Switzerland shuts down ‘fake cryptocurrency’ E-Coin

FINMA - E-Coin

The Swiss Financial Market Supervisory Authority FINMA has shut down providers of what it has dubbed a ‘fake cryptocurrency’ called E-Coin. The financial regulator targeted the Quid Pro Quo Association, Digital Trading AG and Macelo Group AG, who it alleges were all involved in sales of the fake cryptocurrency. The companies had been operating with the required authorisation. In a statement on its website, FINMA states: “For over a year since 2016, the QUID PRO QUO Association...

BIS weighs in on central bank digital cryptocurrencies

The Bank for International Settlements (BIS), the international financial institution which is owned by banks, has urged to consider what ‘central bank cryptocurrencies’ (CBCCs) would look like and how they would operate. BIS was set up in order to facilitate international monetary and financial cooperation, and can essentially be thought of as a central bank for central banks. The bank used its latest quarterly update to discuss the effect that the growth of the cryptocurrency market...

JP Morgan labels Bitcoin a ‘fraud’

James Dimon - bitcoin - fraud

JP Morgan Jamie Dimon has labelled Bitcoin a fraud that will eventually ‘blow up’ at a banking conference in New York. In an astonishing tirade against the flagship digital currency, Dimon said that it was only fit for use by drug dealers, murderers and people living in locations like North Korea. He also said that he would immediately fire any employee at the investment bank that he found to be trading in Bitcoin. The Guardian quotes Dimon as saying: “The currency isn’t going...

China bans ICOs

Beijing bans ICOs

The Chinese government has banned ICOs and essentially called an immediate halt to all fundraising activities that involve virtual coins or tokens. The People’s Bank of China and other regulators released a joint statement saying that the move is aimed at protecting investors and dealing the risks of this kind of fundraising properly. According to financial news site Caixin, a notice from one of the banks committee said the practice has ‘seriously disrupted the economic and financial...

Cryptocurrencies move into the retirement space

Bitcoin IRA

Bitcoin IRA has become the world’s first company to allow investors to purchase cryptocurrencies for an IRS-approved retirement account. The move marks the first time that people can begin to incorporate digital currencies into their formal retirement planning. Customers can purchase Bitcoins and other digital currencies for their IRA or 401(k) retirement accounts. Bitcoin IRA has made the digital asset XRP available to its clients. Chris Kline, COO of Bitcoin IRA, said: "We're...

The bitcoin hard fork has occurred

Bitcoin hard fork

Bitcoin has split into two separate cryptocurrencies: bitcoin and the new Bitcoin Cash. CoinDesk reports that miners were successfully able to create a block on the newly created Bitcoin Cash blockchain at around 02:14pm ET on 1 August 2017. The move means that the miners in question have split from the main bitcoin network and will be moving ahead with a different technical roadmap. Why the hard fork? This ‘hard fork’ is the result of years of disagreement over what the rules that...

Operator of BTC-e bitcoin exchange arrested

BTC-e operator arrested

A US jury has indicted the operator of BTC-e Alexander Vinnik on 26 July, following his arrest in a Greek village on the previous day. BTC-e has been in operation trading bitcoin since 2011, and the US justice department claims that it was used to launder over $4 billion for criminals involved in activities ranging from hacking to drug trafficking. Authorities are also linking Vinnik to the collapse of Japan-based bitcoin exchange Mt Gox, which failed in 2014 due to being hacked. Brian...

SEC report states that DAO tokens were securities

SEC - ICOs

The Securities and Exchange Commission (SEC), the US agency responsible for enforcing federal securities law, has made a significant move into regulating ICOs. The agency has released a report concluding that digital currency events will be regulated as securities. This means that unregistered ICOs will now be treated as a criminal punishment. The investigation was centred around the distribution of tokens relating to The DAO. The Ethereum-based funding vehicle collapsed last year after a...

Parity Wallet breach leads to $30 million Ether theft

$30 million Ether theft

There have now been two high profile cryptocurrency heists in the space of as many weeks, as hackers reportedly made off with $30 million in Ether last week. The latest attack exploited a vulnerability in Ethereum wallet client Parity, which allowed the hacker to send funds from multi-sig contract wallet. Multi-sig wallets are designed so that multiple people have control over the keys, and funds cannot be moved unless the majority approve the move with their keys. A security alert...

$7 million stolen in CoinDash ICO hack

CoinDash - ICO hack

An ICO for blockchain technology startup CoinDash was shut down after it was revealed that the company had been hacked. The hack has resulted in the theft of $7 million worth of ether from investors trying to take part in the offering. Investors had been told to use ethereum to pay and send funds to the ICO’s smart contact address. CoinDash said that the evidence points towards the sending address being hacked and being changed to a fraudulent address. The company has said that any...