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sec bitcoin

SEC just pulled the rug out from under cryptocurrency ICOs

(InsanelyNews) Big changes are coming to the world of cryptocurrencies and blockchain technology after the U.S. Securities and Exchange Commission (SEC) announced that so-called initial coin offerings, or ICOs, may very soon be subject to the same securities laws as other more traditional investment instruments.

Depending on how a particular ICO is set up, the SEC explained in a press release, it may be subject to securities laws for the purpose of protecting investors from being taken advantage of by shady companies that might be trying to use the platform to commit crimes.

The SEC issued a comprehensive investigative report that cautioned market participants who engage in the buying and selling of digital assets via “virtual” organizations that some of them will be subject to these new requirements. While some crowdfunding contracts will reportedly be exempt from this classification, including those that register with the SEC and the Financial Industry Regulatory Authority, others will face scrutiny as part of a vetting process.

Some see this latest crackdown as a possible threat to the sustainability of blockchain world, while others agree that increased regulations can help to guard the integrity of the cryptocurrency markets while simultaneously protecting investors against fraud. And while the repercussions of these changes could be a little rough in the beginning stages, advocates argue that the long-term benefits will more than outweigh these necessary growing pains.

“While the SEC’s intention to regulate ICOs will probably have an initial chilling effect on the market as it will make issuance of ICOs more difficult, it will also prove to be a blessing in disguise,” notes Zero Hedge about the changes.

“[It] not only validates the blockchain capital-raising mechanism, allowing the entrance of major banks to use it as a fintech alternative to IPOs, but considering some of the utterly idiotic and doomed to failure ICOs that have been observed in recent weeks, curb the proliferation of ponzi, pyramid and other get rich quick schemes which in many cases are beyond borderline criminal.”

Regulation of ICOs helps to legitimize cryptocurrencies as eventual replacement for fiat ‘funny money’

You may be thinking: so what do these new rules mean for popular cryptocurrencies like Bitcoin? While the SEC’s actions imply further regulatory jurisdiction over ICOs and emerging cryptocurrency offerings created for business startup purposes, they will obviously overlap into Bitcoin territory. And this isn’t necessarily a bad thing, as further regulatory oversight even in this more established market means that Bitcoin’s “Wild West” days of extreme volatility could soon be coming to an end.

Once all the kinks are worked out of the system, the plan, at least according to some, will be to grease the wheels for the Bitcoin train to evolve into a more concrete cryptocurrency format. This will mean that extreme up-and-down price volatility could become a thing of the past, ushering in more widespread acceptance of Bitcoin as a valid form of digital currency – potentially making fiat currencies like the Federal Reserve Note completely obsolete.

“Ultimately regulation of ICO will greenlight the eventual use of cryptos as eligible collateral in capital markets transactions, something Bank of America said in a report earlier today is critical to truly unleash the crypto community to its next evolutionary step in replacing fiat,” suggests Zero Hedge.

“Whether cryptocoin enthusiasts like it or not, regulation (and enforcement) will lead to a sturdier blockchain ecosystem, and while the potential for dramatic upward moves will be limited, so will the likelihood of catastrophic losses.” (Related: To keep up with the latest news on Bitcoin and the cryptocurrency evolution, be sure to visit and bookmark Bitcoin.Fetch.news.)

 

Source:

NaturalNews.com

https://www.sec.gov/news/press-release/2017-131

 

http://www.zerohedge.com/news/2017-07-25/sec-cracks-down-initial-coin-offerings-concludes-tokens-are-subject-securities-laws

http://bitcoin.fetch.news/

bitcoin

Bitcoin alert: users advise of Cyber attacks ( Security Reasearch)

(InsanelyNews) Security reasearchers have warned the users  who deals in digital currencies need to be more vigilant and keep their accounts secure and safe.

After the recent  ”WannaCry” ransomware cyber attack, experts have released an other Bitcoin alert.

The ransomware has affected millions of users around the world, which locks users computer, and then ask for ransom in form of Bitcoins. “Quantum computers are able to create a ‘large factorisation’ and can detect the public and private keys used in Bitcoin transactions.

“The threat is when the ‘private key’ is sniffed by third parties, they are free to make transactions using a hacked account as the ‘private key’ proves the ownership of a Bitcoin address (used to send and receive the currency),” she told Bernama.

Zuriati, a lecturer at Universiti Putra Malaysia’s Communication Technology and Networking department, said that the  Blockchain is a public digital database that keeps records of all bitcoins transactions needs to be protected using Bitcoin’s private key.

If anyone managed to access to the private key then they could easily hack the value of Bitcoin. She said studies  have proved  that the use of Bitcoins are more secure, fast and cheap, they are more convenient rather than use of credit or debit card. Bitcoin is backed with mathematical calculations. The currency cannot be controled by the countries central banks and due to this it has become preferred mode of transactions for small business.

Source

 

malware

Bitcoin : created a malware for Raspberry-Pi that produces them

(InsanelyNews) A  Russian security site Dr.Web has discovered a new malware called Linux.MulDrop.14 which is striking Raspberry Pi computers.

While examining the two different Pi-based trojans-including Linux.MulDrop.14. They found a trojan that uses Pi to mine BitCoins some form of crypto currency. However, the another trojan sets up a proxy server. According to the website: “Linux Trojan that is a bash script containing a mining program, which is compressed with gzip and encrypted with base64. Once launched, the script shuts down several processes and installs libraries required for its operation. It also installs zmap and sshpass.

It changes the password of the user “pi” to “\$6\$U1Nu9qCp\$FhPuo8s5PsQlH6lwUdTwFcAUPNzmr0pWCdNJj.p6l4Mzi8S867YLmc7BspmEH95POvxPQ3PzP029yT1L3yi6K1”. The malware is programmed to search for network machines which have open port 22, and then it tries to log in using the default Raspberry Pi credentials.

According to the reports of Hackaday (http://hackaday.com), “Embedded systems are inviting target for hackers. Sometimes it is for the value of the physical system they monitor or control. In others, it is just the compute power which can be used for denial of service attacks on others, spam, or — in the case — BitCoin mining. We wonder how large does your Raspberry Pi botnet needs to be to compete in the mining realm?” The users should change their default passwords on their  Pi, so to avoid any kind of problem. And it is advised that users must use two-factor authentication.

 

Source

bitcoin

New law to target Bitcoin under “money laundering” enforcement

 

InsanelyNews Legislators in the United States have taken aim at digital “cryptocurrencies” like bitcoin and ethereum with new proposed legislation that would force people coming into America to report their cryptocurrency holdings. Those pushing this invasion of personal privacy say it’s necessary to facilitate a crackdown on money laundering operations that use cryptocurrencies as cover.

Bitcoin: a new report by Silver Report Uncut warns that fresh language would be added to existing anti-money laundering laws that specifies prepaid access devices, digital wallets, and other digital currency exchangers as being subject to reporting requirements if they contain the cryptocurrency equivalent of $10,000 or higher.

Included in the proposed sweep are mobile phones, flash drives, and laptop computers that contain any digital records of cryptocurrency holdings. All such devices and the amounts they contain in excess of the threshold would have to be declared and reported upon entry into the U.S. Such a move would completely eliminate the anonymity factor that made cryptocurrencies so desirable in the first place.

The bill, entitled “Combating Money Laundering, Terrorist Financing and Counterfeiting Act,” was introduced by Senators Chuck Grassley of Iowa and Dianne Feinstein of California. If passed, the bill would move digital cryptocurrencies one step closer towards being defined as “monetary instruments,” which would make them more of a target for regulatory oversight.

“Among the changes, according to a draft text of the bill, are additions to definitions for ‘financial institutions,’ which, if the bill is passed, would include ‘any digital currency exchanger or tumbler,” writes Stan Higgins for CoinDesk.com. “Additionally, the bill clarifies that any ‘issuer, redeemer or cashier’ of a ‘digital currency’ is also covered.” (Related: To learn more about bitcoin, be sure to check out Bitcoin.Fetch.news.)

Power-hungry legislators want full control over your cryptocurrency

Bitcoin has long been branded by its opposition as a shelter for criminals to anonymously pay one another without being tracked. It’s a gross stereotype, of course, but one that’s had a pretty big impact in the way that legislators are going about trying to regulate it.

A summary of the bill has been posted at Sen. Grassley’s website detailing how the new law would affect travelers. It seems to directly coincide with recent efforts to prohibit the entry of certain individuals who try to enter U.S. carrying laptops on their person as opposed to storing them in checked luggage.

“Beyond the regulatory adjustment, the bill seeks information from the U.S. Department of Homeland Security’s Customs and Border Protection (CBP) agency about its policies on digital currencies,” adds Higgins.

“Specifically, it calls for a report ‘detailing a strategy to detect prepaid access devices and digital currency at border crossings and ports of entry,’ This report – which would be due 18 months after the ostensible passage of the bill – is also required to include details about how such a strategy would be implemented.”

Some legislators are even trying to link cryptocurrencies to terrorism in an effort to taint the public’s view of them. Just prior to the introduction of this bill, Representative Kathleen Rice of New York introduced another similar one entitled, “Homeland Security Assessment of Terrorists [sic] Use of Virtual Currencies Act.”

If passed, the bill would require the Secretary of Homeland Security for Intelligence and Analysis to coordinate with other federal partners to develop and disseminate a threat assessment study on the potential use of cryptocurrencies by terrorists. The implication, of course, is that the government has to intervene and start tracking cryptocurrency use to prevent terrorist attacks.

A full copy of this bill can be viewed online.

From

NaturalNews.com

Sources for this article include:

SGTReport.com

CoinDesk.com

Grassley.Senate.gov

CoinDesk.com

bitcoin

Bitcoin flash crash makes mockery of ridiculous claims that Bitcoin is a “store of value”

(InsanelyNews) It’s only been a few years since cryptocurrencies like bitcoin first began taking the world by storm, offering what many people see as a more secure financial alternative to fiat currencies like the dollar. But the almost 20 percent bitcoin “flash” crash that recently took place just days ago on June 12 suggests that this may not actually be the case, and that relying on bitcoin as some kind of miracle store of value is more than a bit misguided.

Plummeting from nearly $3,000 per “coin” to about $2,550 in just four short hours, bitcoin revealed to the world its true volatility. It isn’t just going to be up, up, and up for bitcoin as many people falsely believe, including the tens of thousands of amateur investors throughout Asia who are right now stocking up on bitcoin in an attempt to secure what they believe will afford them a solid financial future.

Take a look for yourself at these revealing charts and you’ll see how quickly and dramatically bitcoin’s volatility could bring an uninformed investor to ruin. Unless you know exactly what you’re doing when it comes to bitcoin, you probably shouldn’t be investing in it – especially if you’re risking your life savings to do so.

New bitcoin investors don’t remember 2013 flash crash when bitcoin dropped over 70%

Prior to the recent flash crash, bitcoin’s value had risen in relation to the dollar by an impressive 210 percent since March, which is why many new investors have been jumping on-board the bitcoin train. But what many of these people don’t realize is that bitcoin has done this type of thing before, and the end result, at least in the shorter term, wasn’t pretty.

It was December 2013 when bitcoin had reached a high of over $900 per coin. It had been on the up and up for many months, with many a savvy investor starting to eye it as a potential new asset in their portfolios. Everything was looking just fine and dandy until suddenly it wasn’t – bitcoin went from $900-plus per coin to below $250 per coin, a more than 70% drop.

Some had anticipated this type of market correction, but few thought it would be this dramatic. It took about three years for the price of bitcoin to once again reach its previous levels. This wasn’t necessarily a problem for those who recognized bitcoin as a potentially risky currency alternative, investing as such. But for those who saw only dollar signs and who jumped headlong into the deep end with speculative intent, it was a financial disaster.

“The explosion [in the price of bitcoin] is mania,” says Raoul Pal, author and publisher of The Global Macro Investor, an elite macroeconomic and investment research service. Pal sees what’s happening today with bitcoin as a potential prelude to the same type of serious correction that took place in 2013.

“It’s people looking for a rate of return. It’s in the bubble phase. [Bitcoin] goes through this periodically … it rises several hundred percent, and then collapses.”

Pal himself admits to having made a lot of money on bitcoin when he purchased some several years back for about $200. But he’s decided that now is the time to cash out, and he’s warning others that they should do the same. He also has concerns about some of the changes that are potentially being made to bitcoin that increase the risks of investing in it pretty dramatically.

“This is the most exponential move we have seen,” he warns. “Bitcoin was supposed to be a store of value, you couldn’t mess with the formula … and now they are talking about a ‘hard fork’ changing it?”

Follow more news on the Bitcoin bubble at BitRAPED.com.

Sources for this article include:

NaturalNews.com

BitcoinCharts.com

BusinessInsider.com

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