Cryptocurrency Regulation

Beware Bitcoin Scams!

How to avoid bitcoin scams

The Bitcoin community is a fairly solid one but like anything gathering traction, rogues will infiltrate at will. The anonymity of Bitcoin with the benefit of decentralization can also be it’s weakness.

Scam sites can remain undetected and once your cryptocurrency leaves your wallet there isn’t a great deal you can do to get it back. One site looking to change all that is Badbitcoin.org which lists dubious websites.

Kosher sites can ask to be delisted from the site if a mistake has been made, but the site is worth a scan before you dive in to any double your money schemes. One such site currently advertising heavily is doubleurbtc.com. It promises quick returns on your investment with daily payouts. The only problem is that once you’ve received the first few payments, your account suddenly disappears and you’ve been scammed!

Bitcoin Magazine

Bitcoin Magazine (Photo credit: zcopley)

 

Circle launches new Bitcoin exchange service. Time to go mainstream?

Nobody gets me Bitcoins!

Nobody gets me Bitcoins! (Photo credit: zcopley)

The recent Bitcoin conference in Amsterdam saw the launch of a new Bitcoin trading platform Circle.

With a manifesto to smooth the transition of adaptation into everyday use the website’s strapline is “Bitcoin is digital money for the modern world. We make it easy to use—instant, secure, and free. The way money should be.”

The secret here is that the site will seamlessly connect with regular debit/credit cards and handle the crypto conversions on the fly. Currently the service is free and users need to request an invite to take part. Founded by former Brightcove CEO Jeremy Allaire, Circle has already raised over $26 million in private capital,

The site has invested heavily in security and compliance regulation. A wise move with the bad press surrounding other large bitcoin exchanges. They’ve promised a $10 credit to all new users too!

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Vircurex Battles Against Insolvency

Bitcoin Wallpaper (2560x1600)

(Photo credit: PerfectHue)

Another virtual currency exchange Vircurex is battling to stay afloat following 2 large hacks and heavy withdrawals.

Following the news that Mt. Gox had filed for Bankruptcy, Vircurex has locked down accounts to try and find a way out of the situation. A statement on the Beijing based firm’s website reads:

1. We will introduce an additional balance type called “Frozen Funds”. Funds in this balance type cannot be used to trade or withdraw. Those are the balances that the exchange will gradually pay back and hence transfer back to the available balance over time.
2. We will move all current balances for BTC, LTC, TRC and FTC to the “Frozen Balance”, i.e. your balance will be set to 0.
3. We’ll take the current available cold storage balance and distribute it based on the below described distribution logic.
4. Monthly we will take the net profit of the exchange and credit back that amount distributed to the users based on the described distribution logic.

We are possibly seeing an end to vulnerable first phase exchanges with the new breed of exchanges paying more regard to security and transparency. Let’s hope so!

As ever, please exact due diligence before you place funds with any third party. See our security guide for more information.

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HMRC rule no VAT on Bitcoin Mining

Bitcoins and VAT

The UK tax authorities have announced that there will be no VAT on Bitcoin Mining or Trading. The sensible move is based on EU rules applying to currencies.

At risk of being left behind in the new digital economy are Russia who have declared bitcoin transactions illegal and China who have banned their own banks from handling bitcoin trades.

The decision was made public on the HMRC website

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