Major United States cryptocurrency exchange Kraken has decided to delist bitcoin (BTC) offshoot bitcoin SV (BSV), the firm announced on April 16.
In an official press release, Kraken said that BSV had “engaged in behavior completely antithetical to everything we at Kraken and the wider crypto community stands for.” As such, the exchange has decided to delist the currency, which was the result of a hard fork in the bitcoin cash (BTC) network last November.
The exchange’s decision follows a Twitter poll yesterday, in which it asked the community’s opinion about whether it should delist BSV.
Kraken Twitter poll on BSV delisting. Source: Kraken
Kraken cited erratic behavior such as fraudulent claims, threats and legal action as the catalyst behind the delisting. The exchange’s decision follows in the footsteps of exchanges Binance and ShapeShift, which dropped the coin earlier this week.
Binance CEO Changpeng Zhao had previously warned Australian computer scientist Craig Wright— BSV’s most stalwart proponent and self-proclaimed bitcoin inventor Satoshi Nakamoto — that if he did correct some controversial behavior, Binance would delist BSV.
Binance dropped BSV after Wright set a $5,000 bounty in BSV for information regarding the identity of Hodlnaut, the Twitter user behind the recent bitcoin “Lightning Torch” charity event.
While Kraken’s announcement did not refer to anyone by name, it said, “The threats made last week to individual members of the community were the last straw. This aggression will not stand.”
Bitcoin SV’s price has suffered as a result of the delistings. At press time the coin is down 4.67% on the day and just over 30% on the week, according to CoinMarketCap.
Kraken CEO Jesse Powell accuses The Block of reporting factually inaccurate news
Jesse Powell, Kraken’s Chief Executive Officer, had a heated conversation on Twitter with Mike Dudas, the Founder of The Block, with the former accusing the publication of presenting ‘factually inaccurate statements’ in an article that attacked Kraken for reporting false trading volume.
The article in question, published on March 13, cited an anonymous trader who allegedly revealed how an institutional account executed a stop order ‘well below’ the set price, reported u.today. The report also stated that 10k worth of Ethereum [ETH] was adequate for the asset’s price to dip by 4%, which could be an indication of Kraken not reporting its true trading volumes.
In response to these accusations, Powell claimed that the assumptions and conclusions reported in the article were factually incorrect. The CEO said that the anonymous trader behind the tip-off did not have any basic understanding of the market. Powell also called out the article for ‘misleading information,’ citing the ’10k Ethereum’ comment as one that would make inexperienced readers believe that $10,000 could affect the price of the second largest cryptocurrency.
The CEO demanded an apology and said,“I’m defending myself. You hit first, and you hit without provocation. You turned a one-off “tip” in to a hit piece without so much as taking a comment from us. Now we’re getting to euphemisms I see.. your “media piece” is an attack. I’ll accept an apology.”
Powell also listed the “false” comments made in the article in a tweet,
Previously, Powell had accused Dudas of being “an epic Neutrino apologist” for trying to hush the #DeleteCoinbase conspiracy. Despite The Block writer Larry Cermark claiming that Coinbase had no influence on their reportage, Powell did not buy it.
Powell said,“Your coverage of Coinbase’s murderous past looks like coverage of a stop loss. Your coverage of a stop loss looks like coverage of a murderous past.”
Dudas previously admitted to having ‘multiple good friends’ at Coinbase. The prominent exchange had also invested in The Block, he said.
Bermuda Outlines Cryptocurrency Regulations to Attract Entrepreneurs
Bermuda is moving forward on virtual currency legislation as it seeks to attract fintech entrepreneurs, the country’s Minister of National Security noted during an overview of its proposed fintech regulatory framework at the Bermuda Underwater Exploration Institute, according to the Royal Gazette.
The minister, Wayne Caines, gave the presentation to a standing-room-only audience. Next month, the Virtual Currency Business Act is scheduled for discussion.
Virtual Currency Law Proposed
The Virtual Currency Business Act has been proposed despite the fact that there are no examples to follow, said Kevin Anderson of the Bermuda Monetary Authority, the financial-services regulator.
The act will be a “shining example” for what Bermuda can accomplish, he said. A 150-page paper on the Virtual Currency Business Act was posted on the BMA’s website. Feedback must be submitted by May 2.
The VCBA defines “virtual currency business” as the provision of the following activities: issuing, selling or redeeming virtual coins, tokens or any other form of virtual currency. This would include an ICO business on behalf of customers. The act would also cover payment service providers, defined as: “a person whose business includes the provision of services for the transfer of funds.”
It would also cover virtual currency exchanges, virtual currency wallets, and virtual currency services vendors, defined as any business providing specific virtual currency-related services to the public. The legislation will address the intersection of cryptocurrency and fiat, preventing fraud and market manipulation, the integrity of cryptocurrency owners, clear descriptions of the risks for prospective investors, BMA enforcement powers, Caines said.
Entrepreneurs Flock To Bermuda
The government is finding it hard to keep up with the number of people who want to come to Bermuda as it plans to regulate virtual currency, Caines said. He said it is “phenomenal” that the government is going to London this weekend where it will meet with 20 interested companies.
Cryptocurrency entrepreneurs want to see rules in what is a mostly unregulated part of the global finance industry, said Lydia Dickens, manager of government’s business development unit. She said the entrepreneurs are looking for legal certainty. John Narraway, a tech entrepreneur and member of the Government’s Blockchain Business Development Working Group, agreed, noting that foreigners are more interested in regulatory certainty than tax advantages.
ICO Legislation Tabled
Meanwhile, ICO legislation, scheduled for discussion tomorrow, has been tabled.
The ICO legislation will require the Minister of Finance’s consent for ICOs. ICO issuers will have to collect, verify and retain customer identity information.
Last year, Bermuda’s Premier and Finance Minister, David Burt, launched the Blockchain Task Force. It included a legal and regulatory working group to ensure that the country creates a blockchain-friendly environment for interested organizations and startups.
Whether an ICO falls within BMA’s regulatory boundaries can only be decided on a case-by-case basis, the agency noted in a January press release. It noted there are no requirements ICOs must comply with at the present time. It further noted that existing financial regulations do not apply to unregulated ICOs. The BMA encourages the investing public to be prudent and mindful of their accountability for their actions in this increasingly fast-moving and complex landscape.
More To Come
The government will also attempt to establish a Bermuda E-ID scheme this year. This will be a national digital identification program for businesses and residents that will strengthen the country’s fintech credentials. It will include rules for cryptocurrency exchanges.
The Caribbean Financial Action Task Force will assess Bermuda’s anti-money laundering and anti-terrorist financing measures. Anderson said the BMA would hire more staff.
The national ID scheme will eliminate the need for multiple hard copies of documents and to give individuals control over their data. A single aggregation platform will allow people to comply with Know Your Customer and Anti Money Laundering rules.
The scheme will speed up customer verification for banks and financial services and enable fast-track immigration. Caines said fintech-related legislation could be released every other month.
Cryptocurrency Exchange Coinbase Glitch Overcharges Users, Investigation Ongoing
Coinbase has admitted that a glitch in its system has been overcharging customers for several days, even after investors posted complaints on content sharing platforms like Reddit about being charged multiple times for a single transaction.
Overcharged Coinbase Customers Vent on Reddit
San Francisco’s Coinbase is the leading cryptocurrency wallet and brokerage which also oversees Global Digital Asset Exchange (GDAX), and up until recently, a trusted destination to buy, trade and sell bitcoin and other digital currency.
Coinbase officially admitted to the glitch on February 15, responding to the outrage of customers posting on Reddit that a problem in their system has been creating multiple charges for single transactions.
“[Coinbase] drained my bank account and now I have nothing,” One user cried out on Reddit.
“Welp officially broke, charged 17×1000$ on my account,” said another user. Coinbase reacted, posting directly to Reddit yesterday.
“We can confirm that the unexpected charges are originating from our payment processing network, and are related to charges from previous purchases. To the best of our knowledge, these unexpected charges are not permanent and are in the process of being refunded.”
Soon after this post though Coinbase released another statement passing the buck.
Coinbase Traces Problem to New MCC Code
“We have confirmed that this is an issue occurring downstream from Coinbase, and we’re working with those parties to reach a resolution.”
Ultimately the exchange blamed the way credit-card companies have changed their policies for buying cryptocurrency. Now treating the purchases as cash advances, carrying all of the fees and higher percentages along with them.
They detailed the situation in a statement given to The Next Web.We’re currently investigating an issue where some customers were charged incorrectly for purchases of digital currency with credit and debit cards.
This is related to the recent MCC code change by the card networks and card issuers charging additional fees. We have identified a solution and future purchases will not be affected. We will ensure any customer affected by this issue is fully refunded. We expect these refunds to happen for customers automatically through their bank.
If you believe you were affected by this issue, please contact [email protected] We will be reviewing all card transactions from the last few weeks to ensure all affected customer are notified. We will post on Twitter and our blog with further updates.
Coinbase said the affected time period is from Jan.22 through Feb 11, when transactions may have been reprocessed multiple times resulting in erroneous charges.