Tag: bitcoin

Bitcoin sinks to new 13-month low

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bitcoin slumped to a new 13–month low on Monday, with the biggest cryptocurrency touching $5173.23 on the Bitstamp platform.

Bitcoin was last down 5.2 percent at $5270. The cryptocurrency, and other lesser coins including ethereum and XRP, endured a sell-off last week, with some blaming fears that a “hard fork” in bitcoin cash, where the smaller coin that split into two separate currencies, could destabilise others.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Japan hit by another cryptocurrency heist, $60 million stolen

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japanese cryptocurrency firm Tech Bureau Corp said about $60 million in digital currencies were stolen from its exchange, highlighting the industry’s vulnerability despite recent efforts by authorities to make it more secure.

Tech Bureau, which had already been slapped with two business improvement orders by regulators this year, said its Zaif exchange was hacked over a two-hour period on September 14. It detected server problems on September 17, confirmed the hack the following day, and notified authorities, the exchange said on Thursday.

Following the hack, Tech Bureau said it had agreed with JASDAQ-listed Fisco Ltd to receive a 5 billion yen ($44.59 million) investment in exchange for majority ownership. The proceeds from the investment would be used to replace the digital currencies stolen from client accounts.

However, Fisco said in a statement the 5 billion yen in “financial assistance” may change in value if the amount affected by the heist changes upon further investigation.

Documents seen by Reuters on Thursday showed Japan’s Financial Services Agency would conduct emergency checks on cryptocurrency exchange operators’ management of customer assets, following the theft. FSA officials were not immediately available for comment.

Japan’s crypto exchanges have been under close regulatory scrutiny after the theft of $530 million in digital coins at Tokyo-based cryptocurrency exchange Coincheck Inc. in January. Coincheck has since been acquired by Japanese online brokerage Monex Group Inc.

In the industry-wide check that followed the Coincheck theft, FSA said it found sloppy management at many exchanges, including the lack of proper safeguards for client assets and basic anti-money laundering measures.

In the Tech Bureau theft, virtual currencies worth about 6.7 billion yen ($59.67 million), including Bitcoin, Monacoin and Bitcoin Cash, were stolen from the exchange’s “hot wallet”. About 2.2 billion yen worth of the stolen currency was its own while the remaining 4.5 billion yen belonged to customers, it said.

Hot wallets are connected to the internet. Industry experts consider them to be more vulnerable to hacks than “cold wallets”, which are not connected to the internet.

The latest hack is likely to affect the FSA’s ongoing regulatory review of the industry. Other countries are also grappling with how to regulate crypto market.

Japan last year became the first country to regulate cryptocurrency exchanges, as it encourages technological innovation while ensuring consumer protection. Exchanges have to register with FSA and required reporting and other responsibilities.

FSA said last week more than 160 entities have expressed interest in entering the cryptocurrency exchange business but FSA has not issued any approval since December last year.

Toshihide Endo, FSA commissioner told Reuters in an interview last month that the agency is trying to strike a balance between safeguarding clients and technological innovation.

“We have no intention to curb (the crypto industry) excessively,” he said. “We would like to see it grow under appropriate regulation.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Banks, traders launch first commodities blockchain platform

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global banks and trading firms are launching the first blockchain-based platform for financing the trading of commodities from oil to wheat, they said in a joint statement on Wednesday.

The platform will be run by a venture called komgo SA, based in Geneva, Switzerland, and is due to go live later this year.

Banks and major trading firms have been testing numerous pilot schemes across commodities over the last few years but this venture will be the first that any firm can join.

The komgo founders include ABN AMRO, BNP Paribas, Citi, Crédit Agricole Group, Gunvor, ING, Koch Supply & Trading, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS and Societe Generale.

Blockchain, originally the platform behind cryptocurrency Bitcoin, is viewed by many as a solution to trade and settlement inefficiencies, and to improving transparency and reducing the risk of fraud.

A high-tech ledger, blockchain uses a shared database that updates in real-time and can process and settle transactions in minutes without the need for third-party verification.

Instead of sharing a mountain of paperwork between a long list of parties, a trader will instead be able to use a digital letter of credit, speeding up transactions considerably.

komgo will first be used for energy. The first trades will be crude cargoes in the North Sea, the benchmark setting region for much of the world’s crude trading.

From early next year, komgo will widen to agriculture and metals.

The firm will work alongside Vakt, an energy trading platform run by many of the same shareholders in komgo.

“The launch of komgo SA highlights a shared vision for industry innovation and underlines the ongoing commitment among members to build a truly open and more efficient network within commodity trading” said Souleima Baddi, Chief Executive Officer of komgo SA.

komgo will provide the financing via blockchain for all commodities and can scale itself up to new and emerging commodities.

The platform will be developed in partnership with blockchain technology company ConsenSys.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cryptocurrency exchanges at risk of manipulation: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Several cryptocurrency exchanges are plagued by poor market surveillance, pervasive conflicts of interest and lack sufficient customer protections, the New York Attorney General’s office said in a report published on Tuesday.

The study found that online platforms where virtual currencies such as bitcoin can be bought and sold by individuals operate with lower safeguards than traditional financial markets, are vulnerable to market manipulation and put customer funds at risk.

“As our report details, many virtual currency platforms lack the necessary policies and procedures to ensure the fairness, integrity, and security of their exchanges,” Attorney General Barbara Underwood said in a statement.

As a result of the findings, the attorney general asked New York’s Department of Financial Services (NYDFS) to review whether three exchanges might be operating unlawfully in the state.

The attorney general’s office launched its Virtual Markets Integrity Initiative in April 2018, asking 13 platforms to voluntarily share information about their practices.

Four platforms did not participate, claiming they did not allow trades from within New York State. The Attorney General’s office investigated whether the platforms did operate in the state, and has referred three – Binance, Kraken and Gate.io – to NYDFS. The three platforms could not immediately be reached for comment.

US and international regulators have begun clamping down on malpractices in the cryptocurrency market over the past year as trading in the nascent asset class boomed.

Two Wall Street regulators last week announced a series of actions, including levying fines, against companies involved with cryptocurrencies, while a New York federal judge ruled a case could proceed in which U.S. securities law was being used to prosecute fraud cases involving cryptocurrency offerings.

The attorney general’s report detailed how some of these platforms conduct overlapping lines of business that present “serious conflicts of interest”, including trading for their own account on their own venues. Some platforms also issue their own virtual currencies or charge companies to list their tokens.

The study also found that “trading platforms lack a consistent and transparent approach to independently auditing the virtual currency purportedly in their possession”, making it “difficult or impossible” to confirm that the exchanges are responsibly holding customer accounts.

Although some platforms police their markets for trading abuses, others do not, the report found.

“Platforms lack robust real-time and historical market surveillance capabilities, like those found in traditional trading venues, to identify and stop suspicious trading patterns,” the report said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Investor says he lost life savings due to cryptocurrencies: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sean Russell lost most of his life savings when the cryptocurrencies plunged. He tried to mitigate his losses by shifting money from bitcoin (XBT) to Bitcoin Cash and other cryptocurrencies including Ethereum and Ripple, which didn’t work as the paper losses reached 96 percent, reported CNN Money.

Russell studied blockchain and tracked bitcoin and said the learning process was like solving the plot of a murder mystery. Michel Rauchs, researcher, Cambridge Centre for Alternative Finance, said the rise in prices in 2017 brought a lot of inexperienced investors.

The report said, JP Morgan CEO Jamie Dimon and Warren Buffett,  Berkshire Hathaway have warned investors to not invest in bitcoin.

Many proposals for bitcoin exchange-traded funds were blocked by the Securities and Exchange Commission. Also, plans from ETF giants ProShares,  Direxion, Winklevoss brothers were also rejected.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RBI forms committee on cryptocurrency; to supervise digital assets, blockchain and AI, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) has formed a special committee that would track technologies related to crypocurrencies, a report by Bitcoin.com said.

The committee will research, draft rules and will supervise the development of digital assets, blockchain and artificial intelligence applications in future, said the report on Tuesday.

While no formal announcement has been made by the central bank, a publication note said that it had gathered experts to improve its own ability in the blockchain field a month ago and had appointed a chief of the committee, according to the report.

Earlier in April, RBI had moved to bar banks and other entities that it regulates from having any linkages to virtual currency dealers.

Entities regulated by the RBI shall not carry out transactions with individuals or businesses dealing in virtual currency, the RBI said after issuing its April bi-monthly monetary policy report.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US SEC to review decision rejecting bitcoin ETFs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US Securities and Exchange Commission said on Thursday it will review a decision by its staff to block nine bitcoin-based exchange-traded funds from coming to market.

Staff at the SEC on Wednesday rejected applications for new funds from three companies, suggesting they were not yet convinced that the products would not be subject to fraud or manipulation.

But the SEC’s four commissioners will review those decisions, according to letters the SEC posted on its website.

SEC staff have delegated authority to make a decision on such applications, meaning the commissioners and the SEC chairman have the power to review the decision if they desire.

The commissioners had previously voted 3-1 to reject another bitcoin ETF application, with Republican commissioner Hester Peirce dissenting on the basis she felt doing so stifled innovation.

The virtual currency can be used to move money around the world quickly and with relative anonymity, without the need for a central authority, such as a bank or government. A fund holding the currency could attract more investors and push its price higher.

Bitcoin was trading up nearly 2 percent at $6,480 on the Luxembourg-based Bitstamp exchange on Thursday after the SEC posted the letters.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bitcoin, Ethereum tumble as crypto bear market lingers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bitcoin dropped to an eight-week low on Tuesday, while Ethereum, the second-largest cryptocurrency in terms of market value, sank to a more than one-year trough as they continued their bearish trend, undermined by a strong US dollar and global tensions related to Turkey.

The Turkish crisis has dampened risk appetite in recent sessions, spurring a sell-off in emerging market currencies and stocks and prompting inflows to safe-haven assets such as the dollar and US Treasuries.

The original virtual currency fell as low as $5,880 <BTC=BTSP> on Bitstamp, the lowest since late June. It was last down 3.5 percent at $6,036.74. So far in 2018, bitcoin has fallen nearly 57 percent, after soaring more than 1,300 percent last year.

Ethereum plunged nearly 9 percent to $258.45 <ETH=BTSP> on Bitstamp, falling to a more than one-year low of $250.54. According to crypto data tracker coinmarketcap.com, the third-largest cryptocurrency, Ripple, fell 13.4 percent to 25 US cents.

“What began earlier this week as a rout in the Turkish lira has quickly spread throughout all markets and now it seems to be affecting the cryptos as well,” said Israel-based Mati Greenspan, senior market analyst at eToro.

The total market capitalization for cryptocurrencies tumbled to $191.4 billion, the lowest since early November last year, coinmarketcap.com data showed.

Bitcoin has held up pretty well amid the sell-off in the cryptocurrency market, analysts said. As a percentage of market capitalization, bitcoin’s share rose to 54.5 percent, suggesting that investors were willing to hold the more widely held and well-capitalized digital currencies.

During the heady days of the cryptocurrency boom in late 2017 and January this year, bitcoin’s share fell to 32 percent.

The cryptocurrency market has been stung by several decisions by the US Securities and Exchange Commision on exchange-traded funds.

Late last month, the SEC stood by its decision to block the ETF application of Tyler and Cameron Winklevoss, founders of crypto exchange Gemini Trust Co LLC.

Early this month, the SEC delayed a decision on a proposed bitcoin ETF submitted by money management firm VanEck and crypto startup SolidX.

“I believe we’re just witnessing the continuation of the cryptocurrency bear market. This is not the first or last cyclical asset to behave this way,” said Clement Thibault, senior analyst at Investing.com.

“Looking ahead, I don’t think we’re at the end of the cycle just yet and I can see bitcoin and other cryptocurrencies continuing to fall before a meaningful return back up.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Singapore’s Golden Gate Ventures launches $10 million crypto fund

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Singapore-based venture capital firm Golden Gate Ventures said on Friday it will launch a $10 million fund to invest in cryptocurrency and blockchain technology startups.

The fund, called LuneX Ventures, will invest in early-stage companies globally such as cryptocurrency exchanges and security providers.

Investors in the fund will include high-net worth individuals and family offices.

The fund is among a cluster of similar ventures that invest in the cryptocurrency space, backed by wealthy individuals and financial firms, that have emerged over the past year. Such firms have partially replaced the retail investor base, which drove bitcoin’s skyrocket rise in 2017.

The price of the world’s biggest and best-known virtual currency has more than halved from a high of near $20,000 late last year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US regulator stands by decision to block Winklevoss bitcoin ETF

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US Securities and Exchange Commission on Thursday stood by a decision blocking an exchange-traded fund that would have tracked bitcoin, citing concerns about market manipulation.

The securities regulator found “unpersuasive” arguments that the bitcoin ETF proposed by Cameron and Tyler Winklevoss, the twin brothers who founded crypto exchange Gemini Trust Co LLC, would be sufficiently protected from manipulation, it said in a 92-page analysis posted on its website.

“Regulated bitcoin-related markets are in the early stages of their development,” the SEC said, saying that it “cannot…conclude that bitcoin markets are uniquely resistant to manipulation.”

But the SEC did not completely shut the door to such products coming to market once the bitcoin market has matured, offering some hope for at least five other bitcoin ETF proposals that are still pending before the regulator.

Bitcoin turned negative after the SEC’s ruling, and last traded down 2.9 percent.

The virtual currency can be used to move money around the world quickly and with relative anonymity, without the need for a central authority, such as a bank or government. A fund holding the currency could attract more investors and push its price higher.

The SEC said there was not enough evidence that efforts to thwart manipulation of the ETF’s price or that of the underlying bitcoin market would be successful.

The SEC had blocked the Winklevoss ETF from coming to market in March 2017, but then faced an appeal from exchange operator CBOE’s Bats exchange, which applied to list the ETF.

The CBOE said it was reviewing both the SEC’s notice and Commissioner Hester Peirce’s dissent.

“Investors are better served by products traded on a regulated securities market and protected by robust securities laws and we will continue to work with the SEC and ETF issuers to construct a fully regulated product,” said Chris Concannon, chief operating officer of CBOE Global Markets.

The parties can appeal the SEC’s decision in federal court.

Gemini did not immediately respond to requests for comment.

The Winklevoss twins are best known for their feud with Facebook Inc founder Mark Zuckerberg over whether he stole the idea for what became the world’s most popular social networking website from them. The former Olympic rowers ultimately settled their legal dispute, which was dramatized in the 2010 film “The Social Network.”

The SEC’s decision to block the ETF was voted for 3-1 by its sitting commissioners, with Peirce voting against. In a statement, Peirce said she believed the product met the legal standard.

“More institutional participation would ameliorate many of the Commission’s concerns with the bitcoin market that underlie its disapproval order,” she said, adding that the ruling “sends a strong signal that innovation is unwelcome in our markets.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow