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Chinese exchange OKCoin announced today it will add futures trading to its platform, saying it is one of the first major exchanges in the world to offer users the chance to trade futures denominated in bitcoin. OKCoin’s futures trading, which will be in beta for the next two weeks before going live, partly solves bitcoin’s price volatility problem and reduces risks by allowing bitcoin earners to ‘lock in’ a future price. More advanced traders can use futures to utilize higher leverage opportunities for price speculation. Trading of derivatives like futures also serves to move volatility away from the underlying asset and ultimately causes prices to become more predictable overall. Professional trading tools Founder and CEO of OKCoin, Star Xu, said it was part of the company’s plan to bring institutional and professional trading tools to digital currency investors and help build the bitcoin trading platform of the future: “Today’s launch of bitcoin futures trading capabilities builds on the algorithmic trading tools we pioneered and launched on our platform last month. We have already seen a favorable response from institutional and individual investors. We are helping to make participation in bitcoin a more safe and stable process. The ability to trade futures will further cement our position as one of the world’s leading bitcoin exchanges.” OKCoin’s chief technology officer Changpeng Zhao said that OKCoin would ascertain it was gathering accurate pricing data with a US dollar index based upon prices from 10 different bitcoin exchanges. Reducing risk in bitcoin investment and trading was a major factor in increasing bitcoin adoption, he added. Seeking more professional customers Beijing-based OKCoin, like mainland China’s other ‘big three’ exchanges, is increasingly seeking business from a new breed of professional digital currency traders in lucrative external markets like Hong Kong, Singapore, Taiwan and the US. Along with new English-language sites and support, the companies are adding a variety of ‘pro’ features. Huobi has just opened its margin trading system and interest-bearing bitcoin ‘savings accounts’ to all after a successful six-week beta trial, and BTC China’s new mobile app offers real-time market data and a fast-trading interface. Other Asia-based exchanges, like Hong Kong’s Bitfinex and BTC.sx, which is dual-incorporated in the UK and Singapore, also offer their own implementations of margin trading and derivatives. OKCoin itself launched an English website, P2P margin trading and a range of algorithmic trading tools in June, with an aim to making things easier for larger- and higher-volume traders. The largest mainland Chinese exchanges offer extremely low or even 0% trading fees, which also attracts high frequency traders and increases liquidity. Volatility image via gopixa / Shutterstock AsiaChinafuturesOKCoin
Original author: Jon Southurst

huobi BitVC, the Hong Kong-registered subsidiary of China-based digital currency exchange Huobi, has officially opened its margin trading and digital currency savings accounts to the international public. Huobi’s margin trading platform BitVC and its ‘Yubibao’ wallets, which also function as interest-bearing savings accounts, had been in an invitation-only beta phase since June. Speaking to CoinDesk, Huobi’s Robert Kuhne said that more than 5,000 users had signed up and used their accounts during this trial period, with about 30% of current BitVC account holders residing outside mainland China. Kuhne went on to discuss how the company’s Yubibao wallets were proving especially popular, and that the company’s recent international awareness efforts had spurred enrollment, saying: “At The North American Bitcoin Conference (TNABC) bitcoin conference in Chicago last month, there was quite a lot of interest from the media and attendees, with many people asking for invitation codes. But now BitVC registration is open to everyone.” Yubibao savers earned a cumulative total of 350 BTC over the trial period, he added. Earning interest with ‘Yubibao’ wallets Depositing funds into a Yubibao wallet implies that you are making those funds available for use by margin traders. Rather than users making individual loan offers and waiting in a queue as occurs with other similar systems, BitVC/Yubibao puts all available funds in a single pool for faster results for both traders and investors. Yubibao wallet accounts are available automatically when a users registers an account with BitVC. These accounts are aimed more at regular consumers than professionals – there is no minimum amount a user can deposit, though there is a maximum of 500 BTC and 40,000 LTC. Interest is paid daily, with the average rate hovering around 0.02-03%. BitVC guarantees Yubibao users’ funds – its system includes automatic margin calls to ensure traders have enough assets to ensure their loans, and the company says it maintains a large bitcoin reserve to cover any losses. BitVC’s security measures include SMS verification, Google Authenticator, backup passwords and a backup contact should an account sit unused for a long period of time. Courting the pro trader market Other large Chinese and Asian exchanges, such as Beijing-based OKCoin and Hong Kong’s Bitfinex, have also sought to attract the region’s population of finance professionals with margin trading, live statistics and more full-featured mobile options. Continuing regulatory uncertainty in the US also leaves traders in the world’s largest economy with no full-fledged local option, giving Asian and European exchanges a head start. With BitVC, however, Huobi is the first Asian exchange to launch an entirely separate name and brand to separate more sophisticated operations like margin trading from its primary exchange business. Images courtesy BitVC AsiaChinaHuobi
Original author: Jon Southurst

dogecoinlitecoin
The dogecoin development team has announced that it will soon enable auxiliary proof-of-work (AuxPoW), allowing merge-mining with litecoin that will address concerns over the altcoin’s future. AuxPoW enables the dogecoin block chain to receive work from other scrypt-based networks. Dogecoin miners will still be able to generate blocks and receive DOGE, but now, litecoin miners will contribute hashing power to the dogecoin network. The move, announced on the dogecoin subreddit, follows a months-long period of community debate focusing on the question of long-term viability in the dogecoin network. Litecoin creator Charlie Lee suggested the idea of merge mining in April, eliciting mixed reactions from both sides of the conversation. According to the dogecoin development team, the AuxPoW integration will require a hard fork of the dogecoin block chain. No specific integration date has been given, but the development team said that testing will begin soon. As explained in the original announcement: “Our topmost priority has always been to provide a stable platform for the currency and its services and of course its users. We hope that with AuxPoW we can achieve that in a better way than what it currently is like. Our hashrate has been on a decline and we hope that we can gain more of it with the acceptance of proof of work from other chains.” As expected, community members voiced both enthusiasm and concern for the AuxPoW plan. Yet, advocates for the strategy, including Lee, say that the move will ensure the stability and security of the dogecoin network. Plan to save dogecoin AuxPoW is not new – several coins already enable work from other mining networks, with namecoin being the most prominent example. This long-standing reputation as a workable proofing system – and the strength of the litecoin network – has gained the idea support in recent weeks. In a recent community post on /r/dogecoin, Dogetipbot creator Josh Mohland shared his perspective on the concept, saying that AuxPoW would help solve a key problem with dogecoin: the fact that it was never intended to function as a full-fledged transaction network. Mohland explained: “Dogecoin was built to die quickly – none of us expected it to grow into the absurd entity it is today. With that said, there’s absolutely an easy way to save the coin from its certain death (and by death I mean 51% attacked for the lulz), and that’s AuxPoW.” He went on to call AuxPoW “a simple change” worth the trouble, owing to the fact that the risk of a 51% attack far outweighs perceived costs. Other community members expressed concern over the idea, saying that the move enables large litecoin pools to crowd out smaller dogecoin miners. Questions were also raised as to whether or not AuxPoW would actually help prevent a 51% attack. Dogecoin in ‘dire situation’, says Lee Litecoin creator Lee hailed the announcement, telling CoinDesk that the development team made the right decision during a “dire situation”. Lee argued that the move comes at the right time given the long-term threat to the dogecoin network – and, as some have pointed out, its falling price. He added that the move provides increased security for dogecoin without any repercussions, removing a source of concern for the network and enabling broader development in the community. Lee told CoinDesk: “[The community] can focus on what dogecoin does best (tipping, donations, wow) instead of worrying about defensive mining and network security.” Image via Doge Assets Charlie Leedogecoinlitecoin
Original author: Stan Higgins

xapo debit card
California-based bitcoin wallet provider Xapo is facing community backlash following the release of its latest product, the Xapo Debit Card. Xapo started shipping the cards on 30th July, roughly one month after its original estimated launch date. Yet the news has largely been overshadowed by the company’s recently published fees and limits schedule. The schedule eventually found its way to reddit, evoking a strong response from customers who were upset to find the product would be more expensive than they originally believed. Bitcoiner uproar over hefty fees When it announced the card, Xapo promised a $15 one-time shipping and handling fee, but the company did not reveal any information on other associated costs. The fee schedule, however, revealed the following card charges: A monthly service fee of $4.95, or £3.95/€3.95 for European customers An international ATM transaction surcharge Declined transactions costs of $1, or £1/€1 Domestic ATM transaction costs of $3.50 per transaction, or £2.50/€2.50 in Europe. xapo-debit-card-fee-schedule The company did not release a fee schedule prior to launch. However, it suggested costs would be limited to a one-time charge of $15. On its FAQ page, the company said that the initial fee covers the cost of issuing and shipping the card. “Merchants will pay all fees just as they do for debit and credit cards but there won’t be a fee for the customer,” Xapo stated. Unfortunately, the ambiguous wording of Xapo’s statements led many customers to conclude there would be no additional fees for using the card, an opinion evidenced by the strongly negative response to the company’s update. Failure to communicate A potential driver of the strong consumer backlash was that the release of additional pricing information came after many users had already signed up to receive the card. The result was that a number of separate reddit conversations arose to address the topic, with individual posts highlighting the card’s specific pricing policies and availability eventually giving way to more general posts criticizing the company’s overall marketing of the product. Further, message board comments ran the gamut from overwhelmingly negative to sympathetic, with a small number of users noting that Xapo’s final product was likely influenced by poor US regulation and the difficulties inherent in the company’s bid to acquire a traditional financial partner to support the offering. Ongoing issues Xapo’s Debit Card has been a source of strain for the company since its initial announcement. At the time of the launch, Xapo had indicated to news sources including TechCrunch and CoinDesk that MasterCard’s payment network would supply the rails for the debit card transactions. MasterCard quickly moved to separate itself from the offering, telling CoinDesk: “MasterCard does not have a relationship with Xapo. There is no card program currently available.” However, Xapo told CoinDesk that it had secured a partner for the card offering as of early July, and that the delays in the shipment were purely product-based. A spokesperson for Xapo said on 3rd July: “We took a bit of extra time with early testing to make sure the experience is as smooth as possible for our customers.” CoinDesk has reached out to Xapo for comment, but at press time, the company had declined to comment on the situation. However, Xapo is expected to publish a blog post addressing the controversy. Image via Xapo XapoXapo Debit Card
Original author: Nermin Hajdarbegovic

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The National Bank of the Kyrgyz Republic, the central bank of Kyrgyzstan, has issued new statements confirming the use of bitcoin and other digital currencies as a form of payment is currently illegal under national law. Issued this July, the notice states that the only legal tender in Kyrgyzstan is the national currency, the som (KGS), and that as such, any use of bitcoin for payment violates this policy. At press time, 1 KGS was worth $0.019. The document reads: “Under the legislation of the Kyrgyz Republic, the sole legal tender on the territory of our country is the national currency of Kyrgyzstan som. The use of ‘virtual currency’, bitcoins, in particular, as a means of payment in the Kyrgyz Republic will be a violation of the law of our state.” The central bank also moved to warn consumers about the potential risks associated with digital currency, confirming that no laws currently protect consumers who decide to purchase such assets. “Virtual currency is regulated by no central government agency in the world, [...] and the lack of any [centralized institution] makes public or private regulation of system almost impossible,” the document reads. Research from the US Law Library of Congress and digital currency community resource BitLegal suggests this marks the first time the country’s central bank has addressed digital currency use directly. Risky investment Echoing concerns raised by central banks internationally, the release characterized bitcoin as a risky asset that lacks sufficient security. For example, the document noted that it is impossible for consumers to cancel transactions made in bitcoin once payment is transmitted, making the users susceptible to theft and scams. The statements also took aim at bitcoin’s price volatility, stating: “The cost of ‘virtual currency’ is not tied to any currency or other asset, and, in fact, the formation of its cost is influenced by demand and supply for it, that creates high risks of exchange rate volatility and loss of value.” Legal risks Although other countries have issued similar warnings, the Kyrgyz Republic’s release may be notable in the tone it takes toward bitcoin use. Building off its criticisms of bitcoin as an unstable payment tool, the government recommended that citizens “do not participate in the purchase, sale or exchange for other currencies or assets”. Doing so, the bank suggests, could also open digital currency users to legal liability, as the document states users “assume all the possible negative consequences of the possible violation of the legislation of the Kyrgyz Republic”. Data shows that the official Bitcoin-Qt wallet has only been downloaded around 1,000 times in the central Asian nation with a population just shy of 6 million, suggesting local digital currency use is not widespread. Image credit: Radiokafka / Shutterstock.com AsiaKyrgyzstan
Original author: Pete Rizzo

btccom-screenshot
The domain name BTC.com has been sold to bitcoin mining equipment specialist GAWMiners. The domain had been on the market for less than a month before GAWMiners chief executive Josh Garza secured the $1.1m deal. GAWMiners is a relatively large mining hardware vendor. The Connecticut-based firm sells a wide range of SHA-256 and scrypt ASICs, including hardware from Bitmain, Gridseed, Innosilicon, Rock Miner, SilveFish as well as its own GAWMiners brand machinery. It remains unclear what Garza hopes to do with the newly acquired domain. At press time, the site features a placeholder stating that something “amazing” is coming soon. Domain name interest continues The sale of BTC.com is yet another entry into the string of recent domain name acquisitions. Indeed, today’s news yet again illustrates the many opportunities for brokers and investors that bitcoin has brought to the domain name industry. Niko Younts announced in February that he had sold BitcoinWallet.com to an Austin-based entrepreneur, Alex Charfen, for $250,000. Younts had initially purchased the domain name for $11,000. He also indicated that another domain name in his ownership, BitcoinWallets.com was on the market for a similar asking price, $200,000. Yet not every effort has been successful in the space as of late. Last month, former Mt. Gox CEO Mark Karpeles announced the auction of Bitcoins.com, as part of an effort to provide relief to those that lost money in the now defunct bitcoin exchange. A Seattle court moved to block the sale and the auction was subsequently canceled. Reaching consumers Beyond the investment opportunity, bitcoin-related domains offer buyers the chance to catch consumer interest with easy-to-use URLs. In April, Blockchain.info signed a 5-year deal to manage Bitcoin.com, which had previously been used by Coinbase to attract customers. Blockchain said it would use the domain to reach out to mainstream consumers unfamiliar with bitcoin, and made good on its promise in June, when it officially relaunched it. The company now uses the site as a learning platform for people new to bitcoin and digital currency. Hat tip: Cryptocoins News BTC.comdomain namesGAWMiners
Original author: Nermin Hajdarbegovic

visa
Global payments giant Visa earned the ire of the bitcoin community earlier this year when CEO Charlie Scharf stated that he didn’t see bitcoin and its technology as posing a significant threat to its operations. Now, however, new comments from Visa senior vice president of digital solutions Sam Shrauger suggest that the company may be reevaluating bitcoin. In a new interview with The Australian Financial Review (AFR), Shrauger confirmed that while the company is not currently responding to developments in the bitcoin space, it could be well positioned to do so in the future, should circumstances require. Shrauger told AFR: “Visa is not a currency, it’s a network. We can process real or virtual currencies to the extent that it makes sense. So, [facilitating bitcoin payments] is possible but we are not thinking about it today.” Shrauger further explained that Visa has no interest in creating a Visa-branded digital currency, as has been suggested of some of its competitors who have sought to secure digital currency-related patent filings. Shrauger formerly served as vice president of global product and design for online payments powerhouse PayPal, serving the company from 2004 to 2012. The interview took place at Visa Labs in San Francisco and followed the late July launch of Visa Digital Solutions, a new company initiative that seeks to support new payment methods and encourage technology that protects consumers and innovation. Emphasis on innovation Notably, the comments come at a time when Visa is trying to increasingly align its brand with the ongoing revolution in digital and mobile payments. Visa recently opened Visa Labs, a San Francisco-based office meant to inspire next-generation ideas for the company, and unveiled its version of an online credit card, Visa Checkout, designed to increase the speed and ease of e-commerce for web consumers. Shrauger likened Visa’s strategy shift to those that seek to embrace the new changes being brought on by technology, stating: “We are now seeing connected thermostats and cars and everything – our view is that a lot of those things will become points of transaction.” PayPal background Shrauger’s comments, while not necessarily indicative of the company’s, suggest that there are at least some members of Visa that may be considering the possibilities posed by bitcoin and its related technologies. However, Shrauger’s open answers to digital currency-related questions may be indicative of his extensive background in electronic payments. PayPal has steadily increased its visible support for digital currency of late, with corporate strategist Roman Leal joining Blockchain’s Peter Smith for a panel talk at The North American Bitcoin Conference on 20th July. PayPal also notably held an ‘Introduction to Bitcoin’ event in San Jose, California on 31st July. Image credit: jps / Shutterstock.com paymentsPayPalvisa
Original author: Pete Rizzo

Ross Ulbricht at MDC Brooklyn
Ross Ulbricht’s defence team has filed a new pre-trial motion calling on the court to dismiss charges in the Silk Road case on the grounds of Fourth Amendment privacy protections. Ulbricht’s lawyers argue the charges should be dismissed due to the nature of the FBI’s investigation. In particular, they allege the FBI acted without a valid search warrant when it discovered Silk Road servers in Iceland, and thereby violated Ulbricht’s Fourth Amendment rights. The fourth amendment to the US Constitution is a part of the Bill of Rights and prohibits ‘unreasonable’ searches and seizures. It requires investigators to carry out searches with a judicially sanctioned warrant, supported by probable cause. Ulbricht has indicted on various charges including conspiracy to distribute narcotics, operating a continuing criminal enterprise, conspiracy to commit computer hacking, and money laundering. Evidence battle begins The latest 90-page memorandum filed by Ulbricht’s lawyers argues that all material seized and searched in such a way has been “contaminated at its source” rendering it inadmissible in court under the ‘fruit of the poisonous tree‘ doctrine. This metaphor effectively means that, if evidence is obtained illegally (tainted), anything gained from that evidence is also tainted and therefore inadmissible in court. “Thus, the Fourth Amendment and relevant statutes require suppression of the fruits of the searches and seizures, and any evidence or other information derived therefrom,” the motion states. The document specifically names 14 different searches of Ulbricht’s computers and online accounts, and claims that investigators carried out several surveillance operations either without warrants or with inappropriate warrants “issued on information establishing less than probable cause”. These actions included asking Comcast for information on Ulbricht’s IP address. The defence argues that investigators used so-called ‘general warrants’ that allowed them to use all personal data they could obtain, rather than more specific information. In addition, the motion points out that it is still unclear how investigators managed to locate Silk Road servers in Iceland. ‘Unlawful searches and seizures’ Ulbricht’s defence went on to list a total of 14 search warrants that were issued following the discovery of Silk Road’s servers in Iceland. The motion states: “A vast trove of material and information, including ESI, should be suppressed because the government obtained it as a result of unlawful searches and seizures – either directly because the specific warrant or order authorizing the search and/or seizure was unlawful, or because the search and seizure constituted the ‘fruit of the poisonous tree’ of a previously conducted invalid search and/or seizure – that violated the Fourth Amendment to the US Constitution, as well as certain applicable statutes.” The document goes on to cite numerous precedents to its fundamental argument, and further demands discovery of the means by which the US government located the Silk Road servers. The court should compel the government to disclose all information relevant to the efforts to locate the servers, the defence argues. Dropping murder references In addition to Fourth Amendment arguments and dry precedents, the motion also makes a request to drop prejudicial statements related to the defendant’s alleged murder-for-hire solicitation. The defence seeks to dismiss any reference to these allegations as irrelevant, arguing that such language violates Ulbricht’s Fifth and Sixth Amendment rights. “Accordingly, since there is no concrete link between the murder-for-hire allegations and the unrelated drug trafficking and other charges in this case, it is clear that all references to ‘murder-for-hire’ are irrelevant to the charges, and their inclusion in the Indictment is highly prejudicial to Mr. Ulbricht,” the motion states. Ulbricht still faces one murder-for-hire charges filed in Maryland, but since he was not charged in the New York case and has not been convicted yet, the defence argues all murder-for-hire references should be struck from the indictment. So far, Ulbricht’s lawyers and backers have tried using several different arguments to dismiss some or all of the charges, including citing IRS guidance that labeled bitcoin property in an attempt to have the case’s money laundering charges dismissed. More broadly, FreeRoss.org, the non-profit that seeks to raise money and awareness for Ulbricht’s case has attempted to make the case that larger Internet freedoms will be affected by an Ulbricht conviction. Silk Road 4th Amendment Memo Ross Ulbricht image via FreeRoss.org Ross UlbrichtSilk Road
Original author: Nermin Hajdarbegovic
  1. GHash Mining Pool Generates $250 Million in Bitcoin in One Year
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  4. New Bitcoin Exchange Quoine Offers Pro Tools for Asian Traders

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