Saturday, September 30, 2017
Australian Securities & Investments Commission Issues Guidance for Initial Coin Offerings
On the 28th September, the Australian Securities & Investments Commission (ASIC) published a document providing regulatory guidance for businesses that may be engaging in operations pertaining to initial coin offerings (ICOs). The release seeks to clarify the circumstances under which different types ICO may be subject to the Corporations Act, and identify the legal requirements of different types of ICOs.
Also Read: Stargroup Network Upgrades – Bringing Bitcoin to 2,900+ Australian ATMs
ASIC Hopes “To Assist Businesses to Understand Their Potential Obligations Under the Corporations Act”
This week, the Australian Securities & Investments Commission published a media release seeking to clarify the regulatory requirements of ICOs operating in Australia. ASIC has avoided adopting a one size fits all regulatory approach to ICOs, stating “whether the Corporations Act applies to an ICO will depend on the type of ICO offering and what rights attach to the coins from the ICO itself, underlying coins or tokens used in the ICO… In Australia, the legal status of an ICO is dependent of the circumstances of the ICO, such as how the ICO is structured and operated, and the rights attached to the coin (or token) offered through the ICO.”
ASIC concludes “that ICOs have the potential to make an important contribution to the options available to businesses to raise funds and to investment options available to investors”, however, specifies that “an ICO must be conducted in a manner that promotes investor trust and confidence, and complies with the relevant laws.” The regulator also states that “crowdfunding using an ICO is not the same as the ‘crowd-sourced funding’ (CSF) that will be regulated by the Corporations Act from 29 September 2017,” emphasizing the need to “ensure the public is not misled about the application of… CSF laws to an ICO.”
Under the Corporations Act ICOs May Be Seen to Comprise Either an Offer of Shares, a Managed Investment Scheme (MIS), or an Offer of a Derivative
A share is defined as “a collection of rights relating to a company.” The release states “most shares issued by public companies are ‘ordinary shares’, and carry rights regarding the ownership of the company, voting rights in the decisions of the body, some entitlement to share in future profits through dividends, and a claim on the residual assets of the company if it is wound up.”
ASIC states that “when an ICO is created in order to fund a company… if there appears to be ownership of the body, voting rights in decisions of the body or some right to participate in profits of the body shown in the white paper – then it is likely that the coins could fall within the definition of a share.” ASIC concludes that where it appears that an issuer of an ICO is actually making an offer of a share, the issuer will need to prepare a prospectus.”
The statement appears to imply that companies failing to provide sufficient information through a prospectus will be subject to scrutiny under the same rules governing Initial Public Offerings, however, ASIC specifies that “no such protection exists for ICOs made without a prospectus.”
Managed investments schemes are defined as when “people contribute assets… to obtain an interest in [a] scheme[,]… the assets are pooled together with one or more other contributors… [, and] the contributors do not have day-to-day control over the operation of the scheme.” ASIC states that if “the value of the digital coins acquired is affected by the pooling of funds from contributors or use of those funds under the arrangement, then the ICO is likely to fall within the requirements relating to MISs.”
ASIC’s Guidelines Have Been Welcomed by Several Representatives of the Australian Blockchain and Fintech Industries
For a detailed definition of a derivative, ASIC refers to section 761D of the Corporations Act, however, cites “options and futures” as “examples of derivatives.” ASIC suggests that smart contracts may be subject to derivatives licensing laws.
Danielle Szetho, CEO of Australia’s fintech industry association FinTech Australia, stated that “the guidance ASIC has released is a positive step to ensure a viable future for ICOs in Australia, and sits alongside other positive initiatives such as removing double taxation on digital currencies and driving international blockchain standards.” CEO of blockchain consultancy firm ICOPromo, Sergei Sergienko, echoed Ms. Szetho’s position, describing ASIC’s handling of ICO regulations as comprising “a calm and measured approach to help provide guidance to interested parties in Australia.”
What do you think of the Australian Securities & Investment Commission’s regulatory guidelines for ICOs? Share your thoughts in the comments section below!
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The Satoshi Revolution – Chapter 1: A Revolution of Rising Expectations
The Satoshi Revolution: A Revolution of Rising Expectations, Chapter 1 (part 1).
by Wendy McElroy
Section One: The Trusted Third Party Problem
Chapter One: Listening to the Past
“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts.”
—Satoshi Nakamoto
A trustless system is one that does not depend upon the intentions of its participants, who may be honorable or malicious. The system functions in the same manner regardless of intentions. The blockchain, with a peer-to-peer protocol that is also transparent and immutable, is trustless. Intentions become important only when there is an intermediary who must be trusted. The third party’s good or bad motives become a determining aspect of the transaction and place the other parties at the mercy of his honesty. This is the trusted third party problem.
On a small scale, the problem will always exist because there are times when a middleman is useful or necessary. The ideal third party is trusted, trustworthy and competent. Some people are dishonest, however. They steal, overcharge, lie or otherwise betray their customers’ confidence in order to make profit over a fee. If the swindling is a one-time event and other third parties are available, the damage is limited. The two people take their business elsewhere, consider suing, report the swindler to business watchdogs and warn others.
An occasional dishonest third party is not the problem Satoshi Nakamoto addressed when he used Bitcoin as a lever to upend the world. It is the institutionalized and constant corruption of governments and central banks from which the average person cannot escape. Almost everyone who worked over-the-table, ran a business, bought goods from stores, accepted government benefits or paid taxes had to accept a fiat that constantly plunges in value due to inflation. Almost everyone who used credit, accepted checks, took out loans, conducted commerce or did business abroad needed to use banks that stole like drunken muggers.
To the average person, the situation looked hopeless. Competiting with the government-banking cartel was illegal and severely punished. No speedy, safe and private alternative existed for transferring funds across borders…or across town. Attempts to reform or remove the system seemed doomed. Reform was impossible because monetary policy had rotted to its core and needed to be uprooted, not improved; removal was inconceivable because the monopoly was deeply entrenched and all-powerful. People’s need for money became a straitjacket.
And, then, Satoshi Nakamoto. And, then, the blockchain and bitcoin. Not just a new currency but a new concept of money was created, and in a form that cannot be inflated because it is fixed at 21 million units. The supply of bitcoin can only decrease as some coins are inevitably lost, for example, by people who forget a password. Satoshi noted, “Lost coins only make everyone else’s coins worth slightly more. Think of it as a donation to everyone.”
Peer-to-peer transactions go through a middleman called a miner but no trust is required as the transaction is released only when “proof of work” is rendered; this consists of a miner solving complicated math. The solution is costly in computer power and time-consuming to produce but easy for others to verify. Satoshi commented, “With e-currency based on cryptographic proof, without the need to trust a third party middleman, money can be secure and transactions effortless.” The soundness and propriety of the blockchain’s protocol itself is assured by the use of an open source that is visible and verifiable to all. Satoshi’s private currency snaps the monopoly of governments and central banking.
There is precedent for this in theory and in practice.
Precedent in Theory
Friedrich A. Hayek is the most respected Austrian economist of the late 20th century. In The Denationalisation of Money: An Analysis of the Theory and Practice of Concurrent Currencies (1976), he argued vigorously for private and competitive currencies to displace government issued ones. Hayek asked a key question. “When one studies the history of money one cannot help wondering why people should have put up for so long with governments exercising an exclusive power over two thousand years that was regularly used to exploit and defraud them. This can be explained only by the myth” of the necessity of government money “becoming so firmly established that it did not occur even to the professional students of these matters…ever to question it. But once the validity of the established doctrine is doubted its foundation is rapidly seen to be fragile.” (A slightly revised edition entitled Denationalization of Money: The Argument Refined was published in 1978.)
Governments know it is hugely profitable to debase the currency as long as people have no alternative but to accept it and they put the full weight of bureaucracy behind currency manipulation. But the system is fragile because it relies on people not understanding that debasement is theft and not having a choice. Otherwise, the status quo crumbles. The 1974 Nobel laureate pondered why public understanding was so elusive. “[W]hy [is] a government monopoly of the provision of money…universally regarded as indispensable” and what would happen “if the provision of money were thrown open to the competition of private concerns supplying different currencies.” (Hayek’s specific proposal for private currency is explored elsewhere in this book.)
With eerie prescience, Hayek argued for currencies to be developed by entrepreneurs who could innovate new forms of money just as they innovated in other areas. One of the drawbacks of governments’ monopoly on money was that it imposed a freeze on the sort of invention now running free in cryptocurrencies.
The voluntaryist historian Carl Watner observed, “No one can tell in advance what form these monies might take because no one can know for sure what choices individuals would make or what new technologies might be discovered. Laws forcing people to use the Federal Reserve System money have frozen monetary developments at a certain stage….Just imagine if Congress had protected the Post Office by passing laws that would have prevented people from communicating via the internet. We would never have experienced the marvels of e-mail.”
Along with Hayek, the Austrian economist Murray Rothbard wrestled with the question of “why do people so vigorously resist private currencies?” His book, For a New Liberty: The Libertarian Manifesto offered an explanation. “If the government and only the government had had a monopoly of the shoe manufacturing and retailing business, how would most of the public treat the libertarian who now came along to advocate that the government get out of the shoe business and throw it open to private enterprise?” Rothbard predicted they would attack the libertarian with outrage for depriving them of the only possible source of shoes. People were thoroughly indoctrinated to believe that government was necessary and daily life could not function without it.
Hayek and Rothbard are unusual among economists in that they embrace private money. Even free market zealots rarely champion free market currencies and private banking. Instead, they debate marginal issues such as fractional reserve banking which amounts to a trivial reform. Or they argue for the need to restore a gold standard. But if the gold standard is applied to existing fiat, then it means trusting governments and banks to be transparent; it means trusting them to act directly against their own interests, which they have historically refused to do. The trusted third party problem remains untouched and it is the root of all other corruption, including currency manipulation. An inherently corrupt institution cannot be reformed; it must be swept away or totally avoided.
What could convince the public and economists that private currencies work as well or better than government issued ones? One way is to point out that they already have worked better by providing real examples from the past and drawing parallels to cryptocurrencies.
America is Born into Private Currency
Early America offers powerful lessons about private currencies.
The British colonies naturally used British currency, but the homeland’s monetary policies created an appetite for alternative monies. Rothbard explained in A History of Money and Banking in the United States: The Colonial Era to World War, II (2002), “Great Britain was officially on a silver standard….However, Britain also coined gold and maintained a bimetallic standard,,,,In 17th- and 18th-century Britain, the government maintained a mint ratio between gold and silver that consistently overvalued gold and undervalued silver in relation to world market prices.” Great Britain’s policies created a robust market in substitutes for its own money.
Gresham’s law ruled colonial money as it rules all currencies. The law states: if two types of money are valued the same by law even though the market values of one is higher than the other, then the more valuable money will disappear from general circulation and be used for other purposes like hoarding or foreign trade. That is the meaning of the phrase “bad money drives out good.” Full-bodied silver coins began to disappear from circulation within the colonies, which turned to lighter silver, commodity-based money such as cotton or foreign and privately minted coins. These monies were parallel currencies with Spanish pieces of eight being particularly popular.
The first privately-minted American coin was the Granby or Higley Token that was struck by Dr. Samuel Higley of Connecticut in 1737. Samuel died shortly thereafter and his brother, John Higley, produced the copper coins from 1737 to 1739 inclusive. Valuing the tokens at three pence each, John is said to have spent most of them at the local bar until the barkeep refused to accept any more. Then he cast coins with one side reading “Value Me as You Please” and the other side stating “I Am Good Copper.” No value was stamped on the coin, which was common practice in those days. The coins circulated widely for many years even after John ceased minting largely because goldsmiths used them as a reliable alloy with which to make gold jewelry. Later metallurgical analysis of the Granby found the coins to be 98-99% pure copper.
The Granby benefited from what the Austrian economics icon Ludwig von Mises (1881-1973) called the Regression Theorem. In The Theory of Money and Credit, Mises wrote, “The theory of the value of money as such can trace back the objective exchange value of money only to that point where it ceases to be the value of money and becomes merely the value of a commodity.”
Economics Professor Jeffrey Rogers unpacked the concept. Today’s purchasing power of money “draws on yesterday’s, and yesterday’s…and so on….How far back does the regression…go?….[L]ogically, Mises explained, for a commodity money it goes back to the day before the commodity first started being used as a medium of exchange. On that day it had an exchange value or purchasing power due only… as an ordinary commodity (for consumption or for use as a productive input) and not for use as a medium of exchange. For…the U.S. dollar that became a fiat money by terminating the redeemability of what had been a claim to a commodity money…the historical chain goes back to the day before termination, and thence back to the day before that commodity became a medium of exchange. Application of the logic to a new fiat money,” is with reference to the official rate of redemption for an established fiat money.
In short, the value of a money is a composite of the demand for it as a medium of exchange and the demand for it as a commodity.
Bitcoin’s relationship to the Regression Theorem is important since critics often dismiss cryptocurrencies as money or currency because they violate the theorem. Most bitcoin enthusiasts react in one of three ways: they don’t care; they claim the theorem does not apply to the digital age; they insist it does apply to bitcoin, but in a misunderstood manner.
The economist Robert P. Murphy explained how bitcoin emerged as a medium of exchange without being tied to a commodity or redeemable in a fixed amount to an established fiat. The article “Why Misesians Need to Tread Cautiously When Disparaging Bitcoin” argued, “[T]he very first people to trade for it did so because it provided them with direct utility because they knew there was at least a chance that it would serve to chafe the governments of the world….[T]he early adopters of Bitcoin were doing it for ideological reasons, not for pecuniary reasons.” The ideology and the freedom it provided were the ‘commodity’ value of bitcoin‘.
Bitcoin enthusiast Jeffrey A. Tucker took a different tack. In a Foundation for Economic Education article entitled “What Gave Bitcoin Its Value?,” he pointed to the purpose Mises’s theorum served; it helped answer the question of why certain commodities emerged as currencies while others did not. Tucker ascribed the emergence of salt rather than gravel, as a currency to a widespread desire for salt and its direct utility.
Tucker then linked bitcoin not to a hard good but to a hard service which fills a deep need and has direct utility: the blockchain as a payment system. “Bitcoin is both a payment system and a money. The payment system is the source of [non-monetary] value, while the accounting unit merely expresses that value in terms of price. The unity of money and payment is its most unusual feature, and the one that most commentators have had trouble wrapping their heads around….This wedge between money and payment has always been with us, except for the case of physical proximity. If I give you a dollar for your pizza slice, there is no third party. But payment systems, third parties, and trust relationships become necessary once you leave geographic proximity. That’s when companies like Visa and institutions like banks become indispensable.”
The non-monetary worth of bitcoin resides in its payment system that does not require a trusted third party and, yet, has no geographical limitations. Otherwise stated, for Tucker the blockchain is the independent root with intrinsic value from which bitcoin as a medium of exchange emerged. The Regression Theorem applies to bitcoin, but it needs to be expanded to include services in order for the theorem to fit the digital age.
The private currencies of early America offer many such lessons. The history of the NYC goldsmith and silversmith Ephraim Brasher (1744-1828), for example, demonstrates a means by which privately-minted coins circulated widely through the colonies without being restrained by doubts about their purity and weight. Many private minters had reputations within their own communities but circulation was often limited to those communities. Brasher offered a solution. He became renowned for testing coins upon which he stamped “EB” if they were sound. Backed by his reputation, coins migrated far and wide.
The need for minters to be of good reputation highlights an advantage bitcoin has as a currency. It sidesteps the entire issue of the verification of purity or weight. Unlike physical coins, bitcoins cannot be shaved down, counterfeited, diluted by alloys or negated by the reputation of miners who release them or of users who exchange them. A bitcoin is a bitcoin is a bitcoin and no one can alter that fact. But cryptocurrencies do compete with each other for acceptance. Reputation is important to the competition and it is established largely by feedback from the Internet-connected community.
[To be continued next week]
Wendy McElroy has agreed to ”live-publish” her new book exclusively with Bitcoin.com. Every Saturday you’ll find another installment in a series of posts planned to conclude after about 18 months. Altogether they’ll make up her new book ”The Satoshi Revolution”. Read it here first.
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Virtual Currencies Expected to be Regulated in China on October 1st
Chinese media outlet Jinse.com has reported that laws governing the use of virtual currencies in China will be enacted on October 1st 2017. Jinse states that Chinese cryptocurrency regulations were incorporated into the nation’s “General Principles of the Civil Law of the People’s Republic of China” legislation, which was voted on and passed on March 15th.
Also Read: Chinese Bitcoin Exchange Executives Allegedly Must Remain in China
Virtual Currencies Are Expected to Be Legislated As “Virtual Property” From October 1
Jinse has reported that the General Principles of the Civil Law of the People’s Republic of China, which is expected to come into effect on October 1st, will see Chinese cryptocurrency regulations implemented for the first time. The Jinse report suggests that cryptocurrencies will be treated as “virtual property” under Chinese law. Chinese academic, Professor Deng Jianpeng, stated that “bitcoin, [crypto]currency, etc. can be classified as virtual assets.”
The incorporation of virtual currencies into China’s “General Principles of the Civil Law” legislation suggests that China’s recent crackdown on virtual currency exchanges will not be expanded into a nationwide prohibition on the use and possession of cryptocurrencies. Jinse reinforces this inference, stating that “regulators have never mentioned the issue of prohibiting bitcoin from beginning to end, that is to say, the government level does not think that there is a problem with the bitcoin itself”- according to a Google translation.
Jinse asserts that the crackdown on exchanges was motivated by “small platform[s]… not seriously implement[ing] anti-money laundering and KYC policy” requirements. The publication also cites the decision to allow China’s major cryptocurrency exchanges to reopen following PBOC investigations, implying that the recent crackdown on cryptocurrency exchanges is temporary, and should not be interpreted as a general prohibition on cryptocurrency.
Two Chinese Bitcoin Exchanges Will Be Operational When the Legislation Comes Into Effect
At the start of the month, news.bitcoin.com reported the Chinese government announcement to extend its ban on ICOs and mandate the closure of all cryptocurrency exchanges operating in China. All exchanges were required to shut down their operations by October 1st. However, reports emerged stating that Okcoin and Huobi would be permitted to continue to operate until the end of October.
This week, leading bitcoin exchange BTCC stopped accepting deposits in Yuan and cryptocurrencies. Although the exchange will stop all trading operations by September 31 2017, BTCC has stated that it will continue to process withdrawals until October 31 2017. The Chinese government’s decision to cease the operations of all cryptocurrency exchanges except for Okcoin and Huobi right before the nation’s virtual currency regulations are set to come into effect, has led to speculation that the surviving exchanges may be the only cryptocurrency exchanges permitted to operate in China moving forward.
Do you expect new Chinese virtual currency exchanges to emerge after China’s new legislation? Share your thoughts in the comments section below!
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PR: Polymerium Motor Oils Pre-Ico Launch
This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.
Manufacturer of motor oils POLYMERIUM announces the start of pre-sale of tokens (Pre-ICO)
Before the launch of ICO, the main selling of tokens, the manufacturer of motor oils POLYMERIUM announces the sale of tokens with a discount of 60%.
The goal of the project is the construction of new factories in Russia and China, as well as the scaling of mini-factories in the franchise program around the world (more than 30 factories per year). In addition to the construction of factories, POLYMERIUM company develops a counterfeit / control system based on the technology of blockchain named ARMPACK.
The ARMPACK anti-counterfeiting system is a network of decentralized servers that is store encrypted codes, which are assigned to each released product. For example, each POLYMERIUM engine oil canister has a security code and when you enter on the company’s website you can verify the originality of the products. The code is stored in a blockchain, and can’t be changed by anyone. When checking the code in the block, the information about the date of code entry, IP address, the product name is stored. The ARMPACK system will significantly reduce the sale of counterfeits and will be in demand by a variety of manufacturers and brands around the world. Each code in the ARMPACK system is 1 token, which can be used in the future for promo cods and discount programs of manufacturers of products, as a payment for products or for a discount. The received codes (tokens) can be exchanged and sold.
Despite of the fact that many different ICOs are being conducted now, the POLYMERIUM project is favorably distinguished by the presence of a successful factory & brand, and the company is already making a profit and has a turnover of more than $ 300,000 per month.
The POLYMERIUM token is supported by industrial production and manufactured products (motor and other oils). Also, the POLYMERIUM token will be provided by real estate objects.
According to experts, the POLYMERIUM token will grow many times during the year, due to the scaling of factories around the world, implementation of the ARMPACK system and the connection to it of other companies, as well as the direction of the company’s profit to support the token. Every month the company will direct 40-60% of the profit to support the token. The holders of the POLYMERIUM tokens will be assured of the reliability of the investments.
A total of 100,000,000 POLYMERIUM tokens have been issued. Each token has a cost of $ 1, during the pre-sale period, the POLYMERIUM token can be bought with a 60% discount. Pre-sale has already begun; you can buy tokens at http://plmico.com
The ICO start is appointed for November 1, 2017.
The team of POLYMERIUM has already proved its efficiency. From 2011 to 2014, more than 150 franchises were realized of the Mobile Wash Company (a car wash service without water) all over the world.
The upcoming ICO will be one of the first, where the already active producer of demanded products conducts the release of tokens.
You can find out more:
ICO Website: http://plmico.com
Twitter https://twitter.com/plmico
FB http://ift.tt/2fEZWrd
Join the discussion in telegrams https://t.me/plm_chat
E-mail address info@plmico.com
POLYMERIUM Website http://polymerium.ru
This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
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Japan Endorses 11 Different Crypto Exchanges, Turns Into Friendliest Asian Bitcoin Market
Japan’s Finacial Services Agency (FSA) announced last Friday that they are endorsing 11 different cryptocurrency exchanges. This sets Japan on a path to becoming the headquarters for everything Bitcoin, especially since China recently crippled their crypto market by banning exchanges. This means Japan now represents one of the most cryptocurrency-friendly countries in Asia.
Also read: India’s Multi-Currency Exchange Will List Bitcoin Cash in Two Weeks
Bitflyer CEO Comments on Japan’s Pro-Bitcoin Attitude
One of the exchanges the FSA endorsed was Bitflyer, which is the largest Bitcoin 
“Japan has been exploding with demand for both Bitcoin trading as well as virtual currency services. The FSA’s approval for bitFlyer to operate as a Registered Virtual Currency Exchange, and the agency’s openness and forward thinking regulation could not come at a better time for the Blockchain space.”
The bitFlyer press release stated the company will continue to leverage its 800,000 strong user base to grow the Bitcoin ecosystem in Japan and around the world. To view bitFlyer’s official exchange registration documentation click here: bitFlyer-Virtual-Currency-Exchange-Registration
Other Recent Bitcoin News Out of Japan
Overall, Japan has been a leader for greater Bitcoin and cryptocurrency adoption. Back in April, they made Bitcoin into a nationally accepted legal currency. Ever since then, a multitude of companies have began accepting the digital currency. One of Japan’s largest travel agencies even started taking Bitcoin through bitFlyer. H.I.S. Co. Ltd adopted it on September 23. Kevin Helms, writing for news.Bitcoin.com, covered this last week:
H.I.S. Co. Ltd will start accepting Bitcoin payments on September 23 through bitFlyer, as announced by both companies on Tuesday. The transaction amount for purchases will be limited to the equivalent of 2 million yen.
There is more incoming news, though. According to the bitFlyer press release, a consortium of 120 Japanese banks will begin exploring different ways to upgrade their banking infrastructure for Blockchain technology application. Various sources are saying this new infrastructure will use the J-coin cryptocurrency.
An MIT article talked about J-Coin, saying, “The idea for J-Coin is that it would sit alongside the Japanese yen, exchanged at a one-to-one rate, and be offered as a free service. In return, the banks that operate it would get detailed data on how people use it (as we’ve discussed before, that will indeed make people easier to track).”
Japan and Bitcoin’s Future
The aforesaid news sets the stage for Japan’s transition into the largest and friendliest Asian
A Reuters article mentioned Japan’s growth and its relation to recent surges in bitcoin’s price: “Trading in bitcoin and other cryptocurrencies among Japanese investors has gained momentum this year, helped by the legal recognition as well as spectacular surges in the price of Bitcoin and Ethereum.”
What do you think about Japan endorsing these cryptocurrency exchanges? Will Japan remain the friendliest Asian Bitcoin market? How big is this news? Let us know in the comments below.
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Friday, September 29, 2017
GMO Enables Bitcoin Cash and Ether Trading With Promotional Discounts
GMO Coin, a subsidiary of the Japanese Internet services giant GMO, has enabled bitcoin cash and ether trading, alongside bitcoin. To commemorate the event, the exchange has launched a promotional campaign for each coin.
Also read: Russian Regulators Disagree on Crypto Regulation, Postpone to Next Year
BCH and ETH Trading Now Live
For each BCH transaction, the minimum order is 0.01 BCH and the maximum is 5 BCH, with a daily limit of 20 BCH. For each ETH transaction, the minimum is 0.01 ETH and maximum is 10 ETH, with a daily limit of 50 ETH.
To commemorate the new additions, the company has launched a cash-back campaign for bitcoin cash of up to 25,000 yen depending on the amount of BCH traded on the exchange. The campaign runs from September 27 to October 31. For ether, the company launched a 50%-off spread fees campaign during the same time period.
GMO Coin’s parent company, GMO Internet, offers a comprehensive range of internet services worldwide. Its internet infrastructure business has 8.47 million customers and ranks number one in Japan. The Group consists of 129 entities as of the end of July this year. GMO owns the largest forex exchange broker in the world, GMO Click.
Other Services Offered
The company will also provide other services such as expanded trading tools and bitcoin payment services. The latter will compete with other bitcoin exchanges which are already offering them, including Bitflyer, Coincheck, Zaif and Bitpoint.
Furthermore, parent company GMO Internet announced early this month that it has entered into the bitcoin mining and chip manufacturing businesses. The company plans to produce and sell 7nm ASIC chips and operate a bitcoin mining farm in Scandinavia. It plans to invest 10 billion yen in the next few years on the operations as well as chip research and development.
What do you think many of GMO’s customers will be trading bitcoin cash and ether? Let us know in the comments section below.
Images courtesy of Shutterstock and GMO.
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via Kevin Helms
Overstock Launches ”SEC Compliant” ICO Trading Platform
Tzero, a majority-owned subsidiary of Overstock, is launching an ICO trading platform that is fully compliant with the regulations of the United States Securities and Exchange Commission (SEC), and the Financial Industry Regulatory Authority, Inc. (FINTRA), according to the company. The platform comprises an Alternative Trading System (ATS), meaning that it will not be subject to exchange regulations.
Also Read: Internet Archive and Overstock to ‘Hodl’ More Bitcoin Revenue and Donations
Tzero’s ICO Trading Platform Will Legally Comprise an Alternative Trading System
Tzero is set to launch an Alternative Trading System in partnership with RenGem LLC, and the Argon Group. The Argon Group is an “investment bank with a focus on digital finance” that “provide[s] financial advisory, placement, and technology services to companies seeking to raise equity” through digital tokens backed by smart-contracts. RenGen LLC is an “investment, technology and financial services firm” that focuses on blockchain technology.
The joint venture will see Tzero develop the trading platform, whilst RenGen’s will provide liquidity and algorithm technology, and Argon Group will promote the ATS to its network of security token clients. Patrick Byrne has enthusiastically described the partnership, stating that “by combining our expertise with Argon’s advisory services and RenGen’s electronic trading, deep liquidity and market making capabilities, we are in a position to launch the only U.S. SEC compliant token trading venue.”
Initial coin offerings have generated more than $2billion USD this year so far, significantly overshadowing the approximately $1.2 billion USD raised through venture capital. Overstock CEO, Patrick Byrne believes that the launch of Tzero’s ATS is well-timed, emphasizing that “ICO blockchain offerings [are] surpassing traditional early-stage VC funding and U.S. regulators [are] seeking legitimate venues to support security token offerings.”
A Regulatory Compliant Trading Platform For ICOs Will Comprise a Major Step Forward for the Inital Coin Offering Industry
The establishment of the ATS comprises a direct response to SEC’s July 25 Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act of 1934: The Dao. The release establishes that the financial regulator would seek to regulate and crackdown on the issuance of unregistered securities through ICOs. The release also states that securities tokens may only be traded on a National Securities Exchange, or an ATS. All Alternative Trading Systems must file for approval with the United States SEC.
An ATS, also known as a multilateral trading facility (MTF), comprises a non-exchange trading venue that finds counterparties for transactions by matching buyers and sellers. Alternative Trading Systems are not subject to the same regulations as exchanges, as they are legally seen as an organization that provides or maintains a marketplace and brings together the buyers and sellers of securities. Since 1998, Alternative Trading Systems have been given the option of either “register[ing] as [a] national securities exchange”, or “register[ing] as broker-dealers.”
The arrival of the first regulatory compliant ICO trading platform will comprise a significant step forward for the initial coin offering industry, if Tzero has interpreted the law and SEC correctly. The future of the ICO industry has felt increasingly uncertain in recent months, as the financial regulators of numerous national governments have issued cautionary statements pertaining to initial coin offerings, including China’s all-out ban on tokenized crowdsales.
Do you expect that more companies will seek to follow in Tzero’s footsteps by filing to launch Alternative Trading Systems for ICOs? Share your thoughts in the comments section below!
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SEC Will Not Review ETFs Based on Exchange Traded Bitcoin Derivatives Until They Exist
The U.S. Securities and Exchange Commission (SEC) has told leading gold fund management firm VanEck that it will not review the firm’s registration statement for a Bitcoin ETF. The “VanEck Vectors Bitcoin Strategy ETF” seeks to invest in U.S. exchange-traded bitcoin derivative products, which are currently unavailable. In response to the SEC’s request, the firm withdrew its application.
Also read: Russian Regulators Disagree on Crypto Regulation, Postpone to Next Year
SEC’s Policy
On Wednesday, the SEC published a letter by Matthew Babinsky, Assistant General Counsel at VanEck, requesting the “withdrawal of Post-Effective Amendment No. 2,562,” which is the registration statement for the VenEck Vectors Bitcoin Strategy ETF. The letter read:
On a call with the [SEC] staff on September 20, 2017, the staff expressed the view that it is the Commission’s policy to not review a registration statement for a fund where the underlying instruments in which the fund intends to primarily invest are not yet available.
No U.S. Exchange-Traded Bitcoin Derivatives
Currently, there are no U.S. exchange-traded bitcoin derivative products on the market.
While there are no U.S. exchange-traded bitcoin derivative products, a few traditional fund managers have already filed with the SEC to list and trade Bitcoin ETFs based on these instruments. VanEck Vectors Bitcoin Strategy ETF is among them. Last month, Rex Shares LLC filed registration statements for two Bitcoin ETFs; the Rex Bitcoin Strategy ETF and the Rex Short Bitcoin Strategy ETF. Another filing was made last Wednesday by Proshare Capital Management LLC with the Commission to offer both Proshares Bitcoin ETF and Proshares Short Bitcoin ETF.
SEC’s Request
Babinsky’s letter also stated that:
The [SEC] staff requested that the Trust withdraw the Amendment until such time as the underlying instruments in which the fund intends to primarily invest (i.e., bitcoin futures contracts) become available for investment. In response to the staff’s request, we are requesting withdrawal of the Amendment.
Moreover, news.Bitcoin.com recently reported on the world’s leading derivatives marketplace CME Group deciding not to follow through with their original plans to list and trade bitcoin futures.
What do you think of the SEC’s action? Let us know in the comments below.
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PR: Token Desk : The Biggest Ico Market Place in History
This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.
Gintaras Tamosiunas – an expert of blockchain and a former member of the Lithuanian Parliament teamed up with well known entrepreneurs to create TokenDesk. A week ago the pre-sale token reservation program has started, attracting more than a thousand of reservations on the first day.
The market is booming
This year’s predictions for capital raised over ICOs will most likely to exceed $2 billion by a decent margin. Such increase – around tenfold over a period of one year is beyond phenomenal. It leaves no doubt of a general switch in many industries as well as formation of new ones. And that brings us to one very important point – in the couple of upcoming years we will see many absolutely new players putting all effort to set the benchmark of the market.
There is no need to look far to find one. TokenDesk is one of the attempts to standardize the market and become the biggest ICO marketplace for this soon-to-be multibillion dollar industry. The company is based in Lithuania and is founded by well regionally known entrepreneurs. A number of successful projects were brought to life, rapidly expanded and sold to international enterprises.
Professional approach
The team of experts with profound backgrounds in information technology are launching their own initial coin offering for TokenDesk platform development. Any blockchain enthusiast could get hold of TDS tokens if they desire to join this initiative for what the founders say – “a small revolution of ICO market”.
The platform is going to have a variety of features that are not currently available. One of such is an option to have all of the major cryptocurrencies in one integrated blockchain wallet. While the popularity of cryptocoins rose to great heights, none of the existing platforms have successfully integrated their wallets yet. In addition, smooth wire transfers and use of credit cards hasn’t also progressed much. Therefore, conversion between blockchain based financial derivatives and fiat money still remains difficult and rather inconvenient. TokenDesk platform will have all these disadvantages sorted out.
“We are going to dedicate 12% of net profit to buy back the TDS tokens in order to increase the liquidity and value for our investors. It is just one of many great ideas that we have planned for our supporters and future ICO publishers. We will deliver new standards that, we think, the blockchain enthusiasts will appreciate and benefit from.” – says Gintaras Tamosiunas, CEO of TokenDesk and a member of Bitcoin foundation.
An opportunity for everyone
A pre-sale of TDS tokens starts at 4th of October during which the early birds will be able to secure them -55% off of the initial price. This is a limited time offer and will only be available for the first few investors.
The advantage of being the biggest and most powerful ICO marketplace on the web allows to set high standards and implement innovative solutions effectively. This way ensuring all market participants get reliable service and proper security of all their assets.
TokenDesk has partnered up with Avocad Law Firm, a member of CICERO – international league of lawyers. The trusted team of experienced attorneys will make sure all business activities of all involved parties are legitimate and safe.
Websites:
www.tokendesk.io
http://ift.tt/2y6UwNj
This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
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North Korea Accused of Hacking South Korean Exchanges
North Korea, a nation that has previously been accused of mining bitcoin in order to flout sanctions, is suspected to have hacked a number of bitcoin exchanges in South Korea. The country allegedly stole “100 million won ($88,100) in bitcoin from 2013 to 2015 as part of its efforts to increase the country’s hard currency,” according to reports.
Also read: Bahrain May Adopt Bitcoin and Issue Bonds in Digital Currency
A Silicon Angle article quoted the police as stating that “the hackers sent 10 emails to 25 workers each at four different bitcoin exchanges, disguising themselves as officials from South Korean public institutions such as the police, prosecution, Seoul city government or Financial Security Institute.”
Method of Attack and Accusations of North Korean Hacking
The police stated that the attack methodology was a “spear phishing” attack. North Korean hackers pretended to be government authorities and servicemen. A story published by Silicon Angle states that the hackers targeted exchange workers by sending them emails loaded with malware.
A Fire Eye Inc. report confirmed reports of the cyber attacks. The company tracked North Korean hackers and noted their activity. They observed that North Korean hackers targeted three different exchanges in South Korea. Silicon Angle details previous instances of North Korean hacking:
South Korean bitcoin exchanges have been successfully hacked in the past, with potentially millions being stolen from Bithumb in July. North Korea hasn’t been directly linked to the hack but it is possible the country played a role in it, even if it’s more likely to be an indirect role such as hiring third parties to undertake the hack on its behalf.
North Korea’s Reasons for Bitcoin Hacking and Mining
It appears that the political climate between North Korea other nation states has reached a fever pitch. This is especially true given the hermit kingdom’s recent testing of nuclear missiles and other weaponry. As a result of this political theater, various entities have issued sanctions against North Korea, including the UN.
North Korea has allegedly used bitcoin as a means to circumvent economic sanctions. They are flouting sanctions by hacking bitcoin South Korean bitcoin exchanges, in addition to mining the digital currency. Still, many of these reports are anecdotal, and hard evidence of North Korea’s activities remains elusive.
One intelligence firm, Record Future, has published Google-backed data providing analysis of North Korean internet activity. The data suggests that North Korea began conducting bitcoin mining on May 17. If this is true, and North Korea has also conducted hacking attacks on exchanges, it could mean North Korea is attempting to weaponize bitcoin.
South Korean Bitcoin Trading
South Korea was likely a prime target for North Korean bitcoin hacking because of its large trading volume. According to a business Korea report, the volume has reached about 15,400 bitcoins. The report elaborates:
Daily Bitcoin trading volume of Korea reached 15,408 Bitcoin (about 65.1 billion won or US$58 million) on September 21. The overall market share of the Korean won was 5.55%, weighing those of the Chinese yuan (4.97%) and the euro (4.77%). First and second place went to the Japanese yen (49.13%) and the US dollar (32.73%).
With such high trading volume, it is no surprise that the country’s exchanges have been a target of hacking, regardless of if North Korea is the culprit. Giant liquid honey pots tend to attract malicious actors. It will be interesting to see if bitcoin continues play a role in the escalation of geopolitical tensions in the Korean peninsular.
Do you think North Korea hacked South Korea? How do you see this situation with North Korea unfolding? Let us know in the comments section below.
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via Sterlin Lujan
South Korea Bans All Initial Coin Offerings
South Korea’s Financial Services Commission has announced that all initial coin offerings (ICOs) will be banned in the country.
Also read: Korea Starts On-Site Inspections of Bitcoin Exchanges
All ICOs Banned in South Korea
South Korea’s Financial Services Commission (FSC) said on Friday that “it will ban raising money through all forms of virtual currencies,” Reuters reported. The publication conveyed the regulator’s statement:
All kinds of initial coin offerings (ICO) will be banned as trading of virtual currencies needs to be tightly controlled and monitored.
The news outlet elaborated that “the decision to ban ICOs as a fundraising tool was made as the government sees such issues as increasing the risk of financial scams.” For any parties involved in the issuance of ICOs, there will be “stern penalties,” the authority noted.
Korea’s move follows China’s which banned ICOs on September 4, a decision subsequently followed by the closing down of several bitcoin exchanges. However, Korea is not extending the ban to cryptocurrency exchanges. The Korean government will continue to monitor cryptocurrency markets to see if additional regulations are needed, Friday’s announcement detailed.
Cryptocurrency Regulations in Korea
South Korea has been stepping up its efforts to regulate digital currencies in the country. A task force was set up in July to evaluate the need for cryptocurrency regulations.
On Tuesday, news.Bitcoin.com reported on South Korea’s Ministry of Science and ICT and Korea Communications Commission deciding to conduct on-site inspections of bitcoin exchanges. The two regulators will focus on the cybersecurity of cryptocurrency exchanges and service providers as well as their compliance with the country’s privacy laws.
What do you think of South Korea banning all ICOs? Let us know in the comments section below.
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U.S. Company to Establish 35+ MW Mining Farm in Sweden
Miami-based mining and high-performance computing company, The Future of Mining, is building a major data center in Sweden. The center will be located in the tech hub of Boden-Älvsbyn, following the establishment of a deal between The Future of Mining and the municipality of Älvsbyn.
Also Read: Sweden Sees Record Trading Volume as MP Sundin Joins Bitcoin Exchange BTCX
The Future of Mining Is Setting up a Data Centre and Base of Operations in Northern Sweden
Miami-based The Future Of Mining (TFOM), a company specializing in mining and high-performance computing services, has announced that it is setting up a data center in the Swedish tech hub of Boden-Älvsbyn. The company has negotiated a deal with the municipality of Älvsbyn granting TFOM a 1,500m2 data center facility and a large adjacent office facility. Boden-Älvsbyn already hosts several global companies involved in high-performance computing and the blockchain industries, such as Canaan Creative.
Local mayor, Helena Öhlund, has welcomed the investment from TFOM, praising Swedish regulators for seeking to capitalize upon the growing cryptocurrency and blockchain industries. “Sweden is right on track to secure growth in this new emerging industry. Today we’re quite happy and proud to take this next step together with The Future of Mining.”
The data center site will be located on a brownfield site that previously housed the National Telecoms Administration. The site is connected to two of the three fiber grids running through the area and is adjacent to an 80 MW substation run by Vattenfall.
The Municipality of Alvsbyn Will Possess a Stake in Some of TFOM’s Operations
TFOM has described the Swedish expansion as comprising a plan with two primary objectives. The company hopes to “secure the scalability of current mining operations”, in addition to allowing the company to find European clients for its high-performance computing services. TFOM describes its plan as comprising the “development a dedicated business accelerator within [its] own facilities”, adding that “the deal is outset together with the local municipality [-] which is also taking a stake in the business accelerator operations.”
TFOM Chief of Operations, Gianfranco Castillo, states that the company is looking to “scale fast in terms of both size and technology development. This strategic choice allows us easy access to everything from energy to innovative partners and European downstream customers.” TFOM anticipates that the first 5 megawatts of capacity will be up and running at the center during November, with another 30 megawatts expected to follow over the course of the proceeding 18 months.
Bitcoin and blockchain technology have steadily been gaining traction throughout Sweden in recent months. Swedish P2P bitcoin trading on Localbitcoins has set several records for trade volume in recent months, including after news that Mathias Sundin – a Swedish MP who made history by becoming the first ever elected minister to have exclusively accepted campaign donations in the form of Bitcoin – announced that he would be leaving politics in order to assume the position of chairman of the board at Sweden’s largest bitcoin exchange, BTCX.
Do you think that TFOM will be successful in attempting to enter Europe’s high-performance computing services market? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, The Future of Mining
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Thursday, September 28, 2017
Bahrain May Adopt Bitcoin and Issue Bonds in Digital Currency
The Middle East island country of Bahrain is becoming interested in bitcoin and cryptocurrency. Their government hopes to be on the cutting edge of fintech innovations. Khalid Al Rumaihi, the chief executive of the Economic Development Board of Bahrain, mentioned the country has been eyeing the blockchain sector for some time. He hopes Bahrain can “issue bonds on digital currency.”
Also read: Korea Starts On-Site Inspections of Bitcoin Exchanges
Regulatory Sandbox for Bitcoin in Bahrain
According to a Hindu business site, Bahrain wants to implement a regulatory sandbox for
The country is open for business indeed. They recently put the regulatory sandbox into action. One news source said four businesses have already applied. Only two had currently been approved. The site specified:
Rumaihi said the Bahrain Central Bank had recently put in place Regulatory Sandbox regulations and as many as four companies had so far applied in this regard. Two of the four had already received approval from the central bank.
Bahrain: A Pioneer in the Fintech Space
Bahrain is excited to adopt crypto experimentation within their economy in order to move 
Rumaihi added that the whole financial industry is in the midst of being disrupted by blockchain technology. Now blockchain will unlock a whole new era for personal transactions through the internet, according to the Bahrain government. It will totally reshape the fiduciary landscape, they believe. In this regard, he hopes Bahrain can develop a thriving blockchain ecosystem.
Blockchain will unlock so many different possibilities for business in the way email and internet did years ago. What would prevent Bahrain from becoming a leader in this space in the same way Singapore is?
Regional Fintech Ecosystem
Besides Bahrain, it appears that other Middle East and Gulf states plan to create a lush fintech environment. The UAE and other zones in the area hope to benefit from blockchain and crypto-financial technologies. They are in the process of appointing fintech regulators to help the area grow and stabilize with this new technology.
The Arabian business site summarized, saying, “Other Gulf states have announced plans to develop the regional fintech ecosystem, such as the UAE, where financial free zone the Abu Dhabi Global Market (ADGM) has unveiled plans to establish a fintech regulator and signed cooperation agreements with fintech players.”
What do you think about Bahrain getting so involved in cryptocurrency? Is this good for the Middle East? Is it good for bitcoin? Let us know in the comments section below.
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Large US Financial Exchange Forgoes Bitcoin Futures
Last year, legacy exchange CME group provided a bitcoin price index with the intent of adding bitcoin futures. However, they decided not to follow through with those plans.
Also read: Breadwallet Becomes Bread, Updates iOS Aesthetics and Adds New Features
Bryan Durkin, who heads Chicago-based CME, told Bloomberg they were not going to list bitcoin futures. He mentioned the technology is nascent, and that digitization technology is on their radar. He further stated, “I really don’t see us going forward with a futures contract in the very near future.” However, some investors want exposure to bitcoin. There is a market for indirect exposure via futures contracts.
Bitcoin Futures Contracts
Though CME will not provide futures pairings to its clients, some of their competitors are entering the futures markets. Chicago, CBOE Holdings Inc., is slated to add futures contracting for bitcoin to their platform. They plan on implementing futures contracts in the fourth quarter of next year, according to the Bloomberg article. CBOE formed an alliance with the Winklevoss venture Gemini Trust Co in order to bring clients these bitcoin future options.
Outside of the United States, other companies have tried their hands at offering bitcoin futures. Straits, a Singapore based company, introduced futures trading last year. Straits partnered with Bitpay to make the transition seamless. Jamie Redman, writing for news.Bitcoin.com, covered this story:
Singapore-based Straits Financial offers a multitude of trading vehicles, such as commodity futures, OTC markets, and derivatives…Straits Financial says that Singapore has firmly established itself as Asia’s international financial hub. The company says it aspires to keep the country’s role in finance flourishing. By collaborating with BitPay, the brokerage house will give its clientele access to certain markets using Bitcoin.
The growing introduction of futures markets signifies that investors and traders want more exposure to bitcoin on legacy financial exchanges.
Exposure to Bitcoin and Bitcoin Growth
Ed Tilly, CBOE’s chairman and CEO, emphasized investor demand as the catalyst for the introduction of futures markes. He said in a comment that people want exposure and
Still, more and more traders are embracing bitcoin head on, with the price recently breaking the $4,000 barrier once again. This means that many investors still enjoy holding and trading bitcoin of their own. Nonetheless, it will be interesting to see how many more legacy financial exchanges draft futures contracts for their clientele as bitcoin adoption increases.
Do you think bitcoin futures contracts are good or bad for the ecosystem? Should people have futures contracts with bitcoin or just direct exposure? Let us know what you think in the comments below.
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Wednesday, September 27, 2017
Localbitcoins Trading Volume Sets New Global All-Time High
Peer-to-peer (P2P) bitcoin trading on Localbitcoins established a new global weekly all-time high for the week of the 19th of September, largely driven by an exodus of capital from China’s cryptocurrency markets. The spike in global P2P trading volume has seen record-breaking Localbitcoins trading volume across numerous international markets, including China, India, Malaysia, New Zealand, Pakistan, Switzerland, Thailand, the United Arab Emirates, and Venezuela in recent weeks.
Also Read: Localbitcoins Compensates Users by Selling Bitcoin Cash for BTC
China’s Crackdown on Cryptocurrency Exchanges Has Forced Many Traders to Use P2P and OTC Markets
The Chinese Localbitcoins markets set a new all-time high for trade volume this past week, with over 115 million CNY worth of bitcoin being exchanged. Many believe that the record volume is a direct result of China’s cryptocurrency crackdown, which has driven traders to use platforms that are outside of the Chinese central government’s control.
Switzerland also witnessed record highs in P2P bitcoin trading volume this week, establishing a new high of approximately 140,000 francs. The high comprises the second consecutive week that the Swiss Localbitcoins markets set a new all-time for trading volume, following a 37 percent increase in trading volume during the week of the 19th of September.
Many International P2P Bitcoin Markets Witnessed a Significant Spike in Volume During the Week of the 19th of September
Malaysia’s Localbitcoins markets established a new all-time high for trading volume last fortnight. Approximately 5.27 million ringgit worth of bitcoin was traded on Localbitcoins during the week of September 19th – a more than 25 percent increase over the preceding week’s record volume of 3.6 million ringgit. Thailand also broke its previous P2P weekly volume record by 25 percent during the same week, establishing a new all-time high of approximately 29.5 million baht.
The United Arab Emirates witnessed a dramatic spike in Localbitcoins trade volume, breaking its preceding weekly all-time high of approximately 1 million dirhams by nearly 36 percent to set a record of 1.59 million dirhams. New Zealand-based weekly P2P bitcoin trading also shot up by over 50% during the week of the 19th of September, setting a new high of 1.3 million NZD.
India and Pakistan set weekly P2P volume highs during September, with India setting a new all-time high of almost 70 million Indian rupees in trade last week. The record comprises the second consecutive weekly all-time high to be set by the Indian Localbitcoins markets. Pakistan set a new record of 47.5 million Pakistani rupees in trade during the week of the 9th of September and has witnessed strong volume throughout the month since.
P2P Bitcoin Trading and the Total Bitcoin Market Capitalization Show Signs of Divergence
The total bitcoin market capitalization and global P2P bitcoin trading volume are showing signs of divergence during September, following numerous months of relative correlation. This divergence likely signifies that much of the spike in volume across international P2P bitcoin markets can be attributed to traders based outside of China withdrawing capital from China’s cryptocurrency exchanges.
Venezuela’s Localbitcoins trading volume has also set numerous all-time highs for trade volume in recent months, signifying an intensification of the country’s hyperinflation crisis which has seen the Bolivar lose more than 77% of its value in the last decade. In an interview with CNBC, Daniel Osorio of Andean Capital Advisors recently described Venezuela’s monetary crisis as “potentially [driving] the first bitcoinization of a sovereign state… out of necessity.”
Do you think that China’s crackdown is largely responsible for the international spike in localbitcoins trading volume? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Coindance, Localbitcoins
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