Bitcoin quickly rebounds after SEC decision
The U.S. Securities and Exchange Commission (SEC) made history on Friday by disapproving the Bats BZX Exchange filing to list and trade shares of the Winklevoss Bitcoin Trust. The shares, representing 0.01 BTC, would have tracked the price of bitcoins on the Gemini Exchange. The digital-asset exchange is owned and operated by the Gemini Trust Company, which would have owned the equivalent share value in bitcoins.
Digging Deeper on Bitcoin ETF Filings and Potential Effect
Given elevated interest in the bitcoin ETFs that are going through the regulatory approval process, we are parsing the various puts and takes of the three filings, trying to offer some insight into what factors the SEC may be considering, and elaborating on market estimations for approval and the subsequent effect on price upon approval.
The Philippines Central Bank approves new bitcoin exchange regulation
The Philippine Central Bank recently approved new rules and regulations governing the operation of virtual currency exchanges. Bangko Sentral ng Pilipinas (BSP) defines virtual currency (VC) as, “any type of digital unit that is used as a medium of exchange or a form of digitally stored value created by agreement within the community of VC users.”
WGVC focuses on the misuse of digital currencies by criminals and terrorist financiers
Interpol, Europol, and the Basel Institute of Governance recently held a conference in Doha, Qatar. The Global conference on countering money laundering and digital currencies attracted over 400 financial investigators from financial intelligence units around the world.
Bitcoin may have friends in high places following Trump inauguration
The price of bitcoin responded very positively to the prospect of a Trump presidency in November, ticking up 3.4 percent after it became clear that he would be the next president. Analysts believe that this could be due to bitcoin acting as a hedge in times of trouble.
Chinese Central Bank turns attention to bitcoin exchanges; Price plummets
The price of bitcoin has fallen by a third since peaking above US$1100 early in the year. The precipitous drop was accelerated on Wednesday as the People’s Bank of China (PBoC) announced a surprise inspection of the three major Chinese bitcoin exchanges, BTC China, OKCoin, and Huobi. The price plunged from $917 to $760 over nine frantic hours, and has dropped further since.
Bitcoin ETF in 2017? A Look at Potential Impact and Probability
After years of work and investor anticipation the rule change necessary to pave the way for the Winklevoss Bitcoin ETF will see a final decision from the SEC by March 11. Overall, we think that the listing of a bitcoin ETF would have a profoundly positive effect on the price of bitcoin not only because of the resulting asset inflow but also because of concurrent shifts in perception and regulatory risk. Overall, however, we think the probability of approval is very low. Taken together, we think the positive effect that a bitcoin ETF would have on the price of bitcoin is vastly underappreciated and that the probability of approval is drastically overestimated within the industry.
Bitfinex pays $75,000 to settle with CFTC for offering illegal bitcoin transactions and failing to register
The U.S. Commodity Futures Trading Commission (CFTC) has ordered Bitfinex to pay $75,000 for offering illegal off-exchange financed retail commodity transactions, and failing to register as a futures commission merchant. Formed under the laws of the British Virgin Islands, with their official headquarters in Hong Kong, Bitfinex operates one of Bitcoin’s most popular platforms for exchanging and trading bitcoins, litecoins, and ether.
Amidst bitcoin boom, Russia plans its own cryptocurrency
Russian media recently revealed plans to create a national cryptocurrency to be used alongside the ruble. The Federal Financial Monitoring Service's (Rosfinmonitoring), released the plan to TV stations and newspapers across the country. Deputy Director of Rosfinmonitoring, Pavel Livadny, hopes that the new currency will be more convenient for Russians, and reduce the costs related to financial transactions. At the same time, there are plans to ban all other cryptocurrencies, including bitcoin.
Blockchain identity management
Having moved to the Department of the Prime Minister and Cabinet, following Prime Minister Malcolm Turnbull, Australia’s Digital Transformation Office is looking for vendors to contribute identity management solutions. The endeavor was rumored last year, which either inspired or provoked AusPost to search for blockchain identity management solutions.
Blockchain identity management
Having moved to the Department of the Prime Minister and Cabinet, following Prime Minister Malcolm Turnbull, Australia’s Digital Transformation Office is looking for vendors to contribute identity management solutions. The endeavor was rumored last year, which either inspired or provoked AusPost to search for blockchain identity management solutions.
In brief: Decentralized oversight
Following the publication of Outlawing bitcoin is a matter of control, we received some interesting comments, “So a decentralized currency requires ... centralization?” This comment arose from a statement in the article that read: “A decentralized digital currency requires regulation and oversight."
In brief: Bitcoin’s battlefronts
Trying to decide if Bitcoin is a currency or an investment is not unlike trying to discern whether light is a particle or a wave. The correct answer of course is, it’s both. Bitcoin faces a multitude of battlefronts that may obstruct it from further pushing into the mainstream, as a universally accepted currency.
In brief: Outlawing bitcoin is a matter of control
On Wednesday, Russia’s ministry of finance continued with its pursuit to outlaw the world’s top cryptocurrency, Bitcoin (BTC). The new draft, banning the production and circulation of BTC, comes attached with punitive damages that could range from million ruble fines, up to seven years in jail, and the closure of business operations.
Japanese push to regulate exchanges and recognize bitcoins as asset-like money
Japan’s executive branch of government, known as the Cabinet, has approved a set of bills aimed at modernizing the Japanese payments industry and giving recognition to virtual currencies like bitcoin for having a “function similar to real money.”
European Commission releases Action Plan, which includes virtual currencies
The European Commission recently released an Action Plan, calling on all member states to adopt the 4th Anti-Money Laundering Directive. Initially proposed last May, the directive is supposed to be in effect by the end of 2016.
