New India Express. 

The previous committee says a strict “No”!

Best Coin Investments recently reported that India is planning to ban cryptocurrency asset class as a whole. Recently in October, the president of NASSCOM (National Association of Software and Services Companies), Debjani Ghosh, announced that cryptocurrencies are illegal within the borders of India.

“It is the law of the land, and hence, we have to work with it, if we do not agree, we have to go back to the government and speak about why cryptocurrencies aren’t correct,”

said Debjani Ghosh.

At that time, this caused a severe resistance from the community. It resulted in a wave of petitions from irritated traders. Companies fled the Indian grounds to move to more crypto friendly areas like Singapore or Malta.

The main argument was the reason that crypto can cause illegal activities. It would encourage money laundering or other criminal activities. However, after this harsh decision, the president of NASSCOM cleared the air by saying: “…even the government at this stage, will not be knowing how technology will play out and know what is right and what is wrong.”

Two meetings down, one to go

There is another meeting for the second committee, scheduled for January. Perhaps the stock market plunge which is happening right now is the cause. Or at least they want to “dip their finger in the water” to test it out a little. The consensus is that there is no need to ban cryptocurrencies. So the main topic in this meeting will be the ways how to regulate cryptocurrencies more strongly. I can’t imagine how it could differ from regulations of other countries, but that is what makes this event so interesting and expected. Perhaps this is the meeting which sets India’s long-term position on cryptocurrencies. “We have also taken inputs from cryptocurrency exchanges and experts and will be examining legal issues with the law ministry. It’s a complicated issue. Once all aspects are decided, then we will have more clarity,” added the official.


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Opening a bank account in Belarus for a legal person

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Belarus is known as one of the friendliest crypto countries in the world. Residents of Belarus can freely operate with cryptocurrencies. They can buy, sell and exchange currencies with no additional fees or monitoring. 

During March 2018, The President of Belarus, Alexander Lukashenko, issued a document called “Order Nr.8, The development of the digital economy”. The document went live on March 28. It anticipated the development of “Hi-Tech Park” which will be the base for Belarus digital economy.

Since then, many Tech and Crypto enthusiasts anticipated that this is a turning point for Belarus to become a cryptocurrency and blockchain capital of Europe. They thought that this order would attract many new cryptocurrency companies, hundreds of blockchain developers and investments worth millions of dollars.

The harsh reality after the order nr.8

However, in reality, during the first four months, only two mining companies got official licenses with one of them being a cloud mining company.

Our friends at Kripto.Media got in touch with Valery Yevdoshenko while visiting Belarus. Valeriy is the director of a mining company called Cryptocode. He expressed concern as their company’s applications hadn’t yet been confirmed after three months of reviewing. He said that “..practically all legal mining in Belarus has stopped for legal persons,” quoting Kripto.Media.

In general, Belarus opened the cryptocurrency world to its residents, but not companies that are willing to work within their country. It looked like plans to make Belarus a similar state to Malta had failed because of the lack of legislation. A regular resident could use and operate with cryptocurrencies with ease, but if he decided to open up an exchange or a blockchain company, he faced problems with the inadequate legislation.

Bank account

It looks like Belarus has worked on the legislation on cryptocurrency and blockchain companies, and with the help of Kripto.Media, we can share insights on how to open up a bank account for a company in Belarus. In this specific example, Kripto.Media visited BSB Bank of Belarus in Minsk.

First, to become a legal person in Belarus, you have to show the following documents:

1. The copy of the company’s statutes in which the legal person is doing business.

2. The copy of the company’s registration papers.

3. For individuals who are operating in the name of the company also have to hand in:

3.1. Proof of approval that he is authorized to represent the company when engaging to a bank (the company’s protocols or decisions about taking a position, the contract of employment).

3.2. Passport copy and a declaration of residence place certificate.

3.3. A copy of the power of attorney document, which points out that the individual can perform activities with the company’s bank account (open up, make payments and also close it).

4. The company’s stamp

The process

A legal person has to submit answers to various questions and has to form an application for opening a bank account on location in Belarus. Also, the samples of signatures have to be submitted for review, but if the company has multiple individuals with signature rights, then notarized samples need to be provided. The text needs to be translated and approved by Apostille.

Also, various questionnaires need to be filled out. It is advised to answer honestly to all the questions since nowadays information can be easily verified.

At first, these documents need to be submitted electronically. You can visit the bank in person after three working days when the answer will be sent.

There is one, generally odd peculiarity. New foreign customers, for the first two to three months, will have to operate their bank account transactions within the physical bank, in Minsk, Belarus. That looks awful a lot like the 90’ties. Only after the period as mentioned above the bank will grant access to the i-bank. However, there is a positive aspect of this as well – the Belarusian banks generally approve their services to foreign companies which are related to cryptocurrencies. Also, an important fact is that individuals who travel by air and stays only for 30 days, don’t need a visa for traveling to Belarus.

We very much thank our partners – Kripto.Media, for testing foreign grounds on cryptocurrency operations. This information helps us to spread the knowledge to other crypto-related companies or individuals who now are struggling with legislation of their business. 


Additional materials (in Russian):

BSB Bank website:

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