Bitreserve Holds your Bitcoins as Fiat

In an attempt to address the price volatility of Bitcoin, Bitreserve recently launched as a Bitcoin storage service that keeps users' funds in the form of fiat. Bitreserve does this by immediately market selling any incoming deposits, essentially locking in the fiat value of the credited funds. Users are entitled to the locked fiat amount in Bitcoin upon withdrawal, thus users may lose or gain BTC due to volatility. Continue reading

LedgerX Thinks Bitcoin is Ready for Options (Again)

New York City startup LedgerX has submitted applications to the U.S. Commodity Futures Trading Commisions (CFTC), to register as a "swap execution facility and derivatives clearing organization." If approved LedgerX would be allowed to list physically-settled digital currency option contracts, particularly Bitcoin denominated contracts. Continue reading

FinCEN: Payment Processors, Others may be Regulated Money Transmitters

FinCEN issued two administrative rulings in regards to "Virtual Currency." The first concerns "exchanges" and supposes they may be regulated as Money Transmitters under the Banking Secrecy Act. The second though supposes that payment processors like BitPay may similarly fall under their purview. This shift comes contrary to the expectations BitPay had disclosed anticipating from FinCEN.

PDFs of the rulings are available here: ruling 1, ruling 2. Extracted plaintext is available below. Continue reading