Cryptocurrency exchange Kraken adds Dash to Listings

cryptocurrencey exchange kraken adds dash to listings

Dash, the fifth most valuable cryptocurrency by market cap, has announced its partnership with Kraken Digital Asset Exchange – one of the world’s oldest bitcoin exchanges with the largest selection of digital assets and national currencies.

The partnership comes in the wake of a record surge for the cryptocurrency, which experienced a 6x increase in price per ($11 to $72 USD) and a 10x increase in trading volume ($3 million to $30 million USD) across Q1. Dash is now open for trading on the platform with buy and sell pairings including DASH / EUR, DASH / USD, and DASH / BTC. Kraken is expected to offer Dash margin trading in the near future, the release said.

“Kraken is excited to offer Dash on their trading platform and our teams are working closely to ensure clients can begin trading the currency immediately. Kraken is an incredibly well established and well structured organization, and amongst the best in the exchange business. In terms of reputation, they represent the highest standard for client satisfaction. Dash is a project that has implemented very original ideas that resonate well with the market, and as a top tier exchange, Kraken’s mission is to provide clients with access to digital currencies that are in demand and provide value”, Dash VP of Business Development, Daniel Diaz, said.

Following several business partnerships around the world, the implementation of the Sentinel software upgrade and the announcement of revolutionary decentralized payments system called Evolution, Dash has been on record breaking trajectory. Its total market cap skyrocketed from $78 million USD (January 1st) to an all time high of $835 million USD (March 18th), with new international markets unlocked alongside user demand.

“As the leading exchange in the Euro market, Kraken’s global reach helps Dash successfully meet the needs of our users and investors. The entire integration experience was very positive and we have high expectations for the partnership going forward. This is a significant achievement for Dash because our ecosystem needs high quality and trustworthy exchanges like Kraken to thrive, and we know they will play an important role as a fiat gateway”, Diaz continued.

Founded in 2011, Kraken Digital Asset Exchange is based in San Francisco, with offices around the world. Trusted by hundreds of thousands of traders, institutions, and authorities, including Germany’s BaFin regulated Fidor Bank, Kraken is the first exchange to display its market data on the Bloomberg Terminal, pass a cryptographically verifiable proof-of-reserves audit, and one of the first to offer leveraged margin trading. Kraken investors include Blockchain Capital, Digital Currency Group, Hummingbird Ventures, Money Partners Group, and SBI Investment.

David Ogden
Entrepreneur

David – http://markethive.com/david-ogden

India sets up high level committee to study cryptocurrency

high level committee set up to study cryptocurrencies

India sets up high level committee to study Cryptocurrency

The Indian government will setup a high level inter-disciplinary committee to take a close look at the circulation of crypto currencies in the country.

“The circulation of Virtual Currencies which are also known as Digital/Crypto Currencies has been a cause of concern,” said a finance ministry press release on Wednesday. The ministry said that the committee will take stock of the present status of Virtual Currencies both in India and globally, examine regulatory structures and tackle issues like consumer protection and money laundering.

The committee, comprising of top officials from the department of economic affairs, financial services, revenue, home affairs, Reserve Bank of India, NITI Agog and the State Bank of India, will submit its report in three months.

India’s central bank had earlier cautioned that virtual currencies, including bitcoins could be risky. However, the Reserve Bank of India has also been studying blockchain technology and bitcoins closely. Blockchain is a database that acts as a digital ledger for transactions.

There are four major bitcoin exchanges in India: UnoCoin, CoinSecure, ZebPay and BTCXIndia. These are mostly startups and operate within the banking system by asking buyers to submit ‘know your customer’ documents before they can trade on the platform. According to one estimate, India has only 50,000 bitcoin enthusiasts and users.

David Ogden
Entrepreneur

David – http://markethive.com/david-ogden

Russian Plans to Legitimise cryptocurrency by 2018

russia plans to legistimise cryptocurrency by 2018

Russia Plans To Legitimize Cryptocurrency By 2018

Russia is a country has never seen eye-to-eye with bitcoin up until now. Several legal proposals have been drafted which could have lead to jail time. Thankfully, it appears regulators have come to their senses, as bitcoin users in Russia no longer need to fear jail time. In fact, the country may turn bitcoin into a legitimate financial instrument as early as next year.

This U-turn by Russian legislators has quite a lot of people stunned in disbelief. Just a year ago, it seemed using cryptocurrency in the country would lead to jail time. While that is still a distinct possibility right now, things are going to change very soon. The Russian Finance Ministry wants to accept bitcoin as a way to fight money laundering. An interesting stance, as most countries feel bitcoin facilitates money laundering, even though there is no evidence.

If all things go according to plan, bitcoin will become a legal instrument in Russia as soon as 2018. Government officials want to combat illegal money transfer. As a result, the Russian central bank and government are working together on getting this new legislation approved as soon as possible. A positive stance towards digital currencies can benefit the country, that much is evident.

Russia Looks Differently At Bitcoin All of a Sudden

One thing bitcoin provides is absolute transparency regarding transaction participants. To be more specific, transactions can be seen by the public in real-time. Through the banking or other financial systems, there is little to no transparency. This effectively facilitates money laundering, costing the Russian government millions every year. Bitcoin transfers show which address is the sender and the recipient. It is anything but an anonymous payment method.

Do not be mistaken in thinking Russia will effectively regulate bitcoin, though. Despite what governments may think, it is impossible to regulate cryptocurrency in any way or shape. Legalizing bitcoin will force companies dealing with cryptocurrency to conduct additional AML checks. A similar scenario is playing out in China right now, with exchanges introducing additional verification requirements.

Russia has been battling money laundering for quite some time now. Hundreds of lenders lost their banking license in the past few years. Legalizing bitcoin is a direct result of investors looking for alternative solutions. Additionally, it will also help give bitcoin a better publish image moving forward. After all, once bitcoin is a legal currency, activity will be monitored even further. That is not necessarily a bad thing as long as people use it for legal purposes. Anyone conducting illegal activity with cryptocurrency will have to find other solutions, though.

For the time being, the first deadline to mark on the calendar is mid-2017. Around that time, legislators will decide if digital currencies are an asset in Russia. This will be an important day in the history of bitcoin, that much is certain. After Japan legalizing bitcoin, it appears other countries are scrambling to do the same. An interesting development, yet it shows how mature bitcoin has become over the past few years.

David Ogden
Entreperenuer

David – http://markethive.com/david-ogden

All You Need To Know About Dollar-Denominated Cryptocurrencies

dollar denominated chryptocurrency

All You Need To Know About Dollar-Denominated Cryptocurrencies

A well-known obstacle to the greater popularity of Bitcoin as a medium of payment is the high volatility of its exchange value. This volatility results from its built-in quantity commitment: because the number of Bitcoins in existence stays on a programmed path, variations in the real demand to hold Bitcoin must be accommodated entirely by variations in its unit value. When demand goes up, there is no quantity increase to dampen the rise in price; and vice-versa for a fall in demand.

 

Not surprisingly, several cryptocurrency developers have thought of creating a cryptocurrency with a price commitment–namely a pegged exchange rate with the US dollar–rather than a quantity commitment, in hopes of greater popularity. The aim is to create a system in which dollar-denominated payments can be made with the ease, security, and low cost of Bitcoin payments, but without the exchange-rate risk.
 

New Digital Assets
 

The development of “Blockchain 2.0” platforms has enabled the launching of a variety of new digital assets, including such dollar-pegged (and euro-pegged and gold-pegged) currencies. As we will see, the histories of early (2014-2016) dollar-pegged cryptocurrencies show a series of flops. But one project, Tether, has become a late-blooming success.
 

Tether had $55 million in circulation as of March 29, 2017, making it the #13 largest cryptocurrency. To keep this size in perspective, a brick-and-mortar US institution with $55 million in deposits is a tiny bank or a mid-size credit union, and Tether is currently only 1/300th the size of Bitcoin.

The Tether white paper explains in more detail the motivation for developing a dollar-pegged cryptocurrency by listing advantages to individuals using it for dollar-denominated transactions rather than using dollars held in “legacy bank” accounts:
 

Transact in USD/fiat value, pseudonymously, without any middlemen/intermediaries

Cold store USD/fiat value by securing one’s own private keys

Avoid the risk of storing fiat on [cryptocurrency] exchanges–move crypto­fiat in and out of exchanges easily

Avoid having to open a fiat bank account to store fiat value

In sum, “Anything one can do with Bitcoin as an individual one can also do with” a dollar-pegged cryptocurrency, namely, “avoid credit card [or debit card] fees,” maintain greater privacy, “remit payments globally” more cheaply, and access blockchain financial services.

But what is the claimed advantage over using Bitcoin? It is the expectation of wider acceptance in payments, because of the advantages to merchants of accepting a dollar-pegged cryptocurrency over accepting Bitcoin in a US-dollar-dominated economy:

Price goods in USD/fiat value rather than Bitcoin (no moving conversion rates/purchase windows)

Avoid conversion from Bitcoin to USD/fiat and associated fees and processes

 

The Flops

First we consider the projects that have flopped. Three projects were launched in September 2014: CoinoUSD, NuBits, and BitUSD. Their pegging mechanisms were different, and are difficult to describe briefly (partly because they were not all entirely transparent), but two common features are important to note.

The rate-pegging mechanisms were not programmed into a source code, like Bitcoin’s quantity commitment, but relied on non-programmed policy actions by a trusted central authority.

None used the traditional currency pegging method of having the issuer hold reserves in physical dollars or dollar-denominated debt securities. (On the NuBits mechanism see this critique by a BitUSD promoter. On the BitUSD mechanism see this critique by the CoinoUSD developer.)

We can examine the fortunes of each project by looking at its price and “market capitalization” (value-in-circulation) history on the cryptocurrency tracking site CoinMarketCap.com.
 

CoinoUSD

CoinoUSD, which began trading in December 2014, was developed by a for-profit payments firm called Coinomat and built on the blockchain of the NXT cryptocurrency. (In November 2014 NXT was the #6 cryptocurrency with a market cap of $19 million; currently it ranks #38 with a market cap around $13 million.)

CoinoUSD reached a market cap plateau of $2.7 million in early 2016, but shut down in early 2016, due to a “payout glitch” that flooded customers with free CoinoUSD units, making it impossible to maintain the exchange value at $1. Coinomat announced a reboot in which the erroneous payout would be reversed and said, “NXTUSD will replace CoinoUSD completely, and enhance it,” but this appears not to have happened. Since then it has had a market cap of zero, and its webpage at the Coinomat site declares it “disabled until further notice.”
 

NuBits

The history of NuBits, also a for-profit enterprise, shows that it gained only a similarly small market foothold. Its market cap plateaued early on below $2.5 million, and since April 2015 has remained below $1 million. In June 2016 NuBits had a devaluation crisis, with the price falling to 20 cents. Its rate-pegging intervention mechanism, despite claiming many layers of reinforcement, was not robust and failed.

Although the price later returned to par, today NuBits shows very little market activity. Since January 2017 the market cap has hovered around only $135,000, with daily trading volume in the neighborhood of $2000.

BitUSD

BitUSD is built on the blockchain platform of the cryptocurrency BitSharesX. Its highest market cap plateau was around $1 million soon after introduction, but it fell to below $200,000 in April 2015 and is currently less than $110,000.

BitUSD uses a novel pegging system that so far has proven robust. A piece promoting BitUSD emphasizes that “the bitUSD is an asset that is not backed by real dollar in someone’s bank account.” (It claims this a virtue: “We cannot trust anyone to hold and secure a physical asset so that people can redeem it eventually. History has repeatedly shown: It doesn’t work!” In fact, history shows the major banks in unhampered banking systems routinely justifying the public’s trust by redeeming their liabilities on demand for decades. Paypal works on the same supposedly non-working model, backed by Paypal’s dollar deposits at Wells Fargo Bank.)

By contrast, BitUSD are created through collateralized forward currency contracts. The network provides an escrow service that credibly ensures repurchase (or “redemption”) of the BitUSD at or near par. Someone who wants to acquire BitUSD, say in order to buy from a seller who prefers a dollar-denominated medium of exchange, offers a contract: so many BitShares (hereafter BTS) for a certain amount of new BitUSD.

Under the BitShare network rules, the acquirer must not only pay at the outset in BTS but also agree to post collateral in BTS equal to the value of the bid. If the bid is accepted by another network participant, explains the BitUSD white paper, “the collateral and purchase price are held by the network until the BitUSD is redeemed” by some third party repurchasing it. The acquirer of BitUSD thus puts 200% collateral into a contract “that only allows access to these BTS when the BitUSD are paid back.” In effect the acquirer is shorting the dollar price of BTS.

“BitUSD is an asset used to hedge a position in BitShares against changes in the price of USD and is not supposed to have an exact 1:1 exchange rate with USD.”

Note that the new BitUSD units are initially 200% collateralized not in dollar-denominated assets, but in BTS. If BTS fall 25% or more against
 

David Ogden
Entrepreneur

David – http://markethive.com/david-ogden

Majority of Nigerians Have Faith in Bitcoin

majority of Nigerians have faith in bitcoin

Majority of Nigerians Have Faith in Bitcoin

A recent survey indicates that Nigerian trust Bitcoin more than gold when it comes investments.

Bitcoin is rightly deemed as the “Digital Gold”. The cryptocurrency, introduced to the world in 2009 has all the properties of gold, except for the weight and these features aren’t lost on the Nigerian cryptocurrency community. Bitcoin has a huge presence in African nations, and Nigeria is one such African country which recently ranked high in Google Trends for Bitcoin-related searches. The extent of faith in the cryptocurrency among the community is now known to the world, thanks to a recent survey conducted by Luno — a cryptocurrency platform serving the region.
 

As a part of this survey, Luno sent a series of questions to all its Nigerian customers, and the results didn’t come as a surprise. The report states that the trust factor in Bitcoin among Nigerians is at an all-time high, as over 59% of the participants in the survey responding positively to the cryptocurrency. The untrusting ones were about 17% of all survey respondents while the remaining preferred to be neutral.
 

One of the leading African tech magazines quoted a representative from Luno describing the survey process saying,

 

“We shared a survey with our Nigerian customers which went out to all of our customers. We then reviewed the results for statistical significance, outliers, and errors and compiled the infographic from the data… Note that it was only sent to Luno customers, so the data might be slightly skewed towards our customer preferences (as opposed to all Nigerian Bitcoin users), but we enjoy the highest trading volume of Nigerian Bitcoin exchanges – as per publicly available volume data – so it should be somewhat similar across the board. We aim to do much more research and share the results with the media and Bitcoin community in the coming months.”

While the results may not be 100% accurate as those participating in the survey were already onboard Luno platform, which makes them existing cryptocurrency users, potentially having a biased opinion towards their favorite digital currency. Also, many of these respondents were found to be in favor of purchasing Bitcoin over gold as they expect the cryptocurrency’s value to appreciate much faster than that of the yellow metal.
 

The results of the survey were published by Luno in the form of an infographic, along with a promise to provide more information as soon as it finishes in-depth research and analysis of not just the platform’s users but other individuals as well.

David Ogden
Entrepreneur

David – http://markethive.com/david-ogden

Cyprus SEC gets Tough on International Forex, Bitcoin Traders

Cyprus SEC gets Tough on International Forex BitcoinTraders

Cyprus SEC gets Tough on International Forex, Bitcoin Traders

International Forex trading hub Cyprus has signaled that “comply or close shop” standards will be enforced within nine months, causing uncertainty among FX companies, some of them holding Bitcoin/fiat positions.

 

Retail trading companies located on the island offering clients Bitcoin/fiat pair options have yet to be instructed on Bitcoin options but the latest Cyprus Securities and Exchange Commission (CySEC) statements and the Central Bank of Cyprus’ view on cryptocurrencies may put these operations into question.

Cyprus is host to about 80 percent of the world’s retail FX and binary options companies, nestled in the financial district of Limassol. The rising number of complaints risks tarnishing the industry that is still growing at a fast pace.

Abrupt meeting

On Tuesday, CySEC Chairman Demetra Kalogerou lined up the executives of the island’s Forex firms for an abrupt closed doors meeting. Sources presented at the meeting told Finance Feeds that the change is coming to the industry in what may be a make or break phase
 

The retail forex trading industry grew rapidly lately, surviving some scandals. Some firms have already paid heavy fines, already to the tune of over three million euros on the island alone.

Uncertainty

As early as 2014, the Central Bank of Cyprus issued a warning on the risks associated with virtual currencies when certain companies have introduced the dollar/Bitcoin pair.

It still holds a neutral stance, while suggesting traders or holders of virtual currencies take steps to protect themselves as they are yet to be regulated. It is uncertain how the latest development will influence companies offering dollar/Bitcoin pairs.

New regulations aimed at protecting clients might affect the cryptocurrency trading options
 

Call centers to be banned

Calling out the boiler room tactics used via call centers, Kalogerou looks to ban them entirely. Sales staff will be required to change from cold callers into CySEC licensed and examined professionals starting this year. A warning was raised against reports of giving clients financial advice and offices will have to be set up in countries where a substantial number of clients reside to better represent them
 

Affiliate marketing has yet to be called out for a strict ban or not, while Ms. Kalogerou sternly raised concerns as to how to monitor marketers on how and what they advertise to potential clients.

“We do not like introducing brokers at all, we do not like affiliates,” said Kalogerou on the topic of affiliates.

Leverage limits

Leverage limits will now be set to a maximum of 1:50 until clients request and show an aptitude for more. Currently, leverage as high as 1:500 is available to retail clients. The commission already requested a 1:50 cap in November 2016, calling anything above that “excessive leverage.
 

With European Securities and Markets Authority (ESMA) and Markets in Financial Directive II (MiFID II) legislation set forth by the EU, the market it set to get its act together. Furthermore, CySEC has made it clear that the corporate tax efficient environment of Cyprus will not play host to those who cannot or will not comply.

David
Ogden

David – http://markethive.com/david-ogden

Buy Bitcoin at Paybis With Credit Cards, Its Easy

buy bitcoin at paybis with credit cards its easy

 Buy Bitcoin at Paybis  With Credit Cards, Its Easy

 

EDINBURGH, Scotland, April 5, 2017 /PRNewswire/ — Users on the leading digital and cryptocurrency exchange platform Paybis can now buy Bitcoin instantly with their credit card. The new feature makes Paybis one among the few platforms that offer such an option.

 

Paybis accepts credit cards issued by major providers like Visa, MasterCard, etc. on its secure platform. Those making use of the "Bitcoin with Credit Card" option on the platform are assured to receive the cryptocurrency as soon as the card company approves their transaction. Buying Bitcoin with Credit Card is a convenient process where users can simply create an account on PayBis.com and sign in with either Facebook or Google for speed and convenience. Once verified, users will be able to choose the amount for which they wish to buy the cryptocurrency and execute payment.

 

Paybis implements a quick, simple and easy to follow identity verification stage that takes as less as 30 minutes in processing time. The platform has a simple tiered system for those wanting to purchase Bitcoin with other payment methods, where they can increase the spending limits by successfully completing different levels of verification. New users can enjoy an impressive weekly credit card purchase allowance of $5,000 or a monthly allowance of $ 20,000 USD.
 

Other payment methods supported by Paybis in addition to the Bitcoin with Credit Card option includes the likes of PayPal, Western Union, MoneyGram, OKPay, WebMoney, Skrill, Perfect Money, EPay, Yandex Money, Payeer, and Payza. The platform also offers the popular gift card to Bitcoin option that supports a range of gift cards from Amazon, Target, Walmart and other mainstream US vendors.

 

The feature-packed Paybis cryptocurrency platform, with its attention to detail and an easy-to-use interface, provides a 24/7 live customer support for its users. The website's design shares similarities with major online trading platforms to give its customers a familiar feel. Paybis takes its users' security and privacy seriously and ensures adequate protections by implementing state-of-the-art security for transactions happening over the platform. It also has a fast, fully automated payments and transfer process to provide instant delivery of Bitcoin to the customers.

 

Paybis believes in maintaining a transparent operating process with no hidden charges for the benefit of its clients. The fee structure and exchange rates for all payment methods can be directly accessed on Paybis website. All these features make Paybis one of the trusted platform among the community members with impressive feedback ratings to prove it. Paybis has completed over 50,000 transactions so far for more than 20,000 happy customers. It is going to further improve in the coming days with the introduction of few new features and products.
 

About Paybis
 

Started in 2014, Paybis is a fast-growing cryptocurrency and digital currency exchange platform. It is run by a group of experienced professionals from various industries with the aim of solving one of the actual e-commerce problems faced by the cryptocurrency and digital currency segment. Paybis is one of the few cryptocurrency platforms with a valid federal Money Service Business (MSB) license in the United States.

David Ogden
Entrepreneur

 

David – http://markethive.com/david-ogden

Bitcoin Steams Ahead

Bitcoin Steams ahead

Bitcoin Steams Ahead

Cryptocurrency enthusiasts will have noticed that bitcoin’s price has been going up steadily over the past few days. It is always difficult to pinpoint the exact reason for this behavior. Japan’s new cryptocurrency regulation went into effect, and there is a big bitcoin marketing campaign on the /r/place subreddit. Both factors may contribute to future bitcoin price gains moving forward.

BITCOIN PRICE PREPARES FOR ANOTHER MAJOR RALLY

It is impossible to deny the recent bitcoin price gains. Over the past few days, the value per BTC has surpassed US$1,100 once again, after a few weeks of downward price momentum. Enthusiasts always believed this negative price trend was only temporary, though, as there is no reason for the bitcoin price to lose value over time.

That being said, the ongoing scalability debate hasn’t done the bitcoin price any good. Bitcoin Core and Unlimited supporters continue to “duke it out” on the internet, which generates some negative attention for the popular cryptocurrency altogether. However, it would appear even those debates are no longer sufficient to keep the bitcoin price down for an extended period of time.

It is also worth mentioning there is some positive attention on bitcoin right now. Japan recently introduced their new virtual currency regulation, which effectively removes the sales tax on bitcoin purchases. This makes bitcoin more approachable and affordable to everyday consumers in the country. Regulatory developments like these can pave a bright future for bitcoin moving forward.

Moreover, there is a dedicated bitcoin marketing campaign taking place on the /r/place subreddit. Reddit remains a key place to discuss bitcoin and other cryptocurrencies. Advertising on other subreddits will introduce more mainstream internet users to cryptocurrency as a whole, which can only be a positive thing in the long run. The bitcoin logo is getting some good exposure on this subreddit, that much is certain.

David Ogden
Entrepreneur

 

Author JP Buntinx

David – http://markethive.com/david-ogden

Poloniex-Traders-Panic-and-Suffer-Losses-Due-to-System-issues

Poloniex-Traders-Panic-and-Suffer-Losses-Due-to-System-issues

Poloniex – Traders Panic and Suffer Losses Due to System issues

Plenty of cryptocurrency traders are not too amused with Poloniex right now. The popular altcoin exchange suffered from several brief outages yesterday. During the panic, the Ripple price crashed hard and Ethereum lost US$1bn in market cap. It is unclear what occurred exactly, but we do know traders lost a lot of money in the process. It is unclear what will happen to the people who lost money, though.

Trading cryptocurrencies is always a risky business. Money can be earned and lost in a matter of mere seconds. However, if a popular exchange goes down and traders can’t execute orders, something is definitely amiss. Poloniex had a lot of issues last night after Ripple reached a new all-time high. Shortly after this happened, the platform became unresponsive.

Poloniex Suffers From Brief Outages Once Again

It was not just the web frontend suffering from these problems. The Poloniex API, used in tools such as TabTrader, became unresponsive as well. The company acknowledged the outage and trading resumed back to normal relatively quickly. However, a lot of users have suffered from spotty accessibility for several hours. During that time, trading just continued as normal, allowing some people to take advantage of the situation.

To be more specific, Ethereum lost close to US$1bn of its market cap during the trading frenzy. Events like these should not occur in the first place. Moreover, some people feel Poloniex should have halted all trading until the platform was operational again. This goes to show the platform cannot handle increased trading volume for an extended period of time. That is quite disconcerting, to say the least, given Poloniex’s position in the market.

One thing is certain: a lot of people have lost faith in Poloniex for the time being. One Reddit user even calls it an ‘organized scam crime website”, although that may be a too strong sentiment. It is true this is not the first time the exchange suffers from such outages, though. If these problems continue, Poloniex will quickly lose its market position. After all, the company has to provide exchange services around the clock, yet appears incapable of doing so.

It is unclear how much money people lost due to these issues, though. Ethereum’s market crashing and the unexpected Ripple dump raise a lot more questions than answers right now. Poloniex has some explaining to do, albeit it is safe to assume no one will be reimbursed for their losses. Centralized exchanges continue to pose a problem for traders. No exchange is always reliable or accessible, that much is certain.

Many years ago I suffered a significant loss when fiat currency trading, when I loss Internet access to my trading site at a crucial time. These outages underline the importance of setting stop losses.

David Ogden
Entrepeneur

 

Author JP Buntinx

Header image courtesy of Shutterstock

 

David – http://markethive.com/david-ogden

Bitcoin Recognised as a Currency in Japan

Bitcoin Recognised  as a Currency in Japan

bitcoin recognised as a currency in japan

Bitcoin has finally gained the recognition of a mainstream currency along the lines of other fiat currencies. The privilege follows the implementation of a new law in Japan which categorizes Bitcoin as a legal payment option within the country. The much-awaited law went into effect on April 1, 2017 (beginning of a new fiscal year in many countries).

With the new law’s implementation, Bitcoin exchanges will also come under additional regulatory scrutiny. The recognition of cryptocurrency as a legal tender also means the applicability of regulations governing banks and financial institutions to cryptocurrency exchange platforms. They will be required to comply with strict anti-money laundering (AML) and Know Your Customer (KYC) requirements, alongEntrepreneur with annual audits. Other requirements include meeting the stated capital and cyber security requirements to ensure consumer protection.

The recognition of Bitcoin and other cryptocurrencies as legal payment instruments is good news for the global cryptocurrency ecosystem. Adoption of cryptocurrency is expected to increase among people, which will, in turn, drive demand and price.

However, reports indicate that the cryptocurrency platforms are still trying to figure out ways to achieve compliance with the new regulations. Recognizing the exchanges’ needs, the Accounting Standards Board of Japan has announced that it has started working on creating an accounting framework for both user and businesses dealing with cryptocurrencies.

It might take a while before companies and individuals get acquainted with the accounting practices, which has raised concerns about legal implications of inaccurate reporting’s/filings due to lack of understanding. Also, few publications have raised concerns about the volatility of Bitcoin and other cryptocurrencies and how it might impact those making cryptocurrency transactions.

The new developments are expected to drive the cryptocurrency usage in Japan to over $9 billion in the next three years (2020), which is more than five times the 2015’s $1.7 billion worth of cryptocurrencies in circulation.

David Ogden
Entrepreneur

 

Author: Gautham

David – http://markethive.com/david-ogden