Showing posts with label Bitcoin. Show all posts
Showing posts with label Bitcoin. Show all posts
South Korea govt sends bitcoin on rollercoaster ride
KAREN BLEIER/AFP/Getty Images<br />
Justice Minister Park Sang-Ki said Seoul was preparing a bill to shut down the country's virtual coin exchanges, sending bitcoin and other virtual unit prices into a tailspin.
"The ministry is preparing legislation that basically bans any transactions based on a virtual currency through the trading floor," he told journalists.
Authorities had "grave concerns" over the craze and were "aiming to close virtual currency exchanges" in the country, he said.
"It has started to resemble gambling and speculation," Park added, citing the fact that bitcoin prices are higher in South Korea than globally -- the so-called "kimchi premium".
The hyper-wired South has emerged as a hotbed for cryptocurrency trading, accounting for some 20 percent of global bitcoin transactions -- about 10 times the country's share of the world economy.
A series of measures have failed to curb overheated virtual currency speculation in the country and Park said it would be "devastating if the bubble bursts".
His remarks sent bitcoin prices plunging 18 percent on South Korean exchange Bithumb, while ethereum slumped 23 percent.
Investors flooded the presidential Blue House website with hundreds of online petitions against the shutdown, which was swiftly reversed.
A shutdown was "one of the measures that have been prepared by the justice ministry", chief press secretary Yoon Young-Chan said in a statement, "but it is not a finalised decision".
Cryptocurrencies rapidly reversed course, with bitcoin climbing back to trade just 6.5 percent down, and ethereum off 12 percent.
- 'Blind speculation' -
A representative of Bithumb, one of around 20 virtual currency exchanges in South Korea, said the company was watching developments closely.
"We're closely monitoring government moves. We have nothing further to say at this moment", she told AFP.
Bithumb was raided by tax authorities on Wednesday who inspected the company's documents.
On the same day financial authorities inspected six local banks that offered virtual accounts for corporate customers.
Last month Seoul banned its financial firms from dealing in virtual currencies.
Two weeks later, it announced a ban on opening anonymous cryptocurrency accounts and a crackdown on money laundering activities using them.
It has also warned most cryptocurrencies were being traded in South Korea at far higher prices than elsewhere in the world, blaming factors including "blind speculation".
An official at the Financial Supervisory Service, South Korea's top financial regulator, said closing local exchanges would represent a "very strong measure" against virtual coins and would "effectively suffocate" cryptocurrency transactions within the country.
But a cryptocurrency analyst said he was "sceptical" that the justice ministry' proposal would go into force because of strong market resistance.
A Chinese ban on virtual coin transactions in yuan ended up driving many investors underground, exposing them to greater risks, he said.
US billionaire investor Warren Buffet told CNBC on Wednesday the global craze over bitcoin and other cryptocurrencies would meet a "bad ending".
"In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending," he said, but added: "When it happens or how or anything else, I don't know."
On global exchanges the price of bitcoin surged in 2017 from a low of around $750 in early January to a record above $19,500 in mid-December before tumbling, according to Bloomberg News. It bought around $13,500 in afternoon trade Thursday.
Bitcoin Crash: CBN Cautions In Virtual Currencies Trading Stands
Leadership Nigeria Newspapers BUSINESSBitcoin Crash: CBN Cautions In Virtual Currencies Trading StandsPublished 27 mins ago on January 8, 2018 By KAYODE TOKEDE In January 2017, the Central Bank of Nigeria (CBN) warned Nigerians and financial institutions to stay away from virtual currencies that have attracted investment in payments infrastructure that provides new methods for transmitting value over the internet. The CBN had reiterated that virtual currencies such as Bitcoin, Ripples, Monero, Litecoin, Degecoin, OneCoin among similar products are not legal lenders in Nigeria, thus any financial institution that transacts in such businesses does so at its own risk. As at the time of writing this report, bitcoin, a world known cryptocurrency, has continued to crash as investors globally are getting their fingers burnt. After the bitcoin craze rose to a near-fever pitch in 2017, several investors and analysts this year are predicting more growing pains for cryptocurrencies over surge in speculations and governments placing ban. Interestedly, as bitcoin price has stagnated in the last two weeks, smaller digital currencies such as Ripple, Stellar and Tron have surged into the ranks of the largest cryptocurrencies by market capitalization. Bitcoin saw its highest value before the Christmas holidays when it reached the staggering price of just below $20,000 but valued at $14,815.88 as at last week, according to CoinDesk. Checks by LEADERSHIP revealed that one bitcoin equals an estimated N6 million as at January 5, 2018 as more Nigerian youths on MMM are taking interest in investing in virtual currencies, bitcoin specifically. Financial experts have joined regulating bodies to discourage investors to buy and trade with bitcoin due to its incredible volatility. Most of them are of the opinion it is a bubble ready to burst this year. They expressed that as governments tighten their grip, bitcoin prices will most likely fall, and perhaps collapse, though the timing is impossible to judge. Bitcoin seems too prone to illicit use and too vulnerable to government regulation to survive for the long term. They hinted that, “contrary to the attestation of its proponents, bitcoin contains several flaws that foretell its eventual doom. “The crux of his argument is that once central banks begin to view bitcoin as a credible threat, governments will declare war on cryptocurrency and suppress it out of existence through hostile regulatory policies.” One of the most highly-regarded economists in the US said that he believes the bitcoin price is in a bubble and will “likely burst” over the long-term, even if it continues to appreciate in the short-term. Last year, Nigeria key market regulating bodies, CBN, Securities and Exchange Commission (SEC) and Nigeria Deposit Insurance Corporation (NDIC) were increasingly vocal in warning investors about the risks of cryptocurrencies.
Leadership Nigeria Newspapers BUSINESSBitcoin Crash: CBN Cautions In Virtual Currencies Trading StandsPublished 27 mins ago on January 8, 2018 By KAYODE TOKEDE In January 2017, the Central Bank of Nigeria (CBN) warned Nigerians and financial institutions to stay away from virtual currencies that have attracted investment in payments infrastructure that provides new methods for transmitting value over the internet. The CBN had reiterated that virtual currencies such as Bitcoin, Ripples, Monero, Litecoin, Degecoin, OneCoin among similar products are not legal lenders in Nigeria, thus any financial institution that transacts in such businesses does so at its own risk. As at the time of writing this report, bitcoin, a world known cryptocurrency, has continued to crash as investors globally are getting their fingers burnt. After the bitcoin craze rose to a near-fever pitch in 2017, several investors and analysts this year are predicting more growing pains for cryptocurrencies over surge in speculations and governments placing ban. Interestedly, as bitcoin price has stagnated in the last two weeks, smaller digital currencies such as Ripple, Stellar and Tron have surged into the ranks of the largest cryptocurrencies by market capitalization. Bitcoin saw its highest value before the Christmas holidays when it reached the staggering price of just below $20,000 but valued at $14,815.88 as at last week, according to CoinDesk. Checks by LEADERSHIP revealed that one bitcoin equals an estimated N6 million as at January 5, 2018 as more Nigerian youths on MMM are taking interest in investing in virtual currencies, bitcoin specifically. Financial experts have joined regulating bodies to discourage investors to buy and trade with bitcoin due to its incredible volatility. Most of them are of the opinion it is a bubble ready to burst this year. They expressed that as governments tighten their grip, bitcoin prices will most likely fall, and perhaps collapse, though the timing is impossible to judge. Bitcoin seems too prone to illicit use and too vulnerable to government regulation to survive for the long term. They hinted that, “contrary to the attestation of its proponents, bitcoin contains several flaws that foretell its eventual doom. “The crux of his argument is that once central banks begin to view bitcoin as a credible threat, governments will declare war on cryptocurrency and suppress it out of existence through hostile regulatory policies.” One of the most highly-regarded economists in the US said that he believes the bitcoin price is in a bubble and will “likely burst” over the long-term, even if it continues to appreciate in the short-term. Last year, Nigeria key market regulating bodies, CBN, Securities and Exchange Commission (SEC) and Nigeria Deposit Insurance Corporation (NDIC) were increasingly vocal in warning investors about the risks of cryptocurrencies. For instance, the CBN said virtual currencies are largely used in terrorism financing and money laundering, considering the anonymity of virtual transactions. The director, financial policy and regulation department, CBN, Mr. Kevin Amugo in a signed document said, transactions in virtual currency are largely untraceable and anonymous making them susceptible to abuse by criminals, especially in money laundering and financing of terrorism. “Virtual currencies are traded in exchange platforms that are unregulated, all over the world. Consumers may there lose their money without any legal redress in the event these exchangers collapse or close businesses. The attention of bank and other financial institutions is hereby drawn to the above risks and you are required to take the following actions pending substantive regulation or decision by the CBN,” the statement read. According to him, actions that needs to be taken by financial institutions include: “ensure that you do not use, hold, trade and/or transact in any way in virtual currencies. Ensure that existing customers that are virtual currency exchangers have effective capital AML/CFT controls that enable them to comply with customer identification, verification and transfer, monitoring requirements.
India likens bitcoin to Ponzi schemes
India likens bitcoin to Ponzi schemes
Despite a boom in trade that has seen prices soar, cryptocurrencies “don’t have intrinsic value and are not backed by any kind of assets,” the Indian finance ministry said in a statement.
“There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes, which can result in sudden and prolonged crash,” it said.
Bitcoin prices plunged by almost 40 percent from its record high of $19,500 this month, as investors cashed out following the wildly volatile currency’s stratospheric rise.
Analysts and governments have repeatedly warned about a bubble that could burst at any moment as investors, many inexperienced, piled into the currency.
India’s government said consumers needed to be “extremely cautious as to avoid getting trapped in such Ponzi schemes”.
Its warning came a day after South Korea, a hotbed for cryptocurrency trading, said it would ban anonymous trading of virtual currencies.
On Tuesday Israel announced a move to ban trading in cryptocurrency-based companies on the Tel Aviv market until it can regulate transactions involving digital coins.
The vice-president of the European Central Bank has also expressed concern about the relentless rise in the value of bitcoin.
US Federal Reserve boss Janet Yellen has said bitcoin is not money and called on banks to be certain their digital currency transactions adhere to anti-money laundering statutes. (AFP)
Bitcoin exchange goes bust after hack
Bitcoin exchange goes bust after hack
By Daniel Shane
A bitcoin exchange in South Korea has gone out of business after being hacked, highlighting the perils of trying to cash in on this year's stunning boom in digital currencies.
Seoul-based Youbit said it was filing for bankruptcy after cyber-thieves stole nearly a fifth of its clients' holdings in an attack Tuesday.
It's the second time this year that Youbit, which allows customers to trade bitcoin and other digital currencies, has been hit by hackers.
In April, thieves made off with 38 billion won ($35 million) in digital currencies. The company didn't say how much was taken in the latest heist or how exactly it happened.
Related: What is bitcoin?
South Korea's Korea Internet and Security Agency said Wednesday that it was working with police to investigate this week's Youbit hack, but that it didn't yet know who was responsible.
Youbit said that its customers would get back about three-quarters of the value of the digital currencies they had stored in accounts with the exchange. The rest will be refunded after bankruptcy proceedings, it said.
Bitcoin's history is littered with cases of trading platforms coming under attack.
Earlier this month, hackers stole more than $70 million worth of bitcoins from digital currency platform Nicehash. Last year, Hong Kong-based exchange Bitfinex was briefly shut down after hackers stole more than $60 million in bitcoins.
Related: More than $70 million stolen in bitcoin hack
Tim Wellsmore, director of threat intelligence at cybersecurity firm FireEye, said bitcoin exchanges had been slow to respond to the threats posed by hackers.
"As the prices of bitcoin and similar virtual currencies continue to appreciate, we expect greater interest from attackers seeking to steal it," he said.
Bitcoin's price is now more than 15 times as high as it was at the start of the year.
Suspicion for this week's Youbit hack could fall on North Korea.
South Korean police have accused North Korean hackers of targeting at least four different exchanges this year that trade bitcoin and other digital currencies in South Korea.
North Korea has previously denied any role in international cyberattacks.
Related: North Korea may be making a fortune from bitcoin mania
Bitcoin, which offers layers of anonymity, has long been a magnet for criminals.
Unlike traditional currencies like the U.S. dollar, digital currencies don't fall under central bank control and are largely unregulated.
South Korea has become a hotbed of bitcoin activity. On a given day, the country can account for about 20% of worldwide trading in the cryptocurrency.
Bitcoin is in such high demand there that traders can end up paying a premium of between 15% and 20% compared with prices elsewhere.
Related: Bitcoin futures trading just got a lot bigger
Youbit was a small player in the market, which is dominated by Bithumb, a much larger exchange.
With so many small South Korean investors diving into bitcoin, authorities are getting worried about the potential impact of a crash.
The government earlier this month said it was forming a special task force to study the "cryptocurrency problem."
-- Jake Kwon and Hannah Kang contributed to this article .
By Daniel Shane
A bitcoin exchange in South Korea has gone out of business after being hacked, highlighting the perils of trying to cash in on this year's stunning boom in digital currencies.
Seoul-based Youbit said it was filing for bankruptcy after cyber-thieves stole nearly a fifth of its clients' holdings in an attack Tuesday.
It's the second time this year that Youbit, which allows customers to trade bitcoin and other digital currencies, has been hit by hackers.
In April, thieves made off with 38 billion won ($35 million) in digital currencies. The company didn't say how much was taken in the latest heist or how exactly it happened.
Related: What is bitcoin?
South Korea's Korea Internet and Security Agency said Wednesday that it was working with police to investigate this week's Youbit hack, but that it didn't yet know who was responsible.
Youbit said that its customers would get back about three-quarters of the value of the digital currencies they had stored in accounts with the exchange. The rest will be refunded after bankruptcy proceedings, it said.
Bitcoin's history is littered with cases of trading platforms coming under attack.
Earlier this month, hackers stole more than $70 million worth of bitcoins from digital currency platform Nicehash. Last year, Hong Kong-based exchange Bitfinex was briefly shut down after hackers stole more than $60 million in bitcoins.
Related: More than $70 million stolen in bitcoin hack
Tim Wellsmore, director of threat intelligence at cybersecurity firm FireEye, said bitcoin exchanges had been slow to respond to the threats posed by hackers.
"As the prices of bitcoin and similar virtual currencies continue to appreciate, we expect greater interest from attackers seeking to steal it," he said.
Bitcoin's price is now more than 15 times as high as it was at the start of the year.
Suspicion for this week's Youbit hack could fall on North Korea.
South Korean police have accused North Korean hackers of targeting at least four different exchanges this year that trade bitcoin and other digital currencies in South Korea.
North Korea has previously denied any role in international cyberattacks.
Related: North Korea may be making a fortune from bitcoin mania
Bitcoin, which offers layers of anonymity, has long been a magnet for criminals.
Unlike traditional currencies like the U.S. dollar, digital currencies don't fall under central bank control and are largely unregulated.
South Korea has become a hotbed of bitcoin activity. On a given day, the country can account for about 20% of worldwide trading in the cryptocurrency.
Bitcoin is in such high demand there that traders can end up paying a premium of between 15% and 20% compared with prices elsewhere.
Related: Bitcoin futures trading just got a lot bigger
Youbit was a small player in the market, which is dominated by Bithumb, a much larger exchange.
With so many small South Korean investors diving into bitcoin, authorities are getting worried about the potential impact of a crash.
The government earlier this month said it was forming a special task force to study the "cryptocurrency problem."
-- Jake Kwon and Hannah Kang contributed to this article .
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