Tag: Cryptocurrency

Bitcoin price jumps to two-week high, leads broad crypto surge

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

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Cryptocurrency prices jumped on Thursday, led by a surge in bitcoin to two-week highs, with people active in the market citing a squeeze on traders who have bet against prices, given a lack of obvious news to trigger the gains.

On the Luxembourg-based Bitstamp exchange BTC=BTSP, bitcoin rose as much as 17% at one point in mid-morning European trading. By 1250 GMT, it was up 11% at $7,705, its highest level since March 29.

Other cryptocurrencies like Ethereum .MVETH and Ripple .MVXRP also rose sharply, gaining more than 10 percent. EOS, another virtual currency, rose more than 30 percent, according to CoinMarketcap.com, which tracks the industry.

After rocketing to almost $20,000 in December, bitcoin’s price has fallen this year on the back of worries about a regulatory clampdown and concerns it is a speculative bubble that is now deflating.

That has prompted some traders to bet heavily against – to short – bitcoin and other cryptocurrencies.

After their prices stabilised in recent days and rose earlier on Thursday, those shorts were squeezed out of their positions, forcing the price upwards.

Two people active in the cryptocurrency market said the biggest moves in trading of bitcoin had occurred on the Bitfinex exchange before spreading to other platforms.

“People overshorting on Bitfinex so bit of a squeeze there,” said Charles Hayter, founder of cryptocurrency analysis website CryptoCompare.

Sentiment towards cryptocurrencies has improved in recent days and prices were consolidating, which can lead the price to suddenly “explode” higher, said Naeem Aslam, an analyst at ThinkMarkets who owns and trades virtual currencies.

Other analysts said there was no obvious news behind the move, although one cited recent reports prominent billionaire trader George Soros had decided to start trading cryptocurrencies.

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

Cryptocurrencies hit hard on Indian exchanges after RBI clampdown

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

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The Reserve Bank of India moved to bar banks and other entities that it regulates from having any linkages to virtual currency dealers, leading to a plunge in Bitcoin and other cryptocurrencies on local exchanges on Friday.

The government and the central bank have previously cautioned the public on cryptocurrencies, with New Delhi earlier this year vowing to eliminate the use of digital currencies, which it considers illegal in the country’s payment system.

Entities regulated by the RBI shall not carry out transactions with individuals or businesses dealing in virtual currency, the RBI said on Thursday after issuing its bimonthly monetary policy report.

In India, Bitcoin, a volatile cryptocurrency, plummeted to a low of 350,001 rupees or about $5,392, according to crypto-currency exchange Coinome, compared with its international market price of $6,617.

Before the announcement, Bitcoin had been trading at about a 5 percent premium to its overseas price, said Vishal Gupta, co-founder of Block Chain and Cryptocurrency Committee, an industry body, noting it is now trading at a significant discount.

“This seems to be a very aggressive move,” said technology law expert Namita Viswanath, a principal associate at IndusLaw.

“Instead of the RBI taking a holistic approach and seeing how to curb potential misuse, it seems to be a rather broad-stroke approach of completely prohibiting this all together.”

Pakistan’s central bank said in a separate statement that crypto-currencies were not legal in the country.

The State Bank of Pakistan told banks and other financial services providers to refuse customers seeking crypto-currency transactions.

It noted that those using crypto-currencies to transfer funds outside Pakistan could be prosecuted.

Late on Friday, the RBI issued a more detailed that stated any regulated entities which already provide services to facilitate dealing with virtual currencies will have to cut all ties within three months.

The Indian government has previously likened cryptocurrency investments to “Ponzi schemes” that offer unusually high returns to early investors.

It has set up a panel to look into the issues relating to cryptocurrencies and plans to appoint a regulator to oversee unregulated exchanges.

But Thursday’s announcement raised concerns about the exit options for investors who currently hold cryptocurrencies.

Gupta estimates that at least 4 to 5 million people in India hold some kind of cryptocurrency and that 60 percent of them entered the market between October and December, when prices were at a peak.

“Most of these people are already sitting on capital losses,” he said. “Now the asset has become dead. You can’t transact with it. If you transact with it, your bank accounts are going to be shut.”

Virtual currencies raise concerns of consumer protection, market integrity and money laundering, among others, the RBI said on Thursday.

“If the government stands firm on their decision then we will have to eventually pivot our business model from crypto-fiat to crypto-crypto hence omitting the fiat part in totality,” said Shivam Thakral, CEO of BuyUcoin, a cryptocurrency exchange.

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

UK watchdog says licence needed to trade cryptocurrencies

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

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Britain’s financial watchdog said that firms offering services linked to cryptocurrency derivatives must meet all relevant rules in the regulator’s handbook or could face sanctions.

The Financial Conduct Authority (FCA) does not currently regulate cryptocurrencies.

But it said that dealing or arranging transactions in, advising on or providing other services related to derivatives referencing cryptocurrencies or tokens issued through an initial coin offering (ICO), would likely require its authorisation.

This includes cryptocurrency futures, cryptocurrency contracts for differences (CFDs) and cryptocurrency options, it said.

The FCA warned consumers last September that ICOs were high risk and speculative.

Europe’s top markets watchdog warned in November that new crypto coins could turn out to be worthless.

Demand for cryptocurrencies has pushed up prices for currencies such as bitcoin to a record high of more than $19,000 in 2017, before concerns that regulators may step in sent markets tumbling.

In March, financial policymakers from the world’s 20 leading economies called on national regulators to monitor the development of crypto-assets and their risks, but stopped short of coordinated action due to a lack of consensus.

The FCA’s move follows an announcement last month by finance minister Philip Hammond, who said Britain would set up a task force both to manage the risk around cryptoassets and exploit the underlying blockchain technology.

In its statement, the FCA said: “It is firms’ responsibility to ensure that they have the appropriate authorisation and permission to carry on regulated activity.”

“If your firm is not authorised by the FCA and is offering products or services requiring authorisation it is a criminal offence. Authorised firms offering these products without the appropriate permission may be subject to enforcement action.”

Jake Green, regulation partner at law firm Ashurst, said: “To some degree this (FCA statement) clears up a small degree of academic uncertainty. Regardless, it must be the correct decision and shouldn’t come as a shock to many.”

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 ‘effectively’ bans cryptocurrencies in India

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

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In view of the associated risks with the use of cryptocurrency, the Reserve Bank of India on Thursday decided that entities regulated by it shall not deal with, or provide services to any individual or business entities dealing with, or settling virtual currency, with immediate effect.

The central bank, however, said that regulated entities which already provide such services shall exit the relationship within a specified time. A separate circular will be issued in this regard.

RBI has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies.

>>Read: RBI keeps policy rates unchanged; read the full document here

The central bank, in December last year, issued its third warning with regard to cryptocurrency, saying that using the virtual currency as a medium of exchange was not authorised by the body.

“No regulatory approvals, registration or authorisation is stated to have been obtained by the entities concerned for carrying on such activities,” it said in a statement.

NS Nappinai, Cyber Law Advocate, said that she wouldn’t call this a ban but this move “will effectively close the doors for a lot of cryptocurrency exchanges or brokerage platforms.” The move, she said, will also take into account the payment system, i.e., payment wallets and debit or credit systems, “all of it can be blocked.”

In December last year, bitcoins grabbed headlines with the prices going as high as $15000 per bitcoin, 9,78,525 Indian rupees to be exact, going by the current rupee value.

Cryptocurrencies have been surrounded by a lot of controversies, primarily because of its decentralized system as it transfers the power of central banks to the public allowing them to make money. Naturally, this takes the control of the currency out of the reach of the tax men and financial authorities.

Hinting at the likely ban on cryptocurrencies, Jaitley in Union Budget had said that the government did not consider digital currencies legal tender or coin and stated that centre may take steps to eradicate the unethical financial activities through the these currencies.

>>Also Read: Inflation worries, fiscal slippage push RBI to keep repo rate unchanged at 6%

The central bank on Thursday kept the policy repo rate unchanged at 6% in the first bi-monthly meeting this financial year.  The reverse repo rate also remains unchanged at 5.75%.

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

Google bans cryptocurrency mining extensions on Chrome

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

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After Facebook and Twitter, Google has cracked down on malicious cryptocurrency mining extensions on its Chrome platform.

Until now, Google Chrome’s web policy permitted cryptocurrency mining in extensions as long as it is the extension’s single purpose and the user is adequately informed about the mining behaviour.

“Unfortunately, approximately 90% of all extensions with mining scripts that developers have attempted to upload to Chrome Web Store have failed to comply with these policies, and have been either rejected or removed from the store,” James Wagner, Extensions Platform Product Manager, said in a blog post late Monday.

“Starting today, Chrome Web Store will no longer accept extensions that mine cryptocurrency,” he added.

Existing extensions that mine cryptocurrency will be delisted from the Chrome Web Store in late June.

Extensions with blockchain-related purposes other than mining will continue to be permitted in the Web Store, Google said.

Over the past few months, there has been a rise in malicious extensions that appear to provide useful functionality on the surface, while embedding hidden cryptocurrency mining scripts that run in the background without the user’s consent.

These mining scripts often consume significant CPU resources, and can severely impact system performance and power consumption.

“This policy is another step forward in ensuring that Chrome users can enjoy the benefits of extensions without exposing themselves to hidden risks,” Wagner said.

Late last month, Twitter confirmed to block cryptocurrency-related ads on the platform.

In January, social media giant Facebook banned all ads promoting cryptocurrencies, including Bitcoin and ICOs.

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

What is a Blockchain? A handy guide

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

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Blockchain can be defined as a digital ledger containing records of a large number of financial transactions. It collects a thorough digital record of all transactions made by a concerning party to others.

How does it function?

The technology came to the highlight after it became the base for transactions of crypto currencies such as the Bitcoin. It is a decentralised system that can be operated from anywhere. Every block of data is connected to another block in a chain format making it extremely useful for keeping of records.

It is thought to be more secure, transparent and accountable form of technology than other existing ones. It is also considered as less time consuming and and cheaper as it nullifies the need of having any intermediaries.

Blockchain is considered as suitable for any area that needs seamless transactions.  Any sector that has complex and large scale back-office processes that may involve paperwork, digital connections etc can use the method. Due to its ability in unravelling complicated datas, blockchain can be extremely useful in sectors such as banking, investment firms, brokerage firms etc. However, it cannot operate disconnected to others as an individual unit.

Future of the Blockchain

Various industries across the globe are slowly exploring the future use of the technology ranging from IT companies to start ups. Financial institutions, particularly banks are exploring ways to use blockchain for making payments, remittance and to provide security. However it has still a long way to travel and only time can tell whether it could revolutionise business and financial transactions.

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

Twitter likely to join the club, mulls to ban cryptocurrency advertisements

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

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Social media major Twitter is banning cryptocurrency advertisements on its platforms as a part of its new advertising policy which will be implemented in two weeks, reports Sky News.

The report points that the platform has currently prohibited advertisements for initial coin offerings (ICOs), token sales and cryptocurrency wallets globally. Twitter may also ban all ads for cryptocurrency exchanges, with some limited exceptions, when the policy is launched.

Last week, Google announced its plans to ban cryptocurrency-related advertising on its platforms, including initial coin offerings (ICOs), wallets and trading advice.

In January, Facebook announced that it would prohibit ads of financial products and services which are “frequently associated with misleading or deceptive promotional activities”, indicating the ban on virtual currency ads.

Bitcoin, one of the largest cryptocurrencies, has witnessed a sharp fall in the markets post these announcements and with nations directing stricter norms on regulating the currency. Bitcoin was trading at nearly $8,200 per unit on Thursday after touching its near four-month lows of $7,676. The currency rose to its peak on December 11, 2017, when it traded at $17,549 a unit.

In addition to the crypto ads, Facebook and Google banned ads for binary options trading after the release of figures from Action Fraud showed that victims’ losses in Britain have risen by 400,000% in six years.

Earlier this month, Mark Carney, the governor of the Bank of England, warned Sky News that cryptocurrencies faced a regulatory crackdown, stating that the time had come to “regulate elements of the crypto-asset ecosystem to combat illicit activities”.

Mark Carney told the news media group that the issue will be taken up in the upcoming G20 meeting.

“There are a number of problems with cryptocurrencies. They are small now but they are getting bigger. We will talk about them at the G20 meeting and we are talking about them now in the Bank of England. The Financial Policy Committee is looking at the risks to financial stability, ” he told Sky News.

The BoE governor highlights that cryptocurrencies raise issues for authorities who deal with money laundering, terrorist financing and price fixing. Incidents of theft – not just big crimes – but also steady thefts from people’s wallets have been reported earlier.

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 is now cheaper by $10,000 from its all-time highs

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

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It seems the cryptocurrency market is crashing as fast as it rose.

The most prominent of cryptocurrencies, Bitcoin, is now trading at nearly $8,200 per unit after touching its near four-month lows of $7,676. Bitcoin touched its peak on December 11, 2017 when it traded at $17,549 a unit.

Not only this, the entire cryptocurrency market is losing sheen and has lost over $60 billion in value in just one day, CNBC reported.

According to Coinmarketcap.com, the market value of all the virtual currencies stood at $310.4 billion on Thursday, slipping from Wednesday’s value of $372.9 billion.

The cryptocurrency market has been witnessing a precipitous fall due to multiple reasons.

Here are four key factors which have pulled down the cryptocurrency market.

A trustee of the bankrupt Japanese cryptocurrency exchange Mt.Gox went on an alleged selling spree.

The exchange closed in 2014 and filed for bankruptcy after losing close to 850,000 bitcoins. Allegations are that one of the trustees has been allegedly selling large amounts of bitcoins illegally.

Also, Google is planning to ban cryptocurrency-related advertising on its platforms, including initial coin offerings (ICOs), wallets and trading advice.

The third reason is the recent spate of scams in the initial coin offering (ICO) space of cryptocurrencies that are being reported. CNBC had earlier reported on how scammers looted over $2 million in cryptocurrencies after carrying out a fake ICO.

Lastly, regulators worldwide are introducing stricter norms and have been taking a tougher stance on the sector.

The US Commodity Futures Trading Commission (CFTC) summoned cryptocurrency exchange Bitfinex, and Tether, a digital coin company, last year.

Even in India, the Reserve Bank of India (RBI) has time and again cautioned investors against these currencies. The Income Tax department, too, has issued noticed to some Bitcoin investors in the country.

In his budget speech of 2018, Finance Minister Arun Jaitley reiterated the government’s advice to investors of staying away from cryptocurrencies.

He further said that the government will release stricter regulatory norms and methods to catch hold of the cryptocurrency traders.

The United Kingdom and Japan too have also announced similar actions.

Bank of England Governor Mark Carney has called for greater regulation of cryptocurrencies. Earlier this month, Japanese regulators issued punishment notices to several cryptocurrency exchanges and forced some to halt business.

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