2017 Encrypted currency enters the international financial system

nRunaway Comment: The current bitcoin price exceeded the $ 10,000 high of 960 U.S. dollars earlier this year, far exceeding expectations. Of course, more importantly, Bitcoin and other cryptocurrencies have gradually entered the international financial system. In particular, the CME’s announcement of a plan to issue bitcoin futures has helped to lift the market and affected the attitudes of other large financial institutions toward bitcoin. Each country has a different attitude toward cryptocurrencies. However, in spite of the high price of coins, bitcoin was still used for some illegal activities and the relevant legislation was not finalized.n
nTranslation: Annie_Xun
This single bitcoin price hit $ 10,000 this week, once again reaching new highs, well above the beginning of the year. Bitcoin has exceeded expectations, but in 2017 it is not just price increases. Bitcoin and other cryptocurrencies have become recognized parts of the financial system, but only somewhat vague.n
Earlier this year, Bitcoin transaction price was $ 960, after which it rose steadily and surged in the first two months. There are many reasons, but the recent upturn is partly due to the CME Group’s announcement that it plans to list Bitcoin on the exchange by the end of the year. This recognized sign may reinforce bitcoin’s position in other large financial institutions, many of which are already handling a certain amount of bitcoin-related transactions. It is reported that even CEO Jamie Dimon said JPMorgan Chase, which will be expelled from Bitcoin transactions, is also considering offering CME futures services to its clients.n
But not everyone believes that Bitcoin is about to enter the futures market. Joe Saluzzi, head of Themis Trading, warned that the unregulated status of bitcoin is dangerous. “It made me think about the financial crisis again.” And Bitcoin is so volatile that it costs nothing to justify bitcoin. No one knows the future price of a single bitcoin, though Thomas Glucksmann at Gatecoin said:n
n”In my opinion, $ 10,000 is still cheap”n
nMoreover, bitcoin has suffered a catastrophic decline, including the long-term downturn after prices hit $ 1,000 in 2013. To explain how absurd Bitcoin fluctuates, Gizmodo writer Kashmir Hill, a Twitter-dealer, said buying a sushi in 2013 costs the equivalent of the current $ 99,000.n
However, bitcoin payments make sense in some scenarios, albeit sometimes less than pleasurable: extreme right groups are starting to use bitcoin when rejected by payment processors. The underlying uses of blockchain technology are complex and varied, not around cryptocurrencies, from the rapid processing of international currencies to the tracking of legalized cannabis.n
But people find that the use of cryptocurrencies has surpassed alternative currencies. Perhaps the most famous example of 2017 is the ICO, which sells digital tokens based on cryptocurrencies, such as ethernet, through ICO. The crowdfunding projects included in the ICO are both absurd and serious, with some absurd successes, and some with the support of Paris Hilton and Wu-Tang Clan band Ghostface Killah. And, unlike the other early currencies of Dogecoin, they caught the attention of regulators.n
Some countries have directly banned the ICO, and South Korea announced “severe penalties” for the related activities. But other countries try to determine how to apply the existing regulations. The SEC, the Securities and Exchange Commission, require some ICOs to fall under the securities laws and be separated from general crowdfunding. Japanese regulators also made clear that ICO is part of the current financial regulations. The SEC has even issued guidance on how celebrities can participate in sales.n
The overall legal status of cryptocurrencies is complex, but in 2017 some countries have made major policy decisions. Some are negative: The SEC rejected a well-known application for the Bitcoin Equity Fund. The signals given in many other countries are more vague. Russian President Vladimir Putin ordered regulators to set a full set of miners and traders regulations, even though officials said they would ban them directly. This year the Indian government set up a commission to study digital currency regulation, and the High Court recently ordered the commission to speed up its work.n
Some have been sued for encrypting money-related criminal activity, just like the Ponzi scheme of the past few years. The government also released bitcoin guidance. Some new decisions raise new questions: For example, the SEC does not say how it will punish decentralized networks that violate securities laws. Likewise, getting the attention of investors and regulators does not tell us whether bitcoin will eventually succeed or not, and whether cryptocurrencies play an important role in the lives of most people. But even though cryptocurrencies do not compete directly with traditional counterparties, the past year has shown that they have drawn the attention of regulators and investors.n

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