The Commodity Futures Trading Commission (CFTC), which is the main financial regulator in the United States, recently ordered a company offering bitcoin options to halt operations. The regulatory agency also ruled that bitcoin and other cryptocurrencies are classified as commodities and are covered by the Commodity Exchange Act. The regulator issued an order filing and simultaneously settling charges against Coinflip, Inc. Derivabit and is chief executive officer Francisco Riordan for activity relating to commodity transactions without the proper licenses. CFTC Ruling on Bitcoin Options According to the CFTC press release, the bitcoin options platform does not comply with the Commodity Exchange Act and CFTC regulations by trading or processing swaps….
Global financial services association BAFT has launched a new scheme to promote Bitcoin and blockchain technology. The association, which deals in creation and implementation of global finance policies, launched the initiative to drive “awareness of innovations in financial technology”. In its official statement, the international body emphasized how the pace of innovation has redefined the methods of cross-border payments and trade finance; and how it believes to address the regulatory issues for both banks and similar financial institutions through a thorough input. Tod Burwell, the president and CEO of BAFT, particularly highlighted how the emergence of Bitcoin and its associated technologies have improved the methods of supply chain and payments. He stated:…
Russia and digital currency are in the news together yet again, only this time, it’s not out of an ongoing war of words, but because Russia is in the process of creating a cryptocurrency all its own. Known as the bitruble, the virtual currency will likely be launched next year through its parent company Qiwi if financial advisors in Russia are willing to look beyond their fears and distrust of bitcoin, a regular topic amongst monetary experts in the red country. So far, the nation has had a public up-and-down relationship with cryptocurrency. Following a 50 percent drop in the value of the ruble last year, Russia countered the currency’s fall by expressing its animosity towards digital monies, explaining that they cannot be trusted due to usage in criminal and…
No less than one million people had to flee from their homes in Chile after a powerful quake jolted the country’s central region. To help the survivors, SurBTC, Chile’s first fully fledged Bitcoin exchange, has created an account with the aim to help in collecting funds. In a blog post, this Bitcoin exchange also outlined that the account will be only used to collect donations for the survivors. The features of this account are as under: 0% fee on every deposit, withdrawal or other transactions. This will be done both in Chilean Peso and Bitcoin. Every Bitcoin will be converted to Chilean Peso. SurBTC will only aid in collecting funds and the money will be given to chileayuda.com. The address is: 32hpM5uCFHFEkV1UuXWfwFef2u7GNKa4Yj As per a BBC report, close…
The Bank of England’s top economist has suggested that a digital currency based on bitcoin could alleviate monetary policy problems. Andrew Haldane, the UK central bank’s chief economist and executive director for monetary analysis and statistics, spoke at the Portadown Chamber of Commerce in Northern Ireland on 18th September. During his speech, Haldane offered several ways in which central bankers can conduct monetary policy during a period when interest rates are close to or below zero. Haldane suggested that central bankers consider making measures like quantitative easing a permanent part of their policy toolkit. However, he warned that trust in central banking could be marred as a result. One solution, he said, would be for the Bank of England to issue a…
Much like gold, oil, or soybeans, Bitcoin is now officially considered a commodity. The agency that regulates the US commodity trading market, the Commodity Futures Trading Commission (CFTC) has finally recognized the digital currency as a commodity. The debate on bitcoin can be defined as a commodity or not as been here for quite some time and the FCTC. By officially recognizing the digital currency as a commodity the CFTC assures its authority to supervise the trading of digital currency futures and options, which will now be subject to the agency’s regulations. If there is any irregularity, such as manipulation, the CFTC may file charges against the officials of that market. Furthermore, if a company wants to operate a trading platform for Bitcoin…