Swiss National Bank Governing Board member Andrea Maechler sees value in blockchain, but argues central banks should stay out of consumer payments.
Day: April 5, 2018
Is Every ICO a Fraud? ‘Absolutely Not’ Says SEC Chief
U.S. SEC chairman Jay Clayton addressed ICOs and enforcement actions taken against them during a talk at Princeton University.
In a Blow to Bitcoin, India Bans Banks from Dealing in Cryptocurrencies
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In what amounts to a major clampdown down on bitcoin and other cryptocurrencies, the Reserve Bank of India (RBI) announced in a press release today, April 5, 2018, that it is banning banks and regulated financial entities from dealing with digital currencies.
“In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling [virtual currencies],” India’s central bank said.
What this means is that banks will no longer be able to transfer money to a crypto wallet or to an exchange. Regulated entities already providing such services will have three months to wind down their cryptocurrency-related operations, RBI Deputy Governor BP Kanungo told reporters at a media briefing on Thursday.
At the same time, India has not given up on the idea of issuing a virtual currency of its own. “While many central banks are still engaged in the debate, an inter-departmental group has been constituted by the Reserve Bank to study and provide guidance on the desirability and feasibility to introduce a central bank digital currency,” the central bank said, adding that a report would be ready in June 2018.
The RBI has been highly critical of cryptocurrencies including bitcoin in the past. On three occasions, the central bank has cautioned holders and traders against the risks of using virtual currencies. RBI issued its first warning in December 2013, a second in February 2017 and the most recent in December 2017.
India, a fiat-reliant country, began tightening the noose on cryptocurrencies in 2018 in an effort to prevent money laundering, sponsorship of terrorism and tax evasion. In January 2018, India’s Finance Minister Arun Jaitley told the Indian parliament, “Bitcoins or such cryptocurrencies are not legal tender and those indulging in such transactions are doing it at their own risk.”
(Read more about India’s regulation of cryptocurrencies here.)
This article originally appeared on Bitcoin Magazine.
Japanese Cryptocurrency Exchange Coincheck Accepts Monex Takeover Bid
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Coincheck, the Tokyo-based cryptocurrency exchange that has been struggling to get back on its feet since it suffered a devastating hack on January 26, 2018, has agreed to accept a takeover bid by Monex Group, a Japanese online brokerage firm.
As part of that, Chief Operating Officer at Monex Toshihiko Katsuya will to take over as Coincheck’s new president, while Coincheck’s founding President Koichiro Wada and Chief Operating Officer Yusuke Otsuka will step down, according to Nikkei Asian Review.
Rumors of the possible takeover bid and management reshuffle broke Tuesday, April 3, 2018. Soon after, Monex confirmed in a press release that it was considering the move.
Along with the new management, Coincheck will receive an influx of fresh capital in the form of “several billion Japanese Yen” (1 billion JPY = $9.34 million) from Monex. Final details will be released as early as Friday after the deal is inked.
Monex has been wanting to make blockchain-based financial technology services the core of its business. By acquiring Coincheck, along with Coincheck’s client base and information systems, the brokerage firm is now on the fast track to getting into the cryptocurrency exchange business.
In April 2017, new laws in Japan required all cryptocurrency exchanges in the country to seek a license from Japan’s Financial Services Agency (FSA). Those exchanges that were in business before the laws went into effect were allowed to stay operational and undergo compliance checks while their registration was being approved.
Coincheck was one of the 16 exchanges that remained in quasi-operating status while its license application remained pending. Following the theft of $530 million worth of NEM (XEM) tokens in January, Coincheck received two improvement orders from the FSA, demanding the exchange overhaul its operations and clarify its management responsibility. Coincheck has insisted that it will repay victims the majority of the stolen funds but has not revealed details as to how that will happen.
Coincheck is still applying for a license from the FSA. The FSA will decide whether Coincheck qualifies after reviewing its operations under Monex.
This article originally appeared on Bitcoin Magazine.
Arizona’s Governor Signs Latest Blockchain Bill Into Law
Arizona’s governor has signed a new bill into law, enabling corporations to legally store information on a blockchain-based platform.
Hacked Coincheck Exchange to Accept Takeover Bid, Report Says
Hacked Japanese cryptocurrency exchange Coincheck is to accept a takeover offer from online brokerage Monex Group, a news report indicates.
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