The use case that we would like to cover is as follows.
1. Open an image in Paint.
2. Select a region and copy it.
3. Paste into the editor.
4. The image should be displayed in the editor.
It should, however, be encoded similar to the way that Kendo Grid for jQuery does to produce something like this.
<img src="data:image/png;base64,iVBORw0KGgoAAA...vwAAAABJRU5ErkJggg==" />
Note that the image is not hosted remotely at some URL, but rather is included inline within the body.