Bitcoin

Bitcoin’s complex and changing regulatory environment

"A compliant multi-state MSB needs all of the following: Maintaining a net worth greater than $1.5 Million; Securing millions of dollars in surety bond coverage to insure customer transactions in the event of insolvency; Completing a financial audit; Creating proper KYC, AML, and other compliance systems; Going through an independent compliance audit; Hiring a compliance officer with at least five years of experience; Extensive background checks and financial disclosures from officers and investors; Due diligence on every partner and intermediary that is involved in the flow of funds. After all these conditions are met, obtaining licenses can take as long as a year." Continue reading →

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Is FinCEN Leaking Your Personal Data?

"When citizens file their information with the federal government there is a law in place called the Privacy Act. This law is supposed to protect the information from disclosures. When I visited FinCEN I noticed an unusual link at the bottom labeled 'Google Privacy.' The page states 'This website utilizes Google Analytics to get aggregate metrics on website usage' and goes on to provide links to the Google privacy policy. Of course by the time you see the notice Google already has your info. If you were logged on to your personal account Google now knows you have an interest in Financial Crime networks. FinCEN provides 'opt-out' instructions but, guess what, it is too late." Continue reading →

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The wealth transfer effect of bitcoins

"Earlier this year, I wrote about a number of countries that would do well by adopting bitcoins, mostly because of either inflation or poor investment options in those countries. Those are still valid reasons for investing in BTC for citizens of those countries. But it now seems that in hindsight it would be a complete governmental collapse that would fuel increased interest in bitcoins. A loss of faith in a monetary system by a country’s citizens and stakeholders is likely more of a predictor of increased interest in bitcoin. So, what are the countries out there today that face big problems in terms of credit risk?" Continue reading →

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Firm says online gambling accounts for almost half of all Bitcoin transactions

"It's no secret that online gambling has been lucrative for a few pioneering companies. Even though it's been illegal in the US since 2006, companies have made relatively large sums serving customers who are either placing bets outside the US, through a VPN, or by simply sending a Bitcoin amount to a fixed address corresponding to a “game” which will return a player's money with various probabilities. One of the biggest Bitcoin gambling sites, SatoshiDice, stays on the up-and-up with US regulators by blocking IP addresses coming to its site from the US, but in January 2013 it reported ฿33,310 in profits in 2012, which at the time reflected $596,231 (although today it would reflect much more)." Continue reading →

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In-person Bitcoin exchanges make a splash in Berlin

"Supporters of Bitcoin spent Saturday engaging in personal exchanges in Berlin, taking place in a mobile art space which supports the cryptocurrency. Its official recognition by the German state earlier this month is only aiding its expansion. Bitcoin Exchange Berlin hosted their third meeting on Saturday at the city’s Platoon Kunsthalle (Platoon Art Hall) to launch a European hub where people can both buy and sell a selection of products using Bitcoin and buy and sell the currency itself in a stock-exchange type climate. Buyers attend with notebooks or electronic devices in order to create an account with the currency and buy it." Continue reading →

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Bitcoin and the New Fourth Estate: An Interview with Cop Block

"In a world where the flow of money can be so easily controlled by a government that has vested interests at odds with the good of the people, Bitcoin begins to show its true usefulness. Bitcoin was a lifeline to Wikileaks and may be a lifeline to Edward Snowden; and moving forward there is little doubt we will have to help other organizations and individuals who have transgressed the government in our name. I have recently had the pleasure of talking with Pete Eyre of Cop Block, an organization dedicated to exposing and reigning in the abuses of our state and local police forces. Cop Block accepts Bitcoin donations." Continue reading →

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Tradehill Bitcoin Accounts Moving to Internet Archive Credit Union

"Tradehill Inc., an exchange for virtual currencies such as Bitcoin, is moving customer accounts to a U.S. credit union, a shift designed to make it easier for clients to complete transactions. Holdings with Tradehill will be transitioned to federally-insured accounts at the Internet Archive Federal Credit Union, according to an e-mail to clients obtained by Bloomberg News. Tradehill is moving accounts to the credit union to win more business from investors and financial institutions that trade in Bitcoins, according to a person with knowledge of the matter, who asked not to be identified because the plans aren’t public." Continue reading →

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The Top 5 Bitcoin Shops

"There are increasingly less limits to what you can buy using Bitcoin, especially if you’re lucky enough to live in Berlin’s Kreuzberg area. Here are our top current picks for spending those hard earned BTC online: 1. All4BTC allows you to buy almost anything online with Bitcoin, provided you would be able to get delivered using Fiat. 2. BtcTrip.com Buy flights, and soon, rent cars and book hotels using BTC. 3. Gyft allows you to buy gift cards from almost any store, and accepts Bitcoin. 4. BitMit - Bitcoin’s answer to eBay – you can buy and sell using BTC, eBay auction style. 5. BitPremier - where you can buy Ferraris, Yachts, luxury apartments, art and more." Continue reading →

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Alydian targets big ticket miners with Terahash hosting

"In a little under a week, serious miners will be able to host Terahashes of ASIC mining power from Alydian – but only in large quantities. The Californian company is preparing to host ASIC mining equipment for its customers, using yearly contracts. Its launch day pricing was $65,000 per Terahash, and mining hosting contracts are only available in 5 and 10 Th/sec blocks. So, if you’re thinking of running a miner in your basement, you are not its target market. Alydian will be going after institutional-level investors that want to move large amounts of money into bitcoins. The question is, how is it getting the capacity so early, and what will it mean for everyone else?" Continue reading →

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