Showing posts with label bitcoin. Show all posts
Showing posts with label bitcoin. Show all posts

Monday, January 23, 2017

Bitcoin exchange Coinbase gets money transmitter license in New York

With everything getting digitalized, the life of every individual is also becoming digital. Internet has given the power to everyone to avail anything they want that too by just sitting at your house. So, digitalization has captured every sphere of the human life. Whether it is about paying bills or opting for shopping you can manage anything and everything from anywhere and in every situation, that’s the power of being digital. Cashless is also not a problem in this era of digitalization. I believe the world is getting powerful day by day with this new technique that allows you to overcome every obstacle.

The effect of digitalization can be mostly felt in the zone of finance. New firms have come up to become a part of the world market holding hands of digitalization. One of the major company that has joined in with the New York’s Financial system is Coinbase. Recently, The Department of Financial System, New York has declared that it has given license to Coinbase for genuinely transmitting currency and money. Coinbase is one of the renowned companies famous for its dealings in terms of currency operating in almost 32 countries. Maria T. Vullo, the Superintendent of Financial Services had made this announcement that Coinbase has maintained its record of efficiency in terms of technological developments and thus New York’s Financial Services Department have decided to incorporate the company in their money and currency transmitting process.

A review of Coinbase’s technology was conducted by Department of Financial Services which involved the companies laundering process regarding anti-money, capitalization, protection of consumers against any piracy and also policies in terms of cyber security. The company Coinbase is constantly under the supervision of Department Of Financial System for offering services such as buying, selling, sending, storing bitcoin and receiving.

The company’s Chief Executive Officer Brian Armstrong declared that their first and foremost priority is to provide the safest and easiest way of currency exchange that too in a digitalized manner. So, that the customers can rely on them and do not have to experience any discrepancies from the company’s end. It is their way of maintaining a good relationship with its customers. Since, Coinbase in now a part of New York’s Financial System, hence, it has become a much known company in the field of currency transfer. The users can feel free to use them in times of their need and they assure you to provide satisfaction from all ends.

With the increasing need of transmitting currency, The Department OfFinancial System, New York has given license to several other money and currency transmitting firms like Ripple and Circle Internet Financial and trust charters to Gemini Trust Company, Winklevoss brothers are its founders and also itBit Trust Company. The Department before granting them license have fully enquired about these respective companies and after being satisfied have granted them license. These companies have come up to provide the best answer to digitalization and will add up in making life much easier for every human being.

Tuesday, March 22, 2016

40 Banks Test Bitcoin Tech for Trading Bonds


Consortium of 40 Banks Test Using Blockchain

A consortium of 40 main banks comprising of Goldman Sachs and Barclays tested a way to trade fixed income assets by using the blockchain, which is a technology that tends to strengthens bitcoin in an attempt to emphasize how serious the biggest lenders in the world are regarding the technology.

R3 CEV, the financial technology firm that had brought the banks together last year to work on blockchain applications had made the announcement recently.Blockchain tends to work like a large decentralized ledger for the digital currency bitcoin, records each transaction and stores the information on a global network which cannot be tampered. But most of the experts agree that the technology does not seem close to mass adoption and is in the trial stage.

The technology could be applied to wide selection of uses and especially for financial firms; the most interesting parts would involve the clearing of trades. Experts state that the blockchain would enable a huge number of transaction settlements in a matter of minute or even in seconds together with it being very secure since each transaction tends to be recorded and is unable to be tampered. Presently some trades tend to take day in the settling process.

Smart Contract – Computer Code

Supporting this is the idea of `smart contracts, a computer code which would only perform when the terms of a contract are fulfilled. For instance, a trade may be carried out once the money from the buyer is received,all of which would be done automatically and there would not be any dispute since the same has been recorded in the blockchain.

A number of distributed ledger companies had worked with the banks for this test namely Chain, Eris Industries, Ethereum, IBM and Intel. The institutions had done an assessment of each smart contraction solution to trade fixed income of the company.

David Rutter, R3 CEO and a former executive at London based electronic brokerage ICAP had stated in a statement that `this development tends to support the belief of R3 that close collaboration among global financial institutions and technology providers will create significant momentum behind the adoption of distributed ledger solutions across the industry. R3’s website mentioned that its mission is `building and empowering the next generation of global financial services technology’.

Blockchain – Probable Disruptive Force in Finance

These technologies represent a new frontier of innovation and would dramatically improve the way the financial services industry operates, in the same way as the advent of electronic trading decades ago delivered huge advancement in efficiency, transparency, scalability and security’.Banks do not seem to be the only ones interested in technology. Nasdaq used the blockchain, last month to enable international resident of Estonia to vote in shareholder meeting while they were abroad and tested the blockchain for trading shares.

Bitcoin could have risen to more than 35% this year, though it is the fundamental technology behind the crypto currency which is moving the world’s main banks. Blockchain has been indicated as a probable disruptive force in finance by main institutions which tend to claim bitcoin as just the opening act in something bigger.

Thursday, March 26, 2015

Bitcoin: Government to Regulate Crypto Currency to Avoid Money Laundering

Bitcoin – Issue of Money Laundering 

Bitcoin can be useful in purchasing thing electronically and its like conventional dollars, yen or euros which are traded digitally and its most important characteristic which makes it different to conventional money is that it is decentralized. There is no single institution that controls the bitcoin network and this puts some of them at ease since it means that a large bank in unable to control their money.

However, money laundering has become a major issue which the British government has been facing and most of the people in the government are of the belief that bitcoin and similar crypto-currencies are used by some to launder money and there is a need to regulate bitcoin exchanges. This kind of measures taken could stop their use as money laundering hubs. The Treasury is of the opinion that bitcoin has capabilities of being used for money laundering and in order to curb the issue, it wants to regulate digital currency exchanges for the very first time, though this would not mean that the government is not in favour of innovation in the nascent technology but the prevention of criminal use of the digital currency.

Anti-Money Laundering Regulation – Digital Currency Exchanges 

The UK government released a document with the combination with the announcement of UK’s 2015 budget stating its intention to apply anti-money laundering regulation to the digital currency exchanges in UK. As per the document it would be creating the right environment for legitimate players in the space to flourish though it would also ensure that a hostile environment for illicit users of digital currencies is developed to discourage the users. As per the Treasury it is reported that the Government will be regulating bitcoin exchange in order to stop its use as money laundering hubs. A report published with George Osborne’s annual budget, the Treasury has informed that the new regulation would be supporting innovation to prevent criminal acts of digital currencies and the proposals would be consulted in the next parliament session. It is said that the government would be working with the British Standards Association – BSI for the development of a set of standards which would be helpful in protecting the consumers.

New Research Initiative on Digital Currency Technology

It was also informed by the Treasury that a new research initiative on digital currency technology would be coming up, which would inject an additional 10 million pounds in the area. According to a board member of the UK Digital Currency Association, Tom Robinson, who has been involved in the Treasury’s consulation procedure that `the announcement is significant, which bring bitcoin and other block chain technologies closer to mainstream adoption’.

In the discussion published in February, Bank of England informed that the digital currencies like bitcoin portrayed considerable promise and it showed that it was possible to transfer value securely without the need of a trusted third party. Other queries were also raised by the bank on whether central banks should issue digital currencies themselves. In several developed countries, bitcoin has been regulated by existing money laundering or terrorist financing laws. Traditional financial sector regulation is not applicable to bitcoin according to European Central Bank since it does not involve traditional financial players while other the EU state that existing rules could be extended to include bitcoin as well as bitcoin companies.