Swiss financial regulator: a risk Factor for the cryptocurrency investment is 800%

Management to oversee the operations of the financial market Switzerland (FINMA) informally signaled that the risk ratio for cryptocurrency investments should amount to 800%. The Agency announced this figure in a letter dated 15 October in response to the Association request EXPERTsuisse, consisting of experts in the field of tax and audit activities.

In his letter to FINMA also said that the relevant legal provisions are not yet valid, therefore, banks and other stakeholders are often required to clarify this issue.

“FINMA recently received many inquiries from banks and securities dealers, which owns positions in cryptocurrency assets, and subject to requirements on capital adequacy, risk allocation and legal regulations on the calculation of ratios short-term liquidity” —quoted by Swissinfo representatives of FINMA.

In Switzerland, for several years there has been a formal integration of cryptocurrency products and banking sector, this European country is trying to create a legal environment that can support the development and operation of new financial instruments. At the same time, until the international Basel Committee on banking supervision develops all acts and laws necessary to regulate this area, FINMA can only give approximate figures.

However, the final decision may be announced at the end of November, when is the next meeting of the Basel Committee. Therefore:

“All scriptactive must assign an overall risk ratio of 800% to cover market and credit risks, regardless of where hold positions in the banking or trading assets,” — said in a letter to FINMA.

According to several sources, comment on the situation, 800% is a big figure, but it is within the allowable range. For example, the startup SEBA, which in September drew 103 million dollars to create cryptocurrency Bank of Switzerland, said:

“This recommendation will have limited impact on its business model. Nice to see that the banks no longer look away from the increased number of clients requiring services associated with cryptocurrencies, and ask for advice and do your own contribution,” said a spokesman for lobby group Bitcoin Association Switzerland.

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Bitcoin-kit resulted in the movement of assets associated with Silk Road. It’s a $800 000 000

Recently unknown bitcoin whale moved more than 111 000 bitcoins and Bitcoin Cash in more than 80 wallets, each of whom received 1000 BTC. In 2014, these funds were scattered in numerous locations for 100 BTC.

This move, first noticed by users of social networks, includes assets that were originally derived from known addresses in the ecosystem of cryptocurrencies — 1933phfhK3ZgFQNLGSDXvqCn32k2buXY8a. Blockchain data show that the first transaction came from a wallet associated with the operator of Silk Road, known as “Dread Pirate Roberts” (DPR).

Initially, the address received funds July 2, 2011. One of the first transaction refers to another known address, allegedly belonging to Ross Ulbricht. The address was leaked on the Bitcointalk forum in the message, where the Ulbricht, under the alias “altoid” asked for help from the community.

This may mean that the address really belongs to Ross Ulbricht, but the dates of the transactions add up to the puzzle. Ulbricht was arrested on October 2, 2013 because he allegedly manages the account Dread Pirate Roberts, which was directly linked to the now defunct darknet marketplace the Silk Road.

The bitcoin wallet in question (let’s call it 1933) has distributed 111 000 BTC March 9, 2014 —after a long time after the FBI arrested Ulbricht and destroyed the Silk Road. At that time, 1933, they divided funds into 60,000 coins and 30,000 coins and so on until I got 100 coins to the address.

This behavior in the blockchain often means that the owner of the coins used coin mixers, which mixes a transaction with the purpose to confuse the trail.

At the time Ulbricht was in custody, thus the events are consistent with the theory, presented by his lawyer, account Dread Pirate Roberts was not controlled by one person.

March 9, 2014, as mentioned above, when 1933 he spread his 111 000 BTC, the blog of the head of MtGox Mark Karpeles appeared the post from the face of hackers, who accused the leader of the exchange in the lies and deception of the bitcoin community. Hackers have published a link to a 700-megabyte files with copies of databases and reports on work exchange and home address and other personal information of the Karpeles.

Although at first glance this may seem unrelated, but the blockchain Wallet Explorer, Explorer shows that in 1933 worked with “MtGoxandOthers”, i.e., it received funds from the addresses associated with the now defunct cryptocurrency exchange MtGox.

Most likely 1933 has used the exchange for trading bitcoins. Owned if this address is DPR or not, the owner clearly feared for his safety after Mt Gox data was publicly released. The use of coin-mixer would have helped the man behind 1933, safely hide their assets either from hackers or from government agents trying to take over the rest of the bitcoins Silk Road.

Mt Gox at that time was the dominant cryptocurrency exchange. DPR, or any other bitcoin whale, most likely, used it to exchange their cryptocurrency for Fiat.

It is currently unclear why 1933 transferred bitcoins from hundreds of addresses per thousand. The petition for the pardon of Ross Ulbricht has almost collected the required 70,000 signatures, which could mean that he plans to use the funds if you are a free man.

His condition, not counting coins from multiple forks, is nearly $ 1 billion. Again came to the movement 111 114, 61 BTC for upwards of 773 million dollars, and the same amount of BCash — 59,7 million dollars. It is worth noting that, despite the bear market, which led to a record drop from $ 20 000 to $ 7 000, the owner of the wallet 1933 never sold any coins.

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