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R3 Consortium Loses Another Key Member as JPMorgan & Chase Departs Posted on Goldman Sachs, Santander, Morgan Stanley, and National Australian  Bank also exited the non-blockchain oriented group a while ago. Things are going from bad to worse for the R3 consortium. Ever since it became clear the group is not focusing on blockchain technology, there has been a lot of backlash. JPMorgan Chase & Co has now decided to leave the group and focus on other things. It appears R3’s fundraising process is the main reason for this departure. While there are still plenty of banks supporting R3, the group is losing some critical support. JPMorgan & Chase is  not too happy  with the idea of raising US$150m from members. This money is needed to further develop the development of R3 products. However, a lot of financial institutions joined because they want to get involved in blockchain technology. The consortium is not focusing its attention on this t...

PBOC Official Claims Bitcoin Can’t Receive Same Legal Status as Money Due To Lack of Regulation Posted on In the end, this statement changes absolutely nothing. It has been a while since we last heard from the PBoC in regards to bitcoin. Late last week, one of the staffers mentioned how bitcoin cannot gain legal status in China. To be more specific, it can’t be put on the same level as fiat money. This is due to the lack of AML and KYC regulations in place as of right now. A very odd sentiment, although this comment is not entirely surprising either. Cryptocurrencies such as bitcoin are not regulated or issued by banks or governments. While that is one of the main selling points of bitcoin, a lot of people see it as a problem. This is particularly true for regulators and legislators. While bitcoin is gaining legal status in some countries, the same will not happen in China anytime soon. According to Huang Yusong, there is a lack of  KYC and AML  regulatio...

Japanese Banks Trial Virtual Currency For Funds Transfers Stan Higgins Members of a Japanese bank consortium focused on blockchain are set to test a virtual currency-based funds transfer system. Institutions including Bank of Yokohama, Mizuho Financial Group and Resona Bank are taking part in the new trial, according to a report from  Nikkei . The test is the latest from the unnamed consortium, which is led by financial services firm SBI Holdings and a joint venture between that firm and distributed ledger startup Ripple, first  launched  in January 2016. More than 50 institutions are  part of the initiative , which has  tested  other applications of Ripple's tech in the past. According to  Nikkei , the banks want to assess the ability to send domestic fund transfers outside of normal operating hours, as well as to see how a virtual currency used between banks could cut costs. Further, the banks are said to be we...

Bitcoin's Price Sets New All-Time High Stan Higgins The price of bitcoin has set a new all-time high on the CoinDesk Bitcoin Price Index (BPI). Prices hit a high of $1,330.72 at press time, surpassing the previous all-time high of roughly $1,325.81 set on 10th March in the run-up to what was ultimately a rejection of a proposed bitcoin exchange-traded fund (ETF) by the SEC. At press time, the price had edged up past the $1,330 mark. The boost comes amid an increasingly active time for the industry as it relates to public markets, as the SEC has since  revealed  that it is reviewing a petition submitted by the Bats BZX Exchange that will find it reconsidering the listing of the Winklevoss Bitcoin ETF. The price move caps a bullish month for the digital currency, which on 1st April averaged just under $1,100, an increase of roughly 20% in just a span of weeks. However, the event coincides also with developments in the bitcoin exchange sector that sugg...

Antbleed: Bitcoin's Newest New Controversy Explained Alyssa Hertig A mining chip vulnerability that could potentially be used to remotely shut off bitcoin mining machines was revealed yesterday – with a fix from the manufacturer following shortly after. Involving controversial mining chip manufacturer Bitmain, the issue is what some are calling a "backdoor" in the code that controls its hardware, offering the company a way to remotely shut off the miners. Since the code,  released anonymously  last evening, is vulnerable to attackers, the main concern is whether, in a worst-case scenario, it could be misused. The fear is that bad actors could exploit the vulnerability to switch off bitcoin mining equipment in bulk, and with Bitmain supplying such a large number of machines to the market, the impact could have catastrophic implications for the bitcoin ecosystem. Known as Antbleed (a title bestowed by the website that dramatized its release), the vul...

Federal Agents Raid Home of Arizona Bitcoin Trader Stan Higgins A bitcoin advocate and trader based in Arizona was arrested last week by federal authorities, according to local reports. Reports from websites include  Freedom’s  Phoenix  and  Phoenix New Times  indicate that Thomas Costanzo was arrested on 20th April for unlawful possession of ammunition stemming from a prior conviction. The arrest resulted from a home raid led by the US Department of Homeland Security. Yet warrant documents obtained by Freedom’s Phoenix suggest that authorities are investigating other aspects of Costanzo’s activities, including his use or sale of digital currencies including bitcoin, ethereum and dash. Costanzo, who uses the moniker " Morpheus Titania " online, operates a  bitcoin-centered website  that was updated as of 3rd April. According to the site, Costanzo has been a full-time bitcoin trader for the past three years, while also...

West Virginia Lawmakers Complete Bitcoin Money Laundering Bill Lawmakers in the state of West Virginia have completed work on a bill that would make it a felony to use bitcoin or other cryptocurrencies for money laundering. As reported  in February , West Virginia House Bill 2585 constitutes an update to the state's anti-money laundering statutes, specifically creating a definition for cryptocurrency that is recognized as a 'monetary instrument' in the state. The definition included in the bill reads: "'Cryptocurrency' means digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, and which operate independently of a central bank." The measure is on the cusp of becoming state law, public records show. Lawmakers have finished drafting the bill following a conference period, according to LegiScan, a legislation data service provider. The state's lower ...

Bitcoin's DC Debut: All Eyes Watch the US Government's Response Jerry Brito   Jerry Brito is a pioneer in matters relating to cryptocurrency regulation. A former senior research fellow at the Mercatus Center, he now serves as executive director at non-profit advocacy group Coin Center. In this entry in CoinDesk's " Bitcoin Milestones " series, Brito discusses one of the first major regulatory hearings centered on bitcoin in the US. On 18th November, 2013, the Senate Homeland Security and Governmental Affairs Committee held the US Congress's first hearing on bitcoin. These days, such meetings hardly raise an eyebrow. Back then, though, the hearing was a big deal for obvious reasons – and I testified. First, it's important to remember this hearing came at the end of a string of announcements that, while aiming to clarify how the industry was regulated, ended up stoking fears among users. In March of that year, the Financial Crim...

Blockchains and Personal Data Protection Regulations Explained Jacek Czarnecki   OPINION Jacek Czarnecki is an attorney at Warsaw-based law firm Wardynski & Partners, where he specializes in areas including fintech, digital currencies and blockchain. In this opinion piece, Czarnecki discusses data protection laws in the EU, outlining in an easy-to-read overview how they present both challenges and opportunities for industry innovators. Not a day goes by when we don't hear about a new application for blockchain technology. A cryptographically secure  distributed ledger  (secured by  means of member consensus ) is turning out to be the solution for many problems and inefficiencies in the world around us. And this isn't just about technological improvements or the reconstruction of business models: different  blockchain use cases  will leave a mark on the economy, society and, perhaps, also on politics. Blockchains – ...