Digital Currency Weekly Recap 6-5-2016
Bitfinex to Pay US CFTC $75k Fine
In response to a formal complaint from the United States Commodity Futures Trading Commission (CFTC), Bitfinex has offered to pay $75,000 in fines to settle issues surrounding its failure to properly register with the Commission as required by law. The CFTC has reportedly accepted the offer and issued an order detailing the matter. It should be noted that the CFTC review came about as the result of a Bitfinex request from the Hong Kong exchange for guidance from the Commission to ensure that the company was in full compliance with all relevant American laws.
During that review, the Commission’s Department of Enforcement discovered that there were a range of non-compliance concerns that needed to be addressed, including a failure to properly register, non-compliant margin trading facilities, and questions about traders’ access to the currencies they were trading on the exchange. According to CFTC statements on the matter, Bitfinex was cooperative during the investigation as both parties worked together to determine what the exchange needed to do to come into full compliance with the law.
Dashcoin now Added to FXOpen Forex Trading Portfolio
UK-based FXOpen has announced that it is adding Dashcoin (DSH) to its digital currency trading portfolio, as well as the DSH/BTC and ETH/RUB forex trading pairs. The broker is making trades available on both its live accounts and the demo. Dashcoin now joins Bitcoin, Litecoin, Ethercoin, Peercoin, and Namecoin in the group of cryptocurrencies that FXOpen users can trade against a variety of fiat currencies.
Isle of Man’s CoinCorner Wants to Simplify Crypto for the World
CoinCorner, a startup company located on the Bitcoin-friendly Isle of Man, is hoping to change the way consumers and businesses buy, sell, and exchange digital currency, as part of a broader effort to simplify those processes for users and eventually gain greater public acceptance for the technology. Given that only a very small percentage of the world’s population has ever purchased or used even the most popular cryptocurrency, Bitcoin, any successful solution that increases easy access to digital currency is almost certain to benefit the industry in the long-term.
CoinCorner’s solution focuses on a mobile app that enables consumers to purchase, store, and sell Bitcoins in an intuitive way that should help to remove much of the mystique associated with digital currencies. The founders’ own experience with the difficult task of acquiring digital currency inspired their search for a simplified solution that would make it easier for interested individuals to become a part of the cryptocurrency community.
DAO Critics Cite Design Flaws as They Call for Moratorium on Proposals
After an initial flurry of excitement related to the Ethereum blockchain’s Distributed Autonomous Organization (DAO) project, a recent white paper has raised questions about design problems that could potentially corrupt the honest voting process by providing some investors with opportunities to vote strategically in ways that could possibly result in more honest DAO investors seeing their investments “hijacked or committed to proposals against their interest and intent.”
The paper provides a detailed examination of the identified vulnerabilities, and offers potential solutions that could either completely resolve certain concerns or at least mitigate their impact. As for the authors’ recommendations about what needs to be done immediately, there was little left to interpretation:
“We would like to call for a moratorium on proposals to prevent losses to the DAO caused by unintended consequences of its mechanism design. A moratorium would give The DAO time to make security upgrades, and should be lifted only once the DAO is updated.”