• 28 Mar 2014 at 1:31 PM

The Bitcoin Bugle: China F*cking With Bit Again

The People’s Republic is doing its part to make sure the year 2014 is the cryptocurrency’s last, upping its December bar on banks trading in bitcoins to and outright ban on banks doing any kind of business with bitcoiners at all.

As of late morning in New York, bitcoin was trading at $534.10, down 7.77% from its Wednesday close, according to an index of prices on three dollar-based exchanges compiled by Coindesk. This followed reports in Chinese media that the People’s Bank of China had sent a document to banks ordering that they close the accounts of 15 online bitcoin trading services by April 15….

The PBOC order couldn’t be independently verified and some traders on bitcoin discussion forums speculated it was a false report circulated to drive down the price. A different rumor about a Chinese policy crackdown hit the price on March 21 before it rebounded when the rumor couldn’t be substantiated. In this case, however, the story was reported as fact by Chinese news media, including by online business news service Caixin.

Luckily for the people behind Circle Internet Financial’s latest financing round, U.S. authorities are still playing comparatively nice—and even want to have coffee with the anarchists.

Circle Internet Financial, a bitcoin startup led by technology entrepreneur Jeremy Allaire, said it secured $17 million from venture-capital investors to help fund its new service aimed at ordinary consumers.

In a sign that virtual currencies are gaining influence among traditional entities, Circle said it has been asked to join the Treasury Department’s Bank Secrecy Act Advisory Group as its first virtual-currency participant….

The developments are significant steps for Circle, which including the most recent injection has raised a total of $26 million from investors such as Breyer Capital, Accel Partners, General Capital Partners, Oak Investment Partners and the Bitcoin Opportunity Fund.

Meanwhile, some people in Texas think the guy behind this mess off the Chinese coast shouldn’t be allowed to try to make things right.

In papers filed Tuesday in U.S. Bankruptcy Court in Dallas, lawyers for several Mt. Gox customers pointed out Mr. Karpeles has been accused of fraud and said he should no longer have power over Mt. Gox’s U.S. assets in his official role as Mt. Gox Co.’s foreign representative.

“At minimum, he is guilty of gross mismanagement,” the lawyers for customers said in court papers….

In court papers, lawyers for the Mt. Gox customers cited a “concerning lack of transparency” since Mt. Gox filed for bankruptcy both in Japan and in a U.S. court.

Bitcoin Prices Plummet on Reports China to Close Accounts [WSJ]
Bitcoin Startup Circle Internet Raises $17 Million [WSJ]
Some Mt. Gox Customers Want Founder out During Bankruptcy [WSJ]

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  1. Posted by Anthony the handyman | March 31, 2014 at 8:06 AM

    It's no wonder that the China is the dominant country ruling the usage of bitcoins. As far as I know, the whole thing behind bitcoins is that you have to think of complex algorithms. Chinese are damn good at this..