The CEO of Nasdaq, Adena Friedman, commented on the Stock Market website being considered as a trading platform for cryptocurrencies. Friedman is open to the idea of providing users with a more regulated market that provides a fair experience for investors. In order for Nasdaq to step into the crypto world, regulation is a must. The CEO stated that the virtual currencies “will continue to persist, it’s just a matter of how long it will take for that space to mature”.
Until regulation comes, Nasdaq will continue to support cryptocurrencies in other ways. Just recently, a partnership was announced between the cryptocurrency exchange platform Gemini and Nasdaq. It appears that increasingly people are getting involved in the crypto world, bringing a broader spectrum of potential buyers to the market.
A cryptocurrency exchange has asked the Delhi High Court to declare unconstitutional RBI’s circular prohibiting financial institutions from engaging in cryptocurrency business. The court has demanded a response from India’s central bank.
The Delhi High Court has demanded a response from the Reserve Bank of India (RBI) after a cryptocurrency exchange operator filed a petition claiming that RBI’s circular banning financial institutions from engaging with any businesses linked with digital currencies contravenes Indian laws.
The court order came after Ahmedabad-based CoinRecoil (Kali Digital Eco-Systems Pvt Ltd) asked the High Tribunal to declare RBI’s circular of April 6, 2018 unconstitutional. The document was issued under the title “Withdrawing Banking Support to Virtual Currency Exchanges.”
CoinRecoil submitted a writ petition before the Delhi High Court on April 16, 2018 to challenge the circular.
Reacting to the petition, Khaitan & Co associate partner Rashmi Deshpande commented:
“The move by the RBI has put the burgeoning cryptocurrency sector in jeopardy and may affect the basic rights of such entities to carry on any trade. The circular appears to be arbitrary and unconstitutional since it does not give strong facts as to why RBI is against the business of cryptocurrencies. A logical and well-thought argument, backed by solid facts, are the primary requirements under the Constitution to put a stop to any business in India.”
The RBI circular prohibits financial institutions from “providing any service in relation to virtual currencies, including those of transfer or receipt of money in accounts relating to purchase or sale of virtual currencies.”
Justices S Ravindra Bhat and AK Chawla issued a notice to the RBI, the finance ministry, and the GST Council, asking them to comment on the petition by CoinRecoil. The Delhi High Court has scheduled the next hearing for May 24, 2018.
What’s really interesting here isn’t the sheer number of businesses accepting Bitcoin as payments. These are some of the most important motivations driving businesses to accept more cryptocurrency: The hallmark of Bitcoin and any other blockchain-driven currency is the security of their transactions..
This is especially true if other companies like yours haven’t yet started accepting Bitcoin as currency. Of course, there are some disadvantages to accepting Bitcoin for payments within your business: If your business operates online and uses an existing platform, there may be a module you can activate to allow your visitors to pay using Bitcoin..
You could also enlist the help of a third-party service provider (like Coinbase or BitPay) to process your payments and exchange Bitcoin for more traditional forms of currency. If your business operates online, or if you’re especially vulnerable to lagging behind the competition, accepting Bitcoin could be a cost-effective way to demonstrate your leadership in the industry..
A claim by Wikileak’s official online store states that its account with Coinbase was suspended by the cryptocurrency exchange. In 2016, Wikileaks was central to a long string of international scandals before the presidential election according to the leaked document depository and it is now calling for a boycott of coinbase. Coinbase says that its primary goal is to make digital currency safe and secure for its customers.
According to reports, an unconfirmed announcement from Coinbase has irritated the Bitcoin community and also highlighted certain unavoidable tensions as cryptocurrency becomes increasingly commonplace. Wikileaks Shop claims to have received a note that was posted on Twitter from Coinbase that appears as if the cryptocurrency exchange cites U.S government financial regulations as one reason for the suspension.
A letter sent to Wikileaks by Coinbase states “Coinbase is a regulated Money Service Business under Fincen that is obligated to implement regulatory compliance mechanisms. Upon careful review, we believe your account has engaged in prohibited use in violation of our terms of service and we regret to inform you that we can no longer provide you with access to our service.” The letter continues to show the instructions that “We respectfully request that you follow the on-screen instructions presented when you log into your Coinbase account to send any remaining balance offsite to an external address.”
There are no indications that show how Wikileaks specifically violated the rules. Coinbase is concerned about Wikileaks to operate legitimately in order to prevent money laundering and other illegal activities.
Wikileaks also responded immediately via a tweet upon receiving Coinbase’s notice and called for the crypto community to stop using the exchange until further notice. “Wikileaks will call for global blockade of Coinbase next week as an unfit member of the cryptocurrency community.
Coinbase, a large Californian Bitcoin processor, responding to a concealed influence, has blocked the entirely harmless @WikileaksShop in decision approved by management,” Wikileaks said.
The suspension by Coinbase will not stop Wikileaks from accepting payments or donations through Bitcoin though the organization may have to doom a lot of resources to handle its accounts directly and will find it more challenging to convert bitcoin to other currencies such as the dollar.
Prominent Bitcoin Users Worried
Bitcoin has gained a lot of popularity as it can be used to bypass or avoid existing financial regulations and systems including banks. Andreas Antonopoulos pointed out on twitter that many politically involved users were first attracted to Bitcoin as a way of donating to Wikileaks after being cut off in 2010 by traditional financial services.
Although Coinbase has attracted a lot of users to Bitcoin and many more crypto exchanges by providing an easy way for them to be bought and used, its status as a regulated U.S business means it must accord and agree with U.S financial regulations. Most Bitcoin advocates remain questioning and skeptical of Coinbase and other intermediaries due to the exposure and many act as caretakers of customers’ cryptocurrency, defensibly increasing systemic risk in an occurrence of their failure.