Indonesia is the financial institutions engaged in bitcoin payment business

Indonesia is the financial institutions engaged in bitcoin payment business


Indonesia’s central bank and the Ministry of Finance issued several risk warning that bitcoin lacks the legal management, the underlying asset, reference price and other financial security elements, not only can be reduced to money laundering and terrorist financing tools, and is accelerating the formation of financial bubbles, and the interference of stable operation of financial system, and ultimately threaten the masses the vital interests

“Virtual currency transactions spawned more arbitrage opportunities and improper financial operation, but the operation is free from the scope of legal supervision.” This is the central bank governor Agus for Indonesia bitcoin users to the latest advice.

Since last December, Indonesia, Indonesia’s central bank financial services department, Indonesia Ministry of Finance and other financial regulators prohibited firing announcement, the domestic financial institutions engaged in bitcoin payment business, urged the Indonesian citizens not to hold, bitcoin trading and investment.

Different from the traditional currency, bitcoin is a data encryption technology based on block chain. Since last year, the global scope of crypto currency prices continued to rise, especially in December last year, the first bitcoin futures trading products in the United States officially spawned a worldwide digital encryption currency investment boom. This makes bitcoin become the new darling of investors, has become a new type of financial risks in the hardest hit. To this end, the national financial regulatory agencies are stepping up research on how to deal with the new risk bitcoin encryption currency. For example, South Korea and India have banned domestic bitcoin transactions, the United States and Japan said to strengthen the supervision of bitcoin. Previously, supervision of bitcoin is loose in Germany, the finance minister Maier Duarte recently will with the French finance minister Lemerre said, will jointly promote the global supervision of bitcoin in the group of twenty summit in Argentina in 2018. This also led to bitcoin prices fell. In February 2nd, bitcoin price fell to $8378 last year, and had reached the highest $19511.

Indonesia’s central bank data show that the rupiah denominated bitcoin prices last year soared more than 20 times, far higher than the average level of international market rose 17 times. Therefore, the central bank and the Ministry of Finance issued several risk warning that bitcoin lacks the legal management, the underlying asset, reference price and other financial security elements, not only can be reduced to money laundering and terrorist financing tools, and is accelerating the formation of financial bubbles, and the interference of stable operation of the financial system, and ultimately threaten the the vital interests of the people. Oni think the person in charge of the central bank payment system policy, bitcoin can not reach the international standard in the elimination of financial risk, the transaction and the loss also does not provide any legal protection. According to the central bank report, found in a mall in Jakarta bomb attacks, the terrorists have to store management for bitcoin.

Therefore, as the country’s payment system regulators, Indonesia’s central bank has prohibited all aspects of clearing, settlement, issuance, transfer and other payment system operators to hold and use bitcoin, non financial technology development departments to carry out bitcoin payment related research. Indonesia’s central bank financial risk management department director Ernie said, on 2011 Indonesia as the only legal tender laws, as well as the central bank on 2015 2016, the Indonesian rupiah citizens to use obligations prohibiting banks and non bank financial institutions hold a virtual currency, in 2017 about the provisions of the three consumer protection network trading platform is the basis of law enforcement behavior, Indonesia regulators at present. The director of the Indonesian Financial Services Administration Wim Bo warned, including banking, financial services, electronic wallet service providers, financial technology companies, to provide convenience for any payment system operators for bitcoin transactions, once discovered will face fines or even revoke the business license of the heavy penalties. In 2017, the Indonesian government in the name of illegal financing closed 4 bitcoin payment business of private equity funds.

However, due to the national level lack of legal support, Indonesia’s financial regulators is the right to prohibit bitcoin in Indonesia private point-to-point distribution, independent of citizens holding, trading and investment bitcoin, can only stay in the current level. Bitcoin (Indonesia) as Indonesia’s largest bitcoin trading platform, has more than 1 million active users. In the face of Indonesia’s financial regulators warned that the company only on its website for the majority of users published the latest tips bitcoin transaction risk as a response. In this regard, the Indonesian finance minister Sri Mulyani argued that although the government has the right to prohibit citizens to invest in bitcoin, but not for any trading loss fallback. Wim Bo said that regulators can only continue to guide the public to recognize the potential risks, “we can only again and again issued a risk warning”.

Relative to the financial regulatory authorities “persuasive”, the Indonesian police simply “hard”. In January 15th, Bali Island police according to the clues in the Bali Island branch of the central bank, major tourist attractions to carry out special rectification activities for bitcoin transactions. The action that there are at least two cafes are still accepting bitcoin payments, payment of the minimum threshold is 0.001 coins ($18), a bitcoin transaction records of 44 enterprises including car rental, hotels, travel agencies, jewelry stores found before. Bali Island police chief SA Wu just pointed out that according to the law, all financial transactions must be used in the Indonesian rupiah, “but the tourist resort of Bali Island has been all kinds of illegal financial transactions in the target area, the police has been committed to the fight against all illegal non IDR transactions, so we urged businesses to consciously resist the bitcoin, and will be based on the National Police Administration of criminal investigation department and the central bank institutions new coordination, intensify the crackdown”.

The Bank of Finland, praised the bitcoin revolutionary economic system

The Bank of Finland, praised the bitcoin revolutionary economic system

The Central Bank of Finland, the investigators said the economic system of digital currency bitcoin has change.

The economists at the GurHuberman Research Center, JacobLeshno and CiamacMoallemi released a report in September 5th, said the infrastructure of virtual currency through its dynamic protocol layer provides a protection against dangerous control.

The report says:

Bitcoin is a protocol by non management operating mechanism of monopoly. We are familiar with the monopoly is manipulated by management agencies, these agencies will decide, and then change the price of products, and rules. Often the monopoly regulated, to prevent or at least reduce the abuse of power.”

The other main view report

The report also pointed out that due to the bitcoin protocol by running, so do not need supervision. This is because the network node executes bitcoin, and the user can decide the cost (depending on how fast their hope on their trading confirmation).

The three authors also suggested that compared to other experts of bitcoin and its infrastructure for more in-depth research.

“Bitcoin obvious function and practicability should further encourage economists to study this superior structure.”

The Bank of Finland in the chain block technology and the bitcoin

Note that these views do not represent the researcher at the Bank of Finland’s official views. However, the importance of the report is in doubt, because the bank did in the work and the block chain and bitcoin related.

In 2016, the bank organized a seminar to support the local block chain, for the technology research project. The seminar attracted the participation of local scholars, regulatory agencies and enterprises.

Although strictly speaking, the report only a few researchers view, but they as the Bank of Finland official research institutions as members of the same opinion weighty.

The Central Bank of Mexico refused to legal classification in virtual currency bitcoin

The Central Bank of Mexico refused to legal classification in virtual currency bitcoin

Mexico’s central bank governor Augustin? Carstens (AgustinCarstens) refused to adopt a “virtual currency” as the legal classification of bitcoin. Carstens believes that the word “currency” including bitcoin inappropriate classification, because bitcoin without a central bank to support or issue.

In addition, the new Mexico bill may change the fate of bitcoin.

Carstens believes that bitcoin lacks the support of the central authorities, so it cannot be classified as “virtual currency”.

The Central Bank of Mexico refused to “virtual currency” as the legal classification of bitcoin

The governor of Mexico’s central bank argued that encryption currency should belongs to the network security areas of government rather than by the state regulatory agencies as a “virtual currency”. Carstens pointed out that the encryption currency “can not from hackers, and that bitcoin largest utility is” it provides anonymity facts for users”. Prior to this, he warned that bitcoin is an attractive tool for monetary market entity.

Carstens suggested that the Mexico authorities seek carefully to promote the development and application of encryption technology in the currency of the national financial system. Carstens in the Mexico independent research institute (autonomous InstitutoTecnologico) delivered a speech that “the technological development of the financial system is not only the result of innovation”. There must be a free step, will not cause problems — suggests that Mexico’s central bank will seek to actively guide the encryption technology into monetary economy of Mexico ultimately affect the entire social financial system. Carstens also said, “the financial authorities will soon put forward a detailed proposal on crypto currency legislation.

Carstens’s comments suggest that the Central Bank of Mexico will not recognize any non statutory currency as the currency “”

The Central Bank of Mexico refused to “virtual currency” as the legal classification of bitcoin

Carstens’s comments suggest that the Central Bank of Mexico will not recognize any non statutory currency as the currency “”. Carstens will continue to bitcoin described as a “commodity”, he argued, “in the financial system have nothing to ensure its accounting”, which means that the central government is the necessary quality of money “.

Earlier this year, Mexico proposed a bitcoin is defined as digital assets act, and clarify the bitcoin exchange operations. The bill is aimed at Mexico government proposed to help more digital economic transformation, promote the Mexico science and technology financial industry growth, a part of the expansion of ordinary citizens to provide financial services to the new financing bill. Although he refused to bitcoin is classified as “virtual currency”, Mexico regulatory stance on encryption currency is currently in Latin America’s tolerance and freedom.

European police held a meeting to discuss the value of bitcoins storage and payment legalization

European police held a meeting to discuss the value of bitcoins storage and payment legalization

According to foreign media reports, as the highest law enforcement agency Europol has recently hosted the fourth session of the conference of digital currency. According to the agency’s announcement Wednesday, this year will discuss other encryption currency bitcoin as a store of value, and the payment is legitimate.

The discussion will bitcoin as the European cybercrime centre payment value storage and the lawful Europol (EC3) recently at Europol headquarters in Hague held the fourth session of the general assembly of virtual currency. EC3 was founded in 2013, is the network crime expert group of the European Union, aims to help law enforcement agencies to deal with cyber attacks.

This activity in June 22 to 23 held to further strengthen the fight against abuse of virtual currency trading and money laundering criminal activities.

Unlike in previous years, Europol also meeting the additional discussion, according to the agency on Wednesday announced the news:

Another interesting topic covered is the legitimate use of bitcoin encryption technology, including the use of money as a store of value, as well as the legitimate payment for goods and services.”

The digital monetary conference organised by the European police, there are more than 150 experts from various fields to participate in the event this year. Many law enforcement agencies in European countries and non EU countries have been involved in the private sector, but experts have also been invited. Many bitcoin companies were selected to participate in, because they provide through online transactions, payment processing or wallet service to promote the legitimate use of virtual currency.

According to Europol, in the industry experts including, Bitfinex, Bitpanda, Bitonic, Bitstamp, Bitpay, Coinbase, Cubits, Localbitcoins, Spectrocoin and Xapo.

The notice pointed out that “participants to share their views on crime trends, use the latest technology to hide financial trajectory and criminals, and the use of bitcoin and other virtual currencies cash proceeds of crime.”

The European Union has been a lot of research in digital currency as a store of value. With the passage of time, the researchers found that bitcoin is increasingly recognized as a valuable commodity.

A landmark event: bitcoin just beat gold!

A landmark event: bitcoin just beat gold!

According to the CoinDesk bitcoin price index on Thursday, the United States market trading, bitcoin dollar price over the price of gold for the first time in eight years, once reached $1251.32.

Digital currency research company CryptoCompare CEO and founder of CharlesHayter and many other bitcoin observers have pointed out that there is a positive correlation between currency and gold, more and more investors are willing to accept this kind of digital currency, when the stock and other traditional market pressure, investors are more willing to buy coins. According to the report, the financial market continued uncertainty and the new president of the United States and the government will continue to support the gold market anxiety. Also, analysts believe that bitcoin market rebound may be the latest and Chinese independent, but with President Trump’s policies on.

Moreover, the market is speculation first bitcoin Exchange Traded Fund (ETF) will be established to obtained the approval of the U.S. financial regulatory agencies. Three tracking bitcoin value ETF has the U.S. Securities and Exchange Commission (SEC) submitted the application for establishment of SEC in March 11th, and will decide whether to approve the Cameron and the TylerWinklevoss brothers submitted 4 years ago to apply, if approved, it will be the first by the United States Agency for entities and supervision of the bitcoin ETF, can improve bitcoin is usually more cautious on institutional investors attractive.

However, capital chain block (BlockchainCapital) researcher SpencerBogart ETF believes that the possibility of bitcoin approved low, but if approved, the percentage increase will be greater than the first gold ETF iSharesSPDRGoldTrust gold has approved the increase.

Although the Commodity Futures Trading Commission (CFTC) has been classified as bitcoin commodities, as gold, but there is at least one important difference between the two: the capital market is about $20 billion bitcoin market is far less than the gold market, and the volatility is far greater than the gold market.

Bitcoin has become more mainstream, because many companies have now accepted it as a form of payment, stock strategist MattMaley CNBC in the “transaction” program that support bitcoin instead of gold, but many gold enthusiasts still bitcoin suspicious.

This year, gold rose nearly 8%, in contrast, bitcoin soared more than 25%. The raw materials and the futures trader AndrewHecht SeekingAlpha issued a document that the dollar is strong or the Fed rate hike is expected to heat up drag gold, gold prices in the battle in retreat. Bitcoin is not affected by the strong dollar, continue to rise, due to China, such as Russia and Venezuela have extremely strict capital controls, exchange rate fluctuations, before people buy gold for wealth preservation, convenient capital flight. Bitcoin appears to make capital escape easier, as long as there is a mobile phone or computer, can carry out overseas, may therefore demand.

Since bitcoin and gold is a hedge, bitcoin can replace gold concern. Some experts believe that bitcoin risk is too high, to the next generation, gold still will be the main place for wealth preservation. If the gold and gold coins as a brand, market position is much higher than that of bitcoin. Gold wealth preservation function clear, bitcoin value is difficult to measure. On one hand the number of coins are scarce, the world’s only 21 million pieces, if instead of gold, the price will be high to amazing, holders may be reluctant to trade; on the other hand, bitcoin value may also be overnight evaporation, if the rise of new digital currency, or the authorities decided to destroy bitcoin, can make the value of bitcoins disappeared exhausted.

Philippine securities regulator ordered a halt to ICO

nA runaway comment: According to a newly released document by the Philippine Securities and Exchange Commission, the agency recently issued injunctions to four companies under the securities registration rules. The agency stated in its paper that there is ample evidence that these companies are selling to the public in the Philippines or in the form of KROPS tokens and / or Kropcoins and have not obtained the necessary permits from the SEC. However, the agency also said that if the four companies register at the SEC to obtain the permission to issue securities, then the sale of their tokens can be resumed.n
nTranslation: Clovern
According to a newly released document, the Philippines Securities and Exchange Commission issued a restraining order to four companies and an initial digital token issuer (ICO) operator under the securities registration rules.n
The ban was issued on January 9, 2018 and was recently posted on the agency’s website. The ban mentioned four affiliates: Black Cell Technology Inc., Black Sands Capital Inc., Black Cell Technology Limited and Krops , All of which are KropCoin tokens offering operators and claiming to be selling “ICO, the world’s first encrypted agricultural stock market.”n
The document also confirms that Filipino resident Joseph Calata is the founder or executive of each of these four companies.n
All four companies claim that they are closely linked to this KropCoin tokens built on the Ethereum network.n
Although the ICO is not regulated in the Philippines, the regulator’s Enforcement and Investor Protection Department (EIPD) said “there is ample evidence that these companies are being sold to the public in the Philippines or in the form of KROPS tokens and / or Kropcoins, And did not obtain the necessary permission from the SEC. “n
The EIPD filing states that four companies have five days to appeal the order, and if an appeal is filed, a hearing will be held within 15 days. Since then, the Philippine SEC has ten days to resolve or reject the appeal; otherwise, the prohibition order will be automatically lifted.n
Calata and its four companies will be able to resume the sale of tokens if they are able to register with the SEC and have permission to sell securities in the country.n

Malaysian securities regulator released ICO ban

nBankruptcy Review: Recently, the Securities and Exchange Commission (SC) issued a ban on a company that plans to launch an ICO, which prohibits the company from conducting ICO. The company is the CopyCash Foundation. The agency said in a statement that the company’s activity was thoroughly investigated before the ban was issued and that a reasonable chance of disclosure in the CopyCash Foundation white paper and a statement of potential investors found in the investigation violates Securities Law related requirements. And the agency said in its January 5 statement that it would cooperate with regulators at home and abroad on ICO issues.n
nTranslation: Clovern
The Malaysian securities market regulator issued a restraining order before a start-up plans to launch its first digital token issuance (ICO).n
According to a statement issued by the Malaysian Securities Commission (SC), a notice was sent to the CopyCash Foundation after investors conducted an investigation into the company’s publicity. CopyCash promotes itself on its website as a “social investment” platform or as a hybrid of investment and trading.n
The agency said in a statement:n
n”The SC issued the prohibition order after the investigation by SC found that the disclosure in the CopyCash foundation white paper and the reasonable prospect of statements to potential investors would violate the relevant requirements of the securities law.”n
nSC also referenced CopyCash in its January 5 statement on the blockchain financing model and said it plans to meet with representatives of the CopyCash Foundation to “investigate its activities, including the alleged issuance of CopyCashCoin.”n
It is perhaps not surprising that the regulator acted swiftly to release ICO activities that notified CopyCash that the agencies around the world are now acting to strangle ICO activities in the cradle. In its January 5 statement, SCI also said that the agency has taken notice of the upward trend in Malaysia’s ICO promotion activities, including lobbying some older citizens.n
SC said he will work with other agencies, including the Malaysian Central Bank, on ICO issues.n
The agency said at the time:n
n”SC will continue to work with law enforcement agencies such as Bank Negara Malaysia and will work closely with counterparts in other countries to closely monitor these activities and take appropriate action where necessary.”n

Two fund managers in the United States withdrew their applications for Bitcoin ETFs for fear of the SEC

nBankruptcy: Reuters reports that two companies in the United States withdrew their applications for the issuance of the Bitcoin Exchange Traded Funds (ETFs) as the SEC continued to be concerned about the liquidity and valuation of futures contracts based on digital assets . Very rare, the two major regulatory agencies in the United States – the SEC and the CFTC appeared in disagreement. However, the CFTC has approved the listing application for bitcoin futures and the CFTC has long been under pressure to address concerns that the agency has not adequately evaluated Bitcoin’s potential risks to the financial system.n
nTranslation: Clovern
NEW YORK (Reuters) – The filings filed Monday showed that the two U.S. companies have shelved their proposal to issue bitcoin exchange-traded funds (ETFs) due to continuing SEC concerns over the Bitcoin.n
One of the documents showed regulators ‘staff members’ concerns about liquidity and valuation of futures contracts based on digital assets.n
The move added new hurdles to Wall Street firms planning to take advantage of investors’ interest in cryptocurrencies and made the two financial regulators openly divided on how regulatory issues are so unusual.n
The trust, controlled by Rafferty Asset Management LLC and Exchange Traded Concepts LLC, respectively, eliminates plans to launch three Bitcoin funds that can be bought and sold by retail investors just as easily as equities. It’s not yet possible to reach out to both companies for comment.n
Fund managers argue that these proposals have had the opportunity to gain approval as CME and CBOE Exchanges launched bitcoin-based futures contracts last month.n
Regulators have been scrambling to figure out how to deal with this relatively new asset, but so far no single exchange has control.n
The SEC manages the funds, while the Commodity Futures Trading Commission (CFTC) manages the futures contracts. The CFTC has been under pressure to address fears that the agency has not adequately evaluated the potential risks that bitcoin poses to the financial system.n
Bitcoin is a virtual asset that can be used to quickly and relatively anonymously transfer funds around the world without the involvement of intermediaries – such as banks or governments. The transaction is expensive, trading is difficult and the price is very volatile.n
Taking into account the SEC’s decision may also be the US stock market volatile trading varieties to clear the obstacles, it is also facing a rigorous review.n
Both the U.S. Securities and Exchange Commission and the U.S. Commodity Exchange Commission can not comment immediately.n
One of the ETFs submitted will be designed to rise and fall at twice the rate of bitcoin price changes in a single day. According to the Bitstamp exchange, bitcoin has risen more than 10% in 26 different periods of the day in the past two years.n
Bitcoin on Bitstamp Exchanges did not change much on Monday night, at around $ 15,000.n

Texas regulators ordered BitConnect to cancel token sales

nComment: Recently, the Texas Stock Exchange (TSEB) released news on its website that it has ordered BitConnect, a blockchain-based financial system startup, to cancel its proposed tokens launch on January 10. According to the agency, BitConnect claims that the to-be issued token will yield a 100% annual return, and TSSB concludes that its token is in unregistered securities. Meanwhile, the agency’s statement also said BitConnect did not release any information about its financial position, profitability or exact location. It is noteworthy that in this statement, the agency also warned against the prevailing risk of cryptocurrency.n
nTranslation: Clovern
The Texas Stock Exchange (TSSB) has ordered BitConnect, a blockchain-based financial system startup, to cancel its proposed tokens launch on January 10.n
According to a press release posted on the regulator’s Web site, BitConnect claims to issue a 100% annual return of tokens, while TSSB finds the token to meet unregistered securities standards.n
In addition, BitConnect is looking for new members to promote its tokens, while Texas regulators identify those agents as unregistered securities sold in Texas.n
TSSB said these sales agents are primarily “resident in Texas” as well as residents of other states.n
On January 1, BitConnect announced the launch of its first digital token distribution (ICO) project called BitConnectx on January 10. It is noteworthy that the start-up had launched a token sale in 2016.n
This order from the Texas regulator, albeit from state agencies, highlights another example of the U.S. regulators being examining cryptocurrencies that could be considered as issuing unregistered securities through the token offering process.n
Earlier, the Securities and Exchange Commission halted Munchee’s tokens issuance, and the project later returned a refund to investors.n
In addition, the statement issued by TSSB also shows that BitConnect does not share any information about its financial position, profitability or exact location.n
According to the press release, however, this did not prevent the company from claiming that its token sale was a safety investment.n
According to data from CoinMarketCap, existing BitConnect tokens (called BCC) are currently trading for only $ 400, with a market value of $ 2.5 billion as of Friday. Over the past week, the token mechanism has been declining from a high of 460 dollars as of December 30, 2017.n
The press release from the Texas regulator also includes a warning about universally cryptocurrencies:n
n”Investing in cryptocurrencies is associated with significant risk due to regulatory and legal measures, competition with other cryptocurrencies, and the volatility of many cryptocurrencies.”n
nBitConnect did not comment immediately.n