One of the most worrying aspects of the BitLicense regulatory framework is the exodus of Bitcoin companies in the New York State area. Over the past few weeks, it has become quite clear that companies deciding to be compliant with BitLicense might face some serious backlash from its users. For those of you who are wondering which companies are actively pursuing a BitLicense, the following short list will give you an idea.
Bitcoin regulation and more specifically the BitLicense debacle, will be making headlines for many more weeks to come. As the BitLicense application deadline is almost upon us, companies are forced to either apply or halt their services in the state of New York. Several companies have decided on the latter option as very few BitLicense applications are coming in. That being said, it looks like Coinbase, just like Bitstamp, will be applying for a BitLicense.
BitLicense is the first proper form of Bitcoin regulation in the United States, even though most Bitcoin companies do not agree with the proposed requirements. Whereas several Bitcoin exchanges are leaving the New York state area, Bitstamp has announced they will, in fact, be applying for a BitLicense in order to comply with current regulations.
BitLicense Causes Lots of Controversy
Bitcoin regulation is still an important aspect for digital currency to be recognized as a legitimate form of digital money. Yet at the same type, the first revisions of Bitcoin regulation are quite harsh, especially as far as BitLicense is concerned. Applying for a license is expensive, and there is a thorough process every company has to go through.
Bitcoin is causing quite a few headaches for legislators and regulators all over the world. Even though some countries and US states have come up or are close to coming up – with a regulatory framework for Bitcoin, not all of them are positive, especially New York’s BitLicense regulation, which is causing an exodus of Bitcoin companies in the state. The latest company to leave is BitFinex, the largest US Bitcoin exchange platform.
Buying Bitcoin has become increasingly easier in the past few years, with so many exchange platforms and Bitcoin ATMs popping up all over the world. That being said, buying Bitcoin remains one of the most difficult hurdles to overcome for novice users. Plus, verification procedures are not making matters any easier.
Buying Bitcoin – What Do I Need?
Before you can start buying Bitcoin, there are a handful of things you will need. First of all, you will need to install a Bitcoin client, either on your computer or mobile device. The installation procedures are very straightforward and self-explanatory. Once you have a Bitcoin client installed on your preferred device, a new wallet address will be generated on your behalf. This address is of great importance, as this is where your future Bitcoins will be sent to.
Bitcoin exchange have been the target of hackers and malicious individuals throughout 2015, and just when we thought things had settled down a bit, a new disaster struck. Popular Bitcoin exchange Bitfinex’s hot wallet has been breached, potentially leading to a loss of customer funds. Let’s review what happened, shall we?
Bitfinex Hot Wallet Breach
Late Friday night, the Bitfinex blog mentioned a potential compromise of the Bitcoin exchange’s hot wallets. Even though Bitfinex stores 99.5% of all funds in multi-signature cold storage, the remaining 0.5% is kept in a hot wallet at all times, making it vulnerable to attack. Taking into account that Bitfinex is the largest Bitcoin exchange in terms of USD trading volume, 0.5% is a significant amount.
The Bitcoin price seems to be stuck between a rock and a hard place for the foreseeable future. Even though yesterday was a good day, and prices passed the US$215 threshold once again, things are looking a lot less enthusiastic today. Both the Bitcoin price and trading volume are down several percent across all fiat currencies when comparing the numbers to yesterday’s statistics.
Rather Low Trading Volume
The past 12-18 hours have been quite scary for many Bitcoin enthusiasts,a s prices plummeted from the US$240 mark all the way down to US$166.45. During this “Bitcoin Flash Crash”, as many speculators are calling the event, a lot of trading has occurred, allowing newcomers and traders to accumulate some very cheap Bitcoins. But is this the big drop before the big gain, or will it continue to be very volatile for the next few days?
Given the recent issues with exchanges either losing funds or shutting down, and malicious cryptocurrency clients hitting the web on a more frequent basis, wallet security becomes ever more important. Multi-signature wallets definitely seem the best choice from this point forward, and GreenAddress is providing exactly that kind of service.
A Brief Explanation of Multisignature Transactions
The main advantage of using a multi-signature Bitcoin wallet is the fact that you need multiple parties to agree upon a transaction being executed. For example, if I used a multi signature wallet through GreenAddress, both them and myself have to “sign” an agreement in order to actually send money to a third-party recipient.
EBTM (European Bitcoin Trading Machine) is a Bitcoin ATM company created in 2013 by founding members of the Belgian Bitcoin Association. EBTM is a registered SPRL, with number 0548 727 812. Finding a location for a Bitcoin vending machine is not as easy as you might think.
After receiving some location suggestions, it was decided to have it installed in Coffeelabs building on the ground floor. For more details on the location, click here. The EBTM machine installed here is a two-way Bitcoin ATM, the only one of its kind in Belgium.