Boring Bitcoin Report

Don’t Mess With Bitcoin

It’s no secret that Bitcoin has a public perception problem. Most people’s first impression of bitcoin is tied to either the Silk Road or Mt. Gox scandals. However, the dialogue is slowly but surely beginning to look up. New York became the first state to finalize virtual currency regulations last month; putting an end to the impression that bitcoin is unregulated. In Texas, numerous lawmakers are making public statements about the benefits bitcoin can bring to the markets. And the Canadian Senate put forward an extremely positive and encouraging new release concluding their study on digital currency.

The bitcoin community is proving to be resilient as almost $500 million in venture capital has already poured into start-ups and small businesses just this year. Many of these companies are earning funding to solve fundamental e-commerce issues around the world. They are creating more secure and efficient payment rails, providing access to the global economy in developing worlds, and strengthening electronic commerce products, such as smart contracts. While this Bitcoin experiment is still in very early days, more and more use cases are being developed that are unarguably positive for consumers.

Government Scoop on Bitcoin

NYDFS Benjamin Lawsky Announces Final BitLicense Regs, and His Resignation
On June 3rd, after almost two years of hearings, public comments and much debate New York Department of Financial Services Superintendent Benjamin Lawsky announced the final version of “BitLicense”.  He also confirmed his plans to step down this summer from his post as Superintendent. According to the New York Times, he has plans to open his own firm and to lecture at Stanford.

Texas State Representative Says Bitcoin Makes The Economy More Stable

Big news in Texas as Governor Greg Abbott just signed a bill into law to repatriate Texas’ gold from the federal government and is building their own repository — “which shows a deep, deep mistrust of the federal government”, according to Bloomberg. Interestingly enough, the sponsor of the bill, Rep. Giovanni Capriglione is also a bitcoin supporter. In an interview with the Epoch Times he said,

“I have bitcoins and I use it as an alternative as well. Every individual should have as many options as possible to be able to transact business. The more options individuals have the more liquidity there is, the more comfort there is, and the more stability.” Governor Greg Abbott accepts bitcoin for campaign contributions as well.

Canada’s Senate Banking Committee Takes Pro-Bitcoin Stance

Canada’s Senate Banking Committee released a report on digital currency last week addressing the relevant risks and opportunities that digital assets like Bitcoin present. The committee found that although there are a few risks to digital currency, “the benefits of this technology outweigh the challenges it introduces”. Therefore, the committee recommended only “light touch” regulations to prevent the impediment of innovation in the field.  In the best conclusion to this story, the Committee illustrated the innovation of the Bitcoin by publishing the report on its blockchain providing its ‘proof of existence’.

Industry Bitcoin Scoop

Mirror Raises $8.8 Million To Build Smart Contracts Platform

Mirror (formerly Vaurum) closed an $8.8 million round of financing bringing its total amount raised to $12.8 million. Mirror is a smart contracts platform powered by bitcoin, which aims to democratize access to financial markets through peer-to-peer trading. “There is an unbundling of the financial services industry that’s occurring right now, and we see an enormous opportunity to provide advanced, more efficient services for risk management and hedging,” said Mirror Co-Founder and CEO Avish Bhama.

Santander: Blockchain Technology Could Save Banks Billions
In a recent study co-authored by Santander InnoVentures, use cases of blockchain technology could save banks up to $20 billion dollars a year. Santander is exploring using blockchain technology for international payments and smart contracts. “We have internally identified 20 to 25 use cases where this technology can be applied,” said Mariano Belinky, head of Santander InnoVentures.

BitPay Expanding Use Cases For Its Payment Processing Capabilities

Banks are finally beginning to realize that the technology underpinning Bitcoin might make transaction clearing a lot easier. Banks are excited to be able to have a secure method of sending money between banks and having it settle near-instantaneously. BitPay has been processing bitcoin payments for years; however, its contributions to utilizing core Bitcoin technology are just starting to be realized by the banks. “There are so many use cases in a bank that this technology can address and make better,” said Bitpay’s co-founder and CEO Stephen Pair.

Blossom Finance Provides Sharia Compliant Financial Products

Matthew J. Martin is trying to broaden the spectrum of financial opportunities available to Muslims with his new startup Blossom Finance. Islamic “sharia” law prohibits Muslims from using interest-based financial products. According to Islamic Finance, as much as 25% of the world’s population identifies as Muslim; however, sharia-compliant assets are very rare, less than 1% of the world’s assets. Using Bitcoin, Blossom Finance is facilitating provably interest-free loans in Indonesia, which has over 200 million Muslims.

Tweet of the Week

That’s dope!!!: @DopeMovie is the FIRST movie in history to accept #Bitcoin for ticket purchases! http://t.co/CnlgMOqBrz in theaters FRIDAY!

— Diddy (@iamdiddy) June 16, 2015

 

Quote of the Week

“Economic empowerment and entrepreneurship are the cures for global terrorism.” Hernando de Soto, via Marketwatch

Photo of the Week

The Bitcoin Rat spotted in Portsmouth Gun Boat Diplomacy on his #bitworldtour, www.CryptoRats.com

For daily updates and breaking news, follow us on Twitter @BoringBitcoin and Facebook: Boring Bitcoin Report.

Click on the headlines below for links to the full story.

Government Scoop

Bitcoin Research Firm is First to be Officially Registered with Australian Gov
Interconnected Research is now the only private company in Australia registered by the government as a bitcoin and cryptocurrency research provider. The registration allows the company to claim rebates from the government under an innovative R&D tax incentive program. The company offers two services to bitcoin companies including helping them to qualify for rebates.

Princeton Professor & Bitcoin Researcher Named to White House Post

Princeton University professor Dr. Ed Felten will be joining the White House Office of Science and Technology Policy as the Deputy U.S. Chief Technology Officer. Felton has indicated interest in Bitcoin and blockchain technology in the past and has attended BitLicense hearings where he presented a moderate view on Bitcoin. He currently serves as the Director of the Center for Information Technology Policy at Princeton and has worked as the first Chief Technologist at the U.S. Federal Trade Commission.

Ben Lawsky to Step Down

The current superintendent of the New York Department of Financial Services, Benjamin Lawsky has confirmed plans to step down from his post this summer. In his four year tenure at the department, Lawsky has investigated big banks and championed the controversial BitLicense. According to the New York Times, he has plans to open his own firm and lecture at Stanford.

NC House Bill to Regulate Bitcoin Passes House, Moves to Senate

A bill to regulate digital currencies including bitcoin has passed the North Carolina House of Representatives. HB 289 offers a series of amendments to the existing “Money Transmitters Act” incorporating digital currencies. The bill was introduced by Republican Representative Stephen Ross, who also works as a vice president and investment officer at Wells Fargo.

Industry Scoop

Coinify Expands to 34 European Countries

Danish bitcoin exchange Coinify has expanded service within the Single Euro Payments Area (SEPA) network, allowing 34 countries across the EU to buy and sell digital currency. Coinify allows merchants to accept bitcoin and next day settlement in fiat currencies such as euros, dollars, and kroner. The company joins Coinbase and Bitstamp, which also allow bitcoin purchases through SEPA.

21 Inc Announces First Product

The once-secretive Bitcoin startup 21 Inc has unveiled embeddable chips for smartphones as its first product. The company said the BitShare chip has the capability to bring bitcoin to the masses by having customers use mined bitcoin for micropayments. 21 Inc has raised over $116 million from chipmaker Qualcomm, several venture capital firms and founders of billion dollar companies like eBay, Zynga, DropBox, Paypal and Expedia.

Nasdaq Begins Using Bitcoin Technology In Private Market

The NASDAQ stock exchange announced that it would utilize bitcoin’s blockchain to keep records of pre-IPO stocks traded in NASDAQ’s Private Market. The initiative uses the Open Assets Protocol, a blockchain-based colored coins application, which would help facilitate the issuance, transfer, and management of private company securities. Using blockchain technology in this way has the potential to disrupt a series of middlemen such as clearing houses, lawyers and banks that help facilitate these transactions.

Coinapult Reopens in US after Integration with Crypto Capital

Panama-based Bitcoin company Coinapult has re-opened for business in the US, after integrating with licensed financial institution Crypto Capital. According to a company blogpost, Coinapult’s bitcoin liquidity and the bitcoin-friendly banking services provided by Crypto Capital “creates a seamless solution that enables individuals and businesses to buy, sell, send, and receive bitcoin and fiat.”

Ripple Labs Raises $28 Million in Series A Funding

Ripple Labs creator of the Ripple payment protocol has raised $28 million in series A funding. With the new capital, Ripple hopes to expand its international reach and extend into corporate treasury and market making industries. Li Feng, a prominent early investor of Baidu, Tencent, and Xiaomi has joined Ripple Labs’ Board of Directors, to potentially further Ripple’s expansion into Asia.

Now You Can Tip Musicians in Bitcoin

Bitcoin social tipping platform ChangeTip has launched a new functionality that allows listeners around the world to tip artists using bitcoin. The company created a system using SoundCloud’s open source API that allows users to directly tip and reward their favorite artists.

Boring Bitcoin Calendar

Bitcoin and other Digital Currencies: Emerging Issues in Regulation and Enforcement

June 26, 2015, Washington, DC

The American Bar Association will hold an event focused on bitcoin and digital currencies, with an emphasis on regulatory compliance and law enforcement efforts. The event plans to highlight state and federal enforcement mechanisms. Representatives from government agencies are expected to participate.

Inside Bitcoins Chicago

July 10-11, 2015, Chicago 

Join us at the Navy Pier in Chicago on July 10-11 for thought provoking keynotes and seminars from leaders in the cryptocurrency and financial space including Matthew Roszak, Founding Partner, Tally Capital; Steven Michaels, President, Digital Currency Institute and Founding Member, San Diego Bitcoin Association; Harry Yeh, Managing Partner, Binary Financial; and more. Register now!

Tweet of the Week

#Bitcoin Startup @21dotco Unveils Product Plan: Mining Chips for Smartphones: http://t.co/O72jSwDwP0 pic.twitter.com/KGKoyNoUQW

— Pantera Capital (@PanteraCapital) May 18, 2015

Pic of the Week

 Video of the Week

Tally Capital CEO Matthew Roszak discusses NYSE price index launch on CNBC.

Quote of the Week

Former Treasury Secretary Larry Summers, quoted in 21 Inc co-founder Balaji Srinivasan’s blog post :

“The 21 chip adds a whole new dimension to bitcoin’s potential utility. At first we will be struck by the presence of a technology like embedded mining; eventually we may be struck by its absence.”

For daily updates and breaking news, follow us on Twitter @BoringBitcoin, and Facebook: Boring Bitcoin Report.

Click on the headlines below for links to the full story.

Government Scoop 

First FinCEN Action Against A Digital Currency Company

Last Tuesday, the Financial Crimes Enforcement Network (FinCEN), the federal government’s anti-money laundering watchdog, announced the first civil enforcement action against a digital currency company, Ripple Labs, Inc. and its affiliate XRP II LLC (Ripple). Simultaneously, the United States Attorney for the Northern District of California Department of Justice (DOJ) announced a settlement agreement against Ripple to resolve potential criminal charges, ensure cooperation in other investigations and provide for substantial remedial compliance measures.

Ripple was assessed a $700,000 civil money penalty by FinCEN and forfeited $450,000 to the DOJ, which was used to partially satisfy the FinCEN penalty.

In a FinCEN press release, the action against Ripple Labs and its subsidiary XRP II was for “willful violations” of the Bank Secrecy Act (BSA), having failed to implement appropriate anti-money laundering (AML) procedures and report suspicious transactions.

Further, FinCEN Director Jennifer Shasky Cavalry indicated in a May 6^th keynote speech at the West Coast AML Forum, that the agency is working closely with BSA examiners at the IRS in its investigations, which may result in future enforcement actions.

It is also important to note that FinCEN is holding companies responsible for AML/BSA compliance from the moment they start operating.

ESMA Seeks Information on Digital Currency Investments

The European Securities and Markets Authority launched a “call for evidence” on digital currency investments and investment vehicles. ESMA said it is seeking information related to how virtual currencies and block chain technology are used for investments, and would like to hear from anyone involved in the process.

Sweden’s Nasdaq Exchange Approves Bitcoin-based ETN

The Nasdaq exchange in Sweden has approved a Bitcoin ETN, or exchange traded note, for investors in the digital currency who don’t want to directly buy bitcoin. The “Bitcoin Tracker One,” owned by the KNC Group will be listed May 18 on the Nasdaq Nordic in Stockholm. Users must have an account through a bank, financial advisor or online broker.

Virtual Currency Bill Advances in California

The California Assembly Committee on Banking and Finance approved a bitcoin regulation bill similar to New York’s bitlicense. The bill, which was first introduced in February, would require businesses operating with virtual currency to register with the commissioner of business oversight and pay a $5000 application fee. In the bill, a virtual currency business is defined as “activity involving the storage of digital currency on behalf of others; the exchange of fiat money for digital currency and vice versa; and even the exchange of one type of digital currency for another.” The legislation, AB-1326 Virtual Currency, will now move to the appropriations committee before a vote is held on the assembly floor.

itBit Becomes The First Digital Currency Company To Receive A License In New York – However, It Is Not A BitLicense

itBit, New York-based bitcoin exchange, received a license last week from the New York Department of Financial Services (DFS) under the state’s banking laws. With this license, itBit avoids the need for a “BitLicense”. itBit also recently announced $25 million in Series A funding round and several new high profile board members, including former FDIC chair Sheila Bair, former US Senator Bill Bradley, and Robert Herz, former Financial Account Standards Board FASB chairman.

No New Trial for Ross Ulbricht, Judge Rules

A judge has ruled the convicted mastermind behind illicit online marketplace Silk Road, Ross Ulbricht, will not be getting a new trial. The judge wrote in an opinion, “The evidence of Ulbricht’s guilt was, in all respects, overwhelming.” Ulbricht’s defense team recently filed a motion for a new trial, stating evidence that could have proved his innocence was not provided in a reasonable amount of time, violating his due process rights.

Industry Scoop

Bitcoin Wallet App Brings Bitcoin to Hong Kong Starbucks

Starbucks locations in Hong Kong are now accepting bitcoin payments through bitcoin wallet app Fold. Customers paying with Fold will also get a 20% discount off of their orders. Fold is not yet available in the US, but the company said it has plans for a trial run with Target and Whole Foods. 

Coinbase Expands Their Services To The UK

Bitcoin wallet and exchange service company Coinbase is now available to customers in the UK. British-based users will be able to trade bitcoin against the Euro and the British pound. The company has backing of over $100 million dollars in high profile investments including the New York Stock Exchange.

USAA Forms Bitcoin-technology Research group

The Texas based financial institution for members of the military and their families, USAA, has created a research group to study bitcoin and bitcoin-based technology. The purpose, according to the company, is to help make operations more efficient.

Overstock Seeks to Issue $500Mil in Bitcoin-Like Stocks

Online retailer Overstock, the first major US retailer to accept bitcoin, filed a first offering document with the Securities and Exchange Commission (SEC) to issue up to $500 million in stock or other securities on a platform that uses blockchain technology. Overstock’s digital securities would be available to trade on an Alternative Trading System (ATS) registered with the SEC.

Circle Announces $50Mil Investment Round

Consumer Internet company and bitcoin wallet provider, Circle, closed a $50 million investment round co-led by Goldman Sachs and China-based IDG Capital Partners. The company also announced new dollar features would be rolling out to allow customers to hold, send and receive dollars.

Boring Bitcoin Calendar

Card Not Present Expo

May 18-21, 2015, Orlando, FL

The CNP Expo will be held in May in Orlando, and was created to address the issues surrounding mobile payments. Keynote speakers include Instacart Executive Nilam Ganenthiran, Rent the Runway’s Jennifer Fleiss and BlueSnap CEO Ralph Dangelmaier. Agenda includes bootcamps, workshops and more. Register here.

Blockchain Summit

May 25-28, 2015, Necker Island

Virgin Group founder and investor, Richard Branson and executives from Bitfury and Mai Tai Global will host a Blockchain Summit to discuss the future of bitcoin and digital currencies. The summit will be held on Branson’s private island in the Caribbean. James Newsome, former Chairman of the CFTC and current Chamber of Digital Commerce Advisory Board Member, and Google Maps inventor Lars Rasmussen are just a few of the scheduled participants.

Bitcoin and other Digital Currencies: Emerging Issues in Regulation and Enforcement

June 26, 2015, Washington, DC

The American Bar Association, an organization comprised mostly of lawyers and some law students, will hold an event focused on bitcoin and digital currencies, with an emphasis on regulatory compliance and law enforcement efforts. The event plans to highlight state and federal enforcement mechanisms. Representatives from government agencies are expected.

Tweet of the Week

Some of the @CaseWallet team at #TCDisrupt @TechCrunch #bitcoin pic.twitter.com/kovlgEzkH4

— Melanie Shapiro (@melshapiro) May 7, 2015

 

Pic of the Week

itBit demos their platform at #Finovate in San Jose, California. Image Credit: @robertjcho.

 Quote of the Week

Coinbase CEO Brian Armstrong, in an interview with Tech Crunch: “I’d definitely say that regulation is more favorable in the UK right now. I have to give a lot of credit to UK regulators. They’ve actually been very forward thinking about bitcoin.”

The Red Cross Is Taking Bitcoin Donations To Help Nepal

The death toll in Nepal as of Sunday evening is at 2789 from the 7.9M earthquake that hit the Kathmandu region over the weekend. The Red Cross is sending medical and other essential supplies to those in need. Thanks to ChangeTip, the Red Cross is accepting bitcoin donations via Twitter.

ChangeTip is encouraging the community to make contributions (large or small) to help further build out the micropayments and charitable giving use case for bitcoin. Click here to donate over Twitter now.

For daily updates and breaking news, follow us on Twitter @BoringBitcoin, and Facebook: Boring Bitcoin Report.

Click on the headlines below for links to the full story.

 Government Scoop

US Government Subpoenas Private Messages from Bitcointalk

Bitcointalk.org, considered one of the most popular Bitcoin community forums, turned over confidential information to the US government. Michael Marquadt, the forum’s administrator, also known as “theymos,” said a subpoena forced him to release the private messages of 600 people who interacted with the accounts of Butterfly Labs staff on the forum. Butterfly Labs was shut down by the Federal Trade Commission in September 2014, but was allowed to re-open in January to issue customer refunds and ship hardware orders.

Former Treasury Official: Government Could Play a Role in Currency Regulation

A former senior economist at U.S. Treasury says a conversation about bitcoin and virtual currencies could be worth having.  Ike Brannon expressed his opinions in a column “Can there be a role for the government in the advent of crypto-currencies?” written in the Hill last week. Brannon said that if digital currencies are ever to gain enough popularity “by anyone other than the libertarians and anarcho-capitalists,” regulation will become a necessity.

Former White House Advisor Joins MIT’s Digital Currency Initiative 

The MIT Media Lab recently named Brian Forde as the director of their digital currency initiative. Forde is a former White House advisor on mobile and data innovation. The MIT digital currency initiative’s goal is to conduct and “provide evidence-based research to support existing and future policy and standards.”

itBit Seeks Banking License In New York

Itbit, a bitcoin exchange with operations in the U.S. and Singapore is seeking a banking license in New York. The move would make itBit the first bitcoin company to be licensed as a bank in the United States. Former FDIC head Sheila Bair and former New Jersey Senator Bill Bradley are listed as “organizers” on itBit’s application.

Rand Paul Compares Bitcoin Regulation to Early Internet

GOP Presidential hopeful Rand Paul told a room full of supporters in New York that he is “open to new technology,” despite not being an expert on Bitcoin. Paul, who spoke at the Union League Club last week, said he became interested in the technology after reading venture capitalist Marc Andreesen’s take on the potential to eliminate transactions costs through the blockchain. He also said if the internet was heavily regulated at its onset “we’d have never gotten to where we are now.”

Tennessee Could Soon Allow Bitcoin Campaign Donations

On April 20, 2015, Tennessee House Bill 701 passed 61 to 28. The bill allows political candidates in Tennessee to accept digital currencies for campaign contributions. However, digital currency donations would have to be sold for U.S. Dollars before spending the funds, so digital currencies would not be allowed for expenditures. The comparable Senate Bill 674 already passed in March. The legislation is now on its way to Governor Bill Haslam for final adoption.

North Carolina Introduces Digital Currency Legislative Proposal

Representative Stephen Ross of North Carolina’s General Assembly, along with state Senator Rick Gunn introduced HB 289 on March 19, 2015. HB 289 offers a series of amendments to the state’s existing “Money Transmitters Act” to incorporate digital currencies.  Coinbase called the legislation “sensible” because it does not “duplicate regulatory regimes” compared to New York’s “BitLicense” regulatory proposal. The bill has been referred to the committee on Finance.

‘Bitcoin Baron’ Hacker Arrested in Arizona

Randall Tucker, a hacker going by the name Bitcoin Baron, has been arrested in Arizona for his part in an online attack. Tucker, who claimed to be part of the group Anonymous, was arrested after an investigation into a DDOS attack. He recently gave an interview to the New York Observer detailing his motivations.

Bitcoin Community Celebrates VAT Tax Exemption in Spain

The bitcoin community in Spain is celebrating a recent statement from the government on the tax-exempt status of virtual currencies. The Ministerio de Hacienda, Spain’s official tax office, recently clarified that bitcoin is exempt from value added tax based on their interpretation of a European Union VAT Directive, which classifies bitcoin as a financial service.

Chilean Bitcoin Exchange Receives Government Funding

Chilean startup SurBTC has secured $40,000 in equity free funding from the government for its operations. The funding was part of an initiative to fund startups by the government in Chile. Six different banks rejected SurBTC before the exchange found a financial institution to partner with.

Industry Scoop

 London Poised To Become Hub For Digital Currencies

Recent news that Swiss banking Giant UBS is planning to open a bitcoin-focused tech lab in London, could be responsible for the the world’s traditional financial capital’s change in attitude towards digital currencies. UK Finance Minister George Osborne recently commented that the country would lead the world in FinTech, including digital currencies.

 Spanish University To Offer Bitcoin Course

The University of Alicante, located in San Vicente del Raspeig, will be the first university in Spain to offer a course on Bitcoin. The course, ‘Bitcoin, la moneda virtual,’ which translates as ‘Bitcoin, Virtual Currency’ is being developed with Coinzone, a European Bitcoin company.

Philippine-based Fintech Startup Acquires Bitcoin Exchange

Philippine-based bitcoin startup Satoshi Citadel Industries (SCI) has acquired the country’s only bitcoin exchange, BuyBitcoin.ph. BuyBitcoin.ph operates as an “over-the-counter” exchange which gives Filipinos “direct access” to buying and selling the virtual currency. The Philippines is considered the third largest remittance market in the world.

Interim Survey Results Released on Bitcoin Use Worldwide

Ireland-base communications firm, Bitcoin Marketing Team, released the interim results of a survey conducted on bitcoin use worldwide. The questionnaire surveyed 150 people in 51 countries, 89% of respondents being male. 51% of respondents have used bitcoin for online gambling and 31% mine digital currencies. The full results will be released in June.

OKCoin Launches Superwallet

China’s largest exchange for trading virtual currencies OKCoin has launched OKLink, a desktop “Superwallet.” The company calls it a “payment, settlement and clearing system established using Bitcoin protocol” which uses back-end technology to facilitate each transaction.

Mt. Gox Customers Can File Claims to Retrieve Lost Bitcoin

Customers who lost bitcoin through the defunct Mt. Gox exchange can now retrieve lost funds. A trustee of Mt. Gox has opened a two-way process for the claims. The exchange shuttered in Feb. 2014 with $63.6 million in debt and roughly 850,000 in lost bitcoins, with many customers losing their investments.

Nonprofits Accepting Bitcoin Are Seeing Spikes In Donations

Several major nonprofits in the US, including the American Red Cross, Greenpeace and Save the Children already accept Bitcoin donations and are seeing positive results. Save the Children has raised $10,000 worth of donations in bitcoin since fall 2013. Some bitcoin payment processors process bitcoin donations for non-profits for free.

Reddit Page Created for Bitcoin Microloans

A new sub-thread page on Reddit is aiming to take the middleman out of microloans. Within the first few days of its creation, FairShareLoans has had about 100 requests for peer-to-peer (P2P) loans. The loans range from 20 bits to 900,000 bits and the borrower’s credit score is determined by their Reddit karma and account history.

Boring Bitcoin Calendar

Inside Bitcoins – New York

April 27-29, 2015, New York, NY

Inside Bitcoins will be returning to New York on April 27-29 at the Javits Convention Center. The program will cover topics including bitcoin 2.0, blockchain-based startups, institutional investing, multi-sig wallets, risk mitigation, compliance, banking and fundraising, and more. Keynotes have been confirmed from Dan Morehead, CEO, Pantera Capital and Chairman, Bitstamp; Brian Kelly, Contributor, CNBC’s Fast Money and Founder & Managing Member of Brian Kelly Capital LLC; and Perianne Boring, Founder and President, Chamber of Digital Commerce. Get 10% OFF with the discount code CHAMBER. Register at insidebitcoins.com/new-york.

Virtual Currency Today Summit

April 29, 2015, Boston, MA

“Bitcoin and Beyond: The Next Disruptor in Payments.” The Virtual Currency Today Summit will be held at the Hilton Boston Back Bay and will look at the many factors that will shape the adoption and growth of Bitcoin and other similar currencies. Expert panelists will offer insights on how market stakeholders can push through barriers to embrace digital currency as the next generation of payments and transaction solutions, which will ultimately change the end-user customer experience.

Card Not Present Expo

May 18-21, 2015, Orlando, FL

The CNP Expo will be held in May in Orlando, and was created to address the issues surrounding mobile payments. Keynote speakers include Instacart Executive Nilam Ganenthiran, Rent the Runway’s Jennifer Fleiss and BlueSnap CEO Ralph Dangelmaier. Agenda includes bootcamps, workshops and more. Register here.

Bitcoin and other Digital Currencies: Emerging Issues in Regulation and Enforcement

June 26, 2015, Washington, DC

The American Bar Association, an organization comprised mostly of lawyers and some law students, will hold an event focused on bitcoin and digital currencies, with an emphasis on regulatory compliance and law enforcement efforts. The event plans to highlight state and federal enforcement mechanisms. Representatives from government agencies are expected.

Tweet of the Week

BitBeat: Latin America Facebook Rival Taringa! to Use Bitcoin to Pay for Content… Mass adoption motivator? http://t.co/MmmNR1bCT9

— Michael Casey (@mikejcasey) April 21, 2015

Pic of the Week

Quote of the Week

Ettore Rossetti, Director, social media and digital marketing at Save the Children, to the Wall Street Journal:

“We want to remain contemporary and relevant to current and future generations. We don’t only want to be your grandmother’s charity; we want to be your grandchild’s charity. One way to do that is to accept bitcoin.”

How to Keep NY’s BitLicense from Squelching Innovation

Many in the bitcoin industry have expressed a strong preference for a safe harbor provision in the New York Department of Financial Services proposed “BitLicense” regulations. However, Superintendent Ben Lawsky has hinted that an outright safe harbor or exemption is unlikely. As an alternative, the Chamber of Digital Commerce proposed an option that DFS quite likely could accept – a self-regulatory incubator.

Founder and President of the Chamber of Digital Commerce and CEO of the Boring Bitcoin Report, Perianne Boring, @PerianneDC, has published an op-ed on the subject in American Banker.

For daily updates and breaking news, follow us on Twitter @BoringBitcoin, and Facebook: Boring Bitcoin Report.

Click on the headlines below for links to the full story.

Government Scoop

Bipartisan Payments Caucus Announced in Senate

Several senators have announced the formation of a bipartisan electronic payments caucus to educate their staff and other senators on data security and trends in the industry. The Senate Payments Innovation Caucus will consist of Senators Mike Rounds (R-SD), Gary Peters (D-Mich), Johnny Isakson (R-Ga) and Tom Carper (D-Del). The announcement comes after several members of the House formed a bipartisan Congressional Payments Technology Caucus last month.

NJ Says Virtual Currency Transactions Subject To Sales Tax

The New Jersey Division of Taxation has issued guidelines that says all transactions in the state involving virtual currencies, including bitcoin, are subject to sales tax. The reason given by the department is that an exchange of any currency for goods or services is treated as a “barter transaction” based on the value of what was exchanged.

Australian Central Bank Does Not View Bitcoin as Threat

While the Australian Treasury Office might see Bitcoin as a potential threat, the Reserve Bank of Australia does not, standing neutral on the topic. RBA’s head of monetary policy Dr. Anthony Richards, said “Digital currencies do not currently raise any issues for the bank in terms of the bank’s monetary policy and financial stability mandates.”

Industry Scoop

Former Nike CIO Joins Bitreserve As COO

Nike’s former chief information officer Anthony Watson has joined Bitreserve, a cloud-based financial services platform, as the chief operating officer. Bitreserve is unique because it lets users hold bitcoin denominated in fiat currencies and precious metals, whichever they think is most stable, and convert it to bitcoin to make a transaction, bypassing the volatility that can come with bitcoin. Watson was named one of Fortune’s ’40 under 40.’

Bitcoin technology startup hires Morgan Stanley manager

Former Morgan Stanley investment manager Jacob Dienelt has joined blockchain technology company Factom as its treasurer. Dienelt is not new to bitcoin; during his tenure at Morgan Stanley he co-founded the bitcoin paper wallet company Lazzerbee. Dienelt is one of several Wall Street bankers to be poached by Bitcoin startups this year.

igot Launches Bitcoin Payment Processing In Addition To Their Buying Service

Australia-based bitcoin exchange, igot, is launching a payment solutions platform for merchants to accept bitcoin in almost 40 countries. The company charges a flat 0.5% transaction fee and is squaring off against the big three bitcoin payment processors, Bitpay, Coinbase and GoCoin.

Bitcoin exchange Coinsetter acquires Canadian platform

New York-based bitcoin exchange Coinsetter has acquired Canadian Virtual Exchange, also known as Cavirtex, in a stock deal valued at approximately $2 million. Cavirtex recently closed its doors due to a breach in security. With the acquisition, Jaron Lukasiewicz, CEO of Coinsetter, said “the most important asset was the exchange’s compliance-approved domestic bank account in Canada.”

Bitcoin Firm Coinapult Restores Services Following Hack

Storage provider and payment processor Coinapult has reopened after a hacker stole 150 BTC, or roughly $42,900. The company said multi-signature technology was implemented and that they are working hard to restore instant withdrawals. Coinapult is also using Cloudflare to protect against Distributed Denial of Service (DDoS) attacks.

New Board Member Calls Bitcoin Foundation “Effectively Bankrupt”

The Bitcoin Foundation has seen a tumultuous week as a new board member posted to Reddit decrying the foundation as “effectively bankrupt.” The Foundation has since explained its position, admitting that it has suffered a drop in the price of Bitcoin. Olivier Janssens, who was recently elected, also accused the board of “acting in secrecy.”

Boring Bitcoin Calendar

The State of Digital Money

April 18, 2015, Los Angeles, CA

Join in the conversation on virtual currency with “The State of Digital Money” in Los Angeles. The event will host conversations on the future of bitcoin and cryptocurrency with interactive workshops, networking, and panel discussions of regulation, security and law, blockchain technology and more. Key speakers include Jeff Garzik of Bitpay, Brock Pierce of Crypto Currency Partners, Steve Beauregard of GoCoin and Connie Gallippi of Bitgive. Register here.

Inside Bitcoins – New York

April 27-29, 2015, New York, NY

Inside Bitcoins will be returning to New York on April 27-29 at the Javits Convention Center. The program will cover topics including bitcoin 2.0, blockchain-based startups, institutional investing, multi-sig wallets, risk mitigation, compliance, banking and fundraising, and more. Keynotes have been confirmed from Dan Morehead, CEO, Pantera Capital and Chairman, Bitstamp; Brian Kelly, Contributor, CNBC’s Fast Money and Founder and Managing Member of Brian Kelly Capital LLC; and Perianne Boring, Founder and President, Chamber of Digital Commerce. Get 10% OFF with the discount code CHAMBER. Register at insidebitcoins.com/new-york.

Virtual Currency Today Summit

April 29, 2015, Boston, MA

“Bitcoin and Beyond: The Next Disruptor in Payments.” The Virtual Currency Today Summit will be held at the Hilton Boston Back Bay and will look at the many factors that will shape the adoption and growth of Bitcoin and other similar currencies. Expert panelists will offer insights on how market stakeholders can push through barriers to embrace digital currency as the next generation of payments and transaction solutions, which will ultimately change the end-user customer experience.

Card Not Present Expo

May 18-21, 2015, Orlando, FL

The CNP Expo will be held in May in Orlando, and was created to address the issues surrounding mobile payments. Keynote speakers include Instacart Executive Nilam Ganenthiran, Rent the Runway’s Jennifer Fleiss and BlueSnap CEO Ralph Dangelmaier. Agenda includes bootcamps, workshops and more. Register here.

Cryptolina Bitcoin Expo

August 14-15, 2015, Charlotte, NC

The two-day second annual Cryptolina Bitcoin Expo will be held this summer in Charlotte. Last year’s expo attracted digital currency developers, investors and technologists from across the country and around the world. Registration is now open and the venue will be announced in a few weeks.

Tweet of the Week

Obama Executive Order prompts surge in #bitcoin donations to the #Snowden defence fund https://t.co/CZHNKBbsdG #NSA @couragefound #BTCC

— WikiLeaks (@wikileaks) April 6, 2015

Pic of the Week

For daily updates and breaking news, follow us on Twitter @BoringBitcoin, and Facebook: Boring Bitcoin Report.

Click on the headlines below for links to the full story.

Government Scoop

Rand Paul Announces Presidential Run And Is Accepting Bitcoin
Today Senator Rand Paul (R-KY) announced “I am running for president” in 2016 and is now accepting bitcoin contributions on his website. His presidential run will be focused on raising money from Silicon Valley libertarians.  PayPal co-founder Peter Thiel contributed to $2.6 million to Rand Paul’s father Ron Paul’s 2012 presidential campaign.

Karpeles Leaks Emails From Fed. Agent Accused of Bitcoin Theft

Last week’s front page news featured a story of two rogue federal agents from the investigation into the online drug bazaar, Silk Road. The agents have been charged with stealing hundreds of thousands of bitcoins for their personal gain. A few days ago Mark Karpeles, CEO of bankrupt bitcoin exchange Mt. Gox, leaked several emails between himself and one of the federal agents. In the leaked emails, agent Carl Force asked Karpeles to back him in a deal for 250 bitcoins. Shortly after Karpeles declined the request, a lawsuit was filed against Mt. Gox. Force followed up with an email to Karpeles saying “told you should have partnered with me”.

Industry Scoop

Public trading could begin next week for bitcoin fund GBTC

The Bitcoin Investment Trust’s Bitcoin exchange, the first “publicly traded bitcoin investment fund” could soon begin trading with the ticker symbol GBTC. The fund, started by Barry Silbert, founder and CEO of SecondMarket, passed all “regulatory hurdles,” and received FINRA approval in March.

Chamber of Digital Commerce to Offer Grants for Bankers to Learn About Digital Currency
The Chamber of Digital Commerce is now accepting applications from bankers who would like to attend the Anti-Money Laundering Compliance Bootcamp for Digital Currencies in New York City on April 30 to May 2, 2015. “The chamber believes banks will be more willing to provide digital currency companies with banking services if they better understand their AML compliance efforts, the steps that can and are being taken to reduce risks, the issues digital currency companies face, and how similar these issues are to those facing banks.” The deadline to apply is April 22, 2015, 5 PM/PT. Application can be found here.

Google Venture and Reddit Founder Backed Exchange, Buttercoin Closes Doors

Bitcoin exchange, Buttercoin, backed by Google Ventures, Alexis Ohanian the Founder of reddit, and Y Combinator announced they are closing their doors on April 10^th. The company raised over $1.3 million four months ago, however, according to Buttercoin, “we weren’t able to generate enough venture capital interest to continue funding Buttercoin.” Comparatively, Coinbase, a universal bitcoin financial services company, announced a $75 million raise earlier this year.

Bitstamp Initiates Lawsuit Between Ripple And Stellar

Bitcoin exchange Bitstamp filed a complaint for interpleader against Ripple Labs, Jed McCaleb and two of his family members. An interpleader is a civil procedure that allows the plaintiff (Bitstamp) to initiate a lawsuit to compel the defendants (Ripple Labs, Jed McCaleb and two of his family members) to litigate a dispute. The dispute is ultimately between Ripple Labs and Jed McCaleb. McCaleb is a co-founder of Ripple Labs, but left the company and founded competitor Stellar. McCaleb attempted to sell a large amount of his Ripple (XRP) currency on the Bitstamp exchange, Ripple claims the large sale is a breach of contract, leaving Bitstamp in the middle. The New York Observer has called the tiff “bad blood” against Ripple Labs and Stellar.

Mining Companies Claim Coinbase Wants “Completely Private Information”

Bitmain and MegaBigPower have claimed that Coinbase requested information about their mining operations that potentially infringe on their trade secrets. In an email to MegaBigPower, Coinbase asked for “verifiable time-stamped images of your mining equipment and key infrastructure elements at your facility.” MBG believes “Coinbase was facing pressure from regulators to gather such information, or that it was seeking details about bitcoin mining for business purposes.” Coinbase said, “The reason we ask for this information is for consumer protection.”

Ledger Integrating Open Source Security

French-based Bitcoin hardware wallet company, Ledger Wallet is in the process of integrating a new open-source security system for its Nano wallet. The system, BitID, uses “cryptographic challenges based on the ownership of a particular bitcoin address” instead of usernames and passwords for enhanced security.

Boring Bitcoin Calendar

Mind the Gap Expo

April 10, 2015, Virtual Conference

Connect online with the Mind the Gap Expo, a virtual conference aiming to build the bridge between the crypto world and the financial world. Four different sectors will be covered including gambling, payment processing banking, crypto currency and mobile money & remittance. Speakers include Aaron L. Kaplan, Associate at Gusrae Kaplan Nusbaum PLLC, Peter Kirby, President of Factom and more. Register here.

The State of Digital Money

April 18, 2015, Los Angeles, CA

Join in the conversation on virtual currency with “The State of Digital Money” in Los Angeles. The event will host conversations on the future of bitcoin and cryptocurrency, with interactive workshops, networking and panel discussions of regulation, security and law, blockchain technology and more. Key speakers include Jeff Garzik of Bitpay, Brock Pierce of Crypto Currency Partners, Steve Beauregard of GoCoin and Connie Gallippi of Bitgive. Register here.

Inside Bitcoins – New York

April 27-29, 2015, New York, NY

Inside Bitcoins will be returning to New York on April 27-29 at the Javits Convention Center. The program will cover topics including bitcoin 2.0, blockchain-based startups, institutional investing, multi-sig wallets, risk mitigation, compliance, banking and fundraising, and more. Keynotes have been confirmed from Dan Morehead, CEO, Pantera Capital and Chairman, Bitstamp; Brian Kelly, Contributor, CNBC’s Fast Money and Founder & Managing Member of Brian Kelly Capital LLC; and Perianne Boring, Founder and President, Chamber of Digital Commerce. Get 10% OFF with the discount code CHAMBER. Register at insidebitcoins.com/new-york.

Virtual Currency Today Summit

April 29, 2015, Boston, MA

“Bitcoin and Beyond: The Next Disruptor in Payments.” The Virtual Currency Today Summit will be held at the Hilton Boston Back Bay and will look at the many factors that will shape the adoption and growth of Bitcoin and other similar currencies. Expert panelists will offer insights on how market stakeholders can push through barriers to embrace digital currency as the next generation of payments and transaction solutions, which will ultimately change the end-user customer experience.

Card Not Present Expo

May 18-21, 2015, Orlando, FL

The CNP Expo will be held in May in Orlando, and was created to address the issues surrounding mobile payments. Keynote speakers include Instacart Executive Nilam Ganenthiran, Rent the Runway’s Jennifer Fleiss and BlueSnap CEO Ralph Dangelmaier. Agenda includes bootcamps, workshops and more. Register here.

Tweet of the Week

Paid for a taxi with bitcoin, now paying for dinner with it, too, with the @BitPagos team and @arielaguilar #bitcoin pic.twitter.com/Xrpl3GdnBX

— Victoria van Eyk (@victoriavaneyk) April 6, 2015

Video of the Week

On April 1, 2015 ChangeTip announced secret product, SCAN, a hardware/software exchange solution for digital currency. Check it out here: https://www.youtube.com/watch?v=pCbBMAeX0ok

Pic of the Week

Happy Two-Thirds Day!

Today the Bitcoin protocol issued its 14 millionth bitcoin – 7 million more to go!

For daily updates and breaking news, follow us on Twitter @BoringBitcoin, and Facebook: Boring Bitcoin Report.

Click on the headlines below for links to the full story.

 Government Scoop

The Economist: Benjamin Lawsky “Shock Therapy” A State Regulatory Generates Controversy

Last week The Economist published a feature article on New York Department of Financial Services Superintendent Ben Lawsky, calling him a “controversial figure.”  While the Bitcoin community knows Lawsky as the first state regulator to publish a comprehensive proposal to regulate virtual currencies, the traditional foreign financial services firms “are looking for ways to minimize their business in New York” because “they have been hit particularly hard because they lack domestic political advocates.” In the past 3.5 years, DFS has levied over $5.3 billion in fines from financial institutions.

Trendon Shavers Pleads Not Guilty To NY Fraud Charges

The operator of virtual hedge fund Bitcoin Savings and Trust, Trendon Shavers, has pled not guilty to charges of securities and wire fraud. Shavers was arrested in November and accused of running a bitcoin ponzi scheme promising outrageous returns on investments and stealing an estimated 764,000 BTC from investors.  Shavers was already fined $40.7 million in 2014 from a US District Court in Texas in another case brought forward by the SEC.

Industry Scoop

Factom Software Sale Launches Today  

Factom is a blockchain infrastructure software play that is looking to change the way businesses and governments manage their data and keep records. Factom was founded by David Johnston, Paul Snow and Peter Kirby and backed by investors including DApps Fund and Tally Capital.

Estonian LHV Bank Partners With Bitcoin Exchange CoinFloor

Estonia-based LHV Bank “the most pro-Bitcoin bank in Europe” has partnered with UK-based Bitcoin exchange CoinFloor to handle user deposits. LHV is also the bank behind Coinbase’s Europe expansion into 13 new countries. The UK has been working to draw digital currency business into their jurisdiction.  Given the financial access challenges bitcoin business face in the US, this will likely be a draw for start-ups to establish operations in the UK.

Credit Suisse Publishes Paper on Bitcoin

Credit Suisse has joined the Bank of England and Goldman Sachs by releasing a positive paper on bitcoin’s impact on the financial industry. In the report, Credit Suisse analyst Jonathan Horlacher states bitcoin’s low transaction rates and easy remittance method make it a legitimate currency but also argues that bitcoin’s greatest strength and weakness is its decentralization.

Coinigy Raises $100K in Seed Funding

Milwaukee-based trading platform Coinigy has raised $100,000 in seed funding. The funds will be used to improve its existing trading platform as well as to develop a new universal API that will allow users to access data from 24 different bitcoin exchanges to give users an integral insight into digital currency markets.

Bitcoin Exchange Bitt to Bring Digital Currencies to the Caribbean

Bitt is set to become the Caribbean’s first bitcoin exchange on its opening day, March 30. It is poised to serve the 60% of Caribbeans who are unbanked or under-banked. Bitt will also offer “core services” such as digital wallets, remittance services and an e-commerce merchant payment system.

Bitpay Partners with NETELLER to Expand Global Transactions

Bitcoin payment processor Bitpay has partnered with NETELLER, owned Optimal Payments, by enabling their global network to accept bitcoin. The partnership will allow the prepaid cards to be loaded with bitcoin, saving the user up to 5%.

Forbes Author: Regulation on the Way for Bitcoin Industry

Bitcoin regulation has long been a topic of discussion as more bitcoin exchanges have opened such as Coinbase, Bitstamp, Bitfinex and BTCChina, with different levels of regulation. Tyler Winklevoss told Fortune that 2015 will be “the infrastructure year” for bitcoin in America and “establishing regulated exchanges is crucial to that infrastructure.”

Rivetz and Factom Add Device-Level Security to Blockchain Ecosystem

Technology security firm Rivetz and blockchain technology company Factom are partnering to take security and privacy to “new levels” for their respective applications. The collaboration will use “Rivetz’s Trusted Execution model for the secure protection and processing of data and collection of user intent with Factom’s data layer on the blockchain to provide organizations in the financial, manufacturing, distribution and wholesale industries with the efficient means of verifying processes and registering data.”

 Boring Bitcoin Calendar

Inside Bitcoins – New York

April 27-29, 2015, New York, NY

Inside Bitcoins will be returning to New York on April 27-29 at the Javits Convention Center. The program will cover topics including bitcoin 2.0, blockchain-based startups, institutional investing, multi-sig wallets, risk mitigation, compliance, banking and fundraising, and more. Keynotes have been confirmed from Dan Morehead, CEO, Pantera Capital and Chairman, Bitstamp; Brian Kelly, Contributor, CNBC’s Fast Money and Founder & Managing Member of Brian Kelly Capital LLC; and Perianne Boring, Founder and President, Chamber of Digital Commerce. Get 10% OFF with the discount code CHAMBER. Register at insidebitcoins.com/new-york.

Virtual Currency Today Summit

April 29, 2015, Boston, MA

“Bitcoin and Beyond: The Next Disruptor in Payments.” The Virtual Currency Today Summit will be held at the Hilton Boston Back Bay and will look at the many factors that will shape the adoption and growth of Bitcoin and other similar currencies. Expert panelists will offer insights on how market stakeholders can push through barriers to embrace digital currency as the next generation of payments and transaction solutions, which will ultimately change the end-user customer experience.

Tweet of the Week

Ex-federal agents accused of stealing Bitcoin during Silk Road probe. http://t.co/qGi2cvGRXw.

— CNN Breaking News (@cnnbrk) March 30, 2015

Pic of the Week

 Quote of the Week

Bitt co-founder Gabriel Abed, to Caribbean news outlet Guardian:

 “We are riding a technology wave with finance that is cutting costs, making it faster, making it cheaper, making it possible for people outside of the banking systems to control their money using their mobile phones.”

For daily updates and breaking news, follow us on Twitter @BoringBitcoin, and Facebook: Boring Bitcoin Report.

Click on the headlines below for links to the full story.

Government Scoop

HM Treasury Reveals Bitcoin Regulation Plans

Her Majesty’s Treasury (HM Treasury) has issued a report on digital currency in conjunction with its annual budget speech. The report is largely positive towards digital currencies and outlines the government’s plans for regulation. The UK government plans to create a transparent regulatory framework with insight from the public. The report stated: “The government considers that digital currencies represent an interesting development in payments technology … the potential advantages are clearest for purposes such as micro-payments and cross-border transactions.” 10 million pounds is also reportedly slated for digital currency technology research.

Senate Committee Passes Amendment to End Operation Choke Point

An amendment to end Operation Chokepoint, a controversial Department of Justice program, passed the Senate Budget Committee on Thursday by a 13-9 vote. Under Operation Chokepoint, the DOJ has been investigating US banks and their relationships with money transmitters and others that have deemed as “high risk” for money laundering or fraud. It is widely known that Bitcoin companies are having a difficult time establishing and maintain banking relationships and having a bank account is considered a competitive advantage. Some believe Bitcoin’s banking woes can at least partially be attributed to Operation Chokepoint.

US House Members Form Payments Congressional Technology Caucus

Several members of the US House Financial Services Committee have formed a bipartisan Congressional Payments Technology Caucus to educate the public on electronic payments. The CPTC will also “explore the new and innovative technologies in the payments industry, as well as answer questions about data security, unbanked users’ access to electronic payments.” Members include Representatives Lynn Westmoreland (R-GA), Randy Neugebauer (R-TX), David Scott (D-GA) and Kyrsten Sinema (D-AZ).

Industry Scoop

NASDAQ To Power Nobel’s Bitcoin Marketplace

The NASDAQ OMX Group announced a partnership with Nobel Markets to provide its X-stream Trading technology to power the startup’s digital currency marketplace.  This is the first Bitcoin company to announce a partnership with NASDAQ, which is one of the largest stock exchanges in the world powering over 70 marketplaces. John Betts, Noble Markets Founder & CEO said, “Noble was founded on the principal of bringing credible market structure and institutional trading expertise to the cryptocurrency marketplace.” This announcement is essentially Nobel Market’s coming out party, as this is the first public announcement from the company.

Rakuten To Accept Bitcoin Via Bitnet

Japan’s largest online retail firm, Rakuten, recently announced they will begin accepting bitcoin for payment from US customers using the bitcoin payment processor, Bitnet. Rakuten plans to expand to Germany and Austria next. This will make Rakuten one of the largest e-commerce companies in the world to accept digital currencies, next to Dell, Overstock and Microsoft.

Ex-DOJ Chief to Advise BitFury on Security

A former chief from the Department of Justice’s Criminal Division is joining BitFury. Jason M. Weinstein resigned from the DOJ in 2012 amid a controversial congressional investigation into the “Fast and the Furious” weapons trafficking sting. Weinstein will engage in private consulting with BitFury on security matters and will maintain his day job at DC law firm Steptoe & Johnson LLP. Weinstein told the Wall Street Journal: “I think [BitFury’s managers] understand from the point of view of law enforcement that you want to have the companies that secure the blockchain in places where there is transparency.”

Deep-web Bitcoin Market Admins Disappear With $12m in Bitcoin

A little over a year after it “surfaced,” the second largest online illegal marketplace, Evolution, has disappeared overnight. The operators of the marketplace are suspected of running off with over $12 million in bitcoin. The underground marketplace did offer multi-signature services for security-minded users, but few took advantage of the feature because it was inconvenient for trading. Evolution rose to prominence after the arrest of Ross Ulbricht in connection with the infamous Silk Road. Users of the site have started funding bounties for information relating to the crime.

Ripple Labs Adds Former State Department Official To Their Advisory Board

Former US State Department official Anja Manuel has joined the advisory board at payment network Ripple Labs. Manuel will reportedly play a key role in the company’s international expansion. Ripple announced in January that former White House Advisor, Gene Sperling would join its Board of Directors. Manuel said, “[Ripple] has the potential to expand the global economy through increased trade, and enables better, more transparent regulatory oversight of payments. I am excited to help build on Ripple’s impressive momentum and help it to gain traction internationally.”

New Report: Nearly 5 million Will Use Bitcoin by 2019

Active bitcoin users will grow from 1.3 million users to 5 million by 2019 according to a report recently released by Juniper Research. Although several high-profile retailers have recently accepted bitcoin, activity levels are still low online and in person and the majority of the growth in daily transaction volume comes from established users, as opposed to consumers new to the digital currency. The report also found that criminals using digital currencies for deep web purchases, money laundering and high profile hacking of bitcoin exchanges are keeping new users at a minimum. Despite this, Juniper concludes that consumer adoption will grow through bitcoin exchanges, rather than retailers.

Coinbase Chief Compliance Officer Resigns, Company Under Scrutiny

Chief compliance officer for Coinbase, Martine Niejadlik, has resigned “to spend more time with her family.” However, Coinbase has recently been scrutinized in the media for multiple compliance related issues. The most shocking regarded an investment pitchdeck that touted Bitcoin’s ability to thwart international sanctions. Niejadlik has had a long career in regulatory compliance, winning praise for her work at companies like PayPal, Ebay and Amazon.

Bitreserve Adds New Billionaire Investor

Bitreserve, a bitcoin payment system started by CNET founder Halsey Minor has a new investor. Mexican billionaire Ricardo Salinas-Pliego will partner with the company to help set up a remittance service at the retail outlets he owns, which number more than 2000. Bitreserve also announced the launch of a new cloud money system, Changemoney.org and the acceptance of the Indian Rupee and the Mexican Peso. Since its launch, the company has accumulated $10 million worth of transactions and holds over $1 million in deposits.

Private Messaging App Banned in China for Adding Bitcoin Support

Popular chat application Wiper was removed from Apple’s iOS store in China for its new link to bitcoin. The app, which allows encrypted chats and phone calls, was banned after enabling a new feature that allows users to send the digital currency to each other while using the app. The company said it has added eight million new users in the last three months and the addition of the bitcoin payment option was met with “overwhelming support,” especially among its Asian users.

Boring Bitcoin Calendar

Loyola Consumer Law Review

March 27, 2015, Chicago, IL

This symposium will examine emerging payment systems that are innovating on traditional payment rails, such as mobile payments and prepaid products, in addition to blockchain technology, the payment rail behind Bitcoin and other cryptocurrencies. Industry professionals will navigate the current landscape of emerging payments by analyzing the technology and business models responsible for the market shift, and the legal, regulatory, and compliance hurdles encountered by businesses and financial institutions.

Texas Bitcoin Conference

March 28-29, 2015, Austin, TX

The Texas Bitcoin Conference is a bitcoin technology summit with speakers, presentations and a hackathon. Key speakers include Steve Stockman, Congressional representative and bitcoin advocate, IBM Business Analytics and Strategy Architect Sumabala Nair and Founder and Partner of the Gilder Technology Fund, George Gilder.

Inside Bitcoins – New York

April 27-29, 2015, New York, NY

Inside Bitcoins will be returning to New York on April 27-29 at the Javits Convention Center. The program will cover topics including bitcoin 2.0, blockchain-based startups, institutional investing, multi-sig wallets, risk mitigation, compliance, banking and fundraising, and more. Keynotes have been confirmed from Dan Morehead, CEO, Pantera Capital and Chairman, Bitstamp; Brian Kelly, Contributor, CNBC’s Fast Money and Founder & Managing Member of Brian Kelly Capital LLC; and Perianne Boring, Founder and President, Chamber of Digital Commerce. Get 10% OFF with the discount code CHAMBER. Register at insidebitcoins.com/new-york.

Virtual Currency Today Summit

April 29, 2015, Boston, MA

“Bitcoin and Beyond: The Next Disruptor in Payments.” The Virtual Currency Today Summit will be held at the Hilton Boston Back Bay and will look at the many factors that will shape the adoption and growth of Bitcoin and other similar currencies. Expert panelists will offer insights on how market stakeholders can push through barriers to embrace digital currency as the next generation of payments and transaction solutions, which will ultimately change the end-user customer experience.

Tweet of the Week

Nasdaq to provide trading technology for startup Noble Markets’ new digital-currency marketplace http://t.co/syUZuRUoJB #bitcoin

— Michael Casey (@mikejcasey) March 23, 2015

Pic of the Week

Quote of the Week

Former DOJ head Jason M. Weinstein to the Wall Street Journal:

“The glass-half-empty view of the blockchain is that this is anonymous and we are never going to be able to track criminals, but the glass-half-full view is there is traceability and a real advantage in having every transaction in the history of the currency available.”

Chamber of Digital Commerce

Invites You To A Complimentary Webinar

March Regulatory Affairs Update

TOPICS DISCUSSED INCLUDE:

1. California Assembly’s AB-1326, requiring money transmission licenses for all persons/businesses engaging in virtual currency business activities
2. New York’s Department of Financial Services’ (DFS) updated BitLicense proposal
3. Consumer Financial Protection Bureau’s (CFPB) proposed rule on prepaid cards

For more information click here

Boring Bitcoin Report

For daily updates and breaking news, follow us on Twitter @BoringBitcoin, and Facebook: Boring Bitcoin Report.

Click on the headlines below for links to the full story.

Government Scoop

Isle of Man Still Wants to Become Bitcoin Haven

Located between Northern Ireland and the west coast of England, The Isle of Man, could become the first place in the world to pass a “regulatory framework” for digital currencies. The small, self-governing island, which operates with its own government, has proposed a legal framework to allow businesses using bitcoin and other cryptocurrencies to operate more safely and securely. The island is poised to benefit from FinTech companies that are looking for proximity to London, but with a better regulatory landscape.

UK Politician Exceeds Bitcoin Fundraising Goal by 50 Percent

A UK politician who has embraced digital currency donations has exceeded her target fundraising goal by 50%. Green Party candidate Gulnar Hasnain, running for the constituency of Vauxhall in London, has raised roughly $2200 through “cryptocurrency crowdfunding.” The money will be used to produce leaflets explaining the Green Party’s stance on housing, tax evasion, and the environment. Hasnain joins Texas governor Greg Abbott and Swedish Parliament’s Mathias Sundin, as candidates who have embraced digital currencies for donations.

Industry Scoop

IBM May be in Talks with Central Banks for Bitcoin Technology

IBM is reportedly developing a Bitcoin-like technology that would be controlled by central banks. In a Reuters exclusive, an anonymous source said the company held “informal” talks with several central banks, including the Federal Reserve to develop a bitcoin-tied cash system. IBM has experimented with blockchain technologies before. They recently introduced several services for a partnership with Samsung including ADEPT, which uses peer-to-peer file sharing system BitTorrent, ethereum, which deals with smart contracts and TeleHash, peer-to-peer messaging.

Chinese Yuan Commands Majority of Bitcoin Trades

A new Goldman Sachs report reveals that 80% of bitcoin volume is exchanged in and out of the Chinese yuan. According to the report, day traders and younger Chinese citizens see more of an opportunity to profit off of bitcoin, as opposed to investing in property or the stock market. Digital currency lawyer Rowland Sun stipulates loopholes that allow companies to circumvent China’s ban on bitcoin trade is another reason the digital currency continues to flourish there. In addition, China sees a substantial amount of bitcoin mining, which is said to also be a contributing factor.

‘Secretive’ Bitcoin Startup Raises Record 116 Million

Bitcoin startup 21 Inc. has raised $116 million, a record amount for a digital currency startup. The San Francisco-based company is not yet, however, “publicizing the precise nature of its operations.” Co-founder Matthew Pauker is expected to reveal the company’s software and hardware products in the coming months. 21 Inc. has garnered investments from venture capitalists and tech luminaries like PayPal co-founders Peter Thiel and Max Levchin, Dropbox CEO Drew Houston, Expedia CEO Dara Khosrowshahi and tech giant Qualcomm.

More African Migrants Opt to use Bitcoin for Remittance

More migrant workers in Africa are turning to bitcoin as an option for sending money home. BitPesa’s CEO Elizabeth Rossiello told the BBC that “a shortage of payment options” is driving the uptick, in addition to the lower cost per transaction. BitPesa’s 3 percent fee is significantly lower than the 12.3 percent on average charged by other remittance services. Rossiello added BitPesa’s business has been growing about 60 percent “month-on-month.” Over 30 million Africans send nearly $40 billion USD home each year.

Ex-JP Morgan Exec Joins Bitcoin Startup

One of the pioneers of the credit-default swap and former JPMorgan Chase Executive, Blythe Masters, is joining Chicago-based Digital Asset Holdings, a financial software company. Masters was head of JPMorgan’s commodity unit but left last April because it wasn’t performing up to expectations. Digital Asset plans to utilize blockchain technology to improve the financial transaction process by providing their customers with financial software. “We’re not seeking to disintermediate and destroy the current financial system… We’re seeking to make it stronger, better and safer,” said Masters.

Partnership Announced to Deploy ‘BitSats’

Dunvegan Space Systems has announced a partnership with Deep Space Industries Inc. to build 24 BitSats, satellites that will broadcast and keep record of bitcoin transactions. Bitcoin core developer Jeff Garzik who heads the company, first introduced the idea for the technology last year. The project was initially slated to be paid for through crowdfunding, but instead is seeking customers to to pay $1 million per satellite including launch, or $19 million for 24 satellites, including launches. Garzik told the Wall Street Journal,“Basically we look at [the BitSat] as a platform that can do on-demand data broadcasts to any location on earth, as well as store data for customers.”

BitGo Announces Upgrade to Multi-Sig Wallet and Free Services

Bitcoin security provider BitGo has introduced product and service updates, including upgrades to its multi-signature bitcoin wallet. BitGo will now be free of charge to individuals and free to try for businesses. The company has also improved the “ease of use” of their bitcoin software. BitGo CEO Will O’Brien said in a press release, “We are incredibly excited to now offer the security controls and capabilities of BitGo free to all individual holders of bitcoin.”

BitPay Signs Referral Agreement with Payment Processor

BitPay, a bitcoin payment processor, has reached a referral agreement with a traditional payment processor, Heartland Payment Systems. This is now the second referral agreement with a traditional payment processor that BitPay has publically announced. The first was with Global Payments, which was reported last August. Heartland is the fifth largest payment processor in the US and boasts over 300,000 businesses and educational locations in their network. As part of the program, Heartland will identify the businesses and organizations that would see the most benefit from accepting bitcoin and refer them first.

In other news…

Teen Convicted After Spending 30,000 Mistakenly Deposited Into Account

A teenager in Madison County, Georgia was convicted after spending $30,000 mistakenly deposited into his account by a bank teller. Steven Fields will serve 10 years’ probation and was ordered to pay the money back. The money was originally deposited by another Steven Fields, who is 70-years-old after he sold property. The teen reportedly spent most of the money on a BMW. He has since been arrested for possession of illegal drugs.

Boring Bitcoin Calendar

 Loyola Consumer Law Review

March 27, 2015, Chicago, IL

This symposium will examine emerging payment systems that are innovating on traditional payment rails, such as mobile payments and prepaid products, in addition to blockchain technology, the payment rail behind Bitcoin and other cryptocurrencies. Industry professionals will navigate the current landscape of emerging payments by analyzing the technology and business models responsible for the market shift and the legal, regulatory, and compliance hurdles encountered by businesses and financial institutions.

Texas Bitcoin Conference

March 28-29, 2015, Austin, TX

The Texas Bitcoin Conference is a bitcoin technology summit with speakers, presentations and a hackathon. Key speakers include Steve Stockman, Congressional representative and bitcoin advocate, IBM Business Analytics and Strategy Architect Sumabala Nair and Founder and Partner of the Gilder Technology Fund, George Gilder.

Inside Bitcoins – New York

April 27-29, 2015, New York, NY

Inside Bitcoins will be returning to New York on April 27-29 at the Javits Convention Center. The program will cover topics including bitcoin 2.0, blockchain-based startups, institutional investing, multi-sig wallets, risk mitigation, compliance, banking and fundraising, and more. Keynotes have been confirmed from Dan Morehead, CEO, Pantera Capital and Chairman, Bitstamp; Brian Kelly, Contributor, CNBC’s Fast Money and Founder & Managing Member of Brian Kelly Capital LLC; and Perianne Boring, Founder and President, Chamber of Digital Commerce. Get 10% OFF with the discount code CHAMBER. Register at insidebitcoins.com/new-york.

Virtual Currency Today Summit

April 29, 2015, Boston, MA

“Bitcoin and Beyond: The Next Disruptor in Payments.” The Virtual Currency Today Summit will be held at the Hilton Boston Back Bay and will look at the many factors that will shape the adoption and growth of Bitcoin and other similar currencies. Expert panelists will offer insights on how market stakeholders can push through barriers to embrace digital currency as the next generation of payments and transaction solutions, which will ultimately change the end-user customer experience.

Tweet of the Week

UK’s #Bitcoin Politician Exceeds Fundraising Target by 50% http://t.co/Y15PalLG9E pic.twitter.com/qNbd6rSn4K

— Coinfeed (@CoinfeedIO) March 12, 2015

Pic of the Week

Quote of the Week

Bitcoin startup 21 Inc. Co-founder Matthew Pauker, to the Wall Street Journal:

“Bitcoin is going to change the way that people and businesses and even machines interact with each other. But for bitcoin to realize that vision we need mass adoption. It can’t just be for Silicon Valley.”

Communications Director Wanted

The Chamber of Digital Commerce is currently interviewing for a full-time communications director.  This role would require working closely with the Chamber President and the government affairs staff to develop and implement a communications strategy for the Chamber.  Assumed responsibilities would include publishing regular newsletters, creating presentations for webinars and other speaking engagements, managing the social media accounts and blog, and overseeing all marketing/PR initiatives.  This role would be highly entrepreneurial in nature. The Chamber is looking for someone that can embrace a startup mentality, work independently, and add value to the organization.

If you are interested in applying please email Perianne Boring at .

Inaugural Bitcoin Women’s Day

This Sunday was International Women’s Day, and a few of my female colleagues in bitcoin came together to launch Inaugural Bitcoin Women’s Day. It is estimated that only 8% of bitcoin users are female. Earlier this year, I was honored to be named CoinFilter’s #1 Woman in Bitcoin. However, I was appalled that not one woman made CoinDesk’s Most Influential People in Bitcoin poll this year. Women bring a different set of characteristics and talents to the boardroom. The bitcoin industry faces serious challenges and barriers to mainstream adoption. Embracing this demographic into the ecosystem will be essential for the future of bitcoin.

It’s not news that Bitcoin has a perception problem. Most people’s first impression of bitcoin is a scandal like Mt. Gox, Silk Road, or Liberty Reserve. What’s frustrating is that these scandals are not only continuing but getting worse, from funding terrorism to pedophile rings. Bitcoin has a dirty and unsafe reputation. Women are natural nurturers, protectors, and pay acute attention to image. In addition, women have tremendous control over household spending. It will take women’s work to drag bitcoin’s name out of the mud and into a trusted household brand.

Chinese-based Alibaba, one the largest e-commerce companies in the world, values women in business. Jack Ma, founder and executive chairman, was quoted saying “One of secret sauces of Alibaba is we have a lot of women”.  The bitcoin community needs more women in existing bitcoin companies, starting their own bitcoin companies, integrating blockchain technology into other non-bitcoin specific companies, and using bitcoin in their households.

My hope is that Bitcoin Women’s Day can shed light on the fact that bitcoin is not just for men, computer geeks or scientists.  Bitcoin offers the largest white space in our generation and this technology has the potential to penetrate any market, anywhere around the world. Everyone has something to offer the ecosystem, especially women.

For daily updates and breaking news, follow us on Twitter @BoringBitcoin, and Facebook: Boring Bitcoin Report.

Click on the headlines below for links to the full story.

Government Scoop

ECB Issues “Further Analysis” of Virtual Currency

The European Central Bank issued a follow-up to its 2012 study on “Virtual Currency Schemes.” The report acknowledged that bitcoin and other cryptocurrencies are gaining traction, but called them “inherently unstable.” The report’s authors added, “In theory, VCS could have an impact on monetary policy and price stability. However, it was concluded that VCS did not pose a risk for price stability in practice, provided that the issuance volume of virtual currency continued to be stable and their usage low.”

California Company Tries to Trademark ‘Bitcoin’

The US Patent and Trademark Office turned down a California houseware company’s application to trademark the word ‘Bitcoin.’ Owner of Atlantic City Bitcoin, Russ Smith filed an opposition against the company, Urban Trend LLC. The motion resulted in a default judgment because the owner of Urban Trend failed to reply to questions required after the opposition was filed. The Bitcoin Foundation has long opposed any trademark of the word “bitcoin”, maintaining it should remain available for “public use.”

Industry Scoop

FINRA Grants Approval to Bitcoin Investment Trust

Financial Industry Regulatory Authority granted approval to the Bitcoin Investment Trust last week. BIT, though technically a hedge fund, operates like an exchange-traded fund through a loophole in FINRA rules. BIT is poised to be the first publicly traded bitcoin fund in the US. Also in the race is the Winklevoss Bitcoin Trust, an ETF that is waiting to receive approval from the Securities and Exchange Commission.

Canadian Bitcoin Exchange To Go Public

A Bitcoin exchange in Canada could soon go public. Quadriga CX received approval from the Supreme Court of British Columbia allowing the company to conduct a reverse takeover of the Whiteside Capital Corporation. Quadriga has about 5,000 clients but the move will give them extra capital to expand their exchange and host additional services like remittance capabilities and merchant services. Already, Quadriga is said to be in talks with two online casinos to process their payments.

MGT Capital Investments Files LOI to Merge with Tera Group

MGT Capital Investments and Tera Group have filed a Letter of Intent for a reverse merger with the Commodity Futures Trading Commission. The companies plan to form the first publicly traded US Bitcoin derivatives exchange. MGT currently runs “social and real money gaming sites online.” Tera launched TeraExchange, the first regulated platform for Bitcoin derivatives, and a spot Bitcoin index in September 2014. The news comes after Timo Schlaefer, formerly of Goldman Sachs, recently launched Crypto Facilities, a bitcoin derivatives brokerage firm in the UK.

Japan’s New Digital Currency Exchange Aims to Fill Mt. Gox Void

Japan-based Tech Bureau Inc. is launching a new digital currency exchange. Zaif Exchange supports Bitcoin and Monacoin. Tech Bureau recently bought local digital currency exchange Etwings after receiving $835,000 in venture capital funding from Nippon Technology Venture Partners. Tech Bureau’s CEO told CoinTelegraph that the collapse of Mt. Gox “fueled a lot of negative coverage” of bitcoin but he is hoping strong business practices can spur greater adoption of digital currencies.

Peer-to-Peer Money Transfer App Wins Top Prize at Launch Festival

The former director of Netscape, Bill Barhydt, has won the top prize at Launch Festival 2015 for his new bitcoin venture Abra. The goal of Abra is to reduce fees associated with third party money transfers, billing itself as “the world’s first digital cash, peer to peer money transfer network.” The app, powered by bitcoin, will allow anyone with a debit card or cash to transfer money to anyone else with the app, through virtual “tellers.” Barhydt is known for giving the first TED Talk on bitcoin.

Boring Bitcoin Calendar

Loyola Consumer Law Review

March 27, 2015, Chicago, IL

This symposium will examine emerging payment systems that are innovating on traditional payment rails, such as mobile payments and prepaid products, in addition to blockchain technology, the payment rail behind Bitcoin and other cryptocurrencies. Industry professionals will navigate the current landscape of emerging payments by analyzing the technology and business models responsible for the market shift and the legal, regulatory, and compliance hurdles encountered by businesses and financial institutions.

Texas Bitcoin Conference

March 28-29, 2015, Austin, TX

The Texas Bitcoin Conference is a bitcoin technology summit with speakers, presentations and a hackathon. Key speakers include Steve Stockman, Congressional representative and bitcoin advocate, IBM Business Analytics and Strategy Architect Sumabala Nair and Founder and Partner of the Gilder Technology Fund, George Gilder.

Inside Bitcoins – New York

April 27-29, 2015, New York, NY

Inside Bitcoins will be returning to New York on April 27-29 at the Javits Convention Center. The program will cover topics including bitcoin 2.0, blockchain-based startups, institutional investing, multi-sig wallets, risk mitigation, compliance, banking and fundraising, and more. Keynotes have been confirmed from Dan Morehead, CEO, Pantera Capital and Chairman, Bitstamp; Brian Kelly, Contributor, CNBC’s Fast Money and Founder & Managing Member of Brian Kelly Capital LLC; and Perianne Boring, Founder and President, Chamber of Digital Commerce. Get 10% OFF with the discount code CHAMBER. Register at insidebitcoins.com/new-york.

Virtual Currency Today Summit

April 29, 2015, Boston, MA

“Bitcoin and Beyond: The Next Disruptor in Payments.” The Virtual Currency Today Summit will be held at the Hilton Boston Back Bay and will look at the many factors that will shape the adoption and growth of Bitcoin and other similar currencies. Expert panelists will offer insights on how market stakeholders can push through barriers to embrace digital currency as the next generation of payments and transaction solutions, which will ultimately change the end-user customer experience.

Tweet of the Week

The boring people at #PrivacySummit go to FTC sessions. The cool people are learning about robots and #Bitcoin.

— Jim Harper (@Jim_Harper) March 5, 2015

Pic of the Week

Quote of the Week

PayPal creator Peter Thiel speaking at the ButtonWood Gathering in New York:

“PayPal had these goals of creating a new currency. We failed at that, and we just created a new payment system. I think Bitcoin has succeeded on the level of a new currency, but the payment system is somewhat lacking. It’s very hard to use, and that’s the big challenge on the Bitcoin side.”