Europe

Denmark’s Authorities: Bitcoin is Not Regulated Here

"Denmark’s Financial Supervisory Authority (FSA) today issued an official statement on the use of virtual currency in the country – and surprisingly, it’s not all bad news. The statement highlights that virtual currency isn’t covered by Denmark’s existing regulatory framework. Thus, cryptocurrencies cannot be subjected to the country’s standard financial regulation. According to the FSA, doing business with bitcoin and other cryptocurrencies does not qualify as issuance of electronic money, currency exchanges, brokerages or deposit services. As a result, bitcoin entrepreneurs who want to build businesses and establish exchanges in the country will not need government approval." Continue reading →

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Cyprus central bank: Bitcoin use dangerous

"The Central Bank (CBC) has said use of virtual currency bitcoin is extremely dangerous, the Cyprus News Agency (CNA) said on Tuesday. 'Using any virtual money is extremely dangerous because they are not monitored by any authority, thus operating without control,' CNA said, quoting the CBC. In a written response later on Tuesday, Danny Brewster the CEO of Neo & Bee, the largest business in the world that is building infrastructure around the Bitcoin technology, said he had been trying for the past two weeks to reach and arrange a meeting with the CBC so that it could operate under the appropriate regulatory framework." Continue reading →

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Dismantle the euro, says Nobel-winning economist who backed it

"A Nobel prize-winning economist will on Thursday withdraw his support for the euro saying it has created a 'lost generation' unemployed youngsters and should be broken up. Sir Christopher Pissarides was once a key proponent of a single currency but will on Thursday accuse the euro of 'dividing Europe' and say action is needed to 'restore the euro’s credibility in international markets' and the 'trust that Europe’s nations once had in each other', according to the Daily Mail. The Cypriot-British economist, who won the Nobel prize in 2010, is speaking days after Christine Lagarde, the head of the International Monetary Fund, insisted the crisis in the eurozone was not yet over." Continue reading →

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European Union Warns on Bitcoin

"The European Union on Friday added to a string of recent warnings about the safety of using and investing in Bitcoin, the virtual currency that is not issued by any government. The union’s banking authority said consumers needed to be aware that they were not protected through regulation when paying with Bitcoins. The digital currency is vulnerable to hackers, might lose its value and any misuse could prompt law enforcement agencies to close Bitcoin exchange platforms and keep consumers from accessing their investment, the European regulator said, adding that it was looking into whether such currencies could and should be regulated." Continue reading →

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Bitcoins Fail Currency Test in Scandinavia’s Richest Nation

"Bitcoins were dealt a blow in Norway as the government of Scandinavia’s richest nation said the virtual currency doesn’t qualify as real money. 'Bitcoins don’t fall under the usual definition of money or currency,' Hans Christian Holte, director general of taxation in Norway, said in an interview. 'We’ve done some assessments on what’s the right and sound way to handle this in the tax system.' Norway will instead treat Bitcoins as an asset and charge a capital gains tax. While tax revenue from Bitcoins isn’t substantial, Holte at the Norwegian tax authority said he plans to work with other countries to hammer out the legal aspects of Bitcoin." Continue reading →

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Keiser Report: Bitcoin Battle

"In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the bitcoin price plunge as Baidu ditches the crypto currency and China bans it for financial firms. Unnoticed at the same time, Germany declares bitcoin to be private money and Merrill Lynch claims it can replace money transfer systems like Western Union. In the second half, Max interviews Dr. Christos Vlachos, CFO of the University of Nicosia, which is now accepting bitcoin as payment and he explains how the volatility in the price won't matter to the university. They also discuss Dr. Vlachos' hope to turn Cyprus into a bitcoin hub." Continue reading →

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Croatian central bank establishes that Bitcoin is legal in Croatia

"Croatian national bank (CNB) gave its opinion that Bitcoin is legal, and the most notable mention was a piece on Bitcoin that got aired on 19:30 national television news on Monday. CNB took the very liberal stand that echoes European central bank document on virtual currency schemes from October 2012, noting that Bitcoin is not illegal in Croatia. They noted that it is not electronic money since it's not debt to the issuer (although it has some similarities with electronic money), and that it is not legal tender in Croatia but can be legally used." Continue reading →

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French central bank warns against using bitcoin

"France's central bank has warned against the use of the virtual currency bitcoin, noting that it is not only highly volatile but also unregulated by authorities. Launched in 2009 as the invention of a mysterious computer guru who goes by the pseudonym Satoshi Nakamoto, bitcoins can be exchanged online for real money or used to buy goods and services on the internet. But the Bank of France is sceptical about the currency, and underlined that the 'highly speculative' currency poses a 'certain financial risk' to users. 'Even if the high volatility of the bitcoin is of possible interest for individual or professional speculators, they should be aware of the risks they are taking,' the bank said." Continue reading →

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Ukraine protests increase risks of currency crisis

"Massive protests against Viktor Yanukovich hammered Ukraine's financial markets on Monday, increasing the risk of a currency crisis as the president tries to hold on until an election in early 2015. Ukraine's debt insurance costs jumped and currency traders increased bets on a devaluation after 350,000 people protested on Sunday against Yanukovich's decision to ditch a trade pact with the European Union. Central bank Governor Ihor Sorkin backed up foreign exchange intervention by vowing to do everything needed to uphold financial stability. In an online video message, he urged savers 'to be confident in the banking system' and not to withdraw their deposits." Continue reading →

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Dutch central bank warns consumers to be careful with bitcoins

"The Dutch central bank on Tuesday warned consumers about the rising popularity of virtual currency such as bitcoins, pointing out that they currently fall outside official regulatory channels. Nor does the central bank have a regulatory roll in companies which trade virtual currency, the institution said in a short statement. ‘Consumers should be aware of the risks they run when they acquire bitcoins,’ the statement said. ‘The exchange rate is volatile and there is no central authority consumers can hold responsible. Nor are Dutch guarantees on savings applicable.’ Several Dutch cafes and bars now accept bitcoins as currency, such as the Café De Waag in Delft." Continue reading →

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