While many crypto investors are keeping an anxious eye on the blockchain bubble, there is another area of concern that they should also be watching: the regulatory front. Even now, state and national governments around the world are stepping up their efforts to bring some sense of regulatory order to the cryptocurrency ecosystem. And while it’s true that digital currencies were originally developed as a way of getting around invasive financial controls, there should be little doubt that the industry must eventually make peace with the idea of sound regulation if it wants to ever achieve true mass acceptance and adoption.
Despite the GDAX exchange’s announced decision to honor all trades that occurred during the Wednesday flash crash, many of the exchange customers who lost money during that event will apparently see the value of their holdings restored. GDAX vice president Adam White made the announcement in a Friday blog post, and explained how the company intends to ease those customers’ pain.
According to reports on the Chinese government’s official web portal, gov.cn, the Chan Cheng District in Foshan City is ground-zero for a blockchain trial designed to test the technology’s usefulness for streamlining public services. The District, located in Guangdong province, will be testing an innovative platform that the Chinese are calling Intelligent Multifunctional Identity (IMI). The system will reportedly provide a more efficient way for residents to authenticate their identities and official information without filling out forms each time they need a new government service.
In a blog post published on Thursday, Blockchain CEO Peter Smith announced that the startup raised $40 million in its most recent round of funding. That Series B total is significantly higher than the company’s 2014 Series A result of $30.5 million, and was described by Smith as “the most substantial investment in the fintech space since Brexit” and “the largest Series B raised by any digital currency company to date.”
A flash crash on the Coinbase-owned GDAX cryptocurrency exchange caused the price of Ethereum to plummet Wednesday afternoon, temporarily erasing almost all of the coin’s value. The digital currency’s price fell to about 10 cents before it began to recover, during a wild bout of automated trading that resulted in substantial losses for many investors. GDAX VP Adam White addressed the trading activity in a blog post yesterday: