Regulate bitcoin but don’t ban, says former FDIC chair – CNBC

By Kellie Ell     January 19, 2018

  • Bitcoin is “something regulators need to deal with but not ban,” says former FDIC Chair Sheila Bair.
  • “We don’t ban assets,” she says.
  • Bair worries some people are investing in digital currencies without understanding what they are.

Amid threats of a potential ban on cryptocurrency, former FDIC Chair Sheila Bair said digital currencies such as bitcoin should be more tightly monitored but not stopped.

“It’s something regulators need to deal with but not ban,” Bair told CNBC’s “Fast Money” on Thursday. Bair, who said she does not own any bitcoin, now serves as a board member for Paxos, a financial firm developing blockchain technology for digital currency.

“I think some additional regulation would be good, and I argue for that,” she said. “Especially on anti-money-laundering laws, where I think there are a lot of concerns over use of bitcoin or other digital currencies.”

More at: Regulate bitcoin but don’t ban, says former FDIC chair – CNBC

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Have regulatory fears finally burst the bitcoin bubble? – siliconrepubic

By John Kennedy    January 17, 2018

Spooked investors are selling their cryptocurrency as value tumbles.

Has bitcoin’s bubble burst?

At the time of writing (17 January), bitcoin’s value had plunged to $10,811, a drop of around 46pc (compared to a high of $19,500 in December).

Fears of a regulatory crackdown have sent cryptocurrencies tumbling as investors rush to sell their coin.

According to CoinMarketCap, cryptocurrency trading has seen bitcoin fall 10.45pc overnight, Ethereum fall 11.6pc, Ripple fall 16.8pc, bitcoin cash fall 10.5pc and Cardano fall 13.6pc.

Out of the myriad of cryptocurrencies out there, some of the biggest falls include NEO by 20pc, and Qtum by 19pc.

More at: Have regulatory fears finally burst the bitcoin bubble? – siliconrepublic

China Assembles Coalition to Hunt Down, Prosecute Those Using Blockchain Name to Scam Its Citizens – Cryptovest

By Tedra DeSue    January 17, 2018

Arrests and prosecutions are in the cards for those in China who try to peddle fake tokens by using the name Blockchain.

In its quest to prevent cybercrimes, China is going after people promoting token sales they say are affiliated with the Blockchain, according to reports.

We’ve seen this practice increase over the last few months as companies try to boost their attractiveness and appear legitimate through the use of the digital ledger technology’s name.

China’s not sitting back and allowing for it.

Instead, several of its regulatory authorities have formed a coalition of sorts to halt this kind of abuse so not to cause the overall reputation of Blockchain to be damaged.

Already, it has reportedly identified more than 2,000 tokens with active user bases and 3,000 knockoff platforms that are promoting fake Blockchain products.

When caught, these fraudsters face arrest and prosecution. Something in particular has caught the eye of some observers and it’s the phrase being used to describe the effort. They are calling it a “special campaign,” which has given rise to the thought that prominent figures could be snared.

More at: China Assembles Coalition to Hunt Down, Prosecute Those Using Blockchain Name to Scam Its Citizens – Cryptovest

Putin: Crypto Oversight Legislation Will Be Needed – CoinDesk

By Nikhilesh De    January 17, 2018

Russian president Vladimir Putin believes that legislation laying out rules for the country’s cryptocurrency sector will be needed in the future.
According to a report from Russian-language news agency TASS, Putin said on Jan. 11 that legislation “will be definitely required in [the] future]” on this front.
“This is the prerogative of the central bank at present and the central bank has sufficient authority so far. However, in broad terms, legislative regulation will be definitely required in future,” he said.

More at: Putin: Crypto Oversight Legislation Will Be Needed – CoinDesk

China’s blockchain fever gets hotter even as regulator queries price surge – Yahoo! Finance

Reuters    January 12, 2018

China’s blockchain-related companies extended their bullish run on Friday, as punters brushed aside concerns raised by regulators about the rationality of stock price surges this week.

Blockchain mania continued to propel the shares of a dozen companies which recently disclosed their involvement in cryptocurrency technology, even though some admitted their investments in the technology were still at an early stage.

A growing number of Chinese firms – ranging from packaging firms to gaming companies – have publicly linked their businesses with blockchain to capitalize on rapidly growing investor interest globally for the technology, the backbone of bitcoin and other digital currencies.

Chinese regulators are taking unprecedented steps to contain financial risks – Beijing has banned initial coin offerings, shut down local cryptocurrency trading exchanges and limited bitcoin mining – but speculators are not deterred.

Shares of Cashway Technology Co Ltd <603106.SS> soared for the second day on Friday, even after it clarified that it had merely hired two young graduates majoring in encryption algorithm.

More at: China’s blockchain fever gets hotter even as regulator queries price surge – Yahoo! Finance

FORMER CFTC REGULATOR MAKES SENSE OF VOLATILE CRYPTO ASSET MARKET – HuffPost

By Susan Corcoran Warner    January 9, 2018

Make no mistake, Bitcoin, its forks, and Altcoin cousins are very volatile assets. I reluctantly call them assets because traditional currencies rarely fluctuate 40% in either direction on a daily basis. However, these wild swings also provide an opportunity for great capital appreciation – and losses. The lure is that just about anyone can make money in this market if they are aware of the risks involved, know to trade in volatile asset classes (straddle or strangle anyone?), and don’t mind being prepared to lose all capital at risk.

Over the past year, cryptocurrency has come out of the shadows and into the limelight. It is now more accessible, with market makers, such as Coinbase, allowing people to trade in “satoshis” or fractions of crypto assets thereby making buying them accessible to anyone willing to invest $100.00.

ICOs – or Initial Coin Offerings – are another innovation born out of the increasing popularity of cryptocurrencies and the utility of the underlying blockchain technology that makes it all happen. ICOs are very similar to IPOs except for the utility and cryptocurrency that is sold. This factor makes ICOs more versatile than traditional stock offerings. In 2018, ICOs will continue to grow and we are bound to see some never-before-seen business models and use cases for smart contracts in what some predict could disrupt the traditional business model.

More at: FORMER CFTC REGULATOR MAKES SENSE OF VOLATILE CRYPTO ASSET MARKET – HuffPost

Are We Moving Towards Distributed Blockchain Economies? – Forbes Tech #GettingBuzz

By Paul Denlinger (Quora, Contributor)    January 9, 2018

Are distributed blockchain economies where technology is taking us now? originally appeared on Quorathe place to gain and share knowledge, empowering people to learn from others and better understand the world.

Answer by Paul Denlinger, worked at Forbes, on Quora:

Are distributed blockchain economies where technology is taking us now?

We seem to be heading in that direction, but there is something which has not been sufficiently discussed.

One of the underpinnings of government and the modern nation-state is a national currency and central bank. The blockchain and cryptocurrencies directly challenge this, and because the police force and military are directly aligned with the government, and are how the government exerts its authority domestically and internationally when force is necessary, removing them would have dire consequences.

More at: Are We Moving Towards Distributed Blockchain Economies? – Forbes Tech #GettingBuzz