Log inRegister

Coin News

Georgia Tech tower
The Georgia Institute of Technology has become the first university to integrate bitcoin into its students’ dining and shopping experience. Campus payment cards, known as BuzzCards, can now be topped up with the digital currency at the university’s BuzzCard Centre, located inside its bookstore. BuzzCards can be used at more than 200 locations on campus, allowing students to pay for meals, parking, recreational facilities and tickets for various sporting events using bitcoin. Georgia Tech also features 10 BuzzCard ATMs where students can withdraw hard cash. Former students and current bitcoin executives Tony Gallippi and Stephen Pair will handle payment processing for the institute via their company BitPay. Home turf The university’s Bobby Dodd Stadium is another key venue in the rollout. The stadium already sports a bitcoin logo, courtesy of a BitPay partnership with the Georgia Tech Athletic Association announced last July. Now, using any bitcoin wallet, Georgia Tech sports fans can pay for drinks and snacks at two point-of-sale devices in its student area. Students are likely to use Georgia Tech’s new ‘Jacket Wallet’ at the checkout. Unveiled last week, the custom implementation of Pheeva’s bitcoin wallet is only available to users with a campus email address. As a ‘gamified’ concept, the wallet rewards users based on how they promote its in-built social network, the COG Cooperative. Georgia Tech stadium Innovation and expansion BitPay executive chairman Tony Gallippi said BitPay was proud to offer an innovative bitcoin payment system to the university and its students. Georgia Tech’s athletic director Mike Bobinski said: “At Georgia Tech, we are always looking to lead in innovative ways, and this partnership with BitPay gives us an opportunity to do so by integrating this new technology at a sports venue and in the daily lives of our students.” Bobinski said Georgia Tech is looking forward to working with BitPay to make bitcoin a viable payment option for students and sports fans. Georgia Tech is currently ranked as one of the top 10 public universities in the US, with more than 100 centres focused on interdisciplinary research. More than 21,000 tech-savvy students attend the university and soon they will all have access to bitcoin. In addition, Stephanie Wargo, vice president of marketing at BitPay, revealed the company has ambitions to take the programme further afield: “We see the student market as a huge potential as these millennials are the executives of the future. They have grown up with technology and are quick to embrace new ideas, like bitcoin.” Around the world Although Georgia Tech may be the first university to fully integrate bitcoin in its student payment system, a number of campuses are currently experimenting with the currency. The University of Nicosia in Cyprus started accepting bitcoin payments for tuitions and fees last December. It now offers courses on the digital currency alongside a number of US universities, including New York University and Duke University. On campuses where the formal university leadership has yet to embrace bitcoin, students groups are looking to start these conversations. For example, earlier this year the MIT Bitcoin Club announced plans to distribute $100 in BTC to each student on campus. Several bitcoin-related apps developed by students were also awarded £15,000 in cash prizes at a MIT Bitcoin Project competition last month. Disclaimer: CoinDesk founder Shakil Khan is an investor in BitPay. Georgia Tech Tower and Bobby Dodd Stadium images by Eugene Buchko via Shutterstock. BitPayGeorgia Tech
Original author: Nermin Hajdarbegovic

Gold-to-bitcoin trading platform DigitalTangible is expanding to Asia through partnership with Hong Kong-based exchange Melotic. The company is framing the move as a way of allowing customers to trade gold assets via Melotic’s simple interface at lower costs than are normally associated with bullion exchanges. DigitalTangible allows investors to move value from physical gold holdings to bitcoin, which can then be stored or traded. The firm says its Proof of Custody global gold accounting ledger lowers investment and portfolio management costs for customers. DigitalTangible processHow DigitalTangible worksIn the last year, China has become a important centre for some segments of the bitcoin industry, most particularly mining and trading. Founder and CEO Taariq Lewis said expanding to Asia was a response to a growing need in the region: “We are responding to the immense Asia and US demand for Asia-based physical gold linked to the bitcoin block chain. We are also expanding our dealer and vaulting with new gold dealers and vault partners in Asia.” Figures from World Gold Council suggest China has become the world’s number one producer of gold in recent years, and last year became the biggest consumer. Asia in general accounted for 63% of total consumption of gold jewelry, bars and coins last year, up from 57% in 2010, the council has said. The partnership with Melotic will extend new opportunities to DigitalTangible customers, allowing bitcoin buyers access to altcoin markets and gold buyers the ability to trade asset tokens with others. DigitalTangible says customers trading on Melotic will pay transactions fees no higher than 0.25%, although the latter company’s website indicates rates may be as low as 0.1%. “DigitalTangible is the only service that links real physical commodities to a block chain, stores it in provable custody through its gold partnerships, and also enables customers to take delivery of the goods,” said Melotic’s CEO and Founder Jack Wang, adding: “They have effectively put gold into the bitcoin block chain, which allows customers from all over the world to invest and trade in assets in a way that was previously impossible.” Melotic provides a platform for the exchange of digital assets for bitcoin and gold. Users can trade with altcoins such as dogecoin, litecon and stellar, as well as appcoins like ltbcoin and storjcoin. Melotic chartGold/BTC data via MeloticAccording to Lewis, DigitalTangible has taken over $210,000 in total gold sales since its July launch. Additionally, its peer-to-peer trading platform completed $35,000 in transactions in just one week. He added that with the continuing decline in the price of bitcoin, the company stands to see increased business as “bitcoin holders take refuge in gold’s relative stability”. Bitcoin-to-gold trading platforms are offered by several other companies, including Singapore-based Bullionstars and Bullion Bitcoin in the UK. Disclaimer: This article should not be viewed as an endorsement of any of the companies mentioned. Please do your own extensive research before considering investing any funds in these products.  Gold dragon image via Shutterstock AsiaChinaGold
Original author: Dan Palmer

Dublin’s first bitcoin pub has unplugged its bitcoin ATM and stopped accepting payments in the digital currency, citing legal issues. Earlier this year, The Baggot Inn became the first pub in Ireland’s capital to accept bitcoin, announcing its first transaction via Twitter back in March. Dublin & Ireland’s first pint of Guinness paid in Bitcoin! @Baggot_Inn #bitcoinireland #bitcoin @rogerkver pic.twitter.com/XfTowcXpkG — The Baggot Inn (@Baggot_Inn) March 4, 2014 The pub’s Robocoin bitcoin ATM arrived later that month. CoinDesk contacted the venue for clarification on where the machine will go now it is out of action, but no response had been received at press time. Legal status The Baggot Inn issued a statement explaining its decision to suspend its bitcoin services: “We regret to announce, but due to ongoing issues regarding the legality of bitcoin ATMs in the Republic of Ireland we can no longer accept bitcoin payments.” The bitcoin section of the pub’s website is still live, but the main page states: “Unfortunately we can no longer accept bitcoin payments.” Although other establishments in Ireland have started accepting bitcoin, as far as active ATMs go, the country is now down to one – a Skyhook machine operated by BitEx.ie, installed at computing retailer GSM Solutions on Abbey Street, Dublin. ATM woes commonplace New Zealand’s Bitcoin Central was forced to shut its doors late July, after local banks refused to provide financial services to the company. Bitcoin Central had launched its first Robocoin ATM just a month prior on 3rd June. A planned rollout of Robocoin machines in Taiwan was derailed after the local regulator said it would block the installation of bitcoin ATMs. Taiwan’s Financial Supervisory Commission (FSC) cited a joint statement it made in partnership with the country’s central bank, which stated that bitcoin is not a currency and that no bank deposits are allowed in bitcoin. Installing a bitcoin ATM would require FSC approval and the regulator made it clear that approval would not be granted. ATMsDublinIreland
Original author: Nermin Hajdarbegovic

reddit man
Reddit has announced a new $50m funding round that could lead to a unique way for the social network to give back to its community – its own cryptocurrency. In a post on the company’s official blog, CEO Yishan Wong revealed Reddit had secured funding from a number of well-known venture capitalists and VC funds. Notable names included Sam Altman, president of the Y Combinator startup incubator, Andreessen Horowitz partner Marc Andreessen, PayPal co-founder Peter Thiel, actor Jared Leto, hip-hop superstar Snoop Dogg and Wong himself. Perhaps most notably for the digital currency community, however, was that all of these investors agreed to set aside 10% of the round’s proceeds to give back to the community. Wong wrote that the move was a recognition of the central role the digital currency community has played in Reddit’s ongoing success, but provided few details on the company’s potential plans. When asked by CoinDesk to elaborate on the concept, Wong said only: “We’ll have more to announce in the future.” The use of digital currency as an ownership token, has long been held as a future use case for block chain technology in general, and the concept is a focal point for many crypto 2.0 projects and frameworks. Still, Reddit isn’t the only major company to announce it intends to experiment with the emerging technology, following similar statements from Overstock in July. Asset-backed approach In comments posted on the r/blog subreddit, Wong was more detailed, saying that the company may seek to create a special-purpose cryptocurrency that would be backed by the value of the shares created during the $50m funding round. Wong explained: “We are thinking about creating a cryptocurrency and making it exchangeable (backed) by those shares of reddit, and then distributing the currency to the community. The investors have explicitly agreed to this in their investment terms.” Wong added that he feels the idea is worth the attempt given its potential benefits for site users, but that the company hasn’t moved beyond the initial exploration phase with the idea. Bitcoin-friendly backers Among those who took part in Reddit’s $50m round are some investors who would no doubt be receptive to the company’s use of block chain technology. Altman’s Y Combinator is no stranger to bitcoin startups, having played patron to bitcoin services provider Coinbase and bitcoin ATM developer BitAccess, among a host of other digital currency startups. Further, Andreessen Horowitz, has a long history of investing in digital currency startups, and PayPal co-founder Thiel has called bitcoin something that “could become a new phenomenon”. According to Wong, the caliber of investors Reddit has attracted reflect its long-standing commitment to free speech and open internet activity. Wong wrote: “We have been entrusted with capital by patient, long-term investors who support our views on difficult issues. We believe in free speech, self-governing communities and the power of voting. We find that this freedom yields more good than bad, and we have chosen investors based on this belief.” Image via Reddit Crypto 2.0Marc AndreessenPeter ThielReddit
Original author: Stan Higgins

Robocoin Robocoin has announced the launch of a custom bitcoin wallet for consumers called the Robocoin Wallet. The move finds the Las Vegas-based bitcoin services company in the midst of its ongoing evolution away from the bitcoin vending machines that dominate the bitcoin ATM market and toward a global remittance and bitcoin banking platform it calls “Robocoin 2.0″, first announced in June. Speaking to CoinDesk, Robocoin CEO Jordan Kelley indicated that the Robocoin Wallet will allow the company to bring more of the essential services for its planned bitcoin banking and remittance network under its direct supervision – a step that will be key in helping the company ensure its service remains as user-friendly as possible. Kelley said: “What we’re talking about is a fully enterprise, fully functional global wallet with a full kiosk and bitcoin ATM built into it. What that means for customers is it’s no longer about having to have your external bitcoin wallet and having to be at the whims of the existing bitcoin infrastructure.” Kelley indicated that the wallet is essential to creating a harmonious experience for Robocoin users across its web and mobile platforms. Emphasising cash advantage Kelley explained that the principal selling point unique to the new product is the ability for wallet users to instantly convert bitcoins to cash at its locations around the globe: “Now, if I want some cash, I’m no longer sending bitcoin to the machine and waiting for the confirmation and then going back and scanning a receipt. All I’m doing is I walk up to the machine, tap ‘withdraw’, I pick how much money I want and it instantly cashes out.” Robocoin’s wallet will be initially available to all of the company’s existing users, who can sign up on the company’s website. New customers can sign up from Tuesday at the company’s ‘Robocoin Branch’ (ATM) locations in Los Angeles, Mountain View and Las Vegas, and soon after at branches worldwide. Removing barriers to entry The new product is part of a broader move by the company to use its Robocoin ATMs as an onramp to the digital currency ecosystem. As such, Kelley told CoinDesk that it is looking to develop a suite of in-house solutions that free it from third-party relationships that have in the past created operational difficulties. Kelley described early interactions between customers and bitcoin ATM operators as falling short of the intended user experience, as operators struggled to explain transaction delays from major exchanges to new users. He recalled: “There was just so much stuff outside of our control and really the customers were the ones that had the [poor] experience, and really Robocoin [too], since we’re the ones who had to deal with the support.” By delivering a wallet secured by two-factor authentication and with SMS money-sending capabilities, the company now aims to improve the wallet experience as well, as customers will no longer need to protect their private keys or navigate complex addresses. In addition to its consumer wallets, Robocoin kiosks will also be powered by the company’s previously announced operator wallets, which use an API to automatically replenish funds purchased from exchanges. Remittance network still in progress Kelley also discussed the progress his company has made in the months since first announcing its ambitions to pivot toward positioning itself as more than a bitcoin ATM operator and service provider. Notably, Kelley suggested that, despite his company’s aspirations, he believes capitalizing on his company’s vision for a global remittance network is still far off. However, he believes Robocoin has the tools to capture this market, saying: “It would be very difficult to imagine a remittance population sending bitcoin or sending money to and from private keys, so honestly we’re not seeing remittance, but we believe we can beat Western Union on the fees – we can certainly beat them on the customer experience.” Kelley concluded by reiterating his belief that Robocoin will one day be able to make more effective commerce possible for the millions of underbanked consumers around the world, and that the firm remains committed to capturing this market segment. Images via Robocoin Bitcoin ATMsRobocoinWallet
Original author: Pete Rizzo

coinapult Coinapult has raised $775,000 in funding from a group of notable investors and investment firms, including Barry Silbert’s Bitcoin Opportunity Corp, angel investor Roger Ver and technology-focused VC firm FirstMark Capital. The Panama-based bitcoin wallet service provider raised the capital through two rounds of funding, and aims to use the money for additional marketing and product improvements. Speaking to CoinDesk, Coinapult CFO and COO Justin Blincoe indicated that the biggest benefit for his company will be the expertise of its now-solidified investor group, which he characterized as essential to his company’s success in an increasingly crowded bitcoin wallet market. Blincoe told CoinDesk: “The reality of the bitcoin landscape is there are a lot of wallets. It’s not difficult to come out with a wallet, it’s difficult to have a very good wallet and that’s what will separate the wheat from the chaff.” Lawrence Lenihan, founder and managing director at FirstMark Capital, a VC firm whose past investments include Lumosity, Pinterest and Shopify, was optimistic about Coinapult and its long-term prospects in light of these challenges. Lenihan, who serves on the board of directors at SecondMarket, told CoinDesk: “These are the best of the technologists and tinkerers in the bitcoin world, so it was a no-brainer to be able to take a stake in them.” Coinapult co-founders Erik Voorhees and Ira Miller also contributed to the round, a development that Blincoe said was meant to help the entrepreneurs solidify their equity positions in the company. New Payza partnership Blincoe told CoinDesk that its recently announced bitcoin price volatility solution LOCKS will be the focal point as the company seeks to increase its global user base. Introduced in July, LOCKS allows Coinapult customers outside the US to peg the value of bitcoin to the price of gold, silver, US dollars or any other asset, thereby locking in their value should bitcoin’s price rise or fall. Blincoe noted that Coinapult will seek to capitalize on the biggest value-add to LOCKS, its ability to integrate with the offerings of other bitcoin companies. “The message is we can integrate with almost any company out there that wants to offer LOCKS. Yes, we have a wallet, yes we’re looking to improve it, but for all the other wallet companies out there we can work with them and allow their customers access to this product, which I think is kind of exciting,” Blincoe said. As part of the funding news, Coinapult announced a partnership with online payment processor Payza that will allow its customers in 190 countries the ability to access LOCKS without leaving their Payza accounts. The US market question Despite the company’s growing user base, the introduction of LOCKS comes at a time when the bitcoin industry is increasingly looking to create solutions that can help shield consumers from bitcoin’s price swings. As such, the possibility remains that Coinapult could lose out on the US market, should another competitor aim to introduce a similar solution. Blincoe, however, is not worried about this development, suggesting that the US market, while potentially boosting the company’s short-term enrollment, would not be a key driver of its long-term market strategy. “Our strategic planning is that the US isn’t going to be the biggest hotbed of bitcoin use in the future. It will be countries and regions that really benefit from bitcoin over the financial services that are offered to them today,” Blincoe concluded. Images via Coinapult; Shutterstock CoinapultInvestors
Original author: Pete Rizzo

europol dark web Europol has issued a new report on Internet crime in which it outlined a number of scenarios involving bitcoin. Called the Internet Organised Crime Threat Assessment (iOCTA), the report examines the use of bitcoin on various dark web sites, by organised crime and individual actors, and calls digital currencies an ‘enabler’ for cryber-criminals and a challenge for law enforcement. However, it made a clear distinction between bitcoin and digital currencies designed with true anonymity in mind, like darkcoin, warning: “We feel it should concern everyone that the latest cyber currencies are intended to be truly anonymous and to facilitate anonymous transactions. We face a situation where law enforcement may be completely unable to trace even very large criminal transactions.” The report is in line with Europol’s previous statements and reports on bitcoin. Speaking at a security conference in March, director Rob Wainwright said digital currencies are being used as “an instrument to facilitate crime,” particularly for money laundering. Dark net, Tor and bitcoin Europol finds several instances of digital currency use on child sexual exploitation dark net sites. The agency warned that the relative anonymity of dark net services – made possible by platforms like Tor – has led to a proliferation of various platforms selling and distributing child abuse material (CAM). In addition to disturbing videos and images, some sites host open forums on evading law enforcement and perpetrating a range of perverse offenses involving children. Europol notes that such content is usually not exchanged for commercial reasons and that a “good level of trust” is necessary of those wanting to purchase CAM. The report warns: “There are instances of CAM being exchanged via ‘Tor mail’ in exchange for bitcoins. Even though most offenders do not exchange CAM for commercial reasons, the valuable significance of the material associated to the anonymity of Tor and bitcoin creates the ideal setting to add a financial benefit to a traditional exchange.” Europol found that traditional commercial sexual exploitation of children online (CSECO) has been lower in recent years, and the amount of commercially available CAM is small. However, SCECO hackers-for-hire are sometimes employed to hack servers and provide hosting for child abuse material. These hackers usually demand payment in bitcoin, but most of them were found to be fraudulent – they would simply take the money and run, without providing any CAM in exchange. Why digital currencies attractive for criminals Europol points out that decentralised digital currencies such as bitcoin and darkcoin use peer-to-peer networks with little in the way of control. The report notes that digital currencies are generally designed for legitimate use, but they are “heavily abused” by cybercriminals. The report found that volatility is an issue even for criminals: “Cybercriminals often favour centralised schemes which, being tied to tangible assets, are inherently more stable compared to cryptocurrencies whose price is often highly volatile due to high levels of speculation. Of the centralised schemes favoured by the criminal community WebMoney is still very popular, particularly for criminal-to-criminal payments, as is Perfect Money to a lesser extent.” Bitcoin is gaining traction in cybercrime circles; Europol cites Silk Road as an example of a bitcoin-based illicit marketplace. The report also says that bitcoin is beginning to “feature heavily in police investigations,” particularly those dealing with ransomware and extortion. Further, it finds that distrust in centralised schemes has been growing since the takedown of E-Gold in 2009 and the dismantling of Liberty Reserve in 2013. Criminals find cryptocurrencies attractive due to their distributed nature, which makes them resistant to law enforcement disruption and government control. The iOCTA says that cryptocurrencies are not an ideal match for online crime for a number of reasons: “The transparency of such systems is a likely deterrent, potentially providing law enforcement with a financial trail to follow. The market is also volatile with currency prices fluctuating significantly and often. Furthermore a number of exchange services were hacked in 2014 with many users losing their online e-wallets with no recourse for compensation.” Money laundering concerns Although they may not be the perfect currency for some criminals, Europol warns that digital currencies could “become an ideal instrument” for money laundering. Criminals can use unregistered dark net exchanges, or try to exploit legitimate exchanges with poor know-your-customer (KYC) controls. Another problem is the rise of ‘tumblers’ and ‘mixers’ – services which allow users to launder their cryptocurrency, while charging a relatively small commission. The report looks into the possibility of using online gambling sites to launder ‘dirty’ cryptocurrency. Europol concludes that law enforcement needs to pursue the possibility of obtaining evidence from virtual scheme operators – as they would from any other institution – and to be able to freeze and seize funds. It says: “Virtual currencies represent an example of technology overtaking legislation. Few jurisdictions recognise virtual currencies as a currency or have managed to adopt adequate regulatory controls.” The report issues a number of recommendations calling for new EU legislation that would apply anti-money laundering regulations to digital currencies and strengthen relationships with money transfer businesses, banks, law enforcement and digital currency operators. Image via Europol CrimeDarkcoinMoney Laundering
Original author: Nermin Hajdarbegovic

Jennifer Shasky Calvery
The Financial Crimes Enforcement Network (FinCEN) has been to date one of the most active – and more controversial – US federal agencies to address the bitcoin ecosystem, doing so through a number of published rulings aiming to provide clarity to the industry. Founded in 1990, the US agency is responsible for collecting information about financial transactions that may be used to support money laundering, terrorist financing and financial crimes. FinCEN first addressed emerging virtual currencies in 2008 and has been simultaneously praised for engaging with the bitcoin ecosystem, while facing criticism from those who say its efforts have sometimes stifled innovation. In a new interview with CoinDesk, FinCEN Director Jennifer Shasky Calvery has moved to counter this narrative, reitterating that while her agency’s foremost goal is to protect domestic businesses and citizens, FinCEN remains committed to minimizing the burden of bitcoin and digital currency startups that are making good-faith efforts to comply with regulation. Calvery told CoinDesk: “We don’t start at a product and villainize a product, we villainize the bad actors and find out what they’re doing with their money.” Further, Calvery said that FinCEN is more broadly seeking to gain the support of the domestic bitcoin ecosystem, suggesting that the industry should seek to demonstrate how the technology could possibly be an aid to law enforcement agencies and organisations such as FinCEN: “I would try to put the challenge out to the industry itself. [...] We ask that you think about it from an anti-money laundering (AML) perspective, what could you build in [to the technology]? [...] I would challenge your readers to think about it from our perspective and see if they can’t come up with some ideas.” The comments come as part of wide-ranging interview with CoinDesk in which Calvery discussed developments in the field of digital currency, New York’s BitLicense proposal and what FinCEN expects from bitcoin businesses seeking to serve to the US public. Bitcoin steps up to crime concerns Throughout the interview, Calvery sought to make clear her belief that bitcoin as a technology is not more susceptible to criminal misuse than other financial services. Rather, Calvery said that bitcoin’s status as a newcomer to the financial ecosystem has made it the target of bad actors. She suggested that FinCEN believes the bitcoin community is taking steps to combat the technology’s use in dark markets and illicit commerce, but that some businesses are actively making it difficult for her agency. Overall, however, her tone was arguably softer than in interviews earlier this year, when Silk Road and its related law enforcement cases dominated headlines. Calvery said: “You see industry responding and trying to put controls on this. So you see industry springing up around some of these things, but at the same time, you also see businesses springing up trying to make it more difficult for law enforcement.” Calvery indicated that FinCEN is currently researching ring signatures, a cryptographic signature in which an action is attributed only to a group, and tumblers, a type of mixing service meant to hide where transactions originate. Informal bitcoin dealers on radar Consistent with its mandate as chief AML regulator for the US, Calvery asserted that all members of the bitcoin ecosystem that fall under FinCEN’s guidance should follow its directives. Of particular concern, Calvery said, are informal bitcoin dealers who may think they can operate outside of the agency’s oversight. “I hear reports that there are folks who say that they’ll wait and see if there’s any enforcement behind our requirements before they take it too seriously, so that’s unfortunate. I have to hear that folks want to see folks do wrong, and take action before they’re willing to comply, but we’re willing to do that if we need to,” she said. As for how many bitcoin businesses may be following its guidance, Calvery said she can only speculate, given that money services businesses (MSBs) do not need to register as a bitcoin business: “Sometimes you can tell from the name or we know who it is, and other times it’s not clear, so I can’t give you perfect stats on how many have registered.” However, Calvery aimed to characterize her agency as one that is open to engaging with bitcoin businesses, and said that she has been encouraged by bitcoin startups that have hired experienced AML compliance professionals. To those without such experienced personnel, Calvery said that the FinCEN Resource Center is available to provide answers within 24 hours. More specific questions, she indicated, will receive written responses to be published on FinCEN’s website. One slice of the pie Calvery also commented on how FinCEN fits into the broader framework of US regulatory organisations, cautioning that the agency is just one “slice of a pie” that includes agencies dedicated to capital markets, consumer protection and safety and soundness. Calvery suggested that while FinCEN has been a first-mover, other agencies are now beginning to assess how bitcoin and digital currency fall under their mandates, saying: “We don’t have those slices of the pie at all and certainly a good financial control should include all of those things. Of course, we’d be looking for all the other agencies responsible for those types of concerns to be focused on them and I think we’re seeing that grow.” For its part, Calvery indicated that FinCEN is trying to create a consistent framework across the entire financial ecosystem, one that covers everything from cash to credit cards to bitcoin. “I guess we’re agnostic in terms of how we think of any industry or product. For us, every industry and product through which value flows provides an opportunity for criminals and bad actors to take advantage of it,” Calvery added. BitLicense not technology-specific Calvery also weighed in on the debate surrounding New York’s BitLicense proposal, suggesting that she doesn’t believe it to be technology-specific, as some in the industry have alleged. “When I looked through it, I saw a lot of concepts that I was already familiar with from New York and other places,” Calvery said. Though she commended Ben Lawsky for playing a leadership role on the project, Calvery indicated her belief that the New York regulator, like her own organisation, also needs the support of some other federal agencies. Calvery told CoinDesk: “I would say that we just do the AML here and that there’s all these other aspects, whether it’s safety and soundness or consumer protection that need to be thought about. Ben Lawsky, from where he sits, is someone who needs to think about several of these other things.” Cash-like controls on the table More broadly, Calvery suggested that FinCEN believes that it may need to alter its approach to bitcoin and digital currency should the technology be adopted more widely. Calvery first proposed a similar path forward for the agency at the US Senate hearings on bitcoin last November. However, her comments suggest that this scenario may still be far into the future, when it becomes possible for larger numbers of individuals to conduct their finances solely in the bitcoin ecosystem. Calvery said: “We might need to start thinking about a different approach, whether that’s a more cash-like approach or something else, but it’s certainly something we’re keeping our eye and trying to keep ahead of it.” Read Calvery’s full interview with CoinDesk. Images via FinCEN; Shutterstock FinCEN
Original author: Pete Rizzo
  1. Chomping at the Bitcoin: An Expert’s Take on Bitcoin in China
  2. CoinCorner Launches Mobile Wallet, POS Solution and Payment Gateway
  3. Fashion Retailer Becomes Europe’s Largest Bitcoin Merchant
  4. CoinSpark’s Bitcoin 2.0 Platform Aims to Simplify Asset Transfers

Page 1491 of 1655