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February 19, 2014

Israel warns public on bitcoin risks, mulls regulation

Israel said on Wednesday it was considering regulation of bitcoin and warned citizens that using such decentralised virtual currencies was risky.

As a crypto-currency, bitcoin is passed between two parties digitally and can be traded on exchanges for real-world currencies. Its value fluctuates according to user demand but it is not backed by any government or central bank.

Supporters of bitcoin are drawn to its decentralised platform and say it is here to stay. Detractors call it a bubble and expect it to be forgotten in a year or two.

However, it has proved increasingly popular and governments and regulators around the world have been searching for the best way to respond.

Israel, home to pioneering firms in hi-tech fields such as cryptography, has emerged as a bitcoin hotspot, prompting central bank governor Karnit Flug to convene a meeting this week with other regulators, including those for capital markets, taxes, securities and money laundering and terror financing.

“It was agreed to continue to examine various perspectives related to the use of, and trade in, virtual currencies,” the authorities said in a joint statement on Wednesday.

“These perspectives include possible macro effects, their legal standing, their regulation, money laundering and terror financing risks, taxation and consumer protection.”

They said the Israeli public should be aware that bitcoin is unsupervised, is not legal tender and presents fertile ground for fraudulent activities. At the same time, such transactions are anonymous and often hard to trace, they added.

CRIMINAL ACTIVITY

“This anonymity is liable to be exploited for criminal activity, including money laundering, financing illegal activities and financing terrorism,” the statement said.

“Law enforcement authorities are therefore likely to close trading platforms in virtual currencies which are used for illegitimate activities, by preventing access or use of customers' capital, which would likely be held by those platforms,” the statement added.

Other governments have also issued warnings on the use of bitcoin and New York's financial regulator revealed plans this month to govern virtual currency firms in the state in order to protect consumers and combat money laundering.

At least two dozen Israeli startups have popped up in the past year with a view to creating tools that will allow bitcoin to be used in almost any kind of transaction – from buying shoes to issuing company stock.

In recent weeks, bitcoin was hit by attacks from unknown computer hackers that led to problems at two exchanges. They had to temporarily halt withdrawals by customers who stored bitcoins in digital wallets provided by the exchanges.

This week, a bitcoin is worth about $635, down from around the $1,000 mark in late 2013. However, it was worth only about $150 as recently as last September.

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The Birds In The Cities

It is nice to see the birds in the city
because birds are not martyrs.

 

While standing at the western wall,

she points to the birds saying surreptitiously,

“There are no birds at the western wall.”

 

The Ram Bam says that on angels, wings are a metaphor.

Wings are the lightest things we can know in this world

like you. and I stood feeling myself inside the wall.

 

It is interesting to see the massive bones in the wings of a seagull.
I wonder if their wings are heavy when they fly.

 

The first flutes were made of bones from wings.
Play me as the flute of love.

All you are is sung. Some songs are short. Some songs are long.

The Birds In The Cities Read More »

The Jews of Denmark Exchange, Part 2: On the Role of the Danish Public in the Great Escape

Bo Lidegaard is the editor in chief of the leading Danish newspaper Politiken and the author of several books on modern history. He served as a diplomat in the Danish Foreign Service before joining the Office of the Danish Prime Minister as Ambassador and Permanent Undersecretary of State tasked with responsibilities corresponding to those of National Security Advisor. He later led the team preparing the 2009 United Nations conference on climate change in Copenhagen. He is one of the most respected and widely read Danish historians, and his work has focused on U.S.-Danish relations in the twentieth century, as well as on the modern Danish welfare state. He lives in Copenhagen.

The following exchange will focus on his critically acclaimed book Countrymen (Knof, 2013), which tells the story of how the Jews of Denmark escaped the Nazis during World War 2. (Part 1 of this exchange can be found right here.)

 

Dear Dr. Lidegaard,

In the first round you explained why the persecution of the Jews was such a red line for the Danish leadership in WW2. In this round I'd like to ask you about the role of the general Danish public in this great triumph. My question has two parts-

1. In your book you mention, on several occasions, that the Nazi occupiers initially assumed that taking action against the Jews would be a very unpopular move in Denmark, and you imply that this delayed the decision to persecute them. This made me wonder – Jews were only around 0.2% of Denmark's population at the time, and they were relatively secular and integrated into society. One could say that Denmark barely had any Jews. This means that the great majority of Danes (correct me if I'm wrong) probably had very little knowledge of the country's Jewish population and of the peril it was facing, especially seeing that they didn't know what we know today about the Nazi's plans. How much public attention (editorials, demonstrations, etc') did Denmark's 8,000 Jewish citizens receive at the time? Was it the Danish people the Nazis were cautious of alienating, or a small number of very persistent Danish leaders?

2. There is no question that there were many brave individuals — Danish and Swedish leaders, ordinary Danish citizens, and Jews — who risked a lot to make this story such a wonderful success. Generally, though, the rescue of the Jews of Denmark was quite a quick, clandestine affair which the vast majority of the population was unaware of as it was happening. This could raise a somewhat provocative question: Is this genuinely a story about the inherent decency of Danish society at the time, or one about a few (very) good men?

I'm looking forward to reading your response.

Yours,

Shmuel.

***

Dear Shmuel,

I think you are correct in assuming that most Danes had no particular opinion on Danish Jews. Whereas some stereotypes about Jews surely prevailed, few felt strongly about it, and in the outset there was no general feeling of “a Jewish problem” that had to be addressed – or indeed of Jewish countrymen that had to be protected. Still, many had noted the ever more militant anti-Semitism in Nazi-Germany and few liked it. When the Danish parliament, The Folketinget, passed legislation outlawing racism, i.e. anti-Semitism, in January 1939, by a great majority, the move was met with broad public approval.

So, the efforts by the Danish government and by King Christian to fend off any measures against the Danish Jews during the first years of the Nazi occupation surely reflected a widespread public sentiment that such measures “would not be right”. More specifically, in a population committed to a society based the rule of law and a sense of justice, the idea of persecuting innocent citizens was deeply offensive. In a way, this question became the dividing line between being occupied – for strategic reasons – by neighboring, civilized Germany on one side, and being taking hostage by a bunch of Nazi bandits on the other. With the first, Danish society could negotiate and cooperate to a point. With the latter, confrontation was inevitable. This is what both Berlin and Copenhagen understood. Were Nazi Germany to cross this line and initiate measures against the Danish Jews, it would provoke a change in the public attitude towards the occupying forces. Not because these measures were directed against the Jews, but because they were directed against Danish countrymen – who happened to be Jewish.

Regarding the second question, numbers are difficult when it comes to the rescue of the Danish Jews. We do know that close to 8,000 individuals managed to escape in the course of few weeks without any prior preparation or organization and that the entire operation was visible for many more fellow countrymen – and indeed for the German Wehrmacht occupying the country.

When we look at the individual escape routes it is obvious that it took many helpers to assist each refuge and that many more had to close their eyes and ears not to observe what was going on right before their eyes. A conservative estimate may be that five to ten persons were engaged to help each of the 8,000 refugees with perhaps twice as many or more observing without engaging. This brings the numbers up to some 40-80,000 more or less active helpers in addition to the hardcore activists who engaged with the groups that eventually managed to organize the transfers.

While examples do exist of Danish Nazis assisting with the raid and of individuals giving in refugees, it is striking that examples are so few that each case is known and unique. It remains true that we have countless accounts of ordinary citizens from all parts of society helping out as a spontaneous gesture, and that we have almost no reports of the opposite. The Jewish refugees were not given in, they were not betrayed, and they were not let down.

Danish officials, ranging from police to train workers, doctors and nurses to civil servants, and other personnel consistently assisted the refugees, and virtually no examples are known of active involvement by officials in the actions against their Jewish countrymen.

Neighbors protected neighbors, colleages coleagues, and classmates helped the families of their classmates. This is what made the rescue possible: Widespread public support with only very few examples of individuals refusing to help or giving refugees in to the Gestapo.

In the ensuing Danish debate, the most controversial question has been related to the sum of money the fishermen asked for transfer. While helpers on land in general refused any compensation, as helping out was considered a national duty, the fishermen asked for substantial sums for the transfer across the Sound. Some examples suggest that a group of fishermen took advantage of the desperate refugees, but the general picture is one of regulated payments. For the individual fisherman the risk seemed very high – but there's no question that some made a fortune as they realized that the risk was not that high and that several transfers could be conducted.

Judging from contemporary sources, few refugees found the paying for the transfer offensive – all the more so as they realized that refugees who could not pay for the transfer were also included and brought safely over to Sweden.

Allowing for such nuances, important as they may be, does not change the clear picture of a closely knit society standing firmly together to save their Jewish countrymen. Not acting at the request of authorities or responding to appeals by Jewish leaders, but engaging in accordance with a strongly felt sense of justice and national urgency.

The Jews of Denmark Exchange, Part 2: On the Role of the Danish Public in the Great Escape Read More »

Photos: 1,000 African asylum seekers rally in middle of Israeli desert

Over “>way out in the middle of the Negev on Monday.

Community leaders from Israel's population of 55,000 African asylum seekers led chants from atop the cab of a pickup truck: “U.N., open your eyes!” “We are not cancer — we are human beings!” “Why Holot for blacks?” “We are black and proud!” “U.N., afo atem [where are you]?” “No more prison!” “Cancel the law!”

The crowd's call-backs were louder and fuller than ever on the empty desert air. Most protesters' voices had gone raw within a couple hours. And the scene only intensified around 4 p.m., when a city bus arrived to the prison carrying a new load of prisoners and their suitcases. The group included Jack Zaidan, a young community organizer from Darfur dressed smartly in a fedora and scarf. Women at the rally flung themselves, sobbing, onto Zaidan's small frame as he walked toward the crowd with his hands to the sky, surrendered.

“>Every Shabbat I come to visit [the prisoners], but today is my day to come here. … I come ready like everyone inside.”

That morning, the 1,000 asylum seekers in the crowd — most from Eritrea, and some from Sudan — had paid 60 shekels each for a bus ride from Tel Aviv down to “>who has been sleeping at Levinsky Park in South Tel Aviv the past few weeks. (Partly as a statement, partly because Israel will not renew his work visa and he's clean out of options.)

Ghide said he thinks Israel is inflicting a special kind of psychological punishment on the asylum seekers, slowly driving them crazy — so crazy that they might accept “>Muhamad Musa, 35, a Darfuri asylum seeker who left behind his self-started jewelry shop in Tel Aviv's Central Bus Station two weeks ago to report to Holot. (The prison's entrance, complete with creepy logo, is pictured below.)

Because Musa deserted the Sudanese army after it turned on its own people in 2004, he said he will be jailed and likely killed if he returns. 

“>remarkably peaceful protests.

“>the moment online within the hour.

“>for the night. “They're strong people,” said 26-year-old Eritrean asylum seeker Robert Tesfamariam. “They came from the desert, they crossed the Sinai — they can do one more day in the desert.”

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