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The Bitcoin Foundation is shocked at New York Superintendent Vullo’s statements regarding New York’s virtual currency regulation at this year’s conference of state bank supervisors 0

The Bitcoin Foundation is shocked at New York Superintendent Vullo’s statements regarding New York’s virtual currency regulation at this year’s conference of state bank supervisors

Press Contacts: San Francisco, CA, Llew Claasen, press@bitcoinfoundation.org

San Francisco, CA – April 16, 2018 – Llew Claasen, Executive Director of the Bitcoin Foundation, the world’s oldest and largest Bitcoin advocacy organization, expressed his opposition to statements made by New York State Department of Financial Services (“NYDFS”) Superintendent Maria T. Vullo regarding the Virtual Currency Regulation called “the BitLicense” at this year’s Conference of State Bank Supervisors on April 10, 2018. These statements were quoted in an article published by Coindesk on April 12, 2018 (available at https://www.coindesk.com/ny-regulator-argues-bitlicense-regulation-boosted-businesses/).

In 2015, NYDFS promulgated its controversial Virtual Currency Regulation (Part 200 of Chapter 1 of Title 23 of the New York Codes, Rules and Regulations), also known as “the BitLicense,” aimed at regulating Bitcoin and other crypto-currency businesses in New York. Following its promulgation, it has been widely reported that most of the crypto-currency and blockchain startups left New York or closed down their New York activities as a direct consequence of this regulation.

During the Conference of State Banking Supervisors, Superintendent Vullo stated that “by setting standards, we have made it possible for both startups and traditional financial service providers to pursue innovation in this area,” and that the regulation “created a channel for growing in the right way.”

In response, Llew Claasen stated that “Superintendent Vullo’s statements are not only illogical, but they are false. First, the BitLicense did not allow startups to pursue innovation, instead, it triggered a mass exodus of those startups out of New York and made it impossible for them to pursue any innovation there. Furthermore, this regulation hampered growth instead of encouraging it, since Bitcoin startups abandoned New York as a jurisdiction to create new technological opportunities and jobs. Superintendent Vullo’s attempt to defend the actions of her predecessor, Ben Lawsky, in justifying his activities around the BitLicense promulgation is alarming. Her defense of Lawsky’s botched cryptocurrency hearings in 2014 to justify his actions is false and misleading. Furthermore, the numerous comments submitted by startups and minority small businesses were flatly rejected and never seriously considered by a regulator who seemed to have his mind set before anyone had a chance to advance robust and serious arguments about how to regulate a burgeoning technology.”

Finally, following the 2015 promulgation of its controversial “Virtual Currency” regulation (Part 200 of Chapter 1 of Title 23 of the New York Codes, Rules and Regulations), also known as “the BitLicense”, aimed at regulating Bitcoin and other cryptocurrency businesses in New York, a small business owner, Theo Chino, filed an action in New York State Supreme Court against NYDFS arguing that the agency exceeded its regulatory mandate, and that regulating Bitcoin lies with the legislature, not NYDFS. The case is Chino vs. NY Dept. Financial Services (“NYDFS”) (Index No. 0101880-2015).

The Bitcoin Foundation, Inc. is a non-profit organization founded in September 2012. Comprised of senior leaders in the Bitcoin community, the Foundation coordinates joint efforts of the Bitcoin community, helping to create awareness of the benefits of Bitcoin, its use and its related technology requirements. The Foundation’s audience includes technologists, regulators, and the media, and its reach is global. The Foundation has been at the forefront of campaigning for an unimpeded economic system for the future.

The post The Bitcoin Foundation is shocked at New York Superintendent Vullo’s statements regarding New York’s virtual currency regulation at this year’s conference of state bank supervisors appeared first on Bitcoin Foundation.

Bitcoin.org to denounce "Segwit2x" 0

Bitcoin.org to denounce "Segwit2x"

On 2017-10-11 at noon (UTC), Bitcoin.org is planning to publish a banner on every page of the site warning users about the risks of using services that will default to the so-called Segwit2x1 (S2X) contentious hard fork. S2X companies will be called out by name. To ensure that we only warn users against companies that will actually put user deposits at risk, we urge all companies to publicly clarify their stance before the above date, either by a highly-visible public statement or by commenting on Bitcoin.org issue #1835 (or by doing both).

In particular, we need to know that:

  1. The company will not under any circumstances list “Segwit2x” as “BTC” and/or “Bitcoin”. Note that Bitcoin is not ruled by miners, and miner actions cannot be used as a justification to redefine Bitcoin.
  2. The company will not by default do anything that would deprive users of their bitcoins (by eg. using S2X software without addressing replay attacks2, selling user bitcoins automatically, crediting BTC deposits only as S2X deposits, etc.). Providing access to S2X-coins is acceptable, however.
  3. The company will continue to provide normal service to Bitcoin (ie. non-S2X) users.

Although bitcoin.org condemns contentious hard fork attempts such as S2X, we consider it tolerable for companies to support S2X in ways that do not contradict the above three points, such as by supporting both Bitcoin and S2X simultaneously as separate cryptocurrencies.

By default, we will be using the following list of companies known to support S2X in our warning:

  • 1Hash (China)
  • Abra (United States)
  • ANX (Hong Kong)
  • Bitangel.com /Chandler Guo (China)
  • BitClub Network (Hong Kong)
  • Bitcoin.com (St. Kitts & Nevis)
  • Bitex (Argentina)
  • bitFlyer (Japan)
  • Bitfury (United States)
  • Bitmain (China)
  • BitPay (United States)
  • BitPesa (Kenya)
  • BitOasis (United Arab Emirates)
  • Bixin.com (China)
  • Blockchain (UK)
  • Bloq (United States)
  • BTC.com (China)
  • BTCC (China)
  • BTC.TOP (China)
  • BTER.com (China)
  • Circle (United States)
  • Civic (United States)
  • Coinbase (United States)
  • Coins.ph (Phillipines)
  • CryptoFacilities (UK)
  • Decentral (Canada)
  • Digital Currency Group (United States)
  • Filament (United States)
  • Genesis Global Trading (United States)
  • Genesis Mining (Hong Kong)
  • GoCoin (Isle of Man)
  • Grayscale Investments (United States)
  • Jaxx (Canada)
  • Korbit (South Korea)
  • Luno (Singapore)
  • MONI (Finland)
  • Netki (United States)
  • OB1 (United States)
  • Purse (United States)
  • Ripio (Argentina)
  • Safello (Sweden)
  • SFOX (United States)
  • ShapeShift (Switzerland)
  • SurBTC (Chile)
  • Unocoin (India)
  • Veem (United States)
  • ViaBTC (China)
  • Xapo (United States)
  • Yours (United States)

Notes

  1. “SegWit2x” has nothing to do with SegWit. SegWit is already activated, and was supported by an entirely different set of people.
  2. S2X claims to have replay protection, but their version requires extra manual steps in order to prevent loss of BTC. If you use S2X software without careful engineering, you are likely to lose any associated BTC.

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Saxo Investment Bank is Bullish on Crypto Over Next 3 Months

Influential investment bank Saxo released the 35 page, Q2 2018 Quarterly Outlook. In it, the bank’s newly hired Crypto Analyst, Jacob Pouncey, noted the perils of this year’s first financial quarter with regard to digital assets. Taking into account several factors, he believes the next three months could be a breakout time for digital assets, holding the potential to trigger a bull market.

Also read: German Cops Look Hard at Antics of ICO Savedroid After Ghost Prank

Heavy Hitter Saxo Bank Released Bullish Outlook on Cryptocurrencies

It takes all of 33 pages to find it, but there it is: a very influential investment bank not only hired a “Crypto Analyst,” but allowed him to have an authored section titled – Are Cryptocurrencies Entering a New Cycle?

The Danish bank, Saxo, forwarded its general outlook for 2018’s second set of three months. Turning to cryptos, Mr. Pouncey prefaced, “Cryptocurrencies fell back to earth with a bang in the first months of this year, having enjoyed exponential growth in 2017. The situation remains fragile, given the outlook to increased regulation and social media advertising bans. That said, we can’t rule out the possibility of a comeback.”

Saxo is based in Copenhagen, and its products include online trading in futures spreads, funds, bonds, CFDs, stocks, and even a foreign exchange. It has the rare charter of being both a proper bank and a broker. As such, it typically caters to institutional, legacy financial companies (more than 100 globally). Its European presence is well established, though it has exposure in the Middle East and Southeast Asia. Saxo claims to handle $12 billion USD daily, having clients in 180 countries.  

That its main analyst in the crypto sector is optimistic going forward means cover for institutional investors who’re looking to dabble. Indeed, Mr. Pouncey details, “The market has seen several acquisitions of crypto exchanges from financial firms such as Goldman Sachs backed Circle acquiring Poloniex, Monex Group acquiring Coincheck, and Yahoo Japan buying a 40% stake in Bitarg Exchange Tokyo.” Additionally, crypto exchanges such as Coinbase have been able to recruit real talent from Silicon Valley, and they’re being placed in key executive positions. These moves seem poised to take advantage of price spikes.

Mr. Pouncey concludes, “several events could serve as springboards for a cryptocurrency bull market in Q2, whether it is through fundamental drivers, or it is just a self-fulfilling prophecy [….] In my opinion, we will eventually see the end of the current, negative cryptocurrency cycle, as many of the weak hands have been shaken out by the bear market and the remaining investors are on the ready to latch onto any good news after the bad start this year.”

Jacob Pouncey

Much of the Positive Outlook is Based on Institutional Investors Entering the Crypto Space

Many professional financial legacy gurus expect the easy credit market to dry up a bit in the coming months as a hedge against inflation. This could mean traditional equities are less attractive, and the search for “uncorrelated assets” begins.

These are “assets that lie outside the reach of the traditional financial system in which cryptocurrencies are a potential alternative,” Mr. Pouncey insists. “Historically, many of the blue chip cryptocurrencies have seen price increases in the face of global uncertainty and [… the] inflow of institutional capital to the cryptocurrency market due to the increase in regulation and investor protection could lead cryptocurrencies to a positive quarter.”

Do you believe institutional investors are going to enter the crypto market soon? Let us know in the comments section below.


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The post Saxo Investment Bank is Bullish on Crypto Over Next 3 Months appeared first on Bitcoin News.