Digital Currency Weekly Recap 8-7-2016

digital currency

Digital Currency Weekly Recap 8-7-2016


Gatecoin Exchange Announces Return to Active Trading Mid-August

The Hong Kong exchange Gatecoin has received little attention since a security breach resulted in a suspension of all trading in the middle of May, but that’s about to change. The company has announced its intent to re-launch the exchange and its digital currency on August 17, 2016. The news is certain to be welcomed by Gatecoin customers whose asset holdings were affected by the security hack earlier this year – a breach that resulted in losses totaling an estimated 185,000 Ethers and 250 Bitcoins. According to the company announcement, affected customers will be able to withdraw ten percent of their Ether holdings when the exchange begins operation again. The plan is for the remaining ninety percent to remain unavailable for the time being as the exchange regains liquidity to make those customers whole again.

UKGC Regulators: Digital Currency Acceptable Payment Option for Gambling

The United Kingdom Gambling Commission (UKGC) has reportedly given the green light for gambling licensees to accept digital currencies as payment. The UKGC recognized cryptocurrencies as being cash equivalents for these purposes in the latest released version of the commission’s license conditions and codes of practice (LCCP). The new document recognizes crypto payment options, but also requires licensees to ensure that their accounting and internal policies and processes are designed to decrease the risk of money-laundering and other illegal conduct.

The use of digital currencies in online gambling is, of course, nothing new. Gaming sites that accept Bitcoin have been in and out of operation for almost the entirety of digital currency’s existence, and have proven to be popular among some online gamblers who appreciate the quick and easy signup and payment process. Many sites allow a far greater degree of anonymity when compared to online gaming sites that utilize only government-sanctioned fiat currency.

ShapeShift Ethereum Splitter Tool Unveiled

One of the unforeseen complications arising from the Ethereum decision to execute a hard fork of its blockchain has been a split in the Ethereum community, and confusion among many of its members. As most people in the digital currency universe now know, that hard fork resulted in a division in the community, as those who refused to accept the fork continued to treat the old blockchain as though the fork never happened. This has resulted in a split in the Ether currency as well, as hard fork opponents are now using Ethers that are being called Ethereum Classic (ETC), while fork proponents are focused on Ethereum (ETH).

While that might seem like nothing more than two competing versions of the same cryptocurrency vying for attention, it appears that the dual cryptocurrencies have resulted in some problems where transfers of currency are concerned. Many user addresses reportedly contain balances of both of these coins. When some users have attempted to send either Ethereum or Ethereum Classic, the resulting transfer has reportedly resulted in lost coins on one of the two competing blockchains. ShapeShift has recently released a new Splitter Tool designed to remedy this problem by directing the respective coins to the appropriate “clean” Ethereum of Ethereum Classic address.

Columbian Officials Reportedly Cause Nation’s Crypto Exchange to Cease Operations

After roughly two months of test operations, Columbia’s first digital currency exchange, Colbitex, has announced that it is suspending its operations due to complaints from government officials. In an announcement posted on the exchange’s Facebook page, Colbitex asked its customers to remove their funds from the exchange as the company re-examines the Columbian law and regulatory requirements in an attempt to determine how they can operate without legal complications. The decision was made after the company received an official complaint from the Superintendencia Financiera de Colombia (SFC), which is tasked with monitoring and regulating Columbian financial markets, asserting that digital currencies are not considered legal currency under the nation’s laws.

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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