Indian Politician Thinks Bitcoin Is a Ponzi Scheme

A recent statement made by one of the Indian politicians shows the lack of awareness about the digital currency among many. The politician in question is Kirit Somaiya, a Member of Parliament from the ruling party. He was reported calling Bitcoin a “hypothetical currency” and a “Ponzi scheme”. Bitcoin is one of the first and … Continue reading Indian Politician Thinks Bitcoin Is a Ponzi Scheme

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A recent statement made by one of the Indian politicians shows the lack of awareness about the digital currency among many. The politician in question is Kirit Somaiya, a Member of Parliament from the ruling party. He was reported calling Bitcoin a “hypothetical currency” and a “Ponzi scheme”. Bitcoin is one of the first and … Continue reading Indian Politician Thinks Bitcoin Is a Ponzi Scheme

The post Indian Politician Thinks Bitcoin Is a Ponzi Scheme appeared first on NEWSBTC.

PBOC Proposes In Person Verification for Account Opening at Exchanges, Withdrawals Still On Hold

The People’s Bank of China (PBOC) has reportedly sent a draft proposal to Chinese bitcoin exchanges detailing anti-money laundering (AML) requirements. One proposal outlined in the draft is an on-site verification for opening an account at an exchange. Meanwhile, withdrawals at these exchanges are unlikely to resume until AML rules have been clarified. Also read: Chinese Central

The post PBOC Proposes In Person Verification for Account Opening at Exchanges, Withdrawals Still On Hold appeared first on Bitcoin News.

The People’s Bank of China (PBOC) has reportedly sent a draft proposal to Chinese bitcoin exchanges detailing anti-money laundering (AML) requirements. One proposal outlined in the draft is an on-site verification for opening an account at an exchange. Meanwhile, withdrawals at these exchanges are unlikely to resume until AML rules have been clarified.

Also read: Chinese Central Bank Requiring Extreme Customer Verifications at Exchanges 

On-site In Person Verification for Opening Accounts

An article in the China Business Journal reportedly claims that the PBOC has sent a 4-page draft proposal to Chinese bitcoin exchanges. The bank is asking them if the requirements outlined in its proposal, including one involving a mandatory in-person verification, are feasible.PBOC Proposes On-Site Verification for Account Opening at Bitcoin Exchanges; Withdrawals Still On Hold

An exchange insider, Lu, told the Chinese publication that one of the items listed is the requirement for all new users to go through on-site verification before they can open an account. Bitcoin.com previously reported on the PBOC potentially requiring on-site verification in order to deposit or withdraw 50,000 yuan when using a Chinese bitcoin trading platform, but doing so to open an account was not mentioned.

Lu commented that this requirement is not feasible and does not follow the trends of the internet, citing that even stock market trading accounts allow remote video verification.

Withdrawals Unlikely to Resume Until AML Rules Are Clear

Lu also said that the PBOC has a different concept of what AML means than bitcoin exchanges do. He added that the exchanges have been implementing AML measures all PBOC Proposes On-Site Verification for Account Opening at Bitcoin Exchanges; Withdrawals Still On Holdalong, but the PBOC thinks otherwise. With this new draft, both the PBOC and the exchanges should have the same set of standards in mind, Lu hopes. “In short, all they are doing is making sure there are no loopholes. Taking preventive measures, blocking potential possibilities and minimizing risks”, he noted.

In early February, three major Chinese exchanges suspended bitcoin withdrawals, supposedly for one month, following the PBOC’s inspections of nine smaller bitcoin exchanges earlier that week. The major exchanges announced at the time that they would be upgrading their AML systems in accordance with laws and regulations. Their estimated time to completion for the upgrades was one month.

However, on March 8, Bitcoin.com reported that all three major Chinese bitcoin exchanges have postponed the return of withdrawals. They announced at the time that “once approved by the regulating departments, we will resume bitcoin withdrawal services”.

Recently, BTCC has completed its know-your-customer (KYC) system upgrade PBOC Proposes On-Site Verification for Account Opening at Bitcoin Exchanges; Withdrawals Still On Holdto comply with AML policies. A notice posted on Btcchina.com states that four pieces of identity information are now required. They are; full name, national ID number, bank card number and mobile phone number. These requirements must be met for depositing and withdrawing funds. Furthermore, the notice states that:

BTC and LTC withdrawals are still on hold until further notice.

Lu expressed that the exchanges cannot resume withdrawals until the AML rules are clear, stating that “the standards are not yet fully implemented. So exchanges don’t dare to resume it”.

What do you think of the PBOC’s on-site verification proposal for opening an account? Let us know in the comments section below.


Images courtesy of Shutterstock, PBOC, and BTCC


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SEC Delays Decision on Barry Silbert’s BIT after Receiving Comments

March has been a busy month for the U.S. Securities and Exchange Commission (SEC). Following its March 10 decision on Coin ETF, the Commission will soon have to make a decision on Solidx Bitcoin Trust, which is due on March 30. In addition, there is another deadline this month that most people have overlooked. It is the first deadline

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March has been a busy month for the U.S. Securities and Exchange Commission (SEC). Following its March 10 decision on Coin ETF, the Commission will soon have to make a decision on Solidx Bitcoin Trust, which is due on March 30. In addition, there is another deadline this month that most people have overlooked. It is the first deadline for Barry Silbert’s Bitcoin Investment Trust (BIT), which is due on March 26. However, the Commission has announced this week that it is delaying the decision on the BIT for 45 days.

Also read: SEC Rejects Rule Change for Bitcoin ETF

Decision Postponed to May 10 – for Now

SEC Delays Decision on Bitcoin Investment Trust after Receiving 3 CommentsThe NYSE Arca exchange filed a proposed rule change to list and trade shares of the BIT on January 25, which would trade under the symbol GBTC. Without an extension, the Commission would have to make a decision on the BIT 45 days after the proposed rule change was published in the Federal Register, which was on February 9.

The Commission has now chosen to extend its decision period for 45 more days. In its notice on Wednesday, the SEC wrote:

The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,6 designates May 10, 2017, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.

While May 10 has been chosen, it is not the very last day which the SEC has to make its decision. The Commission can still extend the deadline further, up to 240 days from the date of publication in the Federal Register, as it did so with the other two bitcoin trusts.

The SEC can also choose to deliver its decision any time before the deadline. In addition, NYSE Arca can choose to withdraw its proposed rule change filing. So far, there has been no indication of either.

3 Negative Comment Letters Received

The SEC also revealed that three comment letters were received on the BIT. Unlike for Coin and Solidx which received some encouraging comments, none of the three letters for SEC Delays Decision on Bitcoin Investment Trust after Receiving 3 Commentsthe BIT urge the SEC to consider approving the BIT’s proposed rule change.

The first comment letter, dated February 5, is from Joseph Stephen White who identified himself as “a former “bagholder” of bitcoin and other currencies such as freicoin and litecoin”. His letter outlines ponzi schemes, illegal drug markets, and scams such as Butterfly Labs. He also provided a link to Reddit community ‘Buttcoin’ before concluding that: “bitcoin is not ready yet for wide scale use as there are too many people who can be controlled by the network by a few people who the government does not have any say over”.

A few days later, the second comment letter was posted on the SEC website, from Ethereum co-founder SEC Delays Decision on Bitcoin Investment Trust after Receiving 3 CommentsJeffrey Wilcke. “There are major ethical concerns and conflicts of interest around Digital Currency Group (DCG), the parent company of the Bitcoin Investment Trust, and their media subsidiary Coindesk”, he began his letter. He also pointed out that DCG subsidiary Grayscale operates “Ethereum Classic Investment Trust“, a barely recognized alt-coin that’s illegally infringing on a trademark of the Ethereum Foundation”. Citing how Coindesk has written about this altcoin “more than 88 times”, he warned the SEC of DCG’s ability to “”pump-and-dump” worthless assets” to unsophisticated investors.

The third comment letter came last week, from Mark T. Williams, a.k.a Professor Bitcorn. Getting straight to the point, Williams wrote that the BIT should not receive SEC approval “as it is similar to” Coin that was denied on March 10. He also agreed with Wilcke, stating that DCG “is fraught with inherent conflicts of interest”.

While all comments have been negative so far, the SEC has already said that its decisions are not based on these comments. When rejecting the Coin ETF, the Commission wrote that:

Ultimately, however, comments on these topics do not bear on the basis for the Commission’s decision to disapprove the proposal.

The Bitcoin community does not think that the SEC will approve any Bitcoin ETFs anytime soon, given its reasons for rejecting Coin.

Do you think Barry Silbert’s Bitcoin Investment Trust has a chance of being approved by the SEC? Let us know in the comments section below.


Images courtesy of Shutterstock, NYSE, Etherum Foundation, and Grayscale


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