Decentralised Finance and UNSDGs – How should regulators respond?

July 27, 2021

This article looks at what Decentralised Finance (DeFi) is and its potential to facilitate the achievement of the UN Sustainable Development Goals (UNSDGs). It also considers some of the limitations of DeFi and the approaches to regulating this industry which was not set up for regulation but due to the impact of its growth, cannot be ignored
by regulators.

The total value currently locked into decentralised finance (DeFi) is $53.5 Billion. The total amount locked into it as at 12 May 2021, according to DeFi pulse, was $86B – significantly higher than it currently is and a figure recorded before the industry took a huge hit from the slump in the crypto-asset market which began on 17 May. This is a significant amount indeed, given that DeFi is just over two years of existence.

Despite the recent slowdown in the crypto-asset space, the potential of DeFi to attract an increasing number of users globally means this amount is likely to continue to rise. However, the characteristics of DeFi enabling it to facilitate global financial inclusion and, therefore, supporting the achievement of the UNSDGs, are also the characteristics making it a very challenging space to regulate.

What is decentralised finance?

Decentralised Finance can easily be defined as non-custodial finance which enables all types of financial transactions currently existing in traditional financial systems but which is done on a peer-to-peer basis, without the use of intermediaries but enabled instead by smart contracts. Transactions facilitated by decentralised finance include borrowing and lending, savings, investments, derivatives and insurance.

DeFi and UNSDGs

Of the numerous advantages of DeFi, the most compelling is its potential to facilitate global financial inclusion – which can play a critical role in helping to achieve a good number of the UNSDGs planned to be met by 2030. This is so as DeFi enables those excluded from traditional financial services due to high costs of those services since intermediaries offering them are profit driven and are hardly located within low-income communities and countries across the world. As DeFi services are: accessible globally; require only internet connectivity and are cheaper than traditional financial services, low-income individuals can access a broader range of financial services. These services have the potential to lift them out of poverty, offering them other opportunities like starting up small businesses and through that promoting the attainment of other UNSDGs including: 1) No Poverty,(2) Zero Hunger, (3) Good Health and Well-being, (4) Quality Education, (5) Gender Equality, (6) Clean Water and Sanitation, (7) Affordable and Clean Energy, (8) Decent Work and Economic Growth, (9) Industry, Innovation and Infrastructure and (10) Reducing Inequality. In any case, as all 17 SDGs are integrated – with action in one area affecting outcomes in others – financial inclusion through DeFi can play a critical role in the achievement of these goals. Also, as countries have committed to prioritize progress for those furthest behind (particularly as poorer economies contend with the economic fallouts from the ongoing global pandemic), promoting ideas that can speed up the attainment of these goals such as DeFi, are worth considering and given the necessary attention and support required for their continued growth.

Limitation of DeFi in facilitating UNSDGs inclusive growth agenda

However, for DeFi services to be able to foster the achievement of these UNSDGs which seek to leave no one behind, the current limitations of DeFi would need to be addressed and it is these that regulators globally would need to draw their attention to.

DeFi is difficult to understand: The use of these services require that users have some understanding of its uniqueness in comparison to traditional financial services. An example is the case of loan-taking in DeFi. In DeFi, loans are heavily collateralised due to the volatility of the crypto-assets in which they are taken out. The risk of a DeFi loan is inherently the risk to the collateral to liquidation in the event that the asset price of the crypto in which the collateral is held goes down. Also, in DeFi, investments such as contributions to a liquidity pool pair linked to a volatile asset means that investments in that pool can significantly depreciate relative to the downward trend of the asset. This was the recent experience of Mark Cuban, billionaire entrepreneur and a supposedly seasoned investor, who invested in a new crypto project by contributing to a liquidity pool of the project’s stablecoin and governance token and suffered significant losses when the price of the token plummeted. User must understand how to achieve what they want to achieve to minimise losses. This is very critical and would require time and effort dedicated by users to have a better understanding of how DeFi works.

Closely linked to the above is the ease with which error can occur in transactions by users. As DeFi applications transfer the responsibility from the intermediaries to the user, users are exposed to high risk of errors which can be very costly particularly if some retail, low-income earners channel all their savings to DeFi platforms and activities. As such, users would need to weigh up the benefits as against the risks of their individual DeFi activities as the risk of error and, as such losses, can be high. This is particularly crucial as transactions occurring on blockchains cannot be reversed.

The need for KYC Requirements: DeFi has been linked with huge cases of money laundering and this is largely due to the absence of the requirement that users fulfil KYC requirement. Owning crypto-assets in private wallets and having a Metamask wallet pretty much gives access to anyone to transact anonymously in the DeFi space. It is as such possible for users to transact anonymously and engage in all sorts of illicit activities – although, as activities on blockchains are publicly stored authorities are now able through blockchain tools, to track the activities of those transacting on them.

For DeFi to be a credible system to be able to facilitate the UNSDGs, global regulators would need to arrive at a consensus on how they would want identities verified for parties transacting in the DeFi space.

Nonetheless, the absence of KYC in DeFi which is driven by blockchains, is a big issue and for DeFi to be a credible system to be able to facilitate the UNSDGs, global regulators would need to arrive at a consensus on how they would want identities verified for parties transacting in the DeFi space. They would also need to agree who should be responsible for confirming these identities – would this be the responsibilities of the users themselves or platform providers?

Despite the fact that DeFi applications boast of no single point of failure – as exists in tradition finance where activities can concentrate around single financial institutions and pose financial stability risks – DeFi, however, itself is not without risks. As DeFi is enabled by decentralised applications (Dapps) which are powered by smart contracts and which facilitate peer-to-peer financial transactions, this can sometimes be problematic as smart contracts have been known to have bugs. This has previously resulted in huge losses to investors. This clearly presents a risk that developers would need to continuously work on to ensure that the security of the operation of smart contracts are strengthened. Finally, as these platforms operate globally and users are able to transact without centralised institutions no mechanisms to achieve accountability exists although most DeFi platforms providers still maintain a degree of governance control of their operations resulting in the argument that as they maintain some control of the operation of the services, they should be liable to some responsibilities when things go wrong. Regulators would need to delineate which aspects of responsibilities should fall on providers and which should fall on users. Nonetheless, this would depend on the degree of decentralisation of the operations of the DeFi services.

Considerations for Regulation

As DeFi activities operate on a global scale, a global approach to regulation would be useful. But achieving global coordination in this space continues to be a challenge and would need to be carefully thought out, particularly as decentralised applications are borderless. Nonetheless, the planning for global regulatory standards for DeFi should not be deterred.

Regulatory Sandboxes

One key approach from a global perspective is the institution among regulators of regulatory sandboxes for the operation of decentralised financial systems. More ambitious activities such as trialling out a global regulatory sandbox for these DeFi services, given their cross-border remit would be tremendously useful. This can be achieved within the context of the Global Financial Innovations Network (GFIN). The GFIN is a network of over 60 organisations committed to supporting financial innovation in the interests of consumers. It seeks to provide a more efficient way for innovative firms to interact with regulators, helping them navigate between countries as they look to scale new ideas. This includes the ability to apply to join a pilot for firms wishing to test innovative products, services or business models across more than one jurisdiction. The UK FCA currently chairs the GFIN’s Coordination Group, which sets the overall direction, strategy and annual work programme of the GFIN. GFIN may be used as a useful forum to provide potential DeFi businesses and developers the opportunity to work closely with regulators to trial out new projects and seek solutions to the current AML/KYC regulatory concerns of regulators.

However, all of this needs to be placed in the context of developing regulatory activity for the DeFi industry. At the global level, the Financial Action Task Force (FATF) – the global anti-money laundering watchdog – announced in its 2020, 12 months review on the status of implementing crypto-assets regulation, that jurisdictions can ban exchanges accepting non-custodial wallets in peer-to-peer transactions. This would have significant implications for DeFi as connections to DeFi services are done mostly through unhosted wallets such as metamask. On 25 June, the FATF released a statement about its 2021, 12-month review to be released in July 2021, indicating that it would postpone finalizing its guidance on this issue to October 2021.

This FATF position is, however, closely linked to the position taken on 18 December 2020 by the U.S. Financial Crimes Enforcement Network (FinCEN) which released a proposed rule to stop regulated exchanges from transacting with unhosted wallets. Thus U.S. crypto-assets users wishing to transfer their holdings from an exchange to any personal wallets may need to comply with new KYC requirements if this proposed rule should it be implemented. This is also likely to affect the US citizens wishing to engage with DeFi platforms as it may mean the prohibition of certain transactions from centralized exchanges to unhosted wallet addresses such as Metamask, which are critical for transactions on DeFI platforms.

For DeFi to operate safely and to be able to facilitate noble goals like the UNSDGs, there would need to be a public and private partnerships between DeFi platform providers, developers and regulators.

At the regional level, the EU Commission, in September 2020, proposed the Markets in Crypto-Assets (MiCA), Regulation which, if passed, will prohibit crypto-assets businesses (including decentralised finance platforms) from trading within any EU Member State without being legally incorporated in an EU Member State. Going by the proposals, the operations of crypto-asset issuers could be required to comply with licensing requirements and capital requirements and, more so, if the crypto-asset they issue are deemed as systemically important or significant, and have a significant cross-border element. There would also be the requirement to fulfil AML/KYC requirements for the transfer of these crypto-assets issued under the EU AML directive. These rules would most certainly cover DeFi platforms issuing stablecoins that fits within any of the six categories outlined in the proposed regulation. This proposed regulation, which is planned to come into force by 2024, is likely to have had a persuasive effect on the global approaches taken by FATF. Despite this, regulatory approaches for the crypto-asset industry across the world remains quite divergent and a lot still needs to be done to achieve convergence. This would be critical for achieving a robust global framework for crypto-asset regulation.

Summary

That DeFi is indicative of the future of finance and holds huge potential to facilitate financial inclusion is indisputable. As such, despite the huge need for regulation of the space, regulators, globally, would benefit from close collaboration among themselves and the DeFi industry. This can be conceived in the context of the GFIN or GFIN-like arrangements which aims to create a framework for co-operation between financial services regulators on innovation related topics, sharing different experiences and approaches. Given the developments in the DeFI space, this framework could be used as a platform to facilitate regulatory cooperation to achieve aligned approaches for regulating DeFi. For DeFi to operate safely and to be able to facilitate noble goals like the UNSDGs, there would need to be a public and private partnerships between DeFi platform providers, developers and regulators. Regulators should be able to balance the risks relative to the rewards of DeFi in devising a regulatory framework – an outright ban of DeFi activities is unlikely to be the ideal solution moving forward.

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About the Author

Dr Iwa Salami is Reader (Associate Professor) in Law, University of East London. Prior to joining UEL, she was a research fellow at the Centre for Commercial Law Studies at Queen Mary, University of London. She has previously worked in the UK and abroad including the Government Legal Service and the African Development Bank.

References

Iwa Salami ‘Decentralised finance calls into question whether the crypto industry can ever be regulated’ The Conversation (11 December 2020) available at https://theconversation.com/decentralised-finance-calls-into-question-whether-the-crypto-industry-can-ever-be-regulated-151222.
https://www.coindesk.com/understanding-dao-hack-journalists (last accessed 28 June 2021).
Global Financial Innovations Network (GFIN), available at https://www.thegfin.com/ (last accessed 28 June 2021).
FATF, 12 Month Review of Revised FATF Standards – Virtual Assets and VASPs (July 2020) available at http://www.fatf-gafi.org/publications/fatfrecommendations/documents/12-month-review-virtual-assets-vasps.html (last accessed 29 June 2021). FATF, Outcomes FATF Plenary, 20-25 June 2021, available at https://www.fatf-gafi.org/publications/fatfgeneral/documents/outcomes-fatf-plenary-june-2021.html (last accessed 29 June 2021). The Plenary agreed to finalise the FATF’s revised Guidance on virtual assets and VASPs in October 2021.
Financial Crimes Enforcement Network, Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets available at https://public-inspection.federalregister.gov/2020-28437.pdf (last accessed 29 June 2021).

How to Start Successful Online Business: Full Guide

July 26, 2021

A few decades ago, starting a business was a capital-intensive venture that few could afford. Making the business successful was also an uphill task given the marketing platforms of the day. Certainly, that’s no longer the situation in 2021.

The internet has evened the business playing field. Possession of technical skills is no longer a primary requirement. This means that you could easily start your online business.

But, so can everyone else!

And their business could even compete with yours. This fact returns us to our subject matter.

How can you start your online business and achieve success?

While the past barriers to business have virtually diminished, they are not entirely non-existent. You still need to think of a viable business idea and figure out strategies to sell your services or products to your targeted market.

Steps to Follow

You could follow the following few steps to establish your online business successfully.

Step 1: Establish Your Business Idea and Niche

If you hope to succeed, you must offer something that the market needs. Your beginning point should be establishing what you want to sell and your target market.

Finding out a problem that is yet to have a proper solution is an excellent point to start from. It could be a problem affecting a specific community or social class or even your neighbourhood. Either way, think of a revolutionary solution that is better than current solutions.

Next, find out if your market will be willing to pay for your solution. Remember, willingness to pay and ability to pay are different. Your target market should be able to afford the cost of your solutions.

Step 2: Evaluate Your Business’ Viability

Once you know what to sell and who to sell it to, execute a viability test. This process involves examining all similar successful online businesses and examining whether your solution’s demand is sustainable.

This is the part of the business where you figure out if your solution is short/long term. How long you can profit from the idea and if it is worth investing in. If your business satisfies these criteria, it’s time to move to the next stage.

Step 3: Define Your Business Image and Brand

A good brand is an essential driver in today’s business. You will want to establish a brand that emphasises your presence, product, and service.

Step 4: Launch Your Online Business

Launching will mean settling for a suitable e-commerce platform and ensuring you have access to reliable high-speed fiber internet for efficient online operations. You’ll also need to add your business details and establish appropriate logistics.

Step 5: Grow Your Business

Once you’ve set up your business, you should now find ways to attract traffic. This is the stage where you’ll find a digital marketing agency most useful.

These experts will help your business grow through multiple platforms. They include:

Search engine optimisation
Brand management
PPC management

Fundamentally, the agency will ensure that you reach your customers and expand your horizons. Keep in mind, however, that choosing a digital marketing agency with experience working with other businesses in your niche is key to success. For example, you wouldn’t expect an automotive marketing service agency to perform well with a real estate company’s digital marketing campaigns.

Conclusion

Indeed, setting up your successful online business doesn’t have to be an overwhelming process. If you follow the steps discussed above, you should be well on your way to business success. Don’t forget to consult business experts periodically for revolutionary growth ideas – these can help you to grow your business in an organic, sustainable way, so that when it comes to selling your business, you can gain maximum profit.

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New Online Casino has Opened in Canada: Best Promotion Offers

July 26, 2021

The online gambling industry in Canada is worth over €12 billion. This amount shows you that online gambling in Canada is thriving. So much so that a new online casino launches in Canada now and then.

However, it’s not just Canadians who gamble in Canada since some casinos accept bids from Europe.

The thing with new casinos that make them attractive is their attractive bonuses. They will certainly award you with an excellent welcome bonus. But they could also reward you every time you try a new game.

Which Are The Latest Casinos That You Must Visit?

Given the large number of new casinos in Canada, it’s challenging trying to find the latest. Luckily for you, this site reviews new online casinos in Canada. You only need to read our reviews, and you will know all about the latest casino in town.

Casino Masters

Casino Masters launched its services in 2021. This casino offers you many reasons to gamble with them. Apart from a wide realm of games, you also get to enjoy masterful bonuses. As soon as you complete registration and make your first deposit, you begin enjoying is bonuses.

With its wide selection of games come various opportunities to win. The casino organizes several live tournaments that offer to entertain and award you simultaneously.

Master Casino’s premium customer service ensures your time at the site flows smoothly. You could always reach them to solve any challenge you encounter while gambling. They also keenly attend to all your inquiries.

PlayLuck Casino

This is among the newest casinos that invite pundits to enjoy its online gambling facilities and rewards. The online casino has invested significantly in style and slots. You can choose any of the 658 available slots, which include classic and video slots.

The casino also hosts various exciting table games, including blackjack VIP, Instant roulette live, and baccarat. You have a choice to play for real money or the demo mode. You can’t win real money in the demo mode since it’s only meant to familiarise you with the game.

Lovers of online casinos will also find this casino thrilling. PlayLuck hosts 119 live games that allow gamblers to interact with skilled dealers. And the beauty of it all is that you can engage in any of the games using your smartphone.

Swift Casino

Swift Casino is another new casino that began its operations in 2018. The selling point for this casino is its preference for renowned game developers. A look at its quality of graphics and game variety proves its investment in quality software.

Swift Casino offers to double your deposit upon signing up with them. And they also promise you 50 free spins as a welcome bonus to their platform. Knowing that you’re getting more than you have paid for will undoubtedly add to your excitement.

Although Swift Casino offers many different types of games, their slots variety is impressive. The casino has invested in the random number generator (RNG) technology that automatically selects random numbers. This ensures a fair winning chance since no computer of human interferes with your spin.

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What Platform: Choosing the Best Social Media Channel for your Post

July 26, 2021

Read any literature or attend any business start-up course in recent years, and one thing you are almost guaranteed to hear is social media. We hear it is essential and that we should have a solid social media presence. What these guides often lack is a precise guide on how we should use them? What to post? Which network to post it on? Do we need to have accounts on every platform, or do we pick and choose? This article will examine what each social networking platform can do for us and when we should use it. Follow the advice given in this guide, and we can avoid wasted time setting up accounts and posting statuses that will bring us extraordinarily little.

Decide What the Purpose is?

A critical task that must be completed before we even think of doing anything else is to decide what the purpose of being on social media is for your company? Suppose you run an e-commerce website and are looking for click-throughs to gain sales. In that case, your strategy will differ from a company that organizes fitness classes or a musician looking to gain exposure for an upcoming release or tour. As much as the target demographic is different for each of these groups, the impact sought from the individual posts will also vary. The retailer wants a customer to see the product and price, then think I need that and immediately purchase. The fitness class will also want to make sales, but the need for an instant purchase is less intense; they want to give info on the advantages of their course, information on time and location and generate interest. The musician will be looking to grab attention and interest and create a buzz about their upcoming work.

What Type of Post?

This is the classic question. In general, no matter what you are promoting, the more engaging, the better. Depending on what you are promoting, the exact style will differ. For our retailer, good pictures of the product on offer and perhaps a price will be critical. The fitness class may benefit from a good quality video; this type of visual representation can show the potential customer the set-up of the class and how vigorous it is. Getting a slick and professional video that hits the right note is vital. The Miami video production company has a good track record. Their years of experience will steer you in the right direction for maximum impact. The musician will usually be marketing to those who have already heard of them, so it will be more info on dates and location that are key. Let’s now take a closer look at what some of the most prominent social media platforms can offer.

Twitter

Twitter is the classic short-burst social media platform. The average Tweet remains visible in a meaningful way for a mere 15 minutes. Twitter is by far the busiest of all the social networks, so it’s suitable for short announcements. To get the most out of Twitter, it is essential to post regularly. It’s ideal for announcements for this reason. It’s also the most prominent in using hashtags and reaching users when discussing trending events. It’s a bit of a troll pit these days, so do be prepared for arguments at least, and some particularly offensive comments at worse.

Facebook

Facebook is the most established of the big players these days, and for that reason, it is considered the domain of the “old people”. Very few teenagers use Facebook as their primary mode of online engagement, and it’s considered where mum, dad, and the grandparents go, as this very fun post shows perfectly. But in terms of using it as a promotional tool, Facebook is still the market leader. Consider its older demographic, they are more established in their lives, earn more than their younger counterparts, and have families to buy for too. If you add in Facebook’s extremely powerful advertising algorithms you can use targeted advertising to a degree that was previously unthinkable, and none of the other platforms come close to matching. How they do this is a brilliant culmination of years of strategy; for the longest time, they were criticized for having a product that would never be effectively monetized. Consider how much data Facebook has on you; where you live, your age, gender, sexual orientation, career and educational history, taste in music and film, and even your recreational activities and places you like to visit. This is all a dream for the advertiser, and we can choose for only our target demographic to see our adverts. Your musician could promote a tour to a certain age of customer, in a specific country, with interest in their style of music. The fitness class can target women, with an interest in yoga, in a specific town.

YouTube

We have already discussed the advantage of eye-catching visuals, especially video. YouTube is one of the longest-standing online video platforms and still remains the go-to provider for the majority of posters. YouTube works in a different way from the other platforms we have already discussed. It’s less likely users will stumble on your video, so you need to promote your posts more personally. There are suggested videos on the home page, but the best way to get exposure is to gain subscribers to your channel. It is also a useful channel to use in conjunction with other platforms, a video hosted on YouTube is easy to link to in your website or on other social media platforms.

Instagram

We will find a more youthful crowd on Instagram than on other platforms. This is partly due to how visual a medium it is. Every post must be an image or video. Unlike Facebook, the image always takes prominence, with the test following afterward, tucked away at the bottom of the post. This can be really engaging, and Instagram is probably the best platform that tries to take a little from each of the other ones, and it manages to do this very effectively.

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Why is laravel better than other frameworks?

July 26, 2021

PHP is currently the most reliable back-end technology it is very much due to its great frameworks that are really helpful, while dealing with complicated projects. But just like PHP is the most popular scripting language Laravel is the most popular framework used. Other PHP frameworks also have their great features and in some things they are very much alike. For instance, all the mentioned below frameworks share MVC pattern. So why is Laravel believed to be the best one?

Yii

Yii is an efficient, component-based PHP framework. It is designed for fast large-scale web development and allows maximum reusability in web coding as well as speeds up development. Yii stands for “Yes It Is!”. It is a coprehensive web programming framework that greatly helps to develop any type of web application. Since Yii is a light framework with great, flawless caching, it is very convenient for high-traffic web services like portals, forums, content management systems (CMS), and e-commerce services. It is, however, disliked by some developers for badly drafted Ajax features and dependency on static methods.

CodeIgniter

Another extremely useful PHP framework is CodeIgniter. It does a great deal in accelerating web development process and has out-of-the-box libraries to connect with databases. and carry out different operations amid which are emailing, files uploading, and session managing. Since all the framework’s source code is about 2MB mastering CodeIgniter with all of its working patterns and principles is not a too ambitious task. The framework really simplifies project deployment, not to mentions delivering high efficiency to the software. Users enjoy fast-loading applications and services, so If you have experienced developing with some of the modern frameworks, you must know that usually, it takes a bit less than one second to start out, while CodeIgniter loads in around 50ms or less. Thereby if your main priority is speed CodeIgniter is definitely one of the frameworks to consider. Although, CodeIgniter has some cons: developers don’t find it useful for some large-scale projects and find it dated in many aspects.

Symphony

Unlike CodeIgniter Symphony is a convenient for huge projects, well-known, widely used open-source framework. It one of the most advanced PHP frameworks that exist and is probably the most powerful rival to Laravel. Symphony is featured by its enormous of more than 600,000 developers all over the globe. Symphony also has its own templating engine that originates from Jinja and Django templates. It is called Twig and is pretty fast and secure. PHP development companies value Symphony for its ability to broaden developers’ horizons. It easily deals with complex projects other frameworks would cope with worse. Yet its complicity and higher cost is not something that works in Symphony’s favor. Symphony never tolerates inexperienced developers, thus is only suitable for the limited number of developers and certain percentage of web projects.

Laravel

Laravel possesses such great features as easy and effective testing, great authentication, decent interoperability and third-party integrations, great e-commerce performance. It is also characterized by great data security and overall performance. Laravel is more intuitive and understandable than any other PHP framework. In Laravel, you can either use the default testing environment or create a personalized environment with a more specific purpose. It also provides the most rapid and efficient authentication when compared with other PHP frameworks. The most fundamental things for e-commerce applications like registering, logging in, or changing passwords are done in Laravel with one elementary command, providing quicker and more appropriate service for users. Lots of e-commerce services’ customers browse thousands of items daily. Hence, the fast performance provided by the software’s framework is foremost. Laravel has a decent performance optimization, cashing and data indexing – features that greatly optimize memory usage. Laravel has out-of-box solutions for cache back-ends that give more caching configuration variants for developers. One of the assets for an effective framework is interoperability and APIs. The unified API for different back-ends makes a project developed with Laravel more flexible. Laravel is an absolute leader in third-party integrations. E-commerce developers will also find Laravel an extremely suitable framework due to its set of e-commerce packages. They ease and speed up the work, provide interesting solutions and instruments resulting in better performance of the software..

Visit sapient.pro to learn more about Laravel’s advantages for web development and its capabilities as a fast, reliable, yet simple PHP framework.

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5 Ways Time Tracking Software Can Benefit Your Business

July 26, 2021

As the world progresses and new technology is developed, businesses are favoring apps and computer software over paper documentation. New programs that help companies to become more productive and budget-conscious are becoming part and parcel of everyday business life. Time Tracking software is fast becoming a favorite among businesses and freelancers. For those who are required to record time spent on projects and tasks, those who employ people paid by the hour and freelancers, and professionals who bill their customers at an hourly rate, time tracking software is indispensable. If you have a business and you would like to learn what this helpful software can do for you, here are 5 ways time tracking software can benefit your business.

Time Tracking Software is Versatile

Time tracking software is a substitute for the traditional paper timesheet. It can also be used to track activities an employee performs on a computer and the time they spend doing each task.

The software can be used as a stand-alone program or can be integrated with other computer software such as accounting applications, customer support software, and project management programs.

Apps can be downloaded to phones, tablets, and most mobile platforms so that users can record information wherever they are. Employees required to work in multiple locations can use their mobile devices to record their work patterns wherever they may be stationed.

There Are Different Types of Time Tracking Software

Aside from being used to record the time an employee spends on a specific task or a way to record daily activities performed, time tracking software can be linked to accounting software so that the data is directly linked to company accounts. From this information, a company can generate invoices and financial reports – billing systems, which is particularly beneficial to attorneys and contractors.

Visual reports can be generated by linking the time management software to project management software so that a company can literally see how much time is being spent on specific projects and tasks. Company management and schedulers can use the information collated to determine how much time should be assigned to a particular activity and designate jobs to staff accordingly. If there are concerns over employees spending time surfing the net or playing games on the computer, time tracking software can monitor this too.

Payroll systems also benefit from being linked to time tracking software because it clearly shows the hours an employee has worked, and they can be paid accordingly. There is no chance of the paper timesheet getting lost or payment errors caused by illegible handwriting.

Time Tracking Software Can Track Time in Different Ways

With time tracking apps, Employers can track employee time in a number of different ways such as automatic, chronological, clock-in clock-out, exception-based, durational, monitoring, and location-based.

Automatic tracking is when a computer or suchlike is connected to a device with buttons to initiate the start of a task and record to stop time. The times can be retrieved and viewed by all users with approved access.

Chronological time tracking is when the software users manually enter the start and finish times for the task.

The time an employee physically enters and leaves the workplace can be recorded on time tracking software using the Clock-in Clock-out feature.

If an employee has approved time off or a leave of absence, the software will not take this time into account and will just record the standard working hours.

Durational time tracking is when an employee will just record the length of time they spent on an assignment and not the exact start and stop times.

As mentioned previously, time tracking software can be used to monitor staff activity. It can alert employers if staff are spending too much time entertaining themselves by spending time on the world wide web or if they have extended periods away from their desks during working hours.

Time Tracking Software Keeps Your Finances in Check

Time tracking software gives you an instant report and visual representation of your finances. It shows how much you are spending on human resource issues against the amount of money being invoiced out to customers. The software can also give you insight into how financially valuable each employee is to the company. For example, you can see how much an employee costs each month with their wage and benefits and track it against the sales they have made or money they have earned the company. From screening the software results, you can see which of the tasks they perform boosts positive customer feedback scores. This data can enable a company to delegate tasks to the person who performs at the best level and take any staff away from a project that they are causing to be less successful. Every member of staff’s performance and contribution to the workflow can be analyzed.

It Can Boost Employee Morale

Employee morale can be enhanced through the use of time tracking software because each employee has an electronic record of their working hours and is not reliant on office staff calculating their working hours and wages manually and leaving things open to human error. This means that their paycheck should be correct every month, and they will be paid for any overtime they have done. If they have put in extra hours and worked very hard, this can be seen by all those who have access to the software, and they will be more likely to gain credit for their efforts. Having an electronic visual record of their working hours and achievements may motivate staff to improve their performance. They can see which areas of their working day need attention and which are most efficient. When staff can prove to employers how much work they have done and how much they have contributed to the company’s success, and they get recognized for it, they are far more likely to stay in their job and so save the company money because the staff are content and happy and don’t want to leave the company.

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Sports betting can help countries get out of COVID-19 induced recession

July 26, 2021

Sports betting is big in some countries while in others restrictions have hindered the participation of citizens in either online or offline platforms. For those who have been following sports betting Philippines as well as in other countries, the effects of legalized sports betting are evident. From taxes, sponsorship and the fortune changes for those who have won varied prizes, the positive effects of sports betting are even convincing states which have been stringent on betting to relax the conditions. In this article, Evelyn Balyton looks at the effects of sports betting on the economy while also delving into the benefits that individuals and states can derive from this activity.

Some years back, a report that was produced by Oxford University stated that the legalization of sports betting in the United States would inject more than fourteen billion dollars into the annual Gross Domestic Product. This is a huge amount given that this is just one component of the betting industry. When you consider the contribution of the whole gambling industry, the amount that would be injected through allowing or relaxation of the rules would be mind-boggling. This means that the legalization of sports betting in countries that have not done so yet should not only be celebrated by the betting enthusiasts, it is something that should be hailed by anyone who wants to see economic growth. When most of the economies are grappling with the effects of COVID-19 lockdowns, this is something that can ignite growth.

So apart from the capital injection of billions of dollars into the economy what other benefits will sports betting bring to economies that are currently struggling due to the COVID -19 pandemic and other causes?

Creation of employment
Contributing to tax revenue
Economic growth

Creation of employment

With most people having lost jobs during the lockdowns, news that there are vacancies to be filled would be good to many. Sports betting companies have a string of jobs that are created when they open shop in a given economy. Different betting agencies will need personnel to man them, ranging from administrators, accountants, managers, marketers, storekeepers among others, directly and indirectly, related jobs. It is not only agents who would be deriving income from sports betting activities.

The betting centers will require entertainers as well as outsourcing some of the services which help in the smooth running of the establishment. There also some other indirect services which will come as a result of the establishment of sports betting in a country; talk of web developers as well as teams that maintain these platform. All these and many other services will emerge and people will be deriving some income. With this, betting will have added the number of people who are moving from the unemployment support schemes. This essentially helps to save and also dignifies the lives of individuals who have made that shift.

Tax revenue

Betting is one of the activities that are taxed heavily. Any government looking to raise taxes to finance its economic activities targets the gambling industry as the first source. Together with the liquor industry among others; they are referred to as Sin Taxes. Many governments especially those that are looking to regulate the industry see tax increments as very effective tools. With the legalization of sports betting an economy will not only be widening the tax net but also creating a chance to raise a huge amount from a single source.

Sports betting companies are paying huge amounts of money from their earnings in form of taxes. In some countries, this amount is as high as fifty percent. There are situations where some of these companies are closing shop citing tax burden. The importance of sports betting firms in raising tax cannot be ignored, whether it is done to regulate the industry or make the business contribute their share to the economy, the amount raised is something that can significantly impact an economy.

For economies to benefit from the tax revenue that is promised by the sports betting companies they need to put in place laws that favor these businesses. The registration process should be in such a way that the company can start operation as soon as possible. The process of setting a shop should be easy to comply with for the genuine players but stringent enough to discourage exploiters from setting shop in a given country. Money derived from sports betting activities will continue to help governments fund big projects. It will continue to remain attractive to tax agencies due to its ease of administration and the effectiveness it exhibits in terms of compliance.

Creation of employment and business opportunities as well as injecting some money in an economy in form of tax revenue will lead to economic growth. This is the fuel that many economies need as they struggle to stay afloat at a time when fortunes have dwindled due to the current pandemic. Countries that have legalized sports betting can enjoy whole lots of benefits. Those that fear negative effects that the activity may have on its citizen can impose restrictions on who should bet and when. Sport betting firms are law-abiding corporate citizens and they will do everything legal and ethical to ensure that the industry contributes its fair share in getting economies out of the current recession.

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5 Safety Methods To Pay Online Worldwide

July 26, 2021

The unbelievable growth of online gambling platforms has also triggered a sharp rise in payment methods. A look at any online casino site will reveal a wide variety of payment options.

But are all these payment options safe and convenient? Which are the best ones to use for online betting?

Indeed, these may sound like tough questions. But we have a perfect solution for you. These are the 5 safety methods to pay online worldwide.

Boku

Modern technology has introduced multiple alternatives to traditional banking methods—these range from faster bank transfers to innovative technologies pioneered by small tech-savvy firms.

The Boku payment method has quickly gained a reputation as a preferred method for many gamblers. And for an excellent reason.

Boku as a gambling payment method facilitates safe and fast deposits to online casinos. It also connects your bank account to your phone, thereby enabling convenient transfers.

If you don’t have a bank account, you can still use Boku by opening an e-wallet account. With this option, Boku enables you to use your phone to transfer money quickly. Players who don’t want their money monitored by the online world will find this method appropriate.

You may have already noticed an increasing number of online casinos support Boku payments. This trend is because of their many advantages.

With Boku, you can transfer money to your casino account without sharing your bank details. It doesn’t charge you any transaction fees. Its popularity and acceptance in many casinos across Europe are also a plus.

However, a high roller may not find Boku appropriate given its deposit limits. You can only deposit a maximum of £30 or roughly €34 per day. Boku is only suitable for depositing money, but not withdrawals.

Virtual Visa Cards

Visa cards are another popular payment method because they are accepted in many outlets. Indeed, just about all online casinos will allow you to use your visa card. Virtual visa cards, like traditional physical cards, are elementary to use.

One thing you should note before applying for virtual visa cards is their lifespan. These cards only last for a year. This means you have to spend all the money on the card before its expiry date.

For security purposes, the visa cards also come with certain limits, which rarely exceed €1000. This means that they may not serve you in a high-stakes game.

Voucher Systems

At the mention of a voucher, you’re probably thinking about the gift or shopping vouchers. Casino voucher systems are different from shopping vouchers, but they share some similarities.

For instance, they are limited in value. You can also purchase casino vouchers at your nearest convenience store.

Casino vouchers have increased in popularity because they allow the gambler to control their spending. Gambling can be very addictive, and it’s easy to overspend on high stake games. Using casino vouchers means you can’t exceed its value on bets.

Mobile Credit

Transferable credits offer you a new way to make payments by bypassing traditional banking methods. All you need to use a mobile credit is your current phone number. Once you have registered your number, you can bill it and pay later.

This option is suitable during these moments before payday. You can use mobile credit to gamble even when you don’t have any money.

Cryptocurrencies

Cryptocurrencies are a favourite for many gamblers because they’re permissionless, fast, and safe. This method allows you to transfer any amount of money while bypassing traditional banking methods. You’ll, however, have to be careful to send your cryptocurrency to the correct address.

Conclusion

Convenience and safety are essential when selecting an appropriate online payment option. Indeed, many payment options exist, but not all are suitable for your particular gambling needs. Our recommendation for the safest method is Boku.

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Following in the tax footsteps of the Americans

July 26, 2021

By Eddie Bines

We’ve come to expect talk about reforming tax policies when we read the news. However, in more recent times there’s been a particular focus on Capital Gains Tax (CGT) reform, and its rise to prominence has been making headlines. In light of unparalleled spending through the pandemic period, the UK Treasury has been considering ways to ease the deficit and recover the state of their finances.

The expectation that Chancellor Rishi Sunak would implement CGT reforms in the Spring budget was not met. And then ‘Tax Day’ arrived and passed on the 23^rd of March, and there was no discussion of the topic then either. This raised the eyebrows of many, causing uncertainty amongst the general public regarding the UK’s stance on CGT reform.

Thereafter, US president Joe Biden clearly laid out his proposals as far as CGT was concerned. He outlined his plans to almost double the CGT for affluent American citizens. Tax rates went through the roof, rising from 20% all the way to 39.6%. Inevitably this drastic rise induced support and backlash simultaneously. This tax was implemented to only effect those earning more than a million dollars a year through investment income.

With the UK looking closely to the Americans for guidance on tax reform, it became more of a question of ‘when’ rather than ‘if’ the UK will follow in the footsteps of their transatlantic cousins.

There have been calls for changes to be made in the coming months. Many are expecting those to come as soon as Autumn this year.

It is to be a highly debated reform to the majority of the UK populace, given that a rise in CGT is only projected to impact a small number of the population. Of course, there may be a flight risk in imposing substantial tax increases on the wealthy, which could itself lead to reduced investment and a drop in tax revenues. But there is rising worldwide public understanding and dialogue over the unequal distribution of wealth and the ever-widening gap between the very affluent and less wealthy. This gradually puts more pressure on government policy, and in turn, on well-off individuals.

Careful routing through these complicated decisions in the time period ahead is the order of the day for the chancellor, and the UK’s owner-manager community will be looking on closely.

How can CGT be reformed?

The Office for Tax Simplification’s (OTS) evaluation of the CGT structure carried out in July 2020 is good starting point when observing the potential impact of the reform. It found that the CGT system could be made simpler and fairer by aligning CGT rates more closely to income tax rates, reducing the CGT tax-free allowance, removing the “CGT uplift” on inherited assets and reassessing existing CGT reliefs.

In regard to the realignment of CGT rates to income tax, the removal of the distinction between assets and property and the upsurge in rates is probable. There may be a steady growth in rates to reduce the initial blow or a threshold above which higher rates of CGT kick in.

There may also be a drop off the existing CGT annual exemption of GBP 12,300, down to a lesser sum, possibly between GBP 2,000 to GBP 4,000. This could be supplemented by further exemptions on personal entities for individuals, but that will be of no advantage to business owners. There may be a gradual downward tapering of the exemption to make the pill easier to swallow.

The so-called CGT uplift on inherited assets may also theoretically be a target of the chancellor. Currently, an individual that inherits an asset, for example, a shareholding in a family business, who then goes on to sell it for a gain is subject to CGT. This is based on the difference between the worth of the asset when they inherited it and subsequently sold it, as opposed to the original value the deceased bought it for. This “CGT uplift” can drastically reduce the quantity of CGT to be paid. However, the elimination of the uplift could make holding on to such an asset less appealing and give rise to substitute tax planning during the shareholder’s lifetime.

Business Asset Disposal Relief (the renamed Entrepreneurs’ Relief) has already seen the lifetime limit reduced from GBP 10 mn to GBP 1 mn in the 2020 Spring Budget. There could be further changes to qualifying criteria, the 10% rate could be increased, or more debatably, the relief could be scrapped altogether.

Although the measures remain ambiguous, the course of travel ahead for CGT reforms will unquestionably erode some of the upsides of entrepreneurship. And, in some scenarios, it may be that business owners looking to maximise value to accelerate their exit plans are now in preparation of CGT reform.

Is it now time to accept our destiny?

The existing CGT rules allow a tax-efficient exit for a business, although that window of opportunity is narrowing.

The exit of the business owner tends to happen through a trade sale, private equity investment, management buyout, or the (increasingly popular) employee ownership trust (EOT).

However, another mechanism for exiting a business and generating a capital receipt concerning a distribution of capital is via the members’ voluntary (solvent) liquidation process. Being a distribution of capital, the proceeds will be taxed at current CGT rates and subject to eligibility, qualify for Business Asset Disposal Relief.

Whilst we will always recommend looking for HMRC clearance to confirm the business owner’s tax position, the basic tax situation is that distributions made during a winding up are capital, not income, thus the shareholder is treated as having made a disposal of his or her shares in return for the amount distributed.

When applying for HMRC clearance, a business owner would also be looking for approval that the targeted anti-avoidance rules (TAAR), which aim to combat cases of “Phoenixism” do not apply to distributions made in the process of winding up of a company.

For comprehensiveness, “Phoenixism” is an action whereby a company is liquidated, and consequently, its business is carried on under the same or broadly the same ownership via a new entity within a prescribed time frame. These rules were introduced in 2016 and, if applicable, will tax any proceeds received via a liquidation distribution as an income and not a capital receipt. Clearly, this is not an issue if the purpose of entering into a members’ voluntary (solvent) liquidation process is a result of the owner folding.

In summary, the members’ voluntary (solvent) liquidation process should not be overlooked as an actual means to triggering a capital receipt. We fully expect a rise in enquiries from business owners and their advisors as the race to withdraw and extract value from their businesses deepens in the months ahead, with the shadow of CGT reform looming large once more.

Our Corporate Simplification team’s involvement in working alongside shareholders to maximise their returns tax, cost effectively and expediently puts us in strong position to help you and your clients implement their business exit. As ever, early consultation is recommended to ensure desired timelines are met.

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About the Author

Eddie Bines, Managing Director – Restructuring Advisory, Kroll and Greg Pollock, Director – Restructuring Advisory, Kroll.

Checklist Before You Start to Play in Online Casino

July 26, 2021

Online casinos give you an exciting and fun way to spend your free time. It gets even more entertaining when you win real money while at it. Every day, thousands of new gamblers sign up, attracted by the chance to win.

Online casinos are popular because they’re accessible worldwide, and their games are easy to play. However, you should be familiar with some fundamentals before deciding to join one. This helps improve your gambling experience and winning chances.

Therefore, let’s examine your checklist before you start to play in an online casino.

Select the appropriate casino

You may have a wide choice of online casinos to select, but not all are genuine. You need to pay close attention to things such as safety, licenses, and security. It would be best if you also examined their bonuses, winnings, and wagering conditions.

The thing with online casinos is that each tries to be different. Thus, each offers deals, promotions, and winnings that differ from the others. Check out the deals at Betpack and enjoy safe betting and the many opportunities to win big.

Examine the Available Betting Payment Methods

When playing with real money, you’ll need a convenient way of moving it. Given the difference in preferences, a wide variety of banking methods is always desirable. We understand this fact at Betpack and offer you an extensive list of betting payment methods.

Whether you prefer Neteller, Bitcoin, or Ecopayz, you’ll find them all at Betpack. This convenience implies you can quickly charge your account when you need to place bets. And also, withdraw your jackpot winnings conveniently and in a timely way.

Plan Your Betting Budget

Betting in an online casino is designed to entertain you. In other words, you should have a feeling of satisfaction after every betting session. Staying within your planned budget is among the factors that can dictate this feeling.

Indeed, gambling is an attractive sport. But Betpack desires that you gamble responsibly. The good thing with Betpack is that its betting options cater to all budgets. If you only have €10 to spare, Betpack will still offer you opportunities to have a lot of fun.

And you could still win the jackpot with whichever money you choose to bet with.

Of course, you can always increase your chance of hitting the jackpot by playing more.

Familiarize Yourself with Terms and Conditions

Every online casino operates under certain terms and conditions, and Betpack is not different. Rules on wagering requirements are some of the most important because they dictate your winning withdrawal. Winning a bonus is the goal, but you may have to wager it several times before you can withdraw it.

Ideally, you should take the time to go through all the terms and conditions. This way, you’ll know how Betpack operates as well as its advantages and disadvantages. With this knowledge, you can devise a strategy that increases your winning and excitement while playing.

Conclusion

Online casinos always present you with many opportunities to have fun and win cash. However, you first have to prepare yourself before signing up. Selecting the right casino, examining the payment methods, and its terms and conditions are all vital.

Once you meet your checklist, you are ready to have the ultimate fun at Betpack.

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