Indian Central Bank Responds About Crypto Restrictions

Indian Central Bank Responds About Crypto Restrictions

India’s central bank has responded to a representation about its crypto banking ban. The Supreme Court gave the central bank seven days to reply following a hearing last week of the petition by the Internet & Mobile Association of India against the ban.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

RBI’s Response

Indian Central Bank Responds About Crypto RestrictionsIndia’s central bank, the Reserve Bank of India (RBI), has responded to a representation submitted by the Internet & Mobile Association of India (IAMAI), as directed by the country’s Supreme Court.

Nischal Shetty, the CEO of crypto exchange Wazirx, told news.Bitcoin.com that the representation is “a detailed document explaining blockchain, cryptos and how they function,” noting that it was “made with the belief that if the RBI gets a deep understanding of blockchain and crypto then they may go easy on the ban and think about regulations.”

Indian Central Bank Responds About Crypto RestrictionsThis representation was sent to the central bank on July 3 during the IAMAI petition hearing. The Court ordered the central bank to reply within seven days. On July 11, RBI finally sent its response to the association.

According to Sohail Merchant, the CEO of Indian crypto exchange Pocketbits, RBI’s reply is a “2 page generic response.” While stating that “as of now the response cannot be made public” but there is “not much to read though,” he commented:

IAMAI received the response from RBI as directed by SC [Supreme Court], the response is generic with the same language as the public circulars. They have not even given deliberate thought to the points made by us, all the basis of their arguments is ‘Investor Protection.’

Shetty reiterated, “RBI has responded to IAMAI…They aren’t changing their stand.”

Until Next Hearing on July 20

The central bank issued a circular on April 6 banning all financial institutions under its control from providing services to companies dealing in cryptocurrencies, including crypto exchanges.

Indian Central Bank Responds About Crypto RestrictionsRBI gave banks three months to sever their relationships with crypto businesses. As the ban went into effect on July 5, banks began closing accounts of crypto exchanges. One by one, the exchanges stopped supporting fiat deposits and withdrawals.

To bypass banking restrictions, a number of exchanges are launching peer-to-peer (P2P) trading services. Koinex and Coindelta are reportedly launching their P2P services on July 15. Wazirx, on the other hand, already launched its P2P service. The company wrote, “Wazirx P2P goes live today, 10th July at 3PM. With Wazirx P2P, a buyer and seller can buy and sell cryptos for INR directly with each other.”

Meanwhile, industry participants and stakeholders are trying to get the RBI ban lifted by filing petitions with the Supreme Court, which will all be heard on July 20.

Do you think RBI will soon lift the banking ban on crypto? Let us know in the comments section below.


Images courtesy of Shutterstock, IAMAI, and the RBI.


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Indian Crypto Exchanges Forge Ahead With Solutions to RBI Ban

Indian Crypto Exchanges Forge Ahead With Solutions to RBI Ban

Indian cryptocurrency exchanges are forging ahead with their solutions to the crypto banking ban imposed by the country’s central bank. A growing number of exchanges have stopped fiat support as they ramp up peer-to-peer and crypto-to-crypto trading.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

RBI Ban in Effect

Indian Crypto Exchanges Forge Ahead With Solutions to RBI BanThe crypto banking ban by the Reserve Bank of India (RBI) went into effect at the end of last week. The central bank issued a circular three months ago, banning all financial institutions under its control from providing services to companies dealing in cryptocurrencies. The industry was hopeful that the Supreme Court would grant a stay on the ban on July 3 but the court did not and the RBI ban subsequently went into effect.

Wazirx announced on July 4, “We’ve discontinued INR deposits with immediate effect,” adding:

Our banking partner has abruptly stopped supporting our bank account. This is due to the recent RBI circular banning banks from providing support to cryptocurrency exchanges.

Indian Crypto Exchanges Forge Ahead With Solutions to RBI BanKoinex announced on July 7 that users can “submit INR withdrawal requests till 02.00 PM on July 9, 2018 (Monday) after which no further INR withdrawal requests will be accepted.”

Buyucoin announced last week that “Deposit and Withdrawal will be halted until further notice due to RBI circular by midnight 5th of July’18.”

Three of the first crypto exchanges to announce a suspension of fiat deposits and withdrawals were Zebpay, Pexo, and Coinome, as news.Bitcoin.com previously reported. Another major exchange, Unocoin, has yet to announce that it has stopped fiat support at press time.

P2P Trading

Amid RBI’s ban, Indian crypto exchanges have been ramping up their solutions to continue business after the ban. Among them is P2P trading, where the exchange acts as an escrow service between two customers for each fiat to crypto trade.

Indian Crypto Exchanges Forge Ahead With Solutions to RBI BanWazirx has been preparing to launch a P2P trading service. The exchange announced on July 8, “WazirX P2P is launching in a few days.”

Koinex is also gearing up to launch its P2P service called Loop. Citing that “the INR/crypto trading corridor may be discontinued over the next few days with prior notice,” the exchange revealed on July 7, “after that, users will be able to trade via Koinex Loop and True USD corridors for fiat stability.” The exchange elaborated:

Loop is a peer-to-peer transaction network for digital assets using fiat currency. Koinex users will automatically find their KYC-verified Loop accounts ready upon release. Loop is in the final stages of development and will be released before July 15, 2018.

Crypto-to-Crypto Trading

Indian Crypto Exchanges Forge Ahead With Solutions to RBI BanMeanwhile, a number of exchanges have ramped up crypto-to-crypto trading services, similar to Binance and Poloniex.

Unocoin recently launched its crypto-to-crypto platform, Unodax. On July 4, the exchange announced more trading pairs for the platform. It now offers 9 BTC trading pairs, 4 ETH trading pairs, and 4 XRP trading pairs. Unocoin emphasized:

Unodax, India’s leading blockchain and cryptoasset company is introducing 17 crypto-to-crypto trading pairs.

Indian Crypto Exchanges Forge Ahead With Solutions to RBI Ban

Zebpay also offers 19 cryptocurrencies and over 35 trading pairs on its platform now that it has dropped fiat support.

What do you think of RBI’s ban and crypto exchanges’ solutions? Let us know in the comments section below.


Images courtesy of Shutterstock and Unocoin.


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Indian Crypto Exchanges Drop Fiat Support as Banks Close Their Accounts per RBI Ban

Indian Crypto Exchanges Drop Fiat Support as Banks Close Their Accounts per RBI Ban

Cryptocurrency exchanges in India have one by one announced the shut down of their fiat deposits and withdrawals as banks start closing their accounts per RBI’s crypto banking ban. Meanwhile, they are trying to educate the central bank in hopes of easing the ban.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

RBI Ban Going Ahead

Indian Crypto Exchanges Drop Fiat Support as Banks Close Their Accounts per RBI BanThe Supreme Court of India heard a petition against the crypto banking ban by the Reserve Bank of India (RBI) on Tuesday, July 3. However, it did not grant a stay on the ban. Instead, this petition, which was filed by the Internet and Mobile Association of India (IAMAI), will be heard along with four other petitions on July 20.

RBI issued a circular on April 6 banning all financial institutions under its control from providing services to cryptocurrency exchanges, starting on July 5. Without the stay by the Supreme Court, banks are likely to stop providing their services on July 5 per RBI’s order.

Shutting Down Fiat Support

One of India’s largest crypto exchanges, Zebpay, announced Wednesday:

Today we are disabling the rupee deposit and withdrawal options on the Zebpay app. This is being done in light of the bank account closures as per the RBI guideline…INR deposits and withdrawals have been paused in the Zebpay app until banks allow us again.

Indian Crypto Exchanges Drop Fiat Support as Banks Close Their Accounts per RBI BanThe exchange recently warned its customers that rupee deposits and withdrawals may become impossible if its bank accounts are disrupted. In the meantime, Zebpay noted that crypto deposits and withdrawals as well as “crypto-rupee and crypto-crypto pair trading” continue to be supported.

Indian Crypto Exchanges Drop Fiat Support as Banks Close Their Accounts per RBI BanAnother major Indian crypto exchange, Unocoin, issued a statement after the Supreme Court hearing on Tuesday. Reiterating that the court “has refused to hear the plea for interim relief” and that “The [next] hearing is set for the 20th of July,” the exchange wrote:

Banking services are expected to be revoked this week…if you are withdrawing or depositing any rupees in Unocoin, there could be a time when we may not honour such requests.

Indian Crypto Exchanges Drop Fiat Support as Banks Close Their Accounts per RBI BanA smaller exchange, Coinome, stopped INR deposits at 11:59 PM on July 3. INR withdrawals will be discontinued on July 4 at 11:59 PM, the exchange advised its customers and requested them “not to Panic Sell. Your crypto assets will continue to retain value as per global markets.”

Pexo exchange also announced Wednesday that “We are closing the INR deposit and withdrawal request after 6 p.m. today as per the RBI guidelines. Requesting you all to withdraw your funds before the deadline.”

Banking Alternative/Extension

Indian Crypto Exchanges Drop Fiat Support as Banks Close Their Accounts per RBI BanWazirx announced at the time of this writing that its “INR deposits & withdrawals are [still] working normally,” adding that “You don’t need to worry about cashing in/out of crypto as Wazirx P2P will help you cash in/out of crypto even after RBI ban.” The exchange recently announced the launch of its P2P trading service which will be live once banks stop providing services to the exchange.

Meanwhile, Pocketbits announced that its “INR deposits might not be available after 5th of July, but INR withdrawals will be available even after that. Users can Withdraw their INR anytime. Crypto Withdrawals and Deposits are always available without any restrictions.” The exchange clarified:

Our current banks have given us an extension to disburse all the funds, this does not mean we will have functioning bank accounts indefinitely. We will notify our users days in advance before the withdrawals are completely stopped.

Koinok, on the other hand, claimed at the time of this writing that “even after July 5, INR withdrawals will be available on Koinok and you will be able to withdraw your INR funds anytime.”

Exchanges Trying to Educate RBI

Indian Crypto Exchanges Drop Fiat Support as Banks Close Their Accounts per RBI BanAt the IAMAI petition hearing on Tuesday, the association submitted “a representation to the RBI which was a detailed document explaining blockchain, cryptos and how they function,” Wazirx’s founder and CEO, Nischal Shetty, told news.Bitcoin.com.

According to CNBC-Awaaz, the Supreme Court sent a notice to RBI during the hearing, asking the central bank to respond within 7 days. Shetty elaborated, “if the RBI gets a deep understanding of blockchain and crypto then they may go easy on the ban and think about regulations.”

Unocoin emphasized on Wednesday:

We would like to let you know that this [RBI’s banking ban] is not a ban on cryptoassets and a policy in this regard is expected in the near future.

Disclaimer: Bitcoin.com does not endorse or support claims made by exchanges in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products or companies. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

What do you think of RBI’s action and how crypto exchanges are responding? Let us know in the comments section below.


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Bitcoin in Brief Monday: Belgium Expands List of Fraudulent Crypto Platforms, Plot to Kill Vinnik Uncovered in Greece

Bitcoin in Brief Monday: Belgium Expands List of Fraudulent Crypto Platforms, Plot to Kill Vinnik Uncovered in Greece

In Monday’s Bitcoin in Brief, Belgium’s financial watchdog, which earlier this year published a warning about potentially fraudulent platforms promising fast and easy profits to crypto investors, has just expanded its blacklist. In Russia, reports have surfaced of a plot to assassinate Alexander Vinnik in Greece, where he fights an extradition request from US authorities accusing him of laundering billions of dollars, including funds from the hacked Mt. Gox. Elsewhere, Australia allocates budget for blockchain research, and Dubai-based exchange Bitoasis suspends dirham withdrawals.

Also read: This Week in Bitcoin: Ghost Scares Markets, Facebook Mulls Coin

Belgium Expands List of Fraudulent Crypto Platforms

Belgium’s Financial Services and Markets Authority has expanded its list of unauthorized and potentially fraudulent crypto companies operating in the country. The financial watchdog has recently published a new warning noting that “the FSMA is receiving an increasing number of consumer complaints regarding investments in cryptocurrencies [and] once again warns the public about these platforms, often operated by fraudsters who are now resorting to cryptocurrencies to swindle consumers.” The regulator also said that people who have invested through these platforms often complain they never recover their funds.

Bitcoin in Brief Monday: Belgium Expands List of Fraudulent Crypto Platforms, Plot to Kill Vinnik Uncovered in Greece

In March, the FSMA published its first list of 19 suspicious crypto platforms saying it had received “questions or complaints from consumers and has established indications of fraud,” as news.Bitcoin.com reported. The agency stressed that the compilation does not include all questionable crypto trading platforms, but only those whose fraudulent practices have been reported by consumers. Last week the Belgian financial authority reminded investors that these companies usually claim to offer the best trading platforms for both beginners and professionals.

Plot to Assassinate Vinnik Uncovered in Greece

Law enforcement authorities in Greece have reportedly uncovered a plot to kill Alexander Vinnik in jail. The Russian national was detained in Greece at the request of the United States on suspicions of money laundering in connection with the Mt. Gox hack. “Greek law enforcement received intelligence on plans to prepare an assassination via poisoning with the help of criminals. The head of the prison and the prosecutor of the city of Thessaloniki have summoned Vinnik and informed him about the plot. Special security measures were taken in connection with that,” a source familiar with the details told Sputnik.

Bitcoin in Brief Monday: Belgium Expands List of Fraudulent Crypto Platforms, Plot to Kill Vinnik Uncovered in GreeceAccording to the report, Vinnik is not allowed to accept any items, including food or beverages, from people he doesn’t know. His contacts with other inmates have been limited and measures have been taken to improve his personal security. Greek police received information about the murder plot earlier this year but it was not made public in order to help the investigation. The presumed murder attempt is said to be linked to the criminal underground and not the special services of any country. According to the quoted source, the assassination has been ordered by someone in Russia. Vinnik has recently expressed readiness to testify to Russian authorities for fintech-related crimes in his home country.

Alexander Vinnik was arrested in Greece in July last year at the request of authorities in the US, where he is suspected of laundering between $4 and $9 billion dollars through the now defunct cryptocurrency exchange BTC-e, including funds obtained from the notoriously hacked bitcoin exchange Mt. Gox. Russia has also asked for his extradition on other charges and Vinnik himself prefers to cooperate with law enforcement agencies in Moscow. The Russian IT specialist has also filed a petition for political asylum in Greece hoping to avoid extradition to the United States.

Australia to Finance Blockchain Research Through Budget

Australian authorities intend to finance the research of blockchain technologies through the federal budget for 2018/2019. According to the annual budget report, the government will provide additional $0.7 million AUD (>$0.5 million USD) for the Digital Transformation Agency (DTA) which will be tasked to investigate areas where blockchain technology could offer the most value for government services. The agency is expected to use the funds to conduct “research to determine the current maturity of blockchain, assess the readiness for government to adopt the technology, and identify problems that blockchain might be able to solve,” and also, to “understand the potential of using blockchain to support government services.”

Bitcoin in Brief Monday: Belgium Expands List of Fraudulent Crypto Platforms, Plot to Kill Vinnik Uncovered in Greece

Set up in 2015, DTA aims to facilitate the digitization of the Australian government. The agency has received a total of $92.4 million AUD (almost $70 million USD) in this year’s budget. That means the funds allocated for blockchain research are less than 1%. Nevertheless, the country has already recognized cryptocurrencies like bitcoin and passed legislation that treats cryptos like fiat money in the context of anti-money laundering and counter-terrorism financing policies. In April, Australia introduced regulations for cryptocurrency exchanges. The country’s financial regulator, the Australian Securities and Investments Commission, has taken measures against “deceptive and misleading initial coin offerings.”

Dubai Exchange Bitoasis Suspends Dirham Withdrawals

Bitcoin in Brief Monday: Belgium Expands List of Fraudulent Crypto Platforms, Plot to Kill Vinnik Uncovered in GreeceDubai-based cryptocurrency exchange Bitoasis has announced a temporary suspension of deposits and withdrawals in UAE dirhams. The trading platform warned its customers that if they want to access their dirham balances or deposit dirhams into in their accounts via wire transfers they will have to initiate an order no later than Tuesday, May 15. Such transactions will not be processed after that date. According to the notice sent to account holders, credit card deposits will be possible until June 16.

In the letter, quoted by Arabian Business, Bitoasis claims the restrictions were imposed due to issues with the bank it works with. Other means of buying and selling cryptocurrencies on the platform, as well as digital coin withdrawals to other wallets, are not affected, the exchange noted. “If you decide to leave your fiat balances, the only way for you to withdraw your funds at any time after May 15 would be to convert them to cryptocurrency and send them to an external wallet,” the statement reads. Bitoasis warns clients that it cannot provide a specific date for reactivating AED fiat withdrawals.

What are your thoughts on today’s Bitcoin in Brief stories? Tells in the comments section below.   


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System Error at Korean Crypto Exchange Gave Users Free Coins

System Error at Korean Crypto Exchange Gave Users Free Coins

A South Korean cryptocurrency exchange said it suffered an internal system error which affected withdrawals. The exchange claimed that users were able to withdraw five times the number of coins they requested. It is asking for the coins back, and will seek civil liabilities and damages from users who do not voluntarily return the coins.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Internal System Error

New South Korean exchange Cashierest reportedly caused a controversy on Friday when it claimed to have an internal system error which affected withdrawals, according to local media. The exchange, which was launched in March, said that the error allowed users to withdraw more than five times the coins requested. Meanwhile, some users are claiming that they could not withdraw any coins at all during that time.

System Error at Korean Crypto Exchange Gave Users Free Coins

Money Today reported:

The amount of money that has been withdrawn [from Cashierest] is more than the amount that was intended to be sent to another virtual currency trading site. Currently, the trading site is asking investors to return the misdirected virtual currency.

Please Return the Free Coins

The Korean crypto community is saying that users were able to withdraw up to five times the amounts requested from Cashierest, the news outlet conveyed, adding:

An investor said that he moved cryptocurrency totalling 12 million won [~US$11,086] to Upbit, but the amount of 60 million won [~$55,400] was deposited.

System Error at Korean Crypto Exchange Gave Users Free CoinsThe Kakao-backed crypto exchange “Upbit detected the error through the transaction confirmation system and took measures to stop the withdrawal,” Newsis wrote. Sedaily elaborated that at 12:41 PM on Friday, Upbit “temporarily suspended [withdrawals] for some accounts where an overdelivery was detected from a presumed exchange.”

According to Newsis, Cashierest began halting withdrawals at 1:30 PM on Friday. The exchange then claimed that everything was back to normal with deposit and withdrawal services resumed at 4:39 PM.

System Error at Korean Crypto Exchange Gave Users Free Coins
Choi Jong-ku, Chairman of the Financial Services Commission (FSC), talking about the real-name system.

In South Korea, most crypto exchanges currently do not support withdrawals in Korean won. This is due to banks only issuing virtual accounts and providing services to the country’s largest crypto exchanges after the government implemented the real-name system at the end of January.

Upbit is one of the four that allow users to withdraw Korean won; others are Bithumb, Coinone, and Korbit. Users of other exchanges often transfer their coins to one of the four exchanges in order to sell them and withdraw Korean won.

Cashierest subsequently put a notice up on its website regarding this error, as conveyed by Money Today:

If you do not return it [coins obtained by error] within 24 hours, we will seek civil liabilities, and we will claim damages for the interest as long as it is delayed.

Other Withdrawal Problems

System Error at Korean Crypto Exchange Gave Users Free Coins
Notice on Cashierest’s website.

Meanwhile, some Cashierest users claimed that they were not able to withdraw their coins during the commotion, according to Biz Hankook publication.

One user said that “the withdrawal request was completed and then arbitrarily canceled, and the coins were returned to the virtual wallet [at Cashierest].”

Another user told the news outlet that the “Txid (transaction number) has been granted after requesting the withdrawal of the cryptocurrency, but it cannot be found” on the site confirming crypto transactions.

A third user described, “I withdrew the cryptocurrency, but only the transfer completed message was found, and the transaction was not made, and the coins that [I] requested the withdrawal [of] came [back] into the Cashierest wallet again.”

No Virtual Account, No Self-Regulation

According to the publication, an official of the exchange pointed out “that Cashierest is operating without a virtual account.” He believes “that this problem occurs because an exchange staff confirms whether the currency and the payment are matched,” adding that this can lead to “a huge mistake.”

“We have confirmed that it is not an external hack, but it is still necessary to check whether there is any problem with the internal system,” the official of the exchange was quoted, adding that:

The damage amount was estimated to be around 1 billion won [~$924,000]…We are reviewing civil lawsuits and damages for members who do not intentionally return [the coins].

According to Yonhap, the exchange did not join the Korean Blockchain Association to declare self-regulation, which 23 other crypto exchanges in the country have.

What do you think of this “system error”? Let us know in the comments section below.


Images courtesy of Shutterstock, Cashierest, and Korea Herald.


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Consumer Complaints Rise 669% After Crypto Prices Decline

Consumer Complaints Rise 669% After Crypto Prices Decline

Just recently a consumer research group called Valuepenguin did an analysis on complaints filed with the Consumer Financial Protection Bureau (CFPB) between June 1, 2017 and March 1, 2018. According to the study, after the significant 50-60 percent downturn in cryptocurrency values, consumer complaints surged by 669 percent.

Also Read: Israeli Supreme Court Forbids Bank From Denying Service to Bitcoin Exchange

Crypto-Consumer Complaints Rise by 669%

Cryptocurrencies reached all-time highs last year and BTC/USD markets touched $19,600 per coin on December 16th. Since then a lot has changed as most crypto-assets have lost at least half or more of their fiat value since that date. The consumer analysis group Valuepenguin decided to do a study on the number of complaints filed with the CFPB between June 1, 2017, and March 1, 2018. The results were staggering, showing a 669 percent increase in consumer complaints after the prices of digital currencies dropped in value this year.

Consumer Complaints Rise 669% After Crypto Prices Decline
Consumer complaint chart against the BTC/USD chart.

It Seems Customers Want Their Money When They Want It

Some key takeaways from researcher David Ascienzo’s Valuepenguin study detailed the biggest complaint, by more than 40 percent of the files, showed dissatisfied customers who were unable to withdraw their funds. 32 percent of the issues derived from transaction issues and fraud complaints. Transaction problems included long wire transfer delays and a lot of gripes were directed at crypto-businesses and the lack of customer service.  

“Money being unavailable was the number one complaint and consumers struggled to transfer and trade their cryptocurrencies at a critical time — Complaints spiked to a climax during the week where price decline was steepest,” explains Ascienzo’s findings.

Higher numbers of complaints rolled in just as prices started crashing, reaching a climax during the week of sharpest descent. Even then, BTC prices didn’t fall anywhere near where they were in the earlier half of 2017, but the data shows an array of negative experiences for consumers struggling to manage their coins when it mattered the most.

Consumer Complaints Rise 669% After Crypto Prices Decline
The top 5 consumer issues with cryptocurrency companies.

Beefing Up Customer Support

One company that was highlighted during the research was the San Francisco cryptocurrency firm Coinbase. The Valuepenguin study even highlights a few quotes from some of the customer complaints directed at Coinbase. The complaints against the digital currency firm emphasized withdrawal and deposit issues. News.Bitcoin.com also reported on the study Lend EDU did this past August that showed the first signs of increasing consumer complaints, and Coinbase was at the top of the list. However, the head of customer support at Coinbase, Tina Bhatnagar, announced on March 1 that the company was hiring 500 customer support agents this year.

“My first, and most obvious observation was that we needed more people to handle the inbound volume of support requests and a solid plan to handle any spikes in volume, Bhatnagar stated at the time. Our first group of 90 new agents will start on March 5th and we will be adding a group of agents every week until we hit our goal of 500 in late May.”

The latest study also shows some consumers were unable to access funds as much as $100,000 USD. Moreover, according to the Ascienzo’s research, the cryptocurrency companies had managed to close all of the complaints filed. Complaints submitted to the CFPB were closed with an explanation from the company, but the research could not tell if any customers received any restitution. The author notes that all the data was derived from the public CFPB databases and he used bitcoin historical prices from the website Coinmarketcap.

What do you think about complaints rising by 669 percent? Let us know what you think about this subject in the comments below.


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Two Indian Token Marketplaces Suspend Trading Due to Regulatory Pressure

Two Indian Token Marketplaces Suspend Trading Due to Regulatory Pressure

Two Indian crypto token marketplaces have announced that they will halt trading from March 5. The platforms state that this is due to regulatory pressure which put their businesses “under a lot of stress.”

Also read: Indians Look to Buy Bitcoin Overseas as Regulations Tighten

Two Token Marketplaces Halt Trading

Two Indian Token Marketplaces Suspend Trading Due to Regulatory PressureTwo Indian crypto token marketplaces, Btcxindia and Ethexindia, have announced that they will “halt cryptocurrency trading from March 5,” the Economic Times reported.

Over 35,000 members have used the two platforms, the news outlet added. Btcxindia, which began as one of India’s oldest bitcoin exchanges, has been operating for four years. However, last year the platform dropped bitcoin trading to offer real-time ripple (XRP) trading for Indian rupees (INR). Btcxindia recently posted a notice on its website, stating:

Customers are advised to withdraw their funds (BTC, XRP and INR) on or before 04 March 2018, if not [their accounts] will attract annual wallet maintenance fees…XRP/INR trading will be halted effective from 05 March 2018.

Two Indian Token Marketplaces Suspend Trading Due to Regulatory PressureEthexindia is “India’s first ether exchange,” according to its website. The platform, which has been offering ether (ETH) trading for rupees for two years, has also halted both INR and ETH deposits. “Deposits received, if any, will be automatically reverted to the respective bank accounts,” the company emphasized, adding that, “ETH/INR trading has been halted from 01 March 2018. Customers are kindly advised to withdraw their INR and ETH.”

Both marketplaces are managed by S Capital Solutions Pvt Ltd. Other than these two platforms, S Capital also has a 12% equity stake in Crypt E Tech Solution, the company behind bitcoin payment service provider Blockonomics, according to its website.

Regulatory Pressure Mounting

The Indian government has been discussing the regulatory framework for cryptocurrencies and digital tokens. The roles of the regulators for cryptocurrencies have reportedly been decided and the law governing bitcoin is expected soon. Btcxindia recently informed its members:

As we heard in the budget speech, the Indian government is discouraging cryptocurrency trading. This has been clear also by government actions in the last year, and has put our business under a lot of stress and put us in a position where we don’t feel that we can continue our business in a professional manner any longer.

The company emphasized that “Until new rules are in place for tokens on public blockchains, we are halting our trading platform,” adding that the company will now focus solely on its blockchain consultancy work.

What do you think of these two platforms suspending trading because of regulatory pressure? Let us know in the comments section below.


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Commission Income From Crypto Accounts Jumped 36 Times for South Korean Banks

Commission Income From Crypto Accounts Jumped 36 Times for South Korean Banks

South Korean banks have been providing virtual account services to cryptocurrency exchanges and earning commissions from them. According to data obtained by the country’s Financial Supervisory Service, banks made 36 times more in commission income from crypto exchanges last year than the previous year.

Also read: South Korean Officials Caught Trading On Insider Knowledge of Crypto Regulations

Banks Earned 36x More From Crypto Accounts

Commission Income From Crypto Accounts Jumped 36 Times for South Korean BanksThe Korean Financial Supervisory Service (FSS) has obtained data from banks relating to their virtual account services to crypto exchanges. It includes data from the six banks inspected by the regulators last week: Woori Bank, KB Kookmin Bank, Shinhan Bank, Nonghyup Bank, Korea Development Bank, and Industrial Bank of Korea.

The agency revealed on Thursday that the total commission income banks earned from these services last year was 2.221 billion won (~USD$2.1 million), which is 36 times more than the 61 million won earned the previous year, Yonhap reported.

Upbit’s Bank Tops the List

Commission Income From Crypto Accounts Jumped 36 Times for South Korean BanksBanks make money from cryptocurrency exchanges by charging them approximately 200 to 300 won per customer deposit, the news outlet detailed, adding that crypto traders pay higher commissions to the exchanges when withdrawing funds.

According to the FSS, the Industrial Bank of Korea earned the most from virtual account services last year. The bank provides these services to Upbit, which has recently become the world’s largest exchange by volume. Upbit is backed by Kakao Corp, the operator of South Korea’s most popular chat app, Kakao Talk. The bank “earned a total of 675 million won by setting a virtual account fee of 300 won per deposit,” the publication conveyed.

Commission Income From Crypto Accounts Jumped 36 Times for South Korean BanksThe bank with the second highest commission income from crypto-related services is Nonghyup Bank which provides virtual account services to Bithumb and Coinone. The bank earned 654 million won from these services last year.

Shinhan Bank provides virtual account services to a few crypto exchanges including Bithumb and Korbit, bringing it 621 million won last year. Kookmin Bank made 155 million won, the Korea Development Bank made 61 million won, and Woori Bank earned 59 million won from crypto exchanges last year.

Currently, the South Korean government has mandated banks to stop issuing new virtual accounts until they have installed the new a real-name identification system. Banks will also be required to check the purpose of trading and the source of funds for each crypto account holder.

What do you think about banks charging these fees for cryptocurrency accounts? Let us know in the comments section below.


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PR: Betex Blockchain P2P Binary Options Platform Raises $1 Mln in the First Round of Pre-Sale

Betex Blockchain P2P Binary Options Platform

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

January, 14th, 2018, Hong Kong, — Betex, the blockchain P2P binary options platform, has successfully sold 100% tokens in the first pre-sale round with $1,000,000 raised. The company is bringing transparency and fairness to the financial derivatives trading through the use of Ethereum smart contracts and letting the users bet against each other in a peer-to-peer way. The second pre-ICO round is now open for qualified investors until January, 31st.

Betex is the only platform where as much as 95% of funds are distributed among traders who succeed. As a platform provider, Betex cannot engage in betting, which makes the process unbiased and immutable. Betex only profits from collecting service commission of 5% (thereby, 2.5% are transferred to the holders of BETEX tokens).

The model of Betex is claiming to return credibility to the binary options market and has many key advantages compared to the traditional models. Thus, Betex users get instant access to all of its functions and features without having to make any kind of deposits first. Moreover, the payments are automatically released by smart contracts straight to the users’ ETH wallets, ensuring immediate withdrawals without delays or cancellations. Finally, users are forming one large common pool of liquidity for each underlying asset in order to maximize the overall gain. In order to clearly demonstrate the concept, Betex has already developed 2 MVPs. There are 3 trading pairs and 6 trading intervals available within the MVP framework.

With the aim to attract funding for active development and promotion of the project, Betex is holding an ICO campaign, carried out in 2 preliminary stages and 1 main token sale stage. The tokens will be issued in accordance with SAFT agreement after the pre-sale, once they are generated and registered with SEC. Only qualified investors who have completed the KYC/AML check have access to the BETEX token pre-sale rounds. The first round has already been completed with $1,000,000 raised. The details for the second round can be viewed below:

Start of pre-sale round 2:

10 January 2018 at 14:00 GMT

End of pre-sale round 2:

31 January 2018 at 14:00 GMT or 1,500,000 of BETEX tokens are sold out

Pre-sale round 2 BETEX token price:

$2.50

Max amount of tokens to be sold:

1,500,000 out of 10,000,000 (15%)

Pre-sale round 2 hard cap:

$ 3,750,000

Min purchase amount:

5,000 BETEX

Accepted currencies:

BTC, ETH

Contact person:

Alex Kerya
Contact Email Address
pr@betexlab.com
Supporting Link
https://betexlab.com/

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

The post PR: Betex Blockchain P2P Binary Options Platform Raises $1 Mln in the First Round of Pre-Sale appeared first on Bitcoin News.