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  South Korea Ends Anonymous Cryptocurrency Trading Today
Posted by: admin - 01-31-2018, 10:48 AM - Forum: News From Cryptocurrency Market - No Replies

[Image: shutterstock_453778675-300x300.png]South Korea begins converting existing virtual cryptocurrency accounts to real-name accounts today as mandated by the government.

The implementation of this new account system effectively ends “the use of anonymous bank accounts in transactions to prevent virtual coins from being used for money laundering and other illegal activities,” Yonhap reported.
Six major banks in the country are participating in this new system so far: Shinhan Bank, Nonghyup Bank, Industrial Bank of Korea, Kookmin Bank, Hana Bank, and Gwangju Bank. The news outlet elaborated:

Quote:
Quote:Opening cryptocurrency accounts has been banned for weeks while the banks have installed the system, which ensures only real-name bank accounts and matching accounts at cryptocurrency exchanges for deposits and withdrawals.
“Foreigners and underage investors are banned from opening cryptocurrency accounts in South Korea,” the publication noted, adding that “The new system also requires cryptocurrency exchanges to share users’ transaction data with banks.” Traders with existing virtual accounts will be fined if they keep depositing money into their existing accounts.
Business As Usual for Banks
[Image: shinhan-flyer-218x300.png]Shinhan crypto flyer (Photo\Kim Hyung Min)
“The market forecasted that there will be a lot of requests for opening new accounts following the introduction of the real-name system,” Maekyung wrote. However, on the first day of introducing the real-name system, the news outlet noted that banks are seeing little changes from the previous year, adding that some customers may have opened accounts online.
An IBK official told the publication that “there is no big difference” in the number of customers opening accounts at the bank.
A Chosun reporter visited several banks and found no unusual traffic. At a Shinhan Bank branch, there was a “customer guide” with definitions of crypto-related terms. It also includes an anti-money laundering guideline.
Real Name Verification
[Image: New-Trading-System-banner-300x300.png]Korea Business explains that “Real name verification is possible only if there is an account of the person’s name at the bank that the virtual currency trading company uses.”
To open a new bank account for trading cryptocurrencies, customers “must submit documents to the bank…such as payroll, utility bills, credit card payments,” the news outlet detailed.
Bithumb has been trading with Nonghyup Bank and Shinhan Bank, Upbit with Industrial Bank of Korea (IBK), Coinone with Nonghyup Bank, and Korbit with Shinhan Bank. “Looking at the number of virtual accounts that are subject to the real-name system conversion, IBK has 570,000, Nonghyup Bank 1 million, and Shinhan Bank 140,000,” Hankyung reported.
Smaller Exchanges Could Suffer
Small and medium-sized cryptocurrency exchanges are expected to suffer from the conversion into the real-name system, local media report, citing that banks are reluctant to issue new accounts for them and they can no longer use existing corporate accounts.
The Korean Blockchain Association revealed that 10 companies out of its 25 crypto exchange members use corporate accounts in place of virtual accounts. They include Coinnest, Gopax, Coinlink, and Eyalabs, Maekyung reported. The publication quoted the association explaining, “Exchanges that have not been granted virtual accounts have fallen into the blind spot of regulation.”

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  ‘We Are Disturbed’: SEC and CFTC Chairmen Issue Stark Warning to Cryptocurrency Indus
Posted by: admin - 01-29-2018, 11:17 AM - Forum: News From Cryptocurrency Market - No Replies

The chairmen of two US regulatory agencies have written a joint statement expressing their concerns over the present state of the cryptocurrency markets.
Writing in an op-ed published in The Wall Street Journal, Securities and Exchange Commission (SEC) chief Jay Clayton and Commodity Futures Trading Commission (CFTC) head J. Christopher Giancarlo expressed their disapproval over the manner in which many market participants in the distributed ledger technology (DLT) space flout regulations and attempt to circumvent rules governing investor protection.

Quote:“[T]oday we are seeing substantial DLT-related market activity that shows little or no regard to our proven regulatory approach. This concerns us,” Clayton and Giancarlo wrote. “Some proponents of cryptocurrencies note that the jurisdiction of the CFTC and SEC over cryptocurrency transactions is limited and cite the absence of U.S. and other government market regulation as an investment attribute. Such claims should give prospective investors pause.”
Clayton and Giancarlo took lawyers, trading platforms, and financial services firms to task for their behavior, which the two regulators said “disturbed” them in many cases. In particular, they repeated the oft-stated-but-rarely-heeded statement that merely wrapping an investment product in new terminology does not exempt it from regulations governing securities and investor protection.
Quote:“Market participants, including lawyers, trading venues and financial services firms, should be aware that we are disturbed by many examples of form being elevated over substance, with form-based arguments depriving investors of mandatory protections,” they said.
Notably, Clayton and Giancarlo said that they would like to “revisit” frameworks under which cryptocurrency exchanges other trading platforms have registered as payment services, which are regulated primarily at the state level and do not provide federal regulators with direct oversight.
“Many of the internet-based cryptocurrency-trading platforms have registered as payment services and are not subject to direct oversight by the SEC or the CFTC,” they said. “We would support policy efforts to revisit these frameworks and ensure they are effective and efficient for the digital era.”
Both agencies have been steadily ramping up their oversight of the nascent blockchain space. Last week, the CFTC brought charges against several cryptocurrency-related investment schemes that regulators said were fraudulent, while the SEC has shut down several ICOs for failing to register as securities.
For Clayton, this op-ed marked the second time this week that he had issued public comments about the failure of market “gatekeepers” to act responsibly within the DLT space. On Monday, he said that, “particularly in the initial coin offering space, they can do better” and added that he had instructed SEC staff to be on “high alert” for “ICOs that may be contrary to the spirit of our securities laws.”

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  Venezuela to Accept Hard Currencies and Cryptocurrencies in Petro Presale
Posted by: admin - 01-26-2018, 01:48 PM - Forum: News From Cryptocurrency Market - No Replies

As reported by CCN, Venezuela is going to issue its Petro cryptocurrency through a token sale. Out of the 100 million Petros Venezuelan leader Nicolás Maduro ordered, about 38 million will go to institutional investors, in a month-long presale set to begin on February 15. Only institutional investors will participate in the presale, and will reportedly be able to buy the cryptocurrency at a discount of up to 60 percent.
According to Reuters, Venezuela has now revealed that it will accept cryptocurrencies and hard currencies during the presale. The country’s fiat currency, the bolivar, will notably not be accepted. Carlos Vargas, the government’s cryptocurrency superintendent, bullishly appointed by Nicolás Maduro to “govern” the Petro and its transactions, stated:

Quote:“The presale and initial offer will be made in hard currencies and in cryptocurrencies. It is not going to be done in bolivars at this stage (…) Our responsibility is to put (the petro) in the best hands and then a secondary market will appear.”
Following the 38 million token presale to institutional investors, an additional 44 million Petros will be sold to the general public. Vargas added that, after the presale, the Petro could then be exchanged for the country’s local currency, which went down against the dollar over 3,400 percent last year.
This somewhat counters the information contained in a whitepaper, allegedly leaked from the government’s official website. The whitepaper claimed only those with access to the bolivar could purchase the Petro, and that the cryptocurrency’s blockchain would be public. The Venezuelan government denounced the whitepaper contained false information , as the real one will “soon” be made public.
As reported, the Petro is an oil-backed cryptocurrency announced late last year. Although the Petro token is set to be backed by the country’s oil reserves, holders won’t be able to exchange coins for the actual oil. The oil-backed cryptocurrency has been labeled a way to circumvent U.S. sanctions, and the U.S. Treasury recently warned Americans that investing in it could mean they’re violating the sanctions.
The opposition-run Venezuelan congress has outlawed Maduro’s Petro, as an “illegal and unconstitutional” instrument. The cryptocurrency is seen as an effort to “illegally mortgage” the country’s oil reserves.
Venezuela Eases Stance on Cryptocurrency Mining
Notably, Carlos Vargas also said that those mining other cryptocurrencies in Venezuela aren’t doing anything illegal. According to him, the activity is “now perfectly legal.” He revealed:
Quote:“We have had meetings with the Supreme Court so that people who have been victims of seizures and arrests in previous years will have charges dismissed.”
Many in the country have used cryptocurrencies to survive government failures, as covered by CCN. Last year, the government issued a crackdown on cryptocurrencies that, among other occurrences, saw miners being arrested by authorities, and a bitcoin mining center being destroyed.
At one point, the country’s state-owned internet service provider, CANTV, blocked bitcoin-related websites and mining pools. Moreover, the country’s biggest exchange, SurBitcoin, had to temporarily shut down operations, as Banesco bank closed its account.

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  Payment Processor Stripe to End Support for Bitcoin
Posted by: admin - 01-24-2018, 04:34 PM - Forum: News From Cryptocurrency Market - No Replies

Payment processor Stripe announced Tuesday that it will end support for bitcoin as a payment method in April.
Product manager Tom Karlo wrote in a blog post that Stripe would transition away from bitcoin over the next three months, fully ending support for the largest cryptocurrency on April 23, 2018.
Stripe first enabled bitcoin transactions in 2015, a move that came a year after first testing the technology. At the time, residents from more than 60 different countries could pay merchants on Stripe's network using bitcoin.
However, lengthy transaction times, an increasing transaction failure rate, and growing fees mean bitcoin is becoming less popular among Stripe's merchants and users, Karlo wrote.
He continued:

Quote:"Because of this, we've seen the desire from our customers to accept Bitcoin decrease. And of the businesses that are accepting Bitcoin on Stripe, we’ve seen their revenues from Bitcoin decline substantially. Empirically, there are fewer and fewer use cases for which accepting or paying with Bitcoin makes sense."
While Stripe will no longer accept bitcoin payments, Stripe remains "very optimistic about cryptocurrencies overall," Karlo wrote, saying he believes support for other coins may be implemented at a future date.
The problematic fees were similarly cited by gaming services firm Steam, which announced in early December that it would stop offering support for bitcoin payments. At the time, a representative for the company said that the elevated fees "cause even greater problems when the value of bitcoin itself drops dramatically."
In the Stripe post, Karlo left the door open to enabling payments in other cryptocurrencies, namely stellar lumens, the currency of the Stellar network.
"We may add support for Stellar (to which we provided seed funding) if substantive use continues to grow," he wrote.

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  Korean Crypto Exchanges to Share Data with Banks in New Account System This Month
Posted by: admin - 01-22-2018, 01:25 PM - Forum: News From Cryptocurrency Market - No Replies

The South Korean government has announced that six major banks will be ready to provide services to cryptocurrency exchanges this month. Under the new system, the government requires exchanges to share user data with banks.
Also read: South Korean Officials Caught Trading On Insider Knowledge of Crypto Regulations
Exchanges to Share Data with Banks
The Korean Financial Services Commission (FSC) announced some additional details of the new real-name system for cryptocurrency accounts on Sunday. “The government plans to require cryptocurrency exchanges to share users’ transaction data with banks,” an FSC official said, as quoted by the Investor. The official emphasized:

Quote:
Quote:Banks are expected to introduce the system, which will require cryptocurrency exchanges to share users‘ transaction data with banks, late this month or early next month.
[Image: FSC-logo-300x271.png]The new system will end the current practice of virtual account usage which allows anonymous trading of cryptocurrencies. These accounts are issued by banks for crypto exchanges’ customers to use to buy or sell cryptocurrencies at exchanges.
The regulators have banned financial institutions from issuing new virtual accounts until the new system is in place to ensure that “only real-name bank accounts and matching accounts at cryptocurrency exchanges” can be used for deposits and withdrawals, the news outlet described.
6 Banks to Introduce New System on January 30
The FSC’s announcement stated that 6 commercial banks including Nonghyup Bank, Industrial Bank of Korea, KB Kookmin Bank, and Shinhan Bank will have the new system in place from January 30, according to the Digital Times. Initially, the system was expected to be implemented around January 20. The publication quoted an FSC official detailing:
Quote:
Quote:Six commercial banks that have supported virtual currency transactions will establish a deposit and withdrawal system to convert [to] the virtual money real-name system and provide full-fledged services from the 30th.
However, this new service “is targeted at existing virtual account users, and the opening of new accounts will [still] be suspended for the time being,” the publication noted.
Anti-Money Laundering and Taxation
[Image: shutterstock_628261151-300x200.jpg]Following the inspections of 6 major South Korean banks, the Financial Intelligence Unit (FIU) is preparing anti-money laundering (AML) guidelines related to cryptocurrencies.
The real-name system will be AML compliant. It is “expected to block illegal funds from money laundering as well as to filter out minors for whom virtual money investment is prohibited,” the news outlet conveyed. Banks have AML obligations which will require them to check and maintain transaction records of cryptocurrency traders.
Furthermore, the new system will allow the government to “grasp the virtual currency transaction information to some extent through the bank,” the news outlet noted, adding that:
Quote:
Quote:As the government is able to access virtual currency transaction information, it will speed up taxation based on this information.

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  Bitconnect Shuts Down Its Exchange Citing a String of Excuses
Posted by: admin - 01-17-2018, 09:20 AM - Forum: News From Cryptocurrency Market - No Replies

In a move that will surprise few observers, Bitconnect has announced that it is closing its lending and exchange platform. The company has widely been accused of operating a Ponzi scheme and was recently rocked by cease and desist notices in two US states. Immediately after the firm declared its intention to wind things up, its BCC coin plummeted from $290 to under $10 before recovering slightly. With the exchange offline, many holders have been left locked out and powerless to sell their heavily deprecated assets.
Also read: Bitconnect Slapped with Securities Emergency Cease and Desist Order
Bitconnect Bids Bye Bye
Pressure has been mounting on Bitconnect for months, with leading figures within the crypto community, from Vitalik Buterin to Jameson Lopp, speculating that the exchange was not all it was cracked up to be. News.Bitcoin.com reported on these rumors back in November before revealing, less than a fortnight ago, that the company had been slapped with an emergency cease and desist order in Texas. Among many red flags to have set alarm bells ringing were Bitconnect’s extremely odd marketing videos, described by one commenter as being “like scientology merged with hillsong infused with dorks and used car salesmen”.
[Image: bitconnect-live-1024x580.jpg]
In an update posted on the Bitconnect website, the company said it was halting its lending and exchange service due to the spate of cease and desist notices coupled with “bad press” and a string of DDoS attacks. Unfortunately, due to the ongoing DDoS attacks, the blog post can’t be accessed at this time. The “bad press” that Bitconnect cites, otherwise known as accurate reporting, has been invaluable in helping guide crypto newcomers away from the platform.
[Image: lopp-bitconnect-1024x840.png]
A Secret Blend of Herbs and Spices
The exact workings of Bitconnect’s secret sauce that purportedly makes its investors generous returns has never been disclosed, but the general consensus is that the whole operation is little more than a pyramid scheme. It is almost certain that Bitconnect’s “intelligent trading bot” which makes profitable trades and then shares those dividends with the community, does not exist.
[img=846x1206]https://news.bitcoin.com/wp-content/uploads/2018/01/bitconnect-statement.jpg[/img]The Bitconnect statement in full
It is not clear whether the news of Bitconnect’s lending service shutdown heralds the end of the company altogether, although it is hard to imagine it being able to limp on in any shape or form after shuttering its main hub. DDoS attacks are a tactic that a number of deep web marketplaces have used to sow confusion ahead of an exit scam. It is impossible to ascertain the origins of the distributed denial of service the site is under, though it it is not beyond the realms of possibility that the attack may have originated from close to home.
[Image: bitconnect-coincodex-1024x610.png]
Bitconnect Token Falls Through the Floor
Historically, Bitconnect’s BCC token has been remarkably stable, maintaining steady growth in a pattern not dissimilar from that of bitcoin. But as news.Bitcoin.com noted back in November:

Quote:
Quote:With most of the BCC in existence locked in the company’s exchange, if its founders were to perform an exit scam or wind up behind bars, millions of dollars of bitcoin would instantly be locked up and BCC would be rendered worthless.
That prophecy has now come to pass. Coinmarketcap reports zero trade volume on the Bitconnect platform in the last 60 hours, leaving its token still listed at $290 there. On other platforms though, such as Coinexchange, which recorded 24-hour BCC trade volume of $1.26 million, the token dropped to $8 before recovering to around $25 at the time of publication. Coinmarketcap, the web’s go-to cryptocurrency checker, has previously come in for criticism for hosting ads promoting Bitconnect. Coincodex, in comparison, has elected to post a notice alongside BCC warning investors away. Its CEO Marko Stokelj previously told news.Bitcoin.com:
Quote:
Quote:Bitconnect employs a number of dubious methods in order to operate and promote its business. The business model outlined by the company is economically unsustainable with the current level of returns unable to be validated by any legally known investment system.
While some observers in the crypto community may feel a touch of schadenfreude at Bitconnect’s demise, it is worth being mindful of the many victims who will have suffered heavy losses. Thanks to its marketing strategy, including use of referral schemes, Bitconnect preyed on newbs who lacked the necessary understanding to differentiate legitimate cryptocurrencies from get rich quick schemes.
[Image: bitconnect-twitter-1024x664.png]
If the news emanating from Bitconnect’s 404’d website does prove to be terminal – and it’s hard to imagine the company coming back from this – there will at least be some good to come out of this story. A number of similar sites with names such as Ethconnect have appeared in recent months, each with the same opaque business model. The fall of Bitconnect will hopefully serve as a warning to other crypto startups not to go down the same route. For Bitconnect bag-holders, though, this cautionary tale will provide little consolation.

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  South Korea Announces Crypto Traders Could Face Fines Under New System
Posted by: admin - 01-15-2018, 11:28 AM - Forum: News From Cryptocurrency Market - No Replies

The South Korean government has announced that cryptocurrency traders will be fined if they do not convert from existing virtual accounts, which allows for anonymous trading, to real-name accounts. Regardless of their service levels to crypto exchanges, banks have been ordered to implement the new system this month as planned.
Also read: South Korea Urges 23 Countries, EU, and IMF to Collaborate on Curbing Crypto Trading
Crypto Traders Facing Fines
[Image: shutterstock_478553692-300x204.jpg]The South Korean financial authorities said on Sunday that cryptocurrency traders in the country “will be fined for refusing to convert their virtual accounts into real-name ones,” Yonhap reported.
Currently, crypto traders are able to trade anonymously by using virtual accounts. However, the authorities have banned banks from issuing new ones and mandated them to install the new system “that ensures only real-name bank accounts and matching accounts at cryptocurrency exchanges to be used for deposits and withdrawals,” the news outlet detailed, adding that:

Quote:
Quote:Cryptocurrency traders will be allowed to convert their virtual accounts into real-name ones within this month, but those who refuse to accede to real-name identification will face fines.
“People who have traded virtual currency have been told that if they refuse to check their real name, they will be penalized for depositing into an existing account,” the Kyunghyang Shinmun elaborated. Only withdrawals will be allowed from existing virtual accounts.
[Image: shutterstock_645531820-300x200.jpg]South Korea first enforced the Real Name Financial Transaction System on August 3, 1993, forcing all financial transactions to be conducted under real names.
Until that time, financial transactions of large amounts between private parties were often conducted under false names or pseudonyms. In 2014, this law was revised and penalties of imprisonment of up to five years or a fine of 50 million won (~USD$47,000) were introduced.
While the amount of the fine has not been determined for violations by cryptocurrency traders, Yonhap pointed out that “In 1993, violators of the country’s real-name financial transaction system were slapped with fines amounting to 60 percent of their financial assets.”
Furthermore, Chosun quoted a government official saying, “Currently, we are establishing a taxation plan for virtual currency transactions centered on the accounting department. If a virtual currency real name verification system is introduced, we will be able to obtain data on individual traders.”
Banks Must Install the New System Regardless
The financial authorities started inspecting 6 major Korean banks at the beginning of last week for their anti-money laundering compliance related to virtual account services. The inspection was supposed to end on January 11 but the authorities decided to extend it to January 16. Following the extension announcement, banks became reluctant to implement the real-name system as mandated by the cryptocurrency regulation.
[Image: shinhan-300x97.jpg]Shinhan Bank was the first to announce its decision not to implement this new system. The bank immediately sent a letter to each exchange it currently provides virtual account services to, informing them of its decision. Among them was Bithumb, South Korea’s largest cryptocurrency exchange. Following Shinhan’s move, other banks were also reportedly ready to follow suit and delay the implementation of the real-name system.
However, on January 13, the government held a meeting with representatives of the 6 banks and asked them to implement the new real-name system as planned, regardless of whether they decide to service crypto exchanges or not. A financial official was quoted by Hankook-Ilbo:
Quote:
Quote:Even if virtual currency transactions are entirely illegal, the real name verification system needs to be introduced by itself.
Following the government’s instruction, banks reportedly agreed to implement the new system as planned.

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  Venezuela Will Pre-Mine Its Cryptocurrency Petro and Launch in 6 Weeks
Posted by: admin - 01-12-2018, 01:51 PM - Forum: News From Cryptocurrency Market - No Replies

One day after Venezuela’s oil-backed cryptocurrency was declared illegal, the government of president Nicolas Maduro announced plans to pre-mine the petro. The new currency is expected to launch in six weeks.
Also read: South Korea Urges 23 Countries, EU, and IMF to Collaborate on Curbing Crypto Trading
Petro Mining Restricted to Government
The Venezuelan Superintendent of Cryptocurrencies and Related Activities, Carlos Vargas, announced during a Venezolana de Televisión broadcast on Wednesday, as reported by El Universal:

Quote:
Quote:The petro will not be minable but [will be] pre-mined, that is, the complete emission will be under the control of the country. In addition, it will be assigned with a procedure similar to that of an auction.
[Image: vargas-300x262.png]Carlos Vargas.
“In a period of a month and a half, the sale of the petro cryptocurrency will take place” and people will be able to create their digital wallets, the superintendent added.
He further explained, “We will have a cryptocurrency whose verification and use in all exchange houses…will be supported under a widely known platform, which will allow the petro to be marketed anywhere in the world without major restrictions.”
[Image: petro-300x170.png]Image name “petro” on the Venezuelan government website.
Vargas did not name any existing token platforms. However, the most widely known platform often used to create tokens marketed worldwide is the Ethereum ERC20 protocol, which requires the coins be pre-mined.
On the Venezuelan Ministry of Communications website, there is an image of ethereum tokens with the word “petro” in its file name, a Reddit user pointed out.
Change of Plan for Miners
Since the announcement of the petro in early December, Maduro claims to have been recruiting miners all over the country to mine his new currency. He created a registry, which will remain open until January 20 for all miners in the country to sign up.
[Image: shutterstock_162776264-300x195.jpg]With Wednesday’s revelation that the petro will only be pre-mined, Vargas stated that the registration “is an inscription to register mining. This is a public record of the people who have mined [cryptocurrencies],” El Universal conveyed.
While crypto mining is not illegal in Venezuela, there have been some arrests for electricity theft in the past. Citing that mining activities generate significant revenues and subsequently income for the sector, Vargas explained that with the registry:
Quote:
Quote:People will be able to mine without the fear that they will be persecuted, and all those miners are invited to a meeting that is being organized for mining.
Condemning Claims of Illegality
The superintendent’s announcement came just one day after the petro was declared illegal by the Venezuelan National Assembly, as news.Bitcoin.com reported.
Vargas described the decision by the Assembly as contemptuous to his country, citing that the petro offers Venezuelans an immediate possibility of protecting themselves “against inflationary indices.”
Furthermore, he claims that there is a group of opposition leaders who will participate in the petro “who want to incorporate, who want to protect their assets, [and] who want to protect their money.”

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  Venezuela’s Oil-Backed Cryptocurrency Declared Illegal
Posted by: admin - 01-10-2018, 09:18 AM - Forum: News From Cryptocurrency Market - No Replies

The Venezuelan parliament has declared the oil-backed cryptocurrency created by President Nicolas Maduro illegal and in violation of the country’s Constitution. Maduro’s decree to create the national cryptocurrency, the petro, has been declared null and void.
Also read: South Korea Urges 23 Countries, EU, and IMF to Collaborate on Curbing Crypto Trading
Venezuelan Parliament Declared Petro Illegal
The National Assembly of Venezuela on Tuesday declared the country’s upcoming oil-backed cryptocurrency, the petro, illegal. Venezuelan parliamentarians unanimously voted “absolute nullity on the issuance of the petro cryptocurrency,” El Universal reported and quoted Deputy Carlos Valero announcing:

Quote:
Quote:This Assembly tells the world that the cryptocurrency the government wants to issue is illegal, and this parliament will come out in front to prevent public opinion [from] falling into that trap.
Deputy Williams Dávila added that the parliamentarians denounced the petro, asserting that the government only wants “to evade financial sanctions, openly violating the Constitution, and legitimizing illicit transactions.”
[Image: congress-meeting.png]National Assembly meeting.
The Petro Stalled Just Before Launch
[Image: maduro-1-300x230.png]Nicolas Maduro.
The creation of Venezuela’s national cryptocurrency was first announced by Maduro in early December, as news.Bitcoin.com reported. Since then, he has assigned over 5 billion barrels of crude oil to back this new currency as well as securing miners for it. On Friday, he moved forward with the order to issue 100 million petros and promised to release its whitepaper on January 14. According to Maduro’s plan, “The petro’s price is initially to be pegged to the value of Venezuela’s basket of oil and fuel exports, which last week closed at $59.07,” Reuters described.
However, legislators warned investors that even if this new currency successfully launches, it would be seen as null and void when Maduro is no longer in office. The president is up for re-election this year.
Furthermore, some doubt that the petro would be a real cryptocurrency. Venezuelan legislator Jorge Millan was quoted by the publication:
Quote:
Quote:This is not a cryptocurrency; this is a forward sale of Venezuelan oil…It is tailor-made for corruption.
Following the National Assembly’s announcement, Maduro “called on the people to actively repudiate” the Assembly’s decision to declare the petro illegal, Prensa Latina reported.
According to Reuters, “Maduro has routinely ignored the legislature since his party lost control of it in 2016.”

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  President Maduro: Venezuela to Issue First 100 Million Petros
Posted by: admin - 01-08-2018, 09:04 AM - Forum: News From Cryptocurrency Market - No Replies

[Image: 725_Ly9jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdl...5qcGc=.jpg]
News
Venezuelan President Maduro has ordered the issuance of the first 100 mln Petros, an oil-backed national cryptocurrency. He also indicated that each Petro would have the value of a single barrel of oil. He said:

Quote:“I’ve ordered the issue of 100 million Petros, based on national wealth. Each Petro will have the value of a barrel of Venezuela’s oil.”
The first national meeting of Petro miners will occur on January 14, along with the publication of the whitepaper. The announcement is in line with the previous statements from Maduro that the country would issue an oil-backed cryptocurrency.
The country’s massive hyperinflation problems have led to widespread lack of trust in the national currency, the Bolivar. This has caused much of the population with access to appropriate technology to pursue Bitcoin as a means of stable transactions - called ‘Bitcoinization’ by some economists.
Other countries including Zimbabwe have also seen widespread Bitcoin adoption in the face of financial instability.

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