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CEX.IO introduces zero fee deposits via bank transfer, removes Litecoin trading

Bitcoin and cryptocurrency exchange CEX.IO has recently announced to users they can now fund their accounts for free using wire transfer.

The 0% deposit fee applies to USD, EUR, and GBP. Deposits via SEPA are free of charge as well, which is used to fund accounts in EUR.

CEX.IO has also recently made deposit and withdraw of funds enabled within the company app, for both iOS and Android.

You can find out more details on commissions and limits here.

The company stated that the positive change is a result of CEX.IO’s negotiations with partnering banks and payment providers.

In other news today, CEX.IO announced the removal of Litecoin trading pairs. This applies to all LTC pairs, namely LTC/USD and LTC/BTC. Removal is planned for March, 22nd. Eventually, CEX.IO stated they will also stop supporting Litecoin wallets.


DigixGlobal partners with Monolith Studio for gold backed debit TokenCard

DigixGlobal, a Singapore-based physical gold asset-tokenisation platform built on Ethereum has announced a partnership with Monolith Studio, creators of the Visa based TokenCard. The initial focus of the partnership is to create a one-of-a-kind debit card based in Digix DGX gold tokens.

The yet to be named “Gold card” ties into the transaction based profit models of both DigixDAO and Monolith’s TokenCard. The effort attempts to vastly extend the reach of Digix’s tokenized commodities to the general public by lowering the barrier of entry and offering unique functionality.

Monolith Studio recently unveiled plans for TokenCard: an Ethereum powered debit card that can hold ERC20 tokens. This DGX powered version allows users to leverage TokenCard’s next generation security features whilst using a familiar commodity as a store of value. TokenCard and Digix can together bring back the gold standard in a meaningful way.

TokenCard will be a crowdfunded platform, with an underlying token: TKN. TKN accrues a 1% licensing fee on every transaction made with TokenCard and gives holders various perks. The crowdfund is set to commence on March 20th.

TokenCard merges Ethereum smart contracts with Visa payments. This enables Monolith Studio to achieve a range of radical new features that set it apart from any competition. The resulting security enhancements and user control, cement TokenCard’s potential to become one of the most powerful debit cards in the world.

DGX gold tokens are currently available for purchase on ShapeShift exchange.


Thus far, Digix has created two types of Ethereum tokens – each with unique properties. These two tokens complement each other to ensure their joint success.

– The future gold-standard for value exchange in the Ethereum ecosystem
– Each token represents 1 gram of 99.99% LBMA standard gold and secured in Safehouse vaults
– On-chain proof of auditing; no fractional reserve; fully allocated
– Redeem 100 DGX tokens for 100g of physical gold via personal or mail

– Claim quarterly rewards based on the total DGX collected through transaction fees
– Used to pledge on DigixDAO proposals with the goal of increasing DGX adoption
– DGD value fluctuates based on exchange rates and market forces
– There are 2,000,000 DGD tokens in existence

To download the DigixGlobal Whitepaper click here.

To learn more see the video below:


OKCoin removed as constituent of TradeBlock’s bitcoin price index

TradeBlock, a leading New York-based provider of institutional trading tools for digital currencies today announced that major Chinese cryptocurrency exchange OKCoin will no longer be included as a constituent of the TradeBlock XBX index.

Notably, the algorithm underlying the index already automatically reduced the weighting of OKCoin to near-zero based on recent market anomalies, minimizing the impact of OKCoin’s removal on any trading based on XBX.

As the crypto world knows, back on February 9th of this month OKCoin announced the suspension of bitcoin withdrawals from its exchange. This measure came as the People’s Bank of China has become increasingly involved in the activities of Chinese bitcoin exchanges over the last month. OKCoin said that the suspension, planned for one month, will allow them to improve their anti-money laundering practices and their systems in order to prevent various types of illegal activities.

The announcement, which was followed by similar ones from other notable Chinese exchanges, caused the price of bitcoin to fall considerably across all major bitcoin exchanges in the succeeding hours.

The following chart displays the effect that the announcement had on the bitcoin price as tracked by TradeBlock’s XBX index:

TradeBlock’s XBX index is designed to provide a reliable reference rate at all times without the need for human intervention by reacting to anomalies in real time. As seen in this second chart below, XBX performed as expected by de-weighting OKCoin – from 10-20% normally to <0.1% recently – as its price trailed off from the rest of the cohort. As designed, the XBX index continued to offer a reliable reference rate for the price of bitcoin, even during a period of irregular activity.

Although the XBX algorithm mitigated the need for manual intervention, TradeBlock stated it is necessary to take into consideration its established criteria for exchange eligibility. An exchange with severe limitations does not form part of an accurate reference of the market price of bitcoin.

The XBX index provides an institutional, USD-denominated reference rate for the price of bitcoin. The XBX index tracks liquidity across individual exchanges and weights them according to their volume, price variance and trading frequency. It also monitors and adjusts for deviations caused by anomalies and manipulation attempts.

Inclusion of any exchange in the index is guided by IOSCO principles for financial benchmarks.

More specifically, TradeBlock looks at the following criteria:

– Liquid market in the XBT / USD cross
– No restrictions on deposits and withdrawals of bitcoin and fiat currencies
– Reliable, real-time trade prices and volume accessible via API
– Publicly known ownership entity
– Compliance with relevant regulations

Although the XBX algorithm functioned as intended and mitigated the need for manual intervention, the sustained breach of a core principle for inclusion in the index warranted an exceptional review process says TradeBlock.

As such, OKCoin will be removed as a constituent of the XBX index over the next 24 hours. During the next XBX quarterly review in April, OKCoin’s eligibility will be reevaluated along with that of all relevant exchanges that could potentially qualify for inclusion under TradeBlock’s guidelines.


Ethereum launched on Dubai’s BitOasis exchange

Dubai-based digital currency wallet and exchange BitOasis this week launched Ethereum onto the exchange. Founded in 2014 by Ola Doudin, the BitOasis wallet service is available across the Middle East, North Africa and Asia, and users in the UAE, Qatar, Kuwait, Bahrain, Oman and Saudi Arabia can also use the trading exchange service.

Ethereum was launched in the beginning of the week with a 0% trading fee offer which expired today.

The company also has another promotional offer running until the 28th of February on buying and selling bitcoin, for users buying/selling higher than 1000 AED (272 USD) they’ll receive 10 AED of free credit.

It is also understood that BitOasis will soon be launching a debit card for exchange and wallet users in the UAE sometime this year.


Global securities blockchain company Equibit unveils 2-year roadmap

Equibit Development Corporation (EDC), creator of the Equibit blockchain and blockchain applications for the global securities industry, has unveiled a two-year roadmap for extended value creation in the wake of its ongoing initial coin offering.

Chris Horlacher, Chief Executive Officer at Equibit Development Corporation

EDC’s map includes the release of Equibit’s source code to software developers, the launch of a pro version of the EDC wallet application for the asset management community, specialized Equibit mining hardware, and the securitization of financial assets on the Equibit system, said Chris Horlacher, EDC’s CEO.

Mr. Horlacher commented:

“Securitization will populate Equibit with a number of popular investment choices that will excite our investors and get other issuers interested in using Equibit,” Horlacher said. This is a perfect way to kickstart the system. Though there are more and more coin offerings by the day, there’s actually very little opportunity for diversification available to crypto investors.”

Securitization on the Equibit platform will allow holders of equibits, a new digital asset, to diversity their portfolio by investing in equities in traditional industries such as pharmaceuticals, utilities or materials.

Equibit is a peer-to-peer securities registration, market-making, and compliance platform anchored in blockchain technology. The system allows investors to hold directly-registered securities and communicate privately with one another. Equibit also features a public order book, direct-and-group communications, polls, proxies and a compliance system.

EDC has sold more than 140,000 equibits since launching its initial coin offering sale on Feb. 1, which are required for issuers and investors to make use of the platform. The company has offered to sell one million equibits out of a total of 22 million equibits potentially available. The sale, which will run for 59 days to March 31, is being held on a special sale page at EDC’s website.

Purchased equibits will be delivered to user accounts at EDC’s web-wallet service. EDC will retain any unsold equibits, as according to the sale’s terms and conditions.

The offering started with an initial batch of 100,000 equibits priced at $2 per coin. The crowdsale will adhere to a predetermined schedule, with the price for equibits to increase with each subsequent batch.

All equibits sold in the coin offering will be created in the EDC platform’s genesis block, constituting the inception of the system’s operation.

Proceeds from the crowdsale will be used to expand EDC’s team of developers, accelerate product development, support and expand the network of equibit supporters, install enterprise infrastructure such as supernodes and market Equibit blockchain applications.

1Broker's parent company is registered in the Marshall Islands, an island country located near the equator in the Pacific Ocean.

Bitcoin denominated CFD platform 1Broker increases trading leverage and other limits, a CFD broker allowing people to trade in bitcoin-denominated trading accounts across of range of markets this week increased several limits impacting trading. Markets include instruments on indices, stocks, FX, BTC/USD and commodities.

Started in 2012, 1Broker is a service from the company 1pool Ltd. a registered corporation in the Republic of the Marshall Islands. Operating within the cryptocurrency space, the company’s services rely on open-source software with over 10,000 registered users to the brokerage platform.

All of 1Broker trades are settled in BTC. This means that traders profit/loss is unaffected from the bitcoin exchange rate. Users will directly profit in bitcoin and avoid potential volatile exchange rate results.

Higher Limit Schedule:

A 1Broker spokesperson stated:

“We continuously improve the performance of our trading engine and our risk management strategies. This allows us to increase our limits from time to time. With today’s update, we raised maximums for nearly all markets. We also adapted the overnight financing rates for our BTC/USD market.”

Maximum 20 BTC 40 BTC
Maximum Leverage 5 10
Financing Costs (Long) 0.1923% 0.2692%
Financing Costs (Short) 0.0962% 0.00%
Forex Tier 1 Maximum 1000 BTC 2000 BTC
Forex Tier 2 Maximum various 1000 BTC
Stock Markets Maximum 300 BTC 500 BTC
Index Markets Maximum 300 BTC 500 BTC
Commodity Markets Maximum 300 BTC 500 BTC
Maximum Leverages
Gold 50 100
Silver 50 100
OILWTI 20 50

Bitstamp launches XRP versus BTC trading pair

Bitstamp, the EU’s first fully regulated digital currency exchange today launched the XRP/BTC trading pair on its exchange. XRP, the digital asset that is native to the Ripple Consensus Ledger, can now be traded with BTC, while XRP versus USD and EUR trading pairs were launched last month.

Of all the digital assets on the market, XRP is unique in that it can be used as a bridge currency for real-time settlement, allowing for the efficient exchange of value across borders.

To commence trading Bitstamp is offering the following discounted fee schedule for XRP/BTC trades in order to get things off to the best possible start:

  • 0% fees until 28 February 2017
  • 50% discount on fees until 31 March
  • 25% discount on fees until 30 April.

As of midnight on 1 May 2017, the XRP fee schedule will revert to normal.

Full trading functionalities opened today at 2.00 pm GMT, which is when the discounted fee schedule became available.

Additionally, XRP trading will now also be integrated on Bitstamp mobile for Android and iOS from Friday 17 February onwards.


BitGo builds enterprise wallet for Ripple

It was announced today that bitcoin security company Palo Alto-headquartered BitGo and Ripple have partnered to make it easier for businesses to use Ripple’s XRP currency for global payments.

BitGo announced that it will provide multi-signature security, advanced treasury management and additional enterprise functionality for XRP, which will be integrated into the BitGo platform later this year.

Miguel Vias, Head of XRP Markets stated:

“It’s a natural fit. Both Ripple and BitGo are committed to making digital assets like XRP more accessible and usable for institutions. Working with BitGo is an important step to building out the XRP ecosystem that will serve the growing demand for global payments.”

Mike Belshe, Co-founder and CEO at BitGo

Mike Belshe, CEO of BitGo noted:

“We are excited to be working with Ripple to provide enterprise tools and treasury management capabilities to institutions working with XRP. The Ripple team understands crypto and traditional finance extremely well. They are well positioned to disrupt global settlement via blockchain and we are happy to play our part.”

XRP was created specifically for institutional settlement in seconds. As evidenced by blockchain bank consortium R3’s recent trial with XRP for interbank cross-border payments, the use of Ripple and XRP can enable both cost-cutting and revenue opportunities for participating institutions.

Today’s news follows EU-regulated cryptocurrency platform Bitstamp’s recent listing of XRP/USD and XRP/USD trading pairs. Bitstamp is also the first partner exchange for Ripple’s XRP incentive program which is designed to increase liquidity and tighten spreads. This program offers rebates and compensation to qualifying liquidity providers in XRP pairs at partner exchanges.


OKLink launches same-day money transfer to Japanese banks

OKLink, the Hong Kong-based blockchain enabled money transfer company announced today they are coming out of beta in Japan. Over the past 3 months during the beta phase, OKLink stated they’ve helped over 10 money transfer companies send funds to Japan.

All 100+ partners on the OKLink network can now transfer up to USD $10,000 to Japan via bank account for a total delivery fee of only 0.6%, calculated at the mid-market exchange rate with no hidden charges. This is significantly cheaper than much of the competition and shows the power of blockchain based systems.

For example, the cost to send USD $200 to Japan at 0.6%; would only cost $1.20 using OKLink.

Payouts are currently available at 21 banks, including Citi, Mizuho, SMBC, and MUFG.

More details on sending to Japan with OKLink:

From now until 31 March 2017, OKLink is subsidizing all fees on the first USD $100,000 of cross-border transfers for every partner on the OKLink network.


OKLink builds on the trust of the blockchain to connect and enable transactions between transfer and delivery companies worldwide using blockchain anchored digital assets and multi-signature technology.

Launched in August 2016, the company has been growing steadily with services currently available in fifteen countries across Asia, Europe, the Americas and Africa. OKLink’s sister company operates OKCoin, the largest digital asset exchange in China.


Gatecoin provides repayment update on funds stolen during hack

Gatecoin, the Hong-Kong regulated cryptocurrency trading platform for blockchain assets which back in May 2016 experienced a hack and theft of ETH and BTC (roughly $2m worth) has today provided an update on their repayment schedule. The company also provided updates on a variety of other recent actions taken plus plans to beef up the exchange through the launch trading CNY as well as expansion possibly into Japan.

In addition to the ETH 185,000 that was stolen during the system breach, Gatecoin also lost BTC 250. This equates to a total of USD 2,117,130 based on May 13th, 2016 BTC and ETH USD prices.

Gatecoin stated they are aiming to allocate a significant share of profits to ETH debt (ETD), based on several revenue streams including:

Blockchain consulting services — reported to have already sold a blockchain based technical solution to a company in Asia and the revenue from this project has provided a buffer for operational expenses. This ensures that Gatecoin will be able to stay in business and invest resources in enhancing the exchange.

Exchange trading fees — despite modest trading volumes over the last few months, the engineering team has been working to improve the trading platform given the bugs that still existed following the exchange’s relaunch in August. These issues have taken time to fix due to the engineering team’s focus on delivering revenue generating blockchain consulting services. Confident that now these updates have been fully completed we will be able to recover and surpass the volumes we experienced on our exchange before the breach in May 2016. When volumes have reached significant levels, Gatecoin will begin allocating a growing share of trading fee revenues to ETD.

OTC trades — has already processed a handful of OTC deals worth several thousand bitcoin, with revenues from those trades currently contributing to operations. Reports to also have a steady pipeline of larger deals that should facilitate more frequent ETD repayments this year.

The table below demonstrates the amount and percentage the exchange has reimbursed since the breach as of February 15th, 2017:

*BTCUSD price on 13th May 2016 = 454.32 | **ETHUSD price on 13th May 2016 = 10.83

Highlights from the update:

  • Gatecoin says they are currently working per its schedule to repay the next portion of the ETD within the next two months. All ETD holders will be notified by email when this repayment has been made as the company is unable to specify the exact date for now.
  • From Q2 onwards, Gatecoin estimates they will be able to provide monthly repayments subject to the ability to grow revenues and build ETH funds.
  • If ETH skyrockets in value and the ETH price rises considerably before the company can repay the full amount of ETD in ETH, its ability to reimburse will depend on the success of their revenue streams and is likely to take much longer.
  • Not trying to raise funds from externals investors at this point.
  • With the upcoming release of cryptocurrency exchange regulations in Japan later this year, Gatecoin is discussing with its Japanese investors on the possibility of helping to expand its presence in Japan by committing more funds. However, any additional investment from their side will not be used to repay ETD.
  • After Gatecoin has grown revenues and paid off a considerable share of the ETD, the company indicated they may approach other investors for a series A round. The purpose of that investment would be to enable Gatecoin to acquire licenses in jurisdictions beyond Hong Kong and build up the engineering team.
  • As mentioned by the team before regarding loans, an attempt to issue a convertible bond failed to garner significant interest among the investors so the exchange is no longer considering this as an option.
  • Has tried applying for credit through other means, but given the niche nature of the business and the purpose for the loan in this situation, has not made much progress.
  • No additional updates from law enforcement agencies or the exchange community regarding the status of the stolen funds and the hackers’ identities.
  • Gatecoin will be meeting soon with the Hong Kong Securities and Futures Commission (SFC) to discuss the possibility of converting its ETD into equity in compliance with the current regulatory framework in Hong Kong. However, the existing consultation received suggests that this solution would not be legal and therefore unlikely.
  • Plans to launch CNY trading pairs on the exchange by early April to ensure that the platform is fully optimized and compliant for usage by prospective clients in Mainland China. The exact launch date of BTC/CNY and ETH/CNY markets on Gatecoin will be announced later.
  • Currently preparing to underwrite several ICOs and considering to list additional cryptocurrencies and blockchain tokens in the coming months.

Wrapping up, Gatecoin stated that aside from repayment notices, their next general update is scheduled for early May 2017.


Bitwala redesigns bitcoin prepaid debit card

Bitwala, the Berlin-based blockchain banking company with wallet and debit card solutions for bitcoin and other cryptocurrencies has announced a redesign of their Visa debit. The card is issued by Wave Crest Holdings Limited, a registered money institution by the Financial Services Commission of Gibraltar pursuant to a license from Visa Europe.

visa europeIn the words of Bitwala, the card now comes with a sleek and beautiful design. The new debit card stands out, particularly for Bitwala customers who are digital nomads, the new design sports a skyline outline of some of the world’s most famous landmarks on top of the Bitwala blue.

The Bitwala debit card guarantees cardholders the best exchange rates and zero hidden fees. You can monitor your finances by logging into your Bitwala user account and see a history of your card transactions. Users also receive real-time notifications on their smartphone of all spending or transaction that takes place.

The Bitwala debit card is a CVV and PIN-protected card. For security purposes, an authorisation is required from a merchant every time a transaction is made using your card.

The virtual Visa costs 2€ while the physical costs 8€.

Virtual card orders are delivered instantly. As for physical cards, Bitwala offers two types of deliveries, which are standard shipping (free of cost, no tracking information) that takes between 7-10 business days and express shipping (69€, including tracking information) that takes between 3-5 business days.

Existing cardholders are also eligible to order the new design, information on such can be found from Bitwala’s official website.

Fee Schedule:

 Fee Type  Frequency EUR
Physical Card issuance & delivery Per Order € 2.00
Virtual Card issuance & delivery Per Order € 2.00
Top Up Per Transaction 0.50 %
Purchase Transaction Per Transaction € 0
 ATM Transaction Domestic Per Transaction € 2.25
 ATM Transaction International Per Transaction € 2.75
 Monthly Maintenance Fee Per Month € 1.00
 Foreign Transaction Fee Per Transaction 3.00 %
 Card to Card Transfer Per Transaction € 0.25
 ATM PIN change Fee Per Transaction € 0.80
 Card Replacement Per Occurrence € 8.00
 Expedited Shipping Per Occurrence € 69.00

Hint: These fees depend on the ATM and country. In the vast majority of countries globally you will be charged one fee (by our card). In some jurisdiction, e.g. in the US or Thailand there is a local regulation applying a minimum fee for any ATM withdrawal. This additional fee will be added to the total withdrawal amount and our fee will be deducted separately by your card balances.


Dash added to cryptocurrency derivative trading platform BitMEX

Dash, one of the top 10 traded digital currencies by market cap and volume has been added to cryptocurrency derivatives trading platform BitMEX in the wake of its recent software updates and historic 24-hour trading volumes. It’s understood leverage can be set up to 20x.

BitMEX listed Dash on its exchange this month following the launch of its software upgrade Sentinel, and the massive increase in Dash’s liquidity and total market capitalization.

Since January 2nd, Dash’s market capitalization has soared 70%, reaching its highest ever market cap of $120 million USD. 24-hour trading volumes are at never-before-seen highs, with an average of over $2 million USD worth of Dash bought and sold every day, making Dash the sixth most traded cryptocurrency in the world.

Dash Business Development Spokesman Matthew Meek said:

“After observing the volumes traded on BitMEX for sometime, it was obvious that BitMEX is consistently ranking amongst the top in USD/BTC volume on a daily basis. We felt that having Dash as an offering for BitMEX’s users was an obvious choice and one that would also provide Dash with its first derivative based market, which we are excited about.”

BitMEX gives retail investors access to the global markets using cryptocurrencies and derivatives. The exchange allows for trading using up to up to 100x leverage on bitcoin, and high leverage on altcoin futures. Since November 2014, the equivalent of over $4.5 billion USD has been traded over BitMEX. Dash joins a growing roster of popular cryptocurrencies listed on the platform, including Bitcoin, Zcash, Ethereum, Ethereum Classic, Monero, Ripple, Augur, Litecoin and Factom.

Arthur Hayes. Co-Founder and CEO. BitMEX

BitMEX CEO Arthur Hayes said:

“BitMEX aims to be the largest venue for the trading of any and all digital currency derivatives. As such, Dash belongs in our product offering. BitMEX believes financial privacy is valuable to the cryptocurrency exchange space. The first digital currency that can offer real electronic untraceable cash will be very successful. The Dash team is on the right path towards accomplishing this feat.”

Dash’s recent price and volume growth is driven in part by its recent software launch of Sentinel, which sets the foundation for the decentralized payments system Evolution.

In parallel, Dash just opened its new headquarters at Arizona State University’s SkySong Innovation Center, the first cryptocurrency in the world with dedicated offices. Dash now sits above Ethereum Classic as the 6th most valuable cryptocurrency in the world.


BlockPay releases new update for Android app

Munich-based digital currency POS company BlockPay has just released its updated mobile app for Android dubbed BlockPay S, the company enables any merchant to accept one or more digital currencies at no cost.

BlockPay S +v.1.5 has an updated core app structure, bug fixes, and the company is now focusing on improving the performance, adding new coins, and cleaning up the setting screen.

Also, the company announced it is now creating the framework of BlockPay 2.0 that will be launched in Summer 2017.

The Philippines decided to move forward with adopting a formal regulatory framework due to the rapid growth of digital currency based payments and remittance companies.

Philippines unveils plans for new bitcoin exchange regulations

It was announced this week by the central bank of the Philippines known as Bangko Sentral ng Pilipinas (BSP) the country will begin to regulate cryptocurrency exchanges. When the regulations get into place, they will be the first such regulations in Asia. The goal of regulation is built to block money laundering, terrorism and the like.

Boracay Island, Philippines

The powers and function of Bangko Sentral are exercised by its Monetary Board, which has seven members appointed by the President of The Philippines. The new regulations will protect users and traders of exchanges while seeking not to put a damper on the technological innovations brought about by digital currencies and their emerging systems.

It was reported from the BSP that users of bitcoin exchanges more than doubled in the Philippines in the first half of 2015 from 2014. It is understood that transaction volume on some Philippines exchanges range from $5 million to $6 million per month.

Requirements will include registration, minimum capital, internal controls, regulatory reports and compliance with anti-money laundering laws. Also under the new regulations, technology risk management will be a minimum requirement for platforms and banks are prohibited from dealing with unregistered exchanges and entities.

The rules will also require virtual currency exchanges to execute a “deed of undertaking” to implement minimum standards of consumer protection. This probably will mean some sort of insurance mechanism.

Failure to comply with new regulations could result in the cancellation of a company’s certificate of registration, which would bar them from dealing with banks.

Nestor Espenilla, deputy governor for supervision and examination section of the Bangko Sentral ng Pilipinas (BSP)
Nestor Espenilla, deputy governor for supervision and examination section of the Bangko Sentral ng Pilipinas (BSP)

Nestor Espenilla, Bangko Sentral ng Pilipinas deputy governor commented:

“We see (virtual currencies) used for remittance and payments. Amounts now are not really big against the overall picture but they seem to be accelerating fast. Online payments are normally not virtual currencies but use normal currency like pesos and dollars as medium of payment. Only tiny portion today use virtual currencies such as bitcoin to pay. Customer trust in virtual currencies or the lack of it remains to be seen.”

The BSP move is aligned with the June 2015 Financial Action Task Force Guidance for a Risk-Based Approach to Virtual Currencies.

The Financial Action Task Force (FATF) is an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction. The FATF recommendations are recognized as the global anti-money laundering (AML) and counter-terrorism financing (CFT) standard.

The BSP Monetary Board said:

“Virtual currency exchanges are required to execute a Deed of Undertaking to implement, among others, minimum standards of consumer protection. Transactional requirements for large value payouts were also adopted to manage risks.

By using digital currency like bitcoin and others, investors are able to buy with Chinese yuan and sell for U.S. dollars, effectively bypassing the annual foreign exchange purchase quota of 50,000 U.S. dollars.

Bitcoin falls as regulators cause Chinese exchanges to delay withdrawals

It was announced today from two major Chinese bitcoin exchanges OKCoin and Huobi that they have suspended bitcoin and litecoin withdrawals to users for a month. Furthermore, BTCC, the most popular exchange by volume announced that the exchange would upgrade its back-office systems to make sure they are prudent about complying with new scrutiny and current withdrawals could take 72 hours to process.

The sudden announcements come after more closed-door meetings this week from Chinese financial regulators. Regulators decided that the exchanges would have to demonstrate strict compliance with anti-money laundering laws and thus withdrawals were announced to be on hold for a month, while the reviews work themselves out with the exchanges mentioned above.

The People’s Bank of China (PBoC) has increased probing and oversight of exchanges since last month, widely noted to be concerned about people fleeing a weak renminbi regime in order to preserve purchasing power as people within the country are flocking to Bitcoin, the leading digital asset and currency as its steadily risen in reaction to the perceived weak foreign exchange policy goals by the PBoC among other factors.

china bitcoinIt was announced by the PBoC late Wednesday night they had met with smaller bitcoin exchanges throughout the country and repeated warnings about margin lending and leveraged trading of bitcoin and other cryptocurrencies. The PBoC said the nine exchanges involved in the Wednesday meeting were CHBTC, BtcTrade, HaoBTC, Yunbi, Yuanbao, BTC100, Jubi, BitBays and Dahonghuo. The most popular platforms and exchanges have already halted margin trading for clients after they received visits from the same regulators last month.

If common sense regulation like that of which is being constructed in Japan, can be provided in China, the stepped up oversight of the digital currency platforms and exchanges in mainland China will be a good thing as it further legitimizes the free market digital currency economy.

As expected on such headline risk, the developments today in China caused bitcoin to sell off swiftly back under $1,000 from its 24-hour high of $1,080. The currency is currently trading down to $950 late Thursday evening New York time. Support can be seen at major levels such as $900, $800, and a big Fibonacci 38.2% retracement level from the 2017 high and 2016 low of $700. Resistance upwards comes in at $1100 and the all-time highs near $1175-$1200.

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