Regulations Archives

Why 2017 can turn out to be very positive for Bitcoin

Posted on January 4, 2017 | by [email protected]

Bitcoin has had a strong start to 2017 with the trend looking strong enough to break the all-time high set in 2013. 2016 has been a positive year for the cryptocurrency with the currency showing an increase of $460 during the year. Most investors have resorted to use this digital asset as a portfolio diversifier and it has proved out to be a winning gamble. Fundamentally this was a well thought out move and it payed off with good dividends. But the question lingering in the minds of many Bitcoin enthusiasts and investors is how these strategies and Bitcoin would fare in 2017. Let’s look into few reasons why we believe Bitcoin would continue to weather the terrain to outperform assets:

China and the East step up the game:

China has always been a major price and volume driver for Bitcoin. The Yuan trading volumes observed a major uptick towards the year end owing to the Chinese Government’s announcement of imposing capital controls over Bitcoin. While this might happen sometime late this year, people are now actively moving funds out of the country at a very quick pace. This avalanche might last for a good amount of time into 2017.

With Japan abolishing sales tax on Bitcoin, South Korea encouraging Bitcoin and Blockchain accelerators and India’s demonization prompting for a cashless Indian society, the contributing prospects from the east only look stronger.

Eurozone’s loss would be Bitcoin’s gain:

The staggering effect of Brexit this year was evident when the European markets collapsed while Bitcoin soared mid-year to trigger a bull run. This quick transfer of funds into a digital unrelated asset has been the defining aspect of 2016’s Bitcoin Bull Run. In the face of Geo-Political crisis Bitcoin has replaced Gold as the safe hedge. With Eurozone still wobbly with impending debt and banking bail outs, cryptocurrencies seem to be a safer option for investing and hedging.

With Italian banking bail outs, Spain’s growing recession, ongoing crisis in Greece and post effects of Brexit, 2017 would see heavy activity in Bitcoin owing to the European continent.

USA’s growing adoption levels and the Trump factor:

The regulation of cryptocurrencies has been a hot topic in the US senate in 2016 and has seen some implementation in major states. With Trump’s policies aligned with major changes required to accelerate Fintech industry, adoption might reach higher levels in 2017. With thoughtful regulation and strong backing, mainstream adoption looks very viable in USA which would drive prices significantly in 2017.

Summing up, 2017 looks very positive for Bitcoin and Blockchain with the cryptocurrency all set to reach new levels of penetration.

Can Hillary’s policies pave the way for better Bitcoin eco system?

Posted on October 9, 2016 | by [email protected]

US democratic presidential nominee Hillary Clinton has been very vocal about her policies throughout the presidential campaign. With less than a month remaining, cryptocurrency enthusiasts are weighing their pros and cons against each candidate and their policies. Both the candidates have proclaimed their support in accommodating fintech industry. When it came to Bitcoin and cryptocurrencies, Clinton has been critical and skeptical in her statements. Let’s look into how Hillary’s policies would affect Bitcoin:

Hillary’s fintech policies:

Even before she received the presidential nomination from the US Democratic Party, Hillary has had set agenda for fintech industries. She has proactively stated that if elected, she would push for reduced regulatory barriers for startups and entrepreneurs.

The Clinton campaign stated:

“We must position American innovators to lead the world in the next generation of technology revolutions – from autonomous vehicles to machine learning to public service blockchain applications – and we must defend universal access to the global, digital marketplace of ideas.”

The campaign also added that Hillary will challenge state and local governments to identify, review and legal and regulatory obligations. This would take away the immunity that protects legacy incumbents against new innovators.

Hillary against China and the East:

Hillary as the secretary of the state has historically intimidated China throughout her term. Be it her stance on International waters or trade agreements, she has always opposed China firmly. What would be instrumental to digital currencies is the trade agreements with China. Just like Donald Trump, Hillary opposes the Trans-Pacific Partnership. She supports trade agreements that would raise wages, increase prosperity, create more jobs for Americans, and protect our security.

Hillary said:

“We cannot let rules of origin allow China — or anyone else, but principally China — to go around trade agreements. It’s one of the reasons why I oppose the Trans-Pacific Partnership because when I saw what was in it, it was clear to me there were too many loopholes, too many opportunities for folks to be taken advantage of.”

This means, Hillary would alter trade agreements to tighten US’s hold, which would spell discomfort for China. If Chinese implement unorthodox monetary policies, that would disturb Yuan and we are likely to see heavy movement in Bitcoin market.

Hillary against Wall Street:

On her first speech as the Democratic presidential contender, Hillary took a dig at Wall Street. She tore into CEOs, hedge fund managers, Corporate America — and the Republicans who support them. She believes that wealth centered on Wall Street is detrimental to the economy. With short term investments for high profits and low taxes paid based on their investments, common man is at disadvantage. She believes in long term investments that would open up job opportunities for Americans. She also implores Wall Street to think about the possibilities.

Would these redirected investments on Wall Street result in Blockchain opportunities for firms or would be in the direction of other industries is to be seen.

After Germany, Japan can now pay utility bills through Bitcoin

Posted on September 26, 2016 | by [email protected]

Marching into the last week of September, the Bitcoin prices have taken an uptick reaching over to $600 level again. Achieving this for the second time in the month, the currency managed to bounce back after a downward breakout threat. The prices have held up significantly around $595 with heavy technical support coming in at the price. More good news is underway as bitcoin adoption has seen a new development in Asian regions. Let’s look how Japan can now pay utility bills through Bitcoin:

Coincheck launches “Coincheck Denki”:

After Germany, Japan now has the facility to pay their utility bills through Bitcoin. Coincheck, Japanese Bitcoin services firm, has introduced a service “Coincheck Denki” allowing users to pay utility bills through bitcoin. To promote the services, Coincheck is offering 4%-6% rebates for the heavy users. Even the light users can save on their bills through miscellaneous schemes available on their wallet. The amount saved would be available in their linked Coincheck bitcoin wallet.

The service, which is the first of its kind in Japan, will be accessible from the start of November. Coincheck Denki E-net Systems has partnership with Marubeni Power Retail Corporation, which operates plants in 17 locations in central Japan. The company also has electrical business experience in over 22 other countries. The wide presence of Marubeni Power Retail Corporation would hopefully help better adoption of Bitcoin and the Coincheck Denki services.

Cryptocurrency Exchange Poloneix suspends New Hampshire accounts:

image_1474652780_11926519 — Credits: COINTELEGRAPH

According to a note posted on the Exchange’s website, Poloneix has suspended New Hampshire accounts due to state’s cryptocurrency regulations. The customers have been notified to close orders and withdraw funds by 6th of October. Under the 2016 law, a nonrefundable application fee of $500 is required for each license application. Within 30 days from the start of money transmission activity a fee of $25 will be paid to the department for each authorized delegate registration. This adds up to a total maximum annual fee of $5,000 for all locations.

Each money transmitter applicant must post a continuous surety bond in the amount of $100,000. The surety bond is for the benefit of any person who faces damages by any violation of this chapter. Poloneix has assured that the suspension is temporary and they are working out a way to renew their business.

Ripple and Big banks launch First Interbank Blockchain Group:

Blockchain startup Ripple has revealed details of the new interbank group that will create the first blockchain payment. Ripple has revealed that banks are getting closer toward uniform policies and governance for the transfer of money over blockchain. The Global Payments Steering Group (GPSG) sees six founding members that will be working over this intiative.

Marcus Treacher, Ripple’s newly hired global head of strategic accounts said:

“The messaging today across borders is Swift. The de facto way everyone moves money through countries is Swift. That’s what we think we can do better with Ripple.”

Bank of America, Santander and the Royal Bank of Canada are the latest to join the team of founding members. It previously had UniCredit and Standard Chartered; and Australian banking institution Westpac Banking Corp.