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Mark Karpeles faced fresh embezzlement charges Wednesday as Japanese media claimed some of Mt Gox’s stolen funds were spent on prostitutes. But, who cares? Is there anything all that unique about a successful man spending some of that hard-earned money (or in this case hard-stolen) on a good bang? Research shows the answer is 'not really.'  First, the charges. Tokyo police arrested France-born Mark Karpeles for moving 20 million yen ($166,000) in client money to his own bank account amid fraud allegations regarding the loss of hundreds of millions of dollars worth of Bitcoin. According to Yomiuri, a Japanese newspaper, […]

The post Mark Karpeles Buying Prostitutes Is No Big Deal appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Nasdaq has continued with its blockchain affair by unveiling its latest blockchain tech initiative – Linq, a platform that enables private companies to trade their shares using the bitcoin-powering technology, even before the companies go public. With Linq, Nasdaq revealed its newest trading platform with a live demonstration at the Money 20/20 conference in Las Vegas. In a press release, Nasdaq also announced the first six private companies participating in the blockchain-enabled platform. They are Chain.com. ChangeTip, PeerNova, Synack, Tango and Vera. “We are extremely encouraged by the initial demand for Nasdaq Linq from these innovative, first-mover companies, and the […]

The post NASDAQ Launches Linq, a Private Blockchain-Powered Trading Platform appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

The Central Bank of Brazil reported interest rates on credit card debt in the country climbed another 10% in September to a mind-blowing 414% per year, according to Xinhua. 

This means someone who has just racked up 3864.15 real ($1,000) in credit card debt that cannot be paid back immediately will accrue interest of 12,604.16 real ($3261.82) in a year.

Now, if you were going to pay this down in a year, each payment would come out to 1377.60 real ($355.13) per month, or 16,468.31 real ($4261.82) over the course that year. Here's what the payment breakdown looks like in dollar terms. After your third month, you have already paid more interest 3959.14 reals ($1023.31) than the entire principal. 

The outrageous interest rate is only part of the problem Brazilians face as they have seen their purchasing power crippled by a sharp drop in their currency, the real. Since the beginning of September 2014, the real has lost about 72% of its purchasing power versus the US dollar. 

SEE ALSO: The 'Land of Lincoln' is still sinking

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Russia's Deputy Finance Minister has confirmed the country's plans to penalise the conversion of cryptocurrencies such as bitcoin into the ruble.

The Chamber of Digital Commerce, a trade association focused on promoting digital currencies and assets, announced today, at Money 20/20, that Don Tapscott had joined its board of advisors.

The goal is for him to advise on government affairs and public policy related to technology and economic policy. He will also be working on a framework for best practices on blockchain technology for regulators.

Tapscott is the author or co-author of more than 15 books about technology, such as The Digital Economy: Promise and Peril in The Age of Networked Intelligence and Grown Up Digital: How the Net Generation is Changing Your World. Along with his many books, Tapscott is also CEO of Tapscott Group, a senior adviser to the World Economic Forum, and the Chancellor of Trent University in Peterborough, Ontario, Canada.

“I am delighted to join the Chamber of Digital Commerce in its mission to develop pro-growth public policy for digital assets,” Tapscott said in a statement. “The blockchain will radically transform the way we do commerce, redefine the very nature of industries worldwide and has the potential to fundamentally shift the way in which our society’s is [sic] hierarchically organized. However, without a regulatory framework that allows for such innovation, the blockchain could be severely stifled.”

"The digital asset industry has significant public policy challenges to overcome. We look to our Advisory Board to provide thought leadership in developing policy proposals and solutions. Don Tapscott's influence in technology and financial services will be helpful in building relationships and credibility in Washington for the digital asset industry,” said Perianne Boring, founder and president of the Chamber of Digital Commerce, in an interview with Bitcoin Magazine.

Originally a skeptic on bitcoin, Tapscott has since changed his mind and said, in an interview at a Toronto school: “Bitcoin. Well, I’ve changed my mind. I used to think it would never fly, and now I think it’s not only going to fly as a currency, but the underlying blockchain technology is part, core part, of a next generation of the Internet, that it’s going to radically transform commerce, or the nature of the corporation, but many of our institutions of our society, and everybody needs to pay attention to this.”

Along with his son, Alex Tapscott, he is writing a book titled The Trust Protocol: How Blockchain Technology is Changing Money, Business and the World , which will be published by Penguin Random House in Spring 2016.

Jacob Donnelly is a full-time product manager and freelance journalist covering stocks, business and bitcoin. He runs a weekly digital currency and blockchain newsletter called Crypto Brief.

Photo Dan Tapscott / Flickr (CC)

The post Don Tapscott, WEF Senior Advisor, Joins Chamber of Digital Commerce’s Advisory Board appeared first on Bitcoin Magazine.

The fear and uncertainty being generated by the Fed's inability to put its head on a block about how much and when, is sending the gold and bitcoin price rallies to the super full moon. This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29. Bitcoin Price Analysis Time of analysis: 15h20 UTC BTC-China 15-Minute Chart From the analysis pages of xbt.social, earlier today: So far so good on our entry into this wave. The 1-hour chart did not give a […]

The post Bitcoin Price Analysis: Fed Night! appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

The last time the cryptocurrency was priced this high was in July

Native ad by Discover Media. Winning a major sporting tournament gives any country’s national pride a shot of adrenalin, but it can also be a significant boost for its economy. Countries winning the football World Cup can expect to their stock index to outperform global indices by as much as 3.5 percent in the following month, according to Goldman Sachs. In the trading pit as on the pitch, however, there’s no glory in second place – seven out of the nine defeated finalists in the study underperformed by 5.6% over the next quarter. With fans of the oval ball glued […]

The post Off the pitch – winners and losers in the Rugby World Cup appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Bitcoin Press Release: Credited as the number one Bitcoin and Litecoin marketplace on the web CryptoThrift has rebranded to Bitify.com. Bitify has over 50 000 users and has processed over $2.5 million through its escrow service. Australian based Bitcoin and Litecoin marketplace and auction site for new and used items CryptoThrift has rebranded to Bitify. The platform has achieved continual growth since it began trading two years ago, with over 200% organic growth in the last 12 months alone. The site boasts nearly 50,000 users and several thousand items are currently listed for sale. Bitify has also processed over USD […]

The post World’s Leading Bitcoin Marketplace And Auction Site CryptoThrift Rebrands To ‘Bitify’ appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Bitcoin Press Release: Credited as the number one Bitcoin and Litecoin marketplace on the web CryptoThrift has rebranded to Bitify.com. Bitify has over 50 000 users and has processed over $2.5 million through its escrow service. Australian based Bitcoin and Litecoin marketplace and auction site for new and used items CryptoThrift has rebranded to Bitify. The platform has achieved continual growth since it began trading two years ago, with over 200% organic growth in the last 12 months alone. The site boasts nearly 50,000 users and several thousand items are currently listed for sale. Bitify has also processed over USD […]

The post World’s Leading Bitcoin Marketplace And Auction Site CryptoThrift Rebrands To ‘Bitify’ appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

A hacker group that refers to itself as the “Armada Collective” has contacted at least four Thai banks with the threat of cyberattacks if ransom demands aren’t paid up in Bitcoin, according to an English news daily in the country. Although details are currently scarce, The Nation, a prominent English-language broadsheet in Thailand reports that a criminal hacker group called the “Armada Collective” has contacted at least four Thai banks via email with a threat to engage in cyber attacks. The publication also notes that the Armada Collective previously targeted Switzerland-based hosting providers as recently as September and laid out […]

The post Cybercriminal Group Demand Bitcoin Ransom from Thai Banks appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Barry Silbert's new Bitcoin company raised an undisclosed sum from traditional financial firms and venture investors, many of whom have not invested in a digital currency company before.

With another Fed funds rate announcement due, today, 28 October, market uncertainty in anticipation of a rates hike "lift-off" is rising. Today's GEO looks at the implications of a rates increase for the US dollar and the dynamics the Fed's indecision to commit to a "lift-off" date. This post is powered by the Bitcoin Trading Network xbt.social - CCN29 and get 29USD off! Economic Indicators World Indexes and Forex Rates   Commodities In the Calendar This Week Mon 26 October New Zealand Trade Balance (actual:-1222M expected:-822M previous:-1079M) Tue 27 October UK Prelim GDP (actual:0.5% expected:0.6% previous:0.7%) US Consumer Confidence (actual:97.6 […]

The post Global Economic Outlook: The US Dollar And Fed Rates Timing appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Blockchain is under consideration to replace Australian Security Exchange’s Clearing House Electronic Sub-register clearing and settlement System. The Australian Securities Exchange’s (ASX), managing director, has confirmed that blockchain is a serious candidate to replace the existing clearing and settlement system. The Sydney Morning Herald reports that ASX managing director Elmer Funke Kupper sees the costs, timescales and complexities of the current Clearing House Electronic Subregister System (CHESS) - cut down by blockchain technology. In noting the technology as a “once in a 20-year opportunity,” Kupper added that the ASX was actively looking to implement end-to-end efficiencies and assessing blockchain to […]

The post The Australian Securities Exchange Is Likely to Soon Use Blockchain Technology appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

The price of bitcoin reached $300 today for the first time in over three months, continuing a steady climb since mid-September.

New embezzlement charges have been filed against Mark Karpeles for moving $20 million worth of yen in client money to his bank account and spending an unspecified sum on prostitutes, reported Astro Awani in Malaysia. Karpeles already faces fraud charges for the disappearance of hundreds of millions of dollars worth of the virtual currency from Mt. Gox, the now defunct Tokyo-based exchange. Citing Yomiuri, a Japanese newspaper, Astro Awani reported Karpeles spent an unspecified sum on prostitutes while the Jiji Press news agency in Japan said the charges involve "several women whom he met at venues that offer sexual services," citing police sources. […]

The post Mt. Gox’s Mark Karpeles Spent Money On Prostitutes, Faces New Charges appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

By Mike Dolan

LONDON (Reuters) - Zero is clearly not the floor for central bank interest rates, but there's still a lower limit nearby, however shaky it may be.

For anyone assuming official interest rates would not or could not go below zero, it's been a sobering year. Four central banks in Europe have broken the taboo and are experimenting with the slightly puzzling concept of negative interest rates.

The European Central Bank as well as the Swiss, Swedish and Danish central banks all now employ negative deposit rates - charging their commercial banks for holding reserves on deposit as yet another way of forcing them to lend more.

Even though this upside-down world of negative rates appears to many to be just a technical quirk in the banking system, households and firms may start to wonder whether negative rates will spread to them given the obvious reluctance of central bankers to admit a floor and draw the line here.

ECB chief Mario Draghi electrified markets last week by holding out the prospect of yet another cut in the ECB's deposit rate of minus 0.2 percent as it battles to get flat lining euro-zone inflation back up to its target of near 2 percent.

Whether negative rates excite or terrify you, most economists reckon there's a limit. They insist a so-called 'lower bound' for rates - only debated in academic circles between the 1930s Depression and the credit crash of 2008 - is still a major and worrying constraint on monetary policy and that the floor is likely just a little below where we are now.

For all the wonkish detail, it's no pinpoint science.

Bank of England studies put the limit about minus 0.5 percent, for example. That's below the current ECB rate, though not as deep as the Swiss National Bank's minus 0.75 percent.

National variations clearly apply, however. The BoE itself has, until recently at least, declined to cut its rates below 0.5 percent - due to the plethora of UK mortgage rates that track the policy rate but also because UK banks have typically never charged customers for current accounts.

But the argument for an interest rate floor that's just slightly negative is relatively simple.

If banks are charged ever larger penalties for depositing reserves with the central bank, the assumption is they will simply transfer the money into physical cash, which even at zero interest would still give them a better return. And their tolerance for negative rates is estimated to be the additional cost of securely stashing those crisp notes away in private vaults.

"The source of the zero lower bound constraint lies in the unrestricted convertibility into cash of reserve accounts at the central bank," according to the annual 'Geneva Report' on the world economy from the UK-based think tank Centre for Economic Policy Research.

But the report - authored by former BoE policymaker Charles Bean, former New York Federal Reserve economist Christian Broda, former Japanese financial diplomat Takatoshi Ito and former Fed governor Randall Kroszner - said the relatively high security cost of holding vast quantities of banknotes meant that this switching doesn't happen immediately that rates go below zero.

"Banks are more likely to decide that it will be worth investing in setting up such secure facilities if central bank deposit rates are likely to be negative frequently and for substantial periods," they wrote, adding the "true floor" is probably close to BoE calculations of minus 0.5 percent.

This is no stone floor, however. Reviewing the report, SNB Vice Chairman Fritz Zurbruegg said "the tipping point is not clearly defined; markets and businesses are very innovative."

BLUFF?

But if the zero bound does exist and it's at least close to where we are right now, what happens if inflation still won't rise back to target and further easing is needed? Was Mario Draghi just bluffing by saying he could do whatever it takes?

Facing the risk of a deflationary trap, more bond buying and quantitative easing can at least try to push down long-term borrowing rates. But there are practical and political limits here too on what and just how much bonds to buy, while the benchmark 10-year German bund already yields less than 0.50 percent.

Others suggest inflation targets could be raised to provoke a change in expectations and underline central bank determination. But if you're struggling to get inflation from zero to 2 percent, will it be any easier getting it to 4?

That leaves more radical moves to overcome the lower bound.

One includes getting rid of physical cash altogether to prevent banks switching into it - a plausible idea given the rise of card payments and electronic money. Another proposal involves abandoning the automatic 1-for-1 exchange between cash and reserves. One more alternative suggests banknotes would have to be stamped periodically to retain their legal tender.

Spotlighting Bitcoin's emergence, BoE chief economist Andy Haldane said last month that some form of digital money wallets could be the future for new government-backed currency too and have the advantage of being able to absorb negative rates.

"Perhaps central bank money is ripe for its own great technological leap forward, prompted by the pressing demands of the zero lower bound," he said.

But, even if switching can be avoided, deeply negative rates may cause more problems than they solve by damaging bank balance sheets and stability, fueling increases in risky lending or leading to unintended consequences of banks recouping costs through higher mortgage or corporate lending rates - as seen in Switzerland. Deeply negative interest rates for a protracted period will also create distortions in asset markets.

Together these fears may act as powerfully as any limit on just how negative rates can go.

(Editing by Hugh Lawson)

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Barry Silbert, Founder of the recently acquired SecondMarket, announced at Money20/20 that the Digital Currency Group had raised its round of capital.

Digital Currency Group, otherwise known as DCG, was formed when Genesis Global Trading—a bitcoin OTC trading firm—and Grayscale Investments—a digital currency asset management firm that manages Bitcoin Investment Trust (GBTC)—were combined into one entity.

Along with these two companies, Mr. Silbert also combined his diverse portfolio of seed investment in the bitcoin and blockchain space. Some of his early investments include BitPay, Coinbase, itBit, and Xapo.

“Our companies have raised over 70% of venture capital that has been invested in the space if you don’t count the miners,” Silbert said at Money 20/20.

Bain Capital Ventures, Canadian Imperial Bank of Comerce (CIBC), CME Ventures, FirstMark Capital, MasterCard, New York Life, Novel TMT, Oak HC/FT, RRE Ventures, Solon Mack Capital, and Transamerica Ventures are all new investors in DCG.

“I wanted to work with firms who have a long-term perspective, and were willing to explore with us and invest not only money, but real organizational and intellectual capital into building businesses and partnerships that will enable us to unleash value in new, unprecedented ways,” Silbert said in a statement.

DCG is being launched a holding company rather than an investment fund. Silbert believes that this gives the company the necessary flexibility and diversification. “Being structured as a company, versus a fund, allows us to evolve with the industry given our permanent capital base and flexible mandate,” Silbert said in the statement. “It is our view that broad exposure with the optionality to concentrate our focus is a winning strategy.”

Jacob Donnelly is a full-time product manager and freelance journalist covering stocks, business and bitcoin. He runs a weekly digital currency and blockchain newsletter called Crypto Brief.

The post Silbert's Digital Currency Group Announces Major Fundraise from MasterCard, CIBC, and Others appeared first on Bitcoin Magazine.

BTCC, one of the largest bitcoin exchanges in the world, announced its Pro Exchange at a Money 20/20 panel held at The Venetian Resort Hotel Casino in Las Vegas.

Pro Exchange is a bitcoin margin trading tool that will allow traders to exercise 20x leverage on spot trading.

Unlike BTCC’s regular spot exchange, which might be useful for those who are looking to buy or sell one or two bitcoin, Bobby Lee, CEO of BTCC, explained that this product is better suited for more experienced traders.

“If you want to buy a lot of bitcoin, it’s a quick way to get a lot really fast,” Lee explained in an interview with Bitcoin Magazine . Lee explained that miners looking to hedge against price decline, those looking for arbitrage opportunities, and “people who are professional and directional traders would all find the tool useful.”

“We’re the first exchange to launch a radically new trading platform,” Lee said. “We’re going to reinvent the game and not wait to be marginalized. We’re going to disrupt ourselves with this. This is big. This kind of trading will be adopted by other companies, I guarantee you.”

Margin trading is effectively borrowing bitcoin to make trades with it, returning it once an individual’s trade is completed. If a user had 1 BTC and the price appreciated by $10 before selling, their profit would be $10. However, if someone borrowed bitcoin at 20x margin, they’d have 20 bitcoin to trade with. If the price went up by $10, they’d have effectively made $200 profit. Users effectively get more buying power than they physically have to trade with.

There are two parts to the fee structure that BTCC charges. “There’s a commission once you open a position to go long or go short,” Lee explained. “There’s also the overnight carry fee because of 20x leverage. It’s sort of like an interest rate. It’s very competitive.” More details on pricing can be found on the exchange website.

“It’s also the first platform that allows users to earn interest,” Lee explained. In essence, if a user allows their bitcoin to be lent out to other traders, they will earn interest on the bitcoin based on the fees that BTCC charges.

The company recently underwent a branding change from BTC China to the now current BTCC. While the Pro Exchange is one of the first products it has launched under this new moniker, the company has many plans coming.

“Our mission is to launch more and more of these convenient and trustworthy digital currency products,” Lee said. “Whether it’s merchant payments, remittance, and our wallet later this year. There’s a bunch of things coming over the horizon.”

Pro Exchange is just step one to the company’s goals of building the “world’s greatest company to serve this global bitcoin audience,” Lee said.

Jacob Donnelly is a full-time product manager and freelance journalist covering stocks, business and bitcoin. He runs a weekly digital currency and blockchain newsletter called Crypto Brief.

The post BTCC Announces Launch of Pro Exchange Allowing 20x Margin Trading appeared first on Bitcoin Magazine.

MasterCard is backing Barry Silbert’s newest initiative, Digital Currency Group, his first since selling SecondMarket to Nasdaq last week. Many believe this marks a major development in the Bitcoin space as the digital currency flirts with the $300 level.  Silbert has gained the support of big-time backers for the new conglomerate focused exclusively on Bitcoin and other block chain technologies. The new company, Digital Currency Group (DCG), will include Silbert’s over-the-counter Bitcoin trading firm, Genesis Global Trading, as well as Grayscale Investments, a digital currency asset management firm. Digital Currency Group will be home to 57 seed-stage investments already made […]

The post MasterCard Invests In Silbert's Digital Currency Group appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Barry Silbert doesn't appear to be a big fan of 'down time.'

He sold SecondMarket, the startup he founded that morped into an online stock exchange for hot, private startups' shares, to Nasdaq last week.

Now he is setting up bitcoin-related startup Digital Currency Group with the backing of some big names in finance.

The list of backers includes: Bain Capital Ventures, CIBC, CME Ventures, MasterCard, New York Life and Transamerica Ventures

DCG was formed after Genesis Global Trading and Grayscale Investments - two companies built under the SecondMarket parent company - were unified to support an early-stage investing portfolio targeting digital currency operations. Grayscale Investments manages the publicly traded Bitcoin Investment Trust. 

"Some of the earliest investments I made via Bitcoin Opportunity Corp. included BitPay, Circle, Coinbase, itBit, Ripple and Xapo – which at the time were long shots for many investors," Silbert said in a statement. "Since then, we’ve invested into 57 companies across 18 countries, and continue to grow at a rapid pace."

Existing investments span from Africa to Asia, Europe to South America and, of course, the US. Simi Wurtzel will serve as comptroller and vice president of finance; Ryan Selkis will be director of investments at DCG.

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NOW WATCH: Fed's Bullard explains the problem with keeping rates at zero forever

Barry Silbert doesn't appear to be a big fan of 'down time.'

He sold SecondMarket, the startup he founded that morped into an online stock exchange for hot, private startups' shares, to Nasdaq last week.

Now he is setting up bitcoin-related startup Digital Currency Group with the backing of some big names in finance.

The list of backers includes: Bain Capital Ventures, CIBC, CME Ventures, MasterCard, New York Life and Transamerica Ventures

DCG was formed after Genesis Global Trading and Grayscale Investments - two companies built under the SecondMarket parent company - were unified to support an early-stage investing portfolio targeting digital currency operations. Grayscale Investments manages the publicly traded Bitcoin Investment Trust. 

"Some of the earliest investments I made via Bitcoin Opportunity Corp. included BitPay, Circle, Coinbase, itBit, Ripple and Xapo – which at the time were long shots for many investors," Silbert said in a statement. "Since then, we’ve invested into 57 companies across 18 countries, and continue to grow at a rapid pace."

Existing investments span from Africa to Asia, Europe to South America and, of course, the US. Simi Wurtzel will serve as comptroller and vice president of finance; Ryan Selkis will be director of investments at DCG.

Join the conversation about this story »

NOW WATCH: Fed's Bullard explains the problem with keeping rates at zero forever