Bitcoin 

Bitfinex Cancels $8M Kim Dotcom IEO Citing Regulatory ‘Clear Risks’

Cryptocurrency exchange Bitfinex has abruptly canceled its token sale for K.im, Kim Dotcom’s Bitcoin (BTC) content sharing service. In a blog post on Nov. 5, executives said they had agreed not to go ahead with the sale, an initial exchange offering (IEO) which had a planned fundraising goal of $8 million.  Bitfinex: Risks have “become clear” The reason, they claimed, was the changing face of regulatory scrutiny over such tokens, which posed potential difficulties for both issuers and investors.  “Since we announced the debut of Kimcoin on the Bitfinex Token…

Read More
Blockchain 

Stablecoins Present Serious Regulatory Risks

The G20 finance chiefs of the world agree that global stablecoins give rise to a set of public policy and regulatory risks. On Oct. 18, Reuters reported that the G20, an international forum for the governments and central bank governors from 19 countries and the European Union, have called upon the International Monetary Fund to examine various macroeconomic implications of global stablecoins, including monetary sovereignty issues in its member countries. Members say stablecoins pose a serious risk to global finance Per the report, the nations agreed that global acceptance of…

Read More
Bitcoin 

Central Banks to Hedge Dollar Risks with Bitcoin, Pompliano Predicts

Every central bank will be buying Bitcoin (BTC) to hedge risks to the United States dollar, according to a forecast by major crypto bull Anthony Pompliano. In a tweet on Aug. 1, Pompliano, co-founder of asset manager firm Morgan Creek Digital Assets, noted the recent news that central banks made the largest historical acquisition of gold. As reported by The Financial Times, global central banks purchased a record of $15.7 billion in the first half of 2019 in order to diversify their reserves from the U.S. dollar amid global trade…

Read More
Ethereum 

Patent Trolling or Hedging Risks?

Earlier this week, Bank of America (BofA), one the United States’ largest financial institutions, made a massive splash in the crypto sphere as the details of its recently registered patent, entitled “Real-Time Net Settlement by Distributed Ledger System” and citing the Ripple blockchain, emerged in the press. Even though the extent and exact character of the proposed system’s reliance on Ripple is impossible to determine from the filing, the community of XRP holders and supporters rejoiced. A piquant nuance is that the XRP token itself was never mentioned in documentation, suggesting a…

Read More
Ethereum 

FDD Assesses Risks of Crypto Use by Countries Under US Sanctions

The American Foundation for Defense of Democracies (FDD) has assembled an assessment of current and future risks of cryptocurrency use by countries adversarial to the United States in a report published on July 11. In the report, the agency outlines possible future scenarios that would make blockchain technology sanctions resistance a larger threat. Specifically, the FDD analyzed how countries such as Russia, China, Venezuela, and Iran are deploying digital currency technology, and in what way this phenomenon could influence United States sanctions in future. In the report, the FDD warns…

Read More
Ethereum 

Mt. Gox Founder Knew of Security Risks Years Before Collapse, Lawsuit Claims

Mt. Gox founder Jed McCaleb is being sued by two traders who used the doomed exchange, court documents filed on May 19 show. Joseph Jones and Peter Steinmetz have accused the ex-CEO of fraudulently and negligently misrepresenting the exchange. The pair also allege that McCaleb was aware of “serious security risks” back in late 2010 or early 2011 — more than three years before 850,000 bitcoin (BTC) was stolen in an audacious hack. Their complaint adds: “Rather than secure the exchange, McCaleb sold a large portion of his interest in…

Read More
Ethereum 

Facebook’s Foray into Cryptocurrency Poses New Risks for Banks

The Bank of International Settlements (BIS) has warned that the financial services poised to be offered by big tech firms such as Facebook, Google and Amazon could generate new risks for the banking sector. The BIS — an international financial institution in Switzerland owned by 60 of the world’s central banks — published a report outlining its stance on June 23. Hot on the heels of Facebook’s newly-announced cryptocurrency, Libra, the BIS said that while big tech firms’ foray into finance can bring efficiency gains and broaden financial inclusion, regulators…

Read More
Bitcoin 

As Brazil’s Economy Risks Recession, Regulators and Banks Implement Blockchain

Brazil’s weak economic growth and inflationary pressure have led to more than 13 million Brazilians currently out of work. The unemployment rate currently stands at 12.5%. While the country runs the risk of recession, cryptocurrency’s low barrier for entry and promise of large returns appeal to Brazilians. Bruno Peroni, chief sales officer at Atlas Quantum, told Cointelegraph: “We have a higher number of people investing in crypto than on the local stocks markets. The most recent estimates show that there are 1.5 million Brazilians investing in crypto, whereas the local…

Read More
Bitcoin 

Facebook’s Libra Carries Both Benefits and Risks

Jerome Powell, the head of the United States Federal Reserve, has said that he recognizes both potential benefits and risks to Facebook’s recently-unveiled Libra cryptocurrency project . Powell made his remarks during a press conference broadcast on PBS news hour on June 19. During the conference, the Fed chair was asked whether he was concerned as to whether Facebook’s libra cryptocurrency could undermine the Fed and erode its power to influence the economy. In response, Powell said he believed that society remains a long way from digital currencies replacing central…

Read More
Bitcoin 

Bitcoin Hits All-Time High Versus Argentine Peso Amid Presidential Election Risks

The biggest cryptocurrency, bitcoin (BTC), has hit an all-time high versus the Argentine peso amid the ongoing decline of the currency, Financial Times (FT) reports on May 27. According to the report, the bitcoin price has soared to as high as 394,000 pesos ($8,762.95 at press time) per coin, exceeding prices versus the Argentine peso not seen since the bubble in late 2017. Bitcoin price against Argentine peso since 2017. Source: BitcoinAverage The new all-time high of bitcoin versus the peso takes place amid a crypto bull market this year,…

Read More