18 July 2014

Politicians shy away from bitcoin contributions



WASHINGTON ?? Bitcoin hasn't yet become the currency of choice in federal political campaigns.


Rep. Jared Polis, D-Colo., appears to be the only House member or candidate who has accepted the computer-generated currency since federal regulators first approved its use as political donations in early May, a USA TODAY analysis of new campaign reports show.


Polis, an enthusiastic bitcoin backer, collected nearly $3,671 worth of bitcoin, the review of April-through-June reports shows.


The Libertarian National Committee raised a little more than $2,300 in the currency.


It's not clear whether any Senate candidates have accepted bitcoin. Most senators file paper versions of their campaign-finance reports, and it takes weeks for detailed data about their fundraising to become available electronically.


Bitcoin operates independently of governments and banks, and its value fluctuates with supply and demand.


Copyright 2014USAToday


Read the original story: Politicians shy away from bitcoin contributions





July 18, 2014 at 12:12PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

Why Bitcoin Has Real Potential To Upend The Legacy Payments System



Bitcoin is most often discussed as a volatile digital currency. But where Bitcoin’s real value lies is as a payments technology that has the potential to revolutionise the legacy payments industry.


Bitcoin offers merchant a low-cost payments system, and consumers a virtually frictionless payments experience. Value can easily be transferred around the world without transmitting sensitive information that could be used for fraud, and without forcing merchants to pay extortionate transaction fees.


But, while the emergence of Bitcoin brings with it numerous advantages, it also faces incredible hurdles.


In a recent report from BI Intelligence , we explain how Bitcoin works, from the moment when local currency is exchanged for bitcoins, to the moment when it reaches the electronic wallet of a receiving party. We look at the key advantages of Bitcoin compared to the legacy players in the payments industry and examine the challenges that Bitcoin faces as a payment network.


Access the Full Report By Signing Up For A Free Trial Today >>


Here are some of the key elements from the report:



In full, the report:



For full access to all BI Intelligence reporting, analysis and daily briefs on the payments industry, sign up for a free trial.


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July 18, 2014 at 11:15AM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York seeking Bitcoin regulations: anonymity at stake

Shopify Announces Pinterest Rich Pins and New Bitcoin Payment Option

New York unveils Bitcoin license rules

17 July 2014

New York Proposes First State Regulations for Bitcoin

[fivefilters.org: unable to retrieve full-text content]


New York State’s top financial regulator has taken a big step to bring Bitcoin and other virtual currencies under its purview. On Thursday, Benjamin M. Lawsky, the superintendent of financial services, announced proposed regulations for virtual currency ... July 17, 2014 at 02:08PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

Regina's first-ever Bitcoin ATM unveiled



A global experiment with digital money has arrived in Regina.


The city’s first-ever Bitcoin ATM was unveiled Thursday at Triffon’s Pizza on Kramer Boulevard in south Regina.


The machines have been slowly popping up in cities across Canada as Bitcoin, a digital currency mainly used for online purchases, grows in popularity.


Saskatchewan’s first Bitcoin ATM was launched earlier this year in Saskatoon, and there are plans for three more machines in Regina over the next few months.




July 17, 2014 at 04:12PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

CloudHashing to Give Away Another Bitcoin Mining Contract on Twitter



Bitcoin mining giant CloudHashing will be awarding one lucky winner a free Silver contract (MSRP: $999.00)


AUSTIN, TX (PRWEB) July 17, 2014 (PRWEB) July 17, 2014


CloudHashing aims to make Bitcoin mining simple, affordable and profitable for clients across the globe. It utilizes an integrated network of mining stations with advanced ASIC technology to give clients a seamless mining experience. With a Bitcoin mining contract from CloudHashing, miners can grow their Bitcoin wallets easily and efficiently. The company is based in Texas and is a subsidiary of peer-to-peer company PeerNova.


CloudHashing recently hosted the giveaway of one Silver contract valued at $999. Participants were asked to like the company Facebook page to enter. That contest has ended, but CloudHashing is ready to issue another free Silver Contract, this time with an eye toward customers who want to show their support via Twitter.


Company president Lukas Gilkey stated, “Here at CloudHashing, we don’t just want to create a profitable investment for our customers. We want to contribute to the community that gave us the opportunity to do that. If something as simple as a giveaway can help us achieve that, we’re going to keep spreading the good news.”


The giveaway follows in the footsteps of CloudHashing's previous Silver Bitcoin contract giveaway which concluded on July 11th. CloudHashing will grant one Silver Bitcoin mining contract to one randomly selected Twitter follower. The contract is good for 12 months and is a great opportunity for novices to break into the digital mining sphere and start filling their Bitcoin wallet risk-free. As with the company's previous giveaway, no purchase is necessary to enter or win.


To enter, participants must log in to their Twitter accounts and follow CloudHashing at http://ift.tt/1yyhlAj. Bonus entries will be awarded to participants who purchase a contract during the giveaway period and who notify CloudHashing via email at support(at)cloudhashing(dot)com. Existing followers will get an automatic entry, and new followers simply have to click a button to get their shot at winning the coveted contract.


The CloudHashing staff will pool together all the entries and assign each entry a unique identification number. They will then feed all the entries into a random number generator to select the winner. The winning entry will be announced on CloudHashing's Facebook and Twitter pages on July 31, 2014.


*This giveaway is void where prohibited or restricted by law.


For the original version on PRWeb visit: http://ift.tt/1yyhlAn







July 17, 2014 at 03:34PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

Bitcoin Girl: Virtual Currency Inspires This Ridiculous Music Video

New York proposes regulations for bitcoin



ALBANY, N.Y. (AP) — State regulators trying to curb money laundering and safeguard investors on Thursday proposed a special set of rules for firms involved in trading and storing virtual currencies.


New York is the first state to propose issuing separate regulations for virtual currencies, demonstrating the importance regulators attach to the fledgling field. New York City is home to several startups dealing in bitcoin, the most popular virtual currency, and some Wall Street firms are edging into the field as well.


Some industry firms vowed to comply. But the Bitcoin Foundation, a nonprofit organization that promotes the currency, questioned whether separate regulations were warranted and suggested operators should instead be integrated into existing financial regulations.


The proposal by the Department of Financial Services would establish a so-called BitLicense.


Merchants and consumers who use the virtual currency solely to buy and sell goods and services wouldn't need the license, but those buying and selling virtual currency as a business would.


Bitcoin and other virtual currencies have been gaining the backing of legitimate investors and mainstream businesses. Earlier this year, Overstock.com became the first major retailer to accept digital money.


Users swap cash for virtual currency using online exchanges, then store it in a wallet program on their computer. The program can transfer payments directly to a merchant who accepts the currency or to private parties anywhere in the world, eliminating transaction fees and the need to provide bank or credit card information.


New York's proposed regulations follow a yearlong department study. Financial Services Superintendent Ben Lawsky said his agency is trying to rein in money laundering and establish consumer protections without stifling innovation.


The currency exchange itBit said it intended to fully comply with regulations and said it applauded New York's "thoughtful and transparent approach." SecondMarket, a Wall Street firm that runs a Bitcoin Investment Trust, said the rules "will help promote further adoption of digital currencies by both consumers and investors alike."


Jim Harper, Washington-based global policy counsel at the Bitcoin Foundation, said some provisions of the regulations would be a heavy burden on bitcoin businesses. For instance, they wouldn't be able to keep their earnings in bitcoin, but have to convert them to regular-currency assets, like Treasury bonds or money-market funds. In addition, the requirement that they collect physical addresses of the parties in all transactions is "generally inconsistent with the way bitcoin works today."


But most importantly, Harper said it's unnecessary to issue licenses specific to a certain technology.


"The preference would be for there not to be a special bitcoin license but simply to integrate bitcoin into financial services," he said.


The proposed rules are scheduled to be published July 23, followed by a 45-day comment period. The regulations would require of licensed companies:


— a background check of all employees and founders with fingerprints submitted to state authorities and the FBI;


— a bond or trust account in U.S. dollars to protect customers;


— internal controls against money laundering including customer identification;


— notifications within 24 hours of aggregate individual transactions valued at $10,000 or more;


— written approval of all new business activities or offerings;


— a security program;


— quarterly financial statements;


— the retention of 10 years of business transaction records.


The department would prohibit accounts with shell entities that have no physical presence in any country and require notifying customers that virtual currency is not legal tender and not backed by the government.


In March, the U.S. Treasury Department's Financial Crimes Enforcement Network said its requirements for money services applied to virtual currency exchangers and administrators, requiring that exchanges register. Meanwhile, the IRS issued guidance that virtual currency is treated as property for federal tax purposes and is taxable as wages and payments to contractors.


___


Online:


Proposed regulations:


http://ift.tt/1ssVpGq


___


Associated Press writer Peter Svensson in New York contributed to this report.




July 17, 2014 at 02:38PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York Proposes First State Regulations for Bitcoin

[fivefilters.org: unable to retrieve full-text content]


New York State’s top financial regulator has taken a big step to bring Bitcoin and other virtual currencies under its purview. On Thursday, Benjamin M. Lawsky, the superintendent of financial services, announced proposed regulations for virtual currency ... July 17, 2014 at 02:08PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

Bitcoin Girl: Virtual Currency Inspires This Ridiculous Music Video

New York proposes regulations for bitcoin



ALBANY, N.Y. (AP) — State regulators trying to curb money laundering and safeguard investors on Thursday proposed a special set of rules for firms involved in trading and storing virtual currencies.


New York is the first state to propose issuing separate regulations for virtual currencies, demonstrating the importance regulators attach to the fledgling field. New York City is home to several startups dealing in bitcoin, the most popular virtual currency, and some Wall Street firms are edging into the field as well.


Some industry firms vowed to comply. But the Bitcoin Foundation, a nonprofit organization that promotes the currency, questioned whether separate regulations were warranted and suggested operators should instead be integrated into existing financial regulations.


The proposal by the Department of Financial Services would establish a so-called BitLicense.


Merchants and consumers who use the virtual currency solely to buy and sell goods and services wouldn't need the license, but those buying and selling virtual currency as a business would.


Bitcoin and other virtual currencies have been gaining the backing of legitimate investors and mainstream businesses. Earlier this year, Overstock.com became the first major retailer to accept digital money.


Users swap cash for virtual currency using online exchanges, then store it in a wallet program on their computer. The program can transfer payments directly to a merchant who accepts the currency or to private parties anywhere in the world, eliminating transaction fees and the need to provide bank or credit card information.


New York's proposed regulations follow a yearlong department study. Financial Services Superintendent Ben Lawsky said his agency is trying to rein in money laundering and establish consumer protections without stifling innovation.


The currency exchange itBit said it intended to fully comply with regulations and said it applauded New York's "thoughtful and transparent approach." SecondMarket, a Wall Street firm that runs a Bitcoin Investment Trust, said the rules "will help promote further adoption of digital currencies by both consumers and investors alike."


Jim Harper, Washington-based global policy counsel at the Bitcoin Foundation, said some provisions of the regulations would be a heavy burden on bitcoin businesses. For instance, they wouldn't be able to keep their earnings in bitcoin, but have to convert them to regular-currency assets, like Treasury bonds or money-market funds. In addition, the requirement that they collect physical addresses of the parties in all transactions is "generally inconsistent with the way bitcoin works today."


But most importantly, Harper said it's unnecessary to issue licenses specific to a certain technology.


"The preference would be for there not to be a special bitcoin license but simply to integrate bitcoin into financial services," he said.


The proposed rules are scheduled to be published July 23, followed by a 45-day comment period. The regulations would require of licensed companies:


— a background check of all employees and founders with fingerprints submitted to state authorities and the FBI;


— a bond or trust account in U.S. dollars to protect customers;


— internal controls against money laundering including customer identification;


— notifications within 24 hours of aggregate individual transactions valued at $10,000 or more;


— written approval of all new business activities or offerings;


— a security program;


— quarterly financial statements;


— the retention of 10 years of business transaction records.


The department would prohibit accounts with shell entities that have no physical presence in any country and require notifying customers that virtual currency is not legal tender and not backed by the government.


In March, the U.S. Treasury Department's Financial Crimes Enforcement Network said its requirements for money services applied to virtual currency exchangers and administrators, requiring that exchanges register. Meanwhile, the IRS issued guidance that virtual currency is treated as property for federal tax purposes and is taxable as wages and payments to contractors.


___


Online:


Proposed regulations:


http://ift.tt/1ssVpGq


___


Associated Press writer Peter Svensson in New York contributed to this report.




July 17, 2014 at 02:38PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York Proposes First State Regulations for Bitcoin

[fivefilters.org: unable to retrieve full-text content]


New York State’s top financial regulator has taken a big step to bring Bitcoin and other virtual currencies under its purview. On Thursday, Benjamin M. Lawsky, the superintendent of financial services, announced proposed regulations for virtual currency ... July 17, 2014 at 02:08PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

CloudHashing to Give Away Another Bitcoin Mining Contract on Twitter


AUSTIN, Texas, July 17, 2014 (GLOBE NEWSWIRE) -- via PRWEB - CloudHashing aims to make Bitcoin mining simple, affordable and profitable for clients across the globe. It utilizes an integrated network of mining stations with advanced ASIC technology to give clients a seamless mining experience. With a Bitcoin mining contract from CloudHashing, miners can grow their Bitcoin wallets easily and efficiently. The company is based in Texas and is a subsidiary of peer-to-peer company PeerNova.


CloudHashing recently hosted the giveaway of one Silver contract valued at $999. Participants were asked to like the company Facebook page to enter. That contest has ended, but CloudHashing is ready to issue another free Silver Contract, this time with an eye toward customers who want to show their support via Twitter.


Company president Lukas Gilkey stated, "Here at CloudHashing, we don't just want to create a profitable investment for our customers. We want to contribute to the community that gave us the opportunity to do that. If something as simple as a giveaway can help us achieve that, we're going to keep spreading the good news."


The giveaway follows in the footsteps of CloudHashing's previous Silver Bitcoin contract giveaway which concluded on July 11th. CloudHashing will grant one Silver Bitcoin mining contract to one randomly selected Twitter follower. The contract is good for 12 months and is a great opportunity for novices to break into the digital mining sphere and start filling their Bitcoin wallet risk-free. As with the company's previous giveaway, no purchase is necessary to enter or win.


To enter, participants must log in to their Twitter accounts and follow CloudHashing at http://ift.tt/1yyhlAj. Bonus entries will be awarded to participants who purchase a contract during the giveaway period and who notify CloudHashing via email at support(at)cloudhashing(dot)com. Existing followers will get an automatic entry, and new followers simply have to click a button to get their shot at winning the coveted contract.


The CloudHashing staff will pool together all the entries and assign each entry a unique identification number. They will then feed all the entries into a random number generator to select the winner. The winning entry will be announced on CloudHashing's Facebook and Twitter pages on July 31, 2014.


*This giveaway is void where prohibited or restricted by law.


This article was originally distributed on PRWeb. For the original version including any supplementary images or video, visit http://ift.tt/1yyhlAn



CloudHashing
David Cloyd

+1 512-213-6371


July 17, 2014 at 03:03PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

Bitcoin Girl: Virtual Currency Inspires This Ridiculous Music Video

New York proposes regulations for bitcoin



ALBANY, N.Y. (AP) — State regulators trying to curb money laundering and safeguard investors on Thursday proposed a special set of rules for firms involved in trading and storing virtual currencies.


New York is the first state to propose issuing separate regulations for virtual currencies, demonstrating the importance regulators attach to the fledgling field. New York City is home to several startups dealing in bitcoin, the most popular virtual currency, and some Wall Street firms are edging into the field as well.


Some industry firms vowed to comply. But the Bitcoin Foundation, a nonprofit organization that promotes the currency, questioned whether separate regulations were warranted and suggested operators should instead be integrated into existing financial regulations.


The proposal by the Department of Financial Services would establish a so-called BitLicense.


Merchants and consumers who use the virtual currency solely to buy and sell goods and services wouldn't need the license, but those buying and selling virtual currency as a business would.


Bitcoin and other virtual currencies have been gaining the backing of legitimate investors and mainstream businesses. Earlier this year, Overstock.com became the first major retailer to accept digital money.


Users swap cash for virtual currency using online exchanges, then store it in a wallet program on their computer. The program can transfer payments directly to a merchant who accepts the currency or to private parties anywhere in the world, eliminating transaction fees and the need to provide bank or credit card information.


New York's proposed regulations follow a yearlong department study. Financial Services Superintendent Ben Lawsky said his agency is trying to rein in money laundering and establish consumer protections without stifling innovation.


The currency exchange itBit said it intended to fully comply with regulations and said it applauded New York's "thoughtful and transparent approach." SecondMarket, a Wall Street firm that runs a Bitcoin Investment Trust, said the rules "will help promote further adoption of digital currencies by both consumers and investors alike."


Jim Harper, Washington-based global policy counsel at the Bitcoin Foundation, said some provisions of the regulations would be a heavy burden on bitcoin businesses. For instance, they wouldn't be able to keep their earnings in bitcoin, but have to convert them to regular-currency assets, like Treasury bonds or money-market funds. In addition, the requirement that they collect physical addresses of the parties in all transactions is "generally inconsistent with the way bitcoin works today."


But most importantly, Harper said it's unnecessary to issue licenses specific to a certain technology.


"The preference would be for there not to be a special bitcoin license but simply to integrate bitcoin into financial services," he said.


The proposed rules are scheduled to be published July 23, followed by a 45-day comment period. The regulations would require of licensed companies:


— a background check of all employees and founders with fingerprints submitted to state authorities and the FBI;


— a bond or trust account in U.S. dollars to protect customers;


— internal controls against money laundering including customer identification;


— notifications within 24 hours of aggregate individual transactions valued at $10,000 or more;


— written approval of all new business activities or offerings;


— a security program;


— quarterly financial statements;


— the retention of 10 years of business transaction records.


The department would prohibit accounts with shell entities that have no physical presence in any country and require notifying customers that virtual currency is not legal tender and not backed by the government.


In March, the U.S. Treasury Department's Financial Crimes Enforcement Network said its requirements for money services applied to virtual currency exchangers and administrators, requiring that exchanges register. Meanwhile, the IRS issued guidance that virtual currency is treated as property for federal tax purposes and is taxable as wages and payments to contractors.


___


Online:


Proposed regulations:


http://ift.tt/1ssVpGq


___


Associated Press writer Peter Svensson in New York contributed to this report.




July 17, 2014 at 02:38PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York Proposes First State Regulations for Bitcoin

[fivefilters.org: unable to retrieve full-text content]


New York State’s top financial regulator has taken a big step to bring Bitcoin and other virtual currencies under its purview. On Thursday, Benjamin M. Lawsky, the superintendent of financial services, announced proposed regulations for virtual currency ... July 17, 2014 at 02:08PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

Bitcoin just got bigger in SA



Up to 30,000 online merchants in South Africa can now accept digital currency Bitcoin, through a partnership between local Bitcoin exchange BitX and payment gateway, Payfast.


The system is currently in beta testing mode, according to Payfast, but sellers can already start accepting Bitcoin payments from local and international buyers.


“What makes this different from most Bitcoin platforms/transactions, is that while buyers will make a Bitcoin payment, sellers will receive South African rand in their PayFast accounts (and then, bank accounts),” the group said.


The payment company noted that sellers are not required to own a Bitcoin wallet, or even understand how the digital currency works, as payments are converted to rands.


BitX Tweet

BitX Tweet



Over the past five years Bitcoin has matured from being a theoretical crypto-currency to a viable transaction mechanism – though not without its controversies and downfalls.


The currency is considered to be extremely volatile, and open to potential market manipulation through cyber attacks.


“If a seller listed a product on their website for 1 BTC (at an exchange rate of R6,900) and someone purchased that item at a later date, when the rate of exchange is lower (say R6,000), they would ultimately lose out on the transaction (or have some explaining to do to their accountant),” Payfast noted.


However, the company pointed to many advantages to using the system:



  • It can be much cheaper to accept Bitcoin than other international payment methods;

  • Transactions are not subject to reversals or costly chargebacks;

  • Payments can be sent and received from almost anywhere in the world;

  • It is fast (particularly compared to international bank transfers).


In October 2013, Stellenbosch-based BitX – a market platform that allows individuals to trade Bitcoin using South African Rands – was acquired by Switchless, a provider of enterprise Bitcoin solutions.


Currently, BitX lists 1 Bitcoin valued at R6,790.


More on Bitcoin


Is this South Africa’s Bitcoin?


Why Bitcoin may re-write banking practice


Bitcoin: the internet’s financial revolution


What SARB thinks about Bitcoin




July 17, 2014 at 02:06PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York Looking to Regulate Bitcoin Businesses



Bitcoins


New York Looking To Regulate Bitcoin


There is news out today that New York is looking to regulate Bitcoin, there is a focus on protecting the consumer, while also making sure that cybersecurity is in place along with anti money laundering compliance.


Mary Beth Quirk wrote on The Consumerist:



New York has taken a step in the direction of keeping consumers’ safe with a proposed plan that sets up a regulatory framework for any business dealing with bitcoins.


The New York Department of Financial Services announced a draft for its proposed plan [PDF] today for any bitcoin or virtual currency businesses operating in the state, dubbing it the “BitLicense” plan.


That draft includes consumer protection, anti-money laundering compliance and cybersecurity rules, all of which will be up for a public commenting period of 45 days as of July 23.


On the consumer front, the BitLicense plan has rules covering the safeguarding of consumer assets, a requirement for businesses to issue consumers virtual currency receipts and a stipulation that businesses must establish and maintain written consumer complaint policies in order to “resolve consumer complaints in a fair and timely manner.”


Each company also has to provide notice to consumers that they can bring complaints to the DFS’ attention if they’d like the department to look into an issue further.





July 17, 2014 at 01:59PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

CloudHashing to Give Away Another Bitcoin Mining Contract on Twitter


AUSTIN, Texas, July 17, 2014 (GLOBE NEWSWIRE) -- via PRWEB - CloudHashing aims to make Bitcoin mining simple, affordable and profitable for clients across the globe. It utilizes an integrated network of mining stations with advanced ASIC technology to give clients a seamless mining experience. With a Bitcoin mining contract from CloudHashing, miners can grow their Bitcoin wallets easily and efficiently. The company is based in Texas and is a subsidiary of peer-to-peer company PeerNova.


CloudHashing recently hosted the giveaway of one Silver contract valued at $999. Participants were asked to like the company Facebook page to enter. That contest has ended, but CloudHashing is ready to issue another free Silver Contract, this time with an eye toward customers who want to show their support via Twitter.


Company president Lukas Gilkey stated, "Here at CloudHashing, we don't just want to create a profitable investment for our customers. We want to contribute to the community that gave us the opportunity to do that. If something as simple as a giveaway can help us achieve that, we're going to keep spreading the good news."


The giveaway follows in the footsteps of CloudHashing's previous Silver Bitcoin contract giveaway which concluded on July 11th. CloudHashing will grant one Silver Bitcoin mining contract to one randomly selected Twitter follower. The contract is good for 12 months and is a great opportunity for novices to break into the digital mining sphere and start filling their Bitcoin wallet risk-free. As with the company's previous giveaway, no purchase is necessary to enter or win.


To enter, participants must log in to their Twitter accounts and follow CloudHashing at http://ift.tt/1yyhlAj. Bonus entries will be awarded to participants who purchase a contract during the giveaway period and who notify CloudHashing via email at support(at)cloudhashing(dot)com. Existing followers will get an automatic entry, and new followers simply have to click a button to get their shot at winning the coveted contract.


The CloudHashing staff will pool together all the entries and assign each entry a unique identification number. They will then feed all the entries into a random number generator to select the winner. The winning entry will be announced on CloudHashing's Facebook and Twitter pages on July 31, 2014.


*This giveaway is void where prohibited or restricted by law.


This article was originally distributed on PRWeb. For the original version including any supplementary images or video, visit http://ift.tt/1yyhlAn



CloudHashing
David Cloyd

+1 512-213-6371


July 17, 2014 at 03:03PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York's proposed Bitcoin rules include consumer protections

Bitcoin Girl: Virtual Currency Inspires This Ridiculous Music Video

New York proposes regulations for bitcoin



ALBANY, N.Y. (AP) — State regulators trying to curb money laundering and safeguard investors on Thursday proposed a special set of rules for firms involved in trading and storing virtual currencies.


New York is the first state to propose issuing separate regulations for virtual currencies, demonstrating the importance regulators attach to the fledgling field. New York City is home to several startups dealing in bitcoin, the most popular virtual currency, and some Wall Street firms are edging into the field as well.


Some industry firms vowed to comply. But the Bitcoin Foundation, a nonprofit organization that promotes the currency, questioned whether separate regulations were warranted and suggested operators should instead be integrated into existing financial regulations.


The proposal by the Department of Financial Services would establish a so-called BitLicense.


Merchants and consumers who use the virtual currency solely to buy and sell goods and services wouldn't need the license, but those buying and selling virtual currency as a business would.


Bitcoin and other virtual currencies have been gaining the backing of legitimate investors and mainstream businesses. Earlier this year, Overstock.com became the first major retailer to accept digital money.


Users swap cash for virtual currency using online exchanges, then store it in a wallet program on their computer. The program can transfer payments directly to a merchant who accepts the currency or to private parties anywhere in the world, eliminating transaction fees and the need to provide bank or credit card information.


New York's proposed regulations follow a yearlong department study. Financial Services Superintendent Ben Lawsky said his agency is trying to rein in money laundering and establish consumer protections without stifling innovation.


The currency exchange itBit said it intended to fully comply with regulations and said it applauded New York's "thoughtful and transparent approach." SecondMarket, a Wall Street firm that runs a Bitcoin Investment Trust, said the rules "will help promote further adoption of digital currencies by both consumers and investors alike."


Jim Harper, Washington-based global policy counsel at the Bitcoin Foundation, said some provisions of the regulations would be a heavy burden on bitcoin businesses. For instance, they wouldn't be able to keep their earnings in bitcoin, but have to convert them to regular-currency assets, like Treasury bonds or money-market funds. In addition, the requirement that they collect physical addresses of the parties in all transactions is "generally inconsistent with the way bitcoin works today."


But most importantly, Harper said it's unnecessary to issue licenses specific to a certain technology.


"The preference would be for there not to be a special bitcoin license but simply to integrate bitcoin into financial services," he said.


The proposed rules are scheduled to be published July 23, followed by a 45-day comment period. The regulations would require of licensed companies:


— a background check of all employees and founders with fingerprints submitted to state authorities and the FBI;


— a bond or trust account in U.S. dollars to protect customers;


— internal controls against money laundering including customer identification;


— notifications within 24 hours of aggregate individual transactions valued at $10,000 or more;


— written approval of all new business activities or offerings;


— a security program;


— quarterly financial statements;


— the retention of 10 years of business transaction records.


The department would prohibit accounts with shell entities that have no physical presence in any country and require notifying customers that virtual currency is not legal tender and not backed by the government.


In March, the U.S. Treasury Department's Financial Crimes Enforcement Network said its requirements for money services applied to virtual currency exchangers and administrators, requiring that exchanges register. Meanwhile, the IRS issued guidance that virtual currency is treated as property for federal tax purposes and is taxable as wages and payments to contractors.


___


Online:


Proposed regulations:


http://ift.tt/1ssVpGq


___


Associated Press writer Peter Svensson in New York contributed to this report.




July 17, 2014 at 02:38PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

Bitcoin just got bigger in SA



Up to 30,000 online merchants in South Africa can now accept digital currency Bitcoin, through a partnership between local Bitcoin exchange BitX and payment gateway, Payfast.


The system is currently in beta testing mode, according to Payfast, but sellers can already start accepting Bitcoin payments from local and international buyers.


“What makes this different from most Bitcoin platforms/transactions, is that while buyers will make a Bitcoin payment, sellers will receive South African rand in their PayFast accounts (and then, bank accounts),” the group said.


The payment company noted that sellers are not required to own a Bitcoin wallet, or even understand how the digital currency works, as payments are converted to rands.


BitX Tweet

BitX Tweet



Over the past five years Bitcoin has matured from being a theoretical crypto-currency to a viable transaction mechanism – though not without its controversies and downfalls.


The currency is considered to be extremely volatile, and open to potential market manipulation through cyber attacks.


“If a seller listed a product on their website for 1 BTC (at an exchange rate of R6,900) and someone purchased that item at a later date, when the rate of exchange is lower (say R6,000), they would ultimately lose out on the transaction (or have some explaining to do to their accountant),” Payfast noted.


However, the company pointed to many advantages to using the system:



  • It can be much cheaper to accept Bitcoin than other international payment methods;

  • Transactions are not subject to reversals or costly chargebacks;

  • Payments can be sent and received from almost anywhere in the world;

  • It is fast (particularly compared to international bank transfers).


In October 2013, Stellenbosch-based BitX – a market platform that allows individuals to trade Bitcoin using South African Rands – was acquired by Switchless, a provider of enterprise Bitcoin solutions.


Currently, BitX lists 1 Bitcoin valued at R6,790.


More on Bitcoin


Is this South Africa’s Bitcoin?


Why Bitcoin may re-write banking practice


Bitcoin: the internet’s financial revolution


What SARB thinks about Bitcoin




July 17, 2014 at 02:06PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York proposes regulations for bitcoin



(AP) — State regulators trying to curb money laundering and safeguard investors on Thursday proposed a special set of rules for firms involved in trading and storing virtual currencies.


New York is the first state to propose issuing separate regulations for virtual currencies, demonstrating the importance regulators attach to the fledgling field. New York City is home to several startups dealing in bitcoin, the most popular virtual currency, and some Wall Street firms are edging into the field as well.


Some industry firms vowed to comply. But the Bitcoin Foundation, a nonprofit organization that promotes the currency, questioned whether separate regulations were warranted and suggested operators should instead be integrated into existing financial regulations.


The proposal by the Department of Financial Services would establish a so-called BitLicense.


Merchants and consumers who use the virtual currency solely to buy and sell goods and services wouldn't need the license, but those buying and selling virtual currency as a business would.


Bitcoin and other virtual currencies have been gaining the backing of legitimate investors and mainstream businesses. Earlier this year, Overstock.com became the first major retailer to accept digital money.


Users swap cash for virtual currency using online exchanges, then store it in a wallet program on their computer. The program can transfer payments directly to a merchant who accepts the currency or to private parties anywhere in the world, eliminating transaction fees and the need to provide bank or credit card information.


New York's proposed regulations follow a yearlong department study. Financial Services Superintendent Ben Lawsky said his agency is trying to rein in money laundering and establish consumer protections without stifling innovation.


The currency exchange itBit said it intended to fully comply with regulations and said it applauded New York's "thoughtful and transparent approach." SecondMarket, a Wall Street firm that runs a Bitcoin Investment Trust, said the rules "will help promote further adoption of digital currencies by both consumers and investors alike."


Jim Harper, Washington-based global policy counsel at the Bitcoin Foundation, said some provisions of the regulations would be a heavy burden on bitcoin businesses. For instance, they wouldn't be able to keep their earnings in bitcoin, but have to convert them to regular-currency assets, like Treasury bonds or money-market funds. In addition, the requirement that they collect physical addresses of the parties in all transactions is "generally inconsistent with the way bitcoin works today."


But most importantly, Harper said it's unnecessary to issue licenses specific to a certain technology.


"The preference would be for there not to be a special bitcoin license but simply to integrate bitcoin into financial services," he said.


The proposed rules are scheduled to be published July 23, followed by a 45-day comment period. The regulations would require of licensed companies:


— a background check of all employees and founders with fingerprints submitted to state authorities and the FBI;


— a bond or trust account in U.S. dollars to protect customers;


— internal controls against money laundering including customer identification;


— notifications within 24 hours of aggregate individual transactions valued at $10,000 or more;


— written approval of all new business activities or offerings;


— a security program;


— quarterly financial statements;


— the retention of 10 years of business transaction records.


The department would prohibit accounts with shell entities that have no physical presence in any country and require notifying customers that virtual currency is not legal tender and not backed by the government.


In March, the U.S. Treasury Department's Financial Crimes Enforcement Network said its requirements for money services applied to virtual currency exchangers and administrators, requiring that exchanges register. Meanwhile, the IRS issued guidance that virtual currency is treated as property for federal tax purposes and is taxable as wages and payments to contractors.


___


Online:


Proposed regulations:


http://ift.tt/1ssVpGq


___


Associated Press writer Peter Svensson in New York contributed to this report.


Associated Press


July 17, 2014 at 02:27PM



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New York Proposes First State Regulations for Bitcoin

[fivefilters.org: unable to retrieve full-text content]


New York State’s top financial regulator has taken a big step to bring Bitcoin and other virtual currencies under its purview. On Thursday, Benjamin M. Lawsky, the superintendent of financial services, announced proposed regulations for virtual currency ... July 17, 2014 at 02:08PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

Bitcoin just got bigger in SA



Up to 30,000 online merchants in South Africa can now accept digital currency Bitcoin, through a partnership between local Bitcoin exchange BitX and payment gateway, Payfast.


The system is currently in beta testing mode, according to Payfast, but sellers can already start accepting Bitcoin payments from local and international buyers.


“What makes this different from most Bitcoin platforms/transactions, is that while buyers will make a Bitcoin payment, sellers will receive South African rand in their PayFast accounts (and then, bank accounts),” the group said.


The payment company noted that sellers are not required to own a Bitcoin wallet, or even understand how the digital currency works, as payments are converted to rands.


BitX Tweet

BitX Tweet



Over the past five years Bitcoin has matured from being a theoretical crypto-currency to a viable transaction mechanism – though not without its controversies and downfalls.


The currency is considered to be extremely volatile, and open to potential market manipulation through cyber attacks.


“If a seller listed a product on their website for 1 BTC (at an exchange rate of R6,900) and someone purchased that item at a later date, when the rate of exchange is lower (say R6,000), they would ultimately lose out on the transaction (or have some explaining to do to their accountant),” Payfast noted.


However, the company pointed to many advantages to using the system:



  • It can be much cheaper to accept Bitcoin than other international payment methods;

  • Transactions are not subject to reversals or costly chargebacks;

  • Payments can be sent and received from almost anywhere in the world;

  • It is fast (particularly compared to international bank transfers).


In October 2013, Stellenbosch-based BitX – a market platform that allows individuals to trade Bitcoin using South African Rands – was acquired by Switchless, a provider of enterprise Bitcoin solutions.


Currently, BitX lists 1 Bitcoin valued at R6,790.


More on Bitcoin


Is this South Africa’s Bitcoin?


Why Bitcoin may re-write banking practice


Bitcoin: the internet’s financial revolution


What SARB thinks about Bitcoin




July 17, 2014 at 02:06PM



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New York state proposes sweeping Bitcoin regulations—and they’re strict

New York Looking to Regulate Bitcoin Businesses



Bitcoins


New York Looking To Regulate Bitcoin


There is news out today that New York is looking to regulate Bitcoin, there is a focus on protecting the consumer, while also making sure that cybersecurity is in place along with anti money laundering compliance.


Mary Beth Quirk wrote on The Consumerist:



New York has taken a step in the direction of keeping consumers’ safe with a proposed plan that sets up a regulatory framework for any business dealing with bitcoins.


The New York Department of Financial Services announced a draft for its proposed plan [PDF] today for any bitcoin or virtual currency businesses operating in the state, dubbing it the “BitLicense” plan.


That draft includes consumer protection, anti-money laundering compliance and cybersecurity rules, all of which will be up for a public commenting period of 45 days as of July 23.


On the consumer front, the BitLicense plan has rules covering the safeguarding of consumer assets, a requirement for businesses to issue consumers virtual currency receipts and a stipulation that businesses must establish and maintain written consumer complaint policies in order to “resolve consumer complaints in a fair and timely manner.”


Each company also has to provide notice to consumers that they can bring complaints to the DFS’ attention if they’d like the department to look into an issue further.





July 17, 2014 at 01:59PM



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New York Proposes First State Regulations for Bitcoin

[fivefilters.org: unable to retrieve full-text content]


New York State’s top financial regulator has taken a big step to bring Bitcoin and other virtual currencies under its purview. On Thursday, Benjamin M. Lawsky, the superintendent of financial services, announced proposed regulations for virtual currency ... July 17, 2014 at 01:49PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

World Bank Report: Bitcoin is a ‘Naturally Occurring’ Ponzi

[fivefilters.org: unable to retrieve full-text content]


A recently published World Bank policy research working paper on Ponzi schemes mentions bitcoin as a “naturally occurring Ponzi”, clarifying that it has nothing to do with deliberate Ponzi schemes, as some bitcoin critics have claimed. Kaushik Basu ... July 17, 2014 at 01:41PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York state proposes sweeping Bitcoin regulations—and they’re strict

New York’s New Bitcoin Rules Are Going to Kill Its Startups


New York State has released a first draft of its much-anticipated plan to regulate bitcoin and other virtual currencies, and at first blush, they look like they were written for the 19th century banking industry, not the modern fast-changing world of crypto currencies.


The guy responsible for the rules, Benjamin Lawsky, has a fine line to walk. Bitcoin, after all, came of age as a lubricant for illegal activity on the Silk Road. But today, a new generation of bitcoin startups are coming of age with millions of dollars in backing from legitimate venture capital companies. Is New York about to drive these startups out of town by clubbing them with onerous regulations before they can walk? Quite possibly. The New York regulations introduce a new level of reporting rules that cover a wider swath of businesses and require more work than the current federal guidelines.


The guidelines ask bitcoin businesses to keep track not only of the physical addresses of their customers, but also of anybody who sends their customers money using the bitcoin network. That undermines the fundamental value proposition of bitcoin, which works very much like the internet’s version of cash. But there’s more. Bitcoin businesses must also file frequent reports to Lawsky’s organization, the New York State Department of Financial Services, or DFS, to detail changes in ownership, financial forecasts, even strategic business plans.


If adopted, these requirements will make things very tough for bitcoin startups, who have limited resources and are scrambling to invent whole new types of businesses. “I am concerned that the reporting is extremely frequent and extremely detailed. And it seems quite onerous especially in a new business,” says Jean-Jacques Cabou, a partner with the law firm Perkins Coie, who advises bitcoin companies


In some cases, bitcoin businesses would have to do more reporting than other businesses licensed by the DFS. For example, they have to store 10 years worth of customer complaints. “The corner store that does money transmission doesn’t keep 10 years of customer complaints,” says Cabou. “This is just a lot for a new industry to do and I think it would be very hard.”



Another big problem is that the regulations appear to cover a whole new class of bitcoin businesses that are not presently subject to federal regulation. These include online wallet companies like Blockchain and BitGo, and maybe even bitcoin tipping apps. That’s “ridiculous,” according to Patrick Muck, general counsel for the Bitcoin Foundation. “Really the scope of this thing ropes in the whole industry,” he says. “This proposal would set New York up as a quasi-federal regulator for the entire bitcoin industry.”


The DFS did not immediately respond to WIRED’s request for comment, but the agency is clearly ready to engage in some back-and-forth with the bitcoin community. Lawsky, the Superintendent of Financial Services at the DFS, unveiled the proposed regulations on Reddit today, where they were not exactly well-received.


Roger Ver, a libertarian who and serial bitcoin business investor, believes that—if adopted— the rules will drive bitcoin businesses out of New York. “These men calling themselves government are not asking anybody to do anything. They are making demands, and will put us behind bars if we don’t obey,” he says. “Bitcoin was specifically designed to strip away power from men who would be so presumptuous to believe that they have the right to rule over others.”



July 17, 2014 at 12:23PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York's proposed Bitcoin rules include consumer protections

New York state proposes sweeping Bitcoin regulations—and they’re strict

New York Proposes First State Regulations for Bitcoin

[fivefilters.org: unable to retrieve full-text content]


New York State’s top financial regulator has taken a big step to bring Bitcoin and other virtual currencies under its purview. On Thursday, Benjamin M. Lawsky, the superintendent of financial services, announced proposed regulations for virtual currency ... July 17, 2014 at 01:22PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York’s New Bitcoin Rules Are Going to Kill Its Startups


New York State has released a first draft of its much-anticipated plan to regulate bitcoin and other virtual currencies, and at first blush, they look like they were written for the 19th century banking industry, not the modern fast-changing world of crypto currencies.


The guy responsible for the rules, Benjamin Lawsky, has a fine line to walk. Bitcoin, after all, came of age as a lubricant for illegal activity on the Silk Road. But today, a new generation of bitcoin startups are coming of age with millions of dollars in backing from legitimate venture capital companies. Is New York about to drive these startups out of town by clubbing them with onerous regulations before they can walk? Quite possibly. The New York regulations introduce a new level of reporting rules that cover a wider swath of businesses and require more work than the current federal guidelines.


The guidelines ask bitcoin businesses to keep track not only of the physical addresses of their customers, but also of anybody who sends their customers money using the bitcoin network. That undermines the fundamental value proposition of bitcoin, which works very much like the internet’s version of cash. But there’s more. Bitcoin businesses must also file frequent reports to Lawsky’s organization, the New York State Department of Financial Services, or DFS, to detail changes in ownership, financial forecasts, even strategic business plans.


If adopted, these requirements will make things very tough for bitcoin startups, who have limited resources and are scrambling to invent whole new types of businesses. “I am concerned that the reporting is extremely frequent and extremely detailed. And it seems quite onerous especially in a new business,” says Jean-Jacques Cabou, a partner with the law firm Perkins Coie, who advises bitcoin companies


In some cases, bitcoin businesses would have to do more reporting than other businesses licensed by the DFS. For example, they have to store 10 years worth of customer complaints. “The corner store that does money transmission doesn’t keep 10 years of customer complaints,” says Cabou. “This is just a lot for a new industry to do and I think it would be very hard.”



Another big problem is that the regulations appear to cover a whole new class of bitcoin businesses that are not presently subject to federal regulation. These include online wallet companies like Blockchain and BitGo, and maybe even bitcoin tipping apps. That’s “ridiculous,” according to Patrick Muck, general counsel for the Bitcoin Foundation. “Really the scope of this thing ropes in the whole industry,” he says. “This proposal would set New York up as a quasi-federal regulator for the entire bitcoin industry.”


The DFS did not immediately respond to WIRED’s request for comment, but the agency is clearly ready to engage in some back-and-forth with the bitcoin community. Lawsky, the Superintendent of Financial Services at the DFS, unveiled the proposed regulations on Reddit today, where they were not exactly well-received.


Roger Ver, a libertarian who and serial bitcoin business investor, believes that—if adopted— the rules will drive bitcoin businesses out of New York. “These men calling themselves government are not asking anybody to do anything. They are making demands, and will put us behind bars if we don’t obey,” he says. “Bitcoin was specifically designed to strip away power from men who would be so presumptuous to believe that they have the right to rule over others.”



July 17, 2014 at 12:23PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York's proposed Bitcoin rules include consumer protections

World Bank economist calls bitcoin a ‘naturally occurring’ Ponzi



Staunch critics of bitcoin have labelled the digital currency as a Ponzi scheme – economist Gary North went into great detail outlining a list of reasons why the popular cryptocurrency is one. Financial institutions, think-tank organizations and economic analysts have also called it a Ponzi scheme. But is it possible for the digital currency to be a “naturally occurring” Ponzi?


According to a recent report authored by authored by Kaushik Basu, a World Bank economist, entitled “Ponzis: The Science and Mystique of a Class of Financial Frauds,” it’s feasible that bitcoin could very well be a natural Ponzi, which doesn’t necessarily have anything to do with Ponzi schemes.


Basu discussed how Ponzi schemes today are a lot harder to pinpoint because they’re more sophisticated and more difficult to detect in the present day economy. Basu presented the case that there are examples of natural Ponzis in the market today: the housing market is one example because if potential homeowners think housing prices will soar then they’ll fight to acquire a home that leads to heightened demand and higher prices. However, once the bubble maximizes and bursts then those who entered at the tail end of it lose out.


The World Bank economist also cited gold as a victim of natural Ponzis.


Here is what Basu wrote in regards to bitcoin:



“One of the most recent cases of bubbles occurred in the new ‘Bitcoin’ experiment. Bitcoin is a cryptocurrency; the main and original attraction of which is the low transactions cost associated with its use. One can buy bitcoin the way one can buy euros and trade freely with others having euros. Trouble started when people began speculating that the value of bitcoin would rise, thereby raising the demand for bitcoin and making the value-rise a self-fulfilling prophesy. In other words, what we witnessed recently in the bitcoin phenomenon fits the standard definition of a speculative bubble.”



The United States Securities and Exchange Commission (SEC) previously wrote last month that bitcoin may very well be a Ponzi scheme and hurt investors who refrain from performing their due diligence and required research.


Economist Nouriel Roubini also chimed in on the bitcoin foray and categorized it as a Ponzi scheme as well. Roubini, who has called for many bubbles in the stock market today, averred that the peer-to-peer decentralized digital currency is a “lousy store of value.”


Of course, the words that really bothered the bitcoin community were that of North, who opined: “Here is an economic fact: the number of fools is limited. They are a scarce economic resource. As the price of bitcoins rises, more fools will be lured into the market. But this is a finite market.”




July 17, 2014 at 11:45AM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York state proposes sweeping Bitcoin regulations—and they’re strict

New York’s New Bitcoin Rules Are Going to Kill Its Startups


New York State has released a first draft of its much-anticipated plan to regulate bitcoin and other virtual currencies, and at first blush, they look like they were written for the 19th century banking industry, not the modern fast-changing world of crypto currencies.


The guy responsible for the rules, Benjamin Lawsky, has a fine line to walk. Bitcoin, after all, came of age as a lubricant for illegal activity on the Silk Road. But today, a new generation of bitcoin startups are coming of age with millions of dollars in backing from legitimate venture capital companies. Is New York about to drive these startups out of town by clubbing them with onerous regulations before they can walk? Quite possibly. The New York regulations introduce a new level of reporting rules that cover a wider swath of businesses and require more work than the current federal guidelines.


The guidelines ask bitcoin businesses to keep track not only of the physical addresses of their customers, but also of anybody who sends their customers money using the bitcoin network. That undermines the fundamental value proposition of bitcoin, which works very much like the internet’s version of cash. But there’s more. Bitcoin businesses must also file frequent reports to Lawsky’s organization, the New York State Department of Financial Services, or DFS, to detail changes in ownership, financial forecasts, even strategic business plans.


If adopted, these requirements will make things very tough for bitcoin startups, who have limited resources and are scrambling to invent whole new types of businesses. “I am concerned that the reporting is extremely frequent and extremely detailed. And it seems quite onerous especially in a new business,” says Jean-Jacques Cabou, a partner with the law firm Perkins Coie, who advises bitcoin companies


In some cases, bitcoin businesses would have to do more reporting than other businesses licensed by the DFS. For example, they have to store 10 years worth of customer complaints. “The corner store that does money transmission doesn’t keep 10 years of customer complaints,” says Cabou. “This is just a lot for a new industry to do and I think it would be very hard.”



Another big problem is that the regulations appear to cover a whole new class of bitcoin businesses that are not presently subject to federal regulation. These include online wallet companies like Blockchain and BitGo, and maybe even bitcoin tipping apps. That’s “ridiculous,” according to Patrick Muck, general counsel for the Bitcoin Foundation. “Really the scope of this thing ropes in the whole industry,” he says. “This proposal would set New York up as a quasi-federal regulator for the entire bitcoin industry.”


The DFS did not immediately respond to WIRED’s request for comment, but the agency is clearly ready to engage in some back-and-forth with the bitcoin community. Lawsky, the Superintendent of Financial Services at the DFS, unveiled the proposed regulations on Reddit today, where they were not exactly well-received.


Roger Ver, a libertarian who and serial bitcoin business investor, believes that—if adopted— the rules will drive bitcoin businesses out of New York. “These men calling themselves government are not asking anybody to do anything. They are making demands, and will put us behind bars if we don’t obey,” he says. “Bitcoin was specifically designed to strip away power from men who would be so presumptuous to believe that they have the right to rule over others.”



July 17, 2014 at 12:23PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York's proposed Bitcoin rules include consumer protections

World Bank economist calls bitcoin a ‘naturally occurring’ Ponzi



Staunch critics of bitcoin have labelled the digital currency as a Ponzi scheme – economist Gary North went into great detail outlining a list of reasons why the popular cryptocurrency is one. Financial institutions, think-tank organizations and economic analysts have also called it a Ponzi scheme. But is it possible for the digital currency to be a “naturally occurring” Ponzi?


According to a recent report authored by authored by Kaushik Basu, a World Bank economist, entitled “Ponzis: The Science and Mystique of a Class of Financial Frauds,” it’s feasible that bitcoin could very well be a natural Ponzi, which doesn’t necessarily have anything to do with Ponzi schemes.


Basu discussed how Ponzi schemes today are a lot harder to pinpoint because they’re more sophisticated and more difficult to detect in the present day economy. Basu presented the case that there are examples of natural Ponzis in the market today: the housing market is one example because if potential homeowners think housing prices will soar then they’ll fight to acquire a home that leads to heightened demand and higher prices. However, once the bubble maximizes and bursts then those who entered at the tail end of it lose out.


The World Bank economist also cited gold as a victim of natural Ponzis.


Here is what Basu wrote in regards to bitcoin:



“One of the most recent cases of bubbles occurred in the new ‘Bitcoin’ experiment. Bitcoin is a cryptocurrency; the main and original attraction of which is the low transactions cost associated with its use. One can buy bitcoin the way one can buy euros and trade freely with others having euros. Trouble started when people began speculating that the value of bitcoin would rise, thereby raising the demand for bitcoin and making the value-rise a self-fulfilling prophesy. In other words, what we witnessed recently in the bitcoin phenomenon fits the standard definition of a speculative bubble.”



The United States Securities and Exchange Commission (SEC) previously wrote last month that bitcoin may very well be a Ponzi scheme and hurt investors who refrain from performing their due diligence and required research.


Economist Nouriel Roubini also chimed in on the bitcoin foray and categorized it as a Ponzi scheme as well. Roubini, who has called for many bubbles in the stock market today, averred that the peer-to-peer decentralized digital currency is a “lousy store of value.”


Of course, the words that really bothered the bitcoin community were that of North, who opined: “Here is an economic fact: the number of fools is limited. They are a scarce economic resource. As the price of bitcoins rises, more fools will be lured into the market. But this is a finite market.”




July 17, 2014 at 11:45AM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York State proposes sweeping Bitcoin regulations—and they’re strict

New York’s New Bitcoin Rules Are Going to Kill Its Startups


New York State has released a first draft of its much-anticipated plan to regulate bitcoin and other virtual currencies, and at first blush, they look like they were written for the 19th century banking industry, not the modern fast-changing world of crypto currencies.


The guy responsible for the rules, Benjamin Lawsky, has a fine line to walk. Bitcoin, after all, came of age as a lubricant for illegal activity on the Silk Road. But today, a new generation of bitcoin startups are coming of age with millions of dollars in backing from legitimate venture capital companies. Is New York about to drive these startups out of town by clubbing them with onerous regulations before they can walk? Quite possibly. The New York regulations introduce a new level of reporting rules that cover a wider swath of businesses and require more work than the current federal guidelines.


The guidelines ask bitcoin businesses to keep track not only of the physical addresses of their customers, but also of anybody who sends their customers money using the bitcoin network. That undermines the fundamental value proposition of bitcoin, which works very much like the internet’s version of cash. But there’s more. Bitcoin businesses must also file frequent reports to Lawsky’s organization, the New York State Department of Financial Services, or DFS, to detail changes in ownership, financial forecasts, even strategic business plans.


If adopted, these requirements will make things very tough for bitcoin startups, who have limited resources and are scrambling to invent whole new types of businesses. “I am concerned that the reporting is extremely frequent and extremely detailed. And it seems quite onerous especially in a new business,” says Jean-Jacques Cabou, a partner with the law firm Perkins Coie, who advises bitcoin companies


In some cases, bitcoin businesses would have to do more reporting than other businesses licensed by the DFS. For example, they have to store 10 years worth of customer complaints. “The corner store that does money transmission doesn’t keep 10 years of customer complaints,” says Cabou. “This is just a lot for a new industry to do and I think it would be very hard.”



Another big problem is that the regulations appear to cover a whole new class of bitcoin businesses that are not presently subject to federal regulation. These include online wallet companies like Blockchain and BitGo, and maybe even bitcoin tipping apps. That’s “ridiculous,” according to Patrick Muck, general counsel for the Bitcoin Foundation. “Really the scope of this thing ropes in the whole industry,” he says. “This proposal would set New York up as a quasi-federal regulator for the entire bitcoin industry.”


The DFS did not immediately respond to WIRED’s request for comment, but the agency is clearly ready to engage in some back-and-forth with the bitcoin community. Lawsky, the Superintendent of Financial Services at the DFS, unveiled the proposed regulations on Reddit today, where they were not exactly well-received.


Roger Ver, a libertarian who and serial bitcoin business investor, believes that—if adopted— the rules will drive bitcoin businesses out of New York. “These men calling themselves government are not asking anybody to do anything. They are making demands, and will put us behind bars if we don’t obey,” he says. “Bitcoin was specifically designed to strip away power from men who would be so presumptuous to believe that they have the right to rule over others.”



July 17, 2014 at 12:23PM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card

New York's proposed Bitcoin rules include consumer protections

World Bank economist calls bitcoin a ‘naturally occurring’ Ponzi



Staunch critics of bitcoin have labelled the digital currency as a Ponzi scheme – economist Gary North went into great detail outlining a list of reasons why the popular cryptocurrency is one. Financial institutions, think-tank organizations and economic analysts have also called it a Ponzi scheme. But is it possible for the digital currency to be a “naturally occurring” Ponzi?


According to a recent report authored by authored by Kaushik Basu, a World Bank economist, entitled “Ponzis: The Science and Mystique of a Class of Financial Frauds,” it’s feasible that bitcoin could very well be a natural Ponzi, which doesn’t necessarily have anything to do with Ponzi schemes.


Basu discussed how Ponzi schemes today are a lot harder to pinpoint because they’re more sophisticated and more difficult to detect in the present day economy. Basu presented the case that there are examples of natural Ponzis in the market today: the housing market is one example because if potential homeowners think housing prices will soar then they’ll fight to acquire a home that leads to heightened demand and higher prices. However, once the bubble maximizes and bursts then those who entered at the tail end of it lose out.


The World Bank economist also cited gold as a victim of natural Ponzis.


Here is what Basu wrote in regards to bitcoin:



“One of the most recent cases of bubbles occurred in the new ‘Bitcoin’ experiment. Bitcoin is a cryptocurrency; the main and original attraction of which is the low transactions cost associated with its use. One can buy bitcoin the way one can buy euros and trade freely with others having euros. Trouble started when people began speculating that the value of bitcoin would rise, thereby raising the demand for bitcoin and making the value-rise a self-fulfilling prophesy. In other words, what we witnessed recently in the bitcoin phenomenon fits the standard definition of a speculative bubble.”



The United States Securities and Exchange Commission (SEC) previously wrote last month that bitcoin may very well be a Ponzi scheme and hurt investors who refrain from performing their due diligence and required research.


Economist Nouriel Roubini also chimed in on the bitcoin foray and categorized it as a Ponzi scheme as well. Roubini, who has called for many bubbles in the stock market today, averred that the peer-to-peer decentralized digital currency is a “lousy store of value.”


Of course, the words that really bothered the bitcoin community were that of North, who opined: “Here is an economic fact: the number of fools is limited. They are a scarce economic resource. As the price of bitcoins rises, more fools will be lured into the market. But this is a finite market.”




July 17, 2014 at 11:45AM



Latest Bitcoin News | BTC/LTC Robot | Mining ASICS | BTC Debit Card