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LocalBitcoin’s volume resurgence holds steady, despite Iran pullout

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LocalBitcoin, the peer to peer cryptocurrency exchange, has been in the news multiple times recently due to its regulatory involvement and region-specific rollbacks. The latest addition to LocalBitcoin’s growing repertoire of data was contributed to by Mati Greenspan, eToro’s Senior Market Analyst who spotted the increase in LocalBitcoin’s global volumes. His tweet read,

“Global volumes @LocalBitcoins
If you ignore the 2017 crypto summer bubble, the direction of the trend is quite clear.”

Source; Coin Dance

Source: Coin Dance

The chart from Coin Dance shows a clear uptrend in volume, even when disregarding the anomaly of 2017. LocalBitcoin’s rise can be attributed to its growing popularity in South American countries such as Venezuela. In the month of January alone, the Nicolas Maduro-led country recorded a trading volume of 6,347 BTC, followed by a volume of 10,315 BTC in February. LocalBitcoin use by Venezuela stood out because of the dire economic conditions in the country right now, which has caused the native Bolivar to dip and inflation reach an all-time high.

LocalBitcoin’s growing popularity comes in the wake of regulatory pressures from various countries. The Finland-based exchange first came under the scanner when the country’s Financial Supervisory Authority [FSA] decided that LocalBitcoin will see several additions to its customer verification process. This was followed by the latest cancellation of services by LocalBitcoin in Iran, with officials close to the company claiming that regulations were the main reason for the rollback. One of the company’s representative had stated,

“[….] Well, obviously right now, there are quite many regulations coming […] even though we’re a company acting under Finnish law, we have users from all over the world and sometimes for some regulatory reasons we might stop servicing in certain countries […]”

Source :ambcrypto

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Inner Mongolia to Shutter ‘Illegal’ Bitcoin Miners by October as China Cracks Down on Industry

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China’s Inner Mongolia autonomous region is carrying out an inspection to eliminate “illegal” bitcoin mining operations by October, a government spokesman told CoinDesk, confirming a local report.

The official document detailing the inspection plan was leaked to Chinese media which published photos of the decree from the Inner Mongolian regional authority.

“The inspection is directed by the central government, rather than a standalone plan initiated by the local government,” according to an industry executive involved in the planning process.

“The move reflects the nationwide phase-out plan on the bitcoin mining,” the source added. The government’s plan is to drive out the digital currency mining industry from China by 2021..

According to the 10-page document, data centers that provide facilities for bitcoin miners and unregistered bitcoin mining businesses will be closed.

The local authorities leading the raids will target any bitcoin mining operation that tries to get preferential electricity prices and tax breaks by pretending to be a sanctioned user, such as a big data company or cloud computing host.

Existing bitcoin mining businesses that pass the inspection will be categorized as “limited companies” that should pay the official electricity rate and not negotiate with power stations directly. They will still be expected to shut down their mining operating by 2021.

The region-wide inspection is being rolled out in two phases.

The municipalities are carrying out the inspections from Sept. 3 to Sept. 25 and then.reporting their findings to the regional government, which will form a team to investigate the findings from each jurisdiction from Oct. 10 to Oct. 20..

Inner Mongolia, in northern China, is among the most suitable areas to operate bitcoin mining businesses thanks to its cheap electricity supply, low land prices, cold weather and a small population.

Such conditions help miners by reducing their biggest cost – electricity – cooling equipment more quickly and avoiding densely populated areas that would be bothered by noisy operating machines. Bitmain, one of the largest bitcoin mining companies, has had operations in the region.

China started to crackdown on bitcoin mining operations before the formal announcement in April by the National Development and Reform Commission, the primary government agency for economic planning.

The NDRC’s position indicated that the mining industry should be phased out of China as it does not fit in the future economic development plan of the country. Trading and possessing cryptocurrencies is illegal in China as part of broader currency controls, but crypto use is prevalent on the black market.n-miners-by-october-as-china-phases-out-indust

source.coindesk

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JP MORGAN IN METALS RACKETEERING SOUP; BITCOIN STILL A FRAUD?

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WHO IS THE FRAUD NOW?

JP Morgan Chase boss Jamie Dimon once called bitcoin a fraud. Two years ago he said ‘If you’re stupid enough to buy it, you’ll pay the price for it one day.’ Now it turns out that his bank has been the fraudulent one as the DOJ flexes its muscles against JP Morgan’s trading desk.

According to the Financial Times, three metal traders for the Wall Street bank have been charged for market manipulation in what the prosecutors described as a

“Massive, multiyear scheme to manipulate the market for precious metals futures contracts and defraud market participants.”

JP Morgan’s head of precious metals trading, Michael Nowak, was charged on Monday along with two colleagues, Gregg Smith, and Christopher Jordan. The federal racketeering charges handed out are normally used to take down organized crime syndicates.

Effectively JP Morgan can be considered a crime syndicate following this scandal and RT anchor Max Keiser tends to agree.

“Yep. We called every dirty, Silver manipulation of @jpmorgan
#FinancialTerrorist, human tapeworm Jamie Dimon made $1 bn on this.”

The indictment alleges that between May 2008 and August 2016, the defendants engaged in widespread spoofing, market manipulation and fraud for gold, silver, platinum and palladium futures contracts while working on the precious metals desk at the bank.

JP Morgan along with HSBC dominates global flows of gold and silver trading. The charges added that the traders placed orders that they intended to cancel before execution in order to create liquidity and drive prices toward orders they wanted to execute on the opposite side of the market.

SHORT THE BANKERS, LONG BITCOIN

It has been a long time coming but it is likely the case will increase scrutiny over the world’s precious metals markets and the dominance of large banks such as JP Morgan. Prosecutors indicated that more senior executives and other banks were under investigation.

In the past decade alone global banks have been fined more than the entire market capitalization for all crypto assets for a range of nefarious activities. Just last week banks in the UK were hit with billions of dollars in fines for an insurance scam that defrauded millions of citizens.

For once we can say with confidence, yes, bitcoin solves this.

Should Jamie Dimon take back his ‘bitcoin is fraud’ statement? Let us know what you think.

source:bitcoinist

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BITCOIN AND BLOCKCHAIN BOOSTING LAW INTENDED TO CREATE JOBS

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BLOCKCHAIN TO GET THE JOBS ACT RIGHT

The Jumpstart Our Business Startups Act, colloquially known as the JOBS Act, is a law intended to create jobs in the United States. The concept behind it is to encourage funding of small businesses by easing various securities regulations.

President Barack Obama signed JOBS into law in April 2012. Before the enactment this law, authorities allowed companies to raise money only from accredited investors holding a net worth of at least $1 million.

Then, under the JOBS Act, new rules and proposed amendments were designed to assist smaller companies with capital formation, providing investors with additional protections.

Thus, on October 30, 2015, the U.S. Stock Exchange Commission (SEC) adopted the rules to allow companies to offer and sell securities through crowdfunding. Specifically, Title III of the JOBS Act provided a federal exemption under the securities laws so that investor can use crowdfunding to trade securities.

However, according to Forbes, the law failed to materialize the number of jobs expected, forcing former vice-chairman of NASDAQ David Weild IV, one of the main supporters of the law, to call “for a JOBS Act 2.0 that would be built using blockchain, a shared distributed ledger.”

Now the law it seems is starting to fulfill its promise. For example, on August 19, 2019, INX Ltd. filed with the SEC the initial public offering (IPO) petition to raise $130 million by selling security tokens. The minimum investment amount to participate in the IPO is $1,000. Moreover, Forbes reports,

“Weild, who sits on the board of INX, says he now has 14 blockchain and cryptocurrency clients waiting in the rafters to bring the best of blockchain to the best of traditional exchanges, and perhaps, finally get the JOBS Act right.”

BITCOIN ADDS JOBS TO THE DIGITAL ECONOMY

Bitcoin is also streaming jobs into the economy directly. Job sites such as Monster.com, Simplyhired.com, and Indeed.com continuously post a variety of jobs related to BTC.

Additionally, sites specialized in freelance job opportunities often post jobs that pay in BTC. Cointastical published a long list of freelancing platforms that offer payments in Bitcoin.

So, thanks to Bitcoin’s technology and the Internet of Things (IoT), the digital economy continues to provide us with more jobs and opportunities.

source:bitcoinist

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