BTC China Accepting Bank Deposits Again 

Emily Spaven (@emilyspaven) | Published on January 30, 2014 at 13:32 GMT | BTC China, Exchanges,

Prominent Chinese bitcoin exchange BTC China is now accepting customer deposits via its corporate bank account, plus offering small prizes to its customers.
Bobby Lee, CEO of the exchange, confirmed that customers can now buy bitcoins from the exchange by depositing their funds directly into the company’s account.
“Previously, we judged doing this as not being viable, however, we have since changed our stance. We looked again at the guidance issued in December and we think it’s a reasonable for us to accept customer deposits via our corporate bank account,” said Lee.
He went on to say BTC China now believes the main message in the memo issued by the People’s Bank of China (PBOC) on 5^th December was that banks in the country aren’t allowed to set up or become a bitcoin business.
The memo stated that people in China are permitted to buy and sell bitcoins and stressed that that bitcoin exchanges should register with the Ministry of Industry and Technology (MIIT). Lee said:

“The fact the PBOC said exchanges need to register with MIIT essentially means it recognises exchanges as a business category and BTC China as a legitimate business.”

He explained there’s the potential the central bank and/or the Chinese government could “change the rules of the game”, enforcing stricter policies, but for now he is confident his company is not doing anything wrong.
BTC China has not experienced an upturn in trading volume since the company reinstated direct deposits, this could be because the move has not been publicised, but Lee puts it down to other factors.

BTC China is now accepting direct bank deposits. Image via imgur.

“Volumes in China have been down since December. A lot of the people we have spoken to have stopped trading, they’ve cashed out, so activity has calmed down a lot. Volume is certainly going to be low for the next few days because we’re going through a Chinese New year period,” he explained.
Lee said BTC China decided to take advantage of the current lull in interest in order to make sure the new deposit procedure runs smoothly.

$165 promotion

BTC China has also launched a promotion to bring awareness to its Maker-Taker programme and reward its customers.
Maker-Taker is a system whereby those posting multiple buy/sell offers and increase liquidity in the market (“makers”) are paid a fee, whereas those who take the offers and remove market liquidity (the “takers”) are charged a fee of 0.3%.

 

BTC China has given over 3.1m RMB to market makers

Until 15^th February, company is giving 1,000 RMB ($165) to one maker and one taker every time the amount rebated to makers exceeds 100,000 RMB.
“The prizes go to the maker and the taker who push the rebate threshold over the next 100,000 mark. We have already given out over 3m RMB in rebates and given prizes to 62 winners,” Lee explained.
He went on to say BTC China’s domestic competitors charge 0% commission, but he believes Maker-Taker is a more compelling deal. Lee said:

“Obviously if you’re a taker, to go and buy and sell bitcoin actively, you have to pay a small commission, however, the reason you pay for that is access to the liquidity and the depth of our order book.”

Because of this model and the depth of the order book, BTC China states customers can easily buy and sell tens of thousands of bitcoins without moving the market.
“We’re not trying to be different for the sake of being different. We’re trying to be innovative and benefit bitcoin in China. The Maker-Taker method accomplishes two things – it brings more market depth and more liquidity to the site, plus it reduces volatility, which makes for a healthier for market for bitcoin in China,” Lee concluded.
What do you make of BTC’s new promotion and the Maker-Taker model in general?
Chinese money image via Flickr.

Head of Russia’s Largest Bank Backs Bitcoin, Again

Nermin Hajdarbegovic | Published on January 26, 2014 at 15:33 GMT | Europe, News, Regulation

Sberbank may not be a household name in the west, but it just happens to be the third-largest bank in Europe.

It’s also the biggest bank in Russia and Eastern Europe, with nearly half a trillion dollars in assets and a workforce of 300,000.

The bank is owned by the Central Bank of Russia and it is headed by German Gref, who served as the Russian Minister of Economic and Trade from 2000 to 2007. Gref’s tenure was marked by a period of economic reform and liberalization. Judging by his recent statements, he is still open minded when it comes to monetary issues.

Protecting bitcoin?

This news follows comments Gref made about the currency back in December. Speaking in an interview at the sidelines of the World Economic Forumin Davos, Gref voiced his support for digital currencies.

“It’s a very interesting global experiment that breaks the paradigm of currency issuance.”

He added that he had already made his opinion heard in government circles, by sending letters to the central bank, the finance ministry and to the very top, the Kremlin. In the letters, Gref asked officials to intervene with parliament in order to avert any bans against digital currencies, reports Bloomberg.

He said an outright ban would be a “colossal mistake”, adding: “It definitely shouldn’t be banned, it must be studied and maybe regulated properly”.

Colleagues aren’t convinced

Although Gref sees an opportunity in digital currencies, many fellow bankers would beg to differ. JPMorgan Chase CEO Jamie Dimon told reporters at Davos that the rise of bitcoin will prompt governments to clamp down and treat it like any other payment system.

VTB Group is Russia’s second-largest lender and its CEO Anrei Kostin doesn’t share Gref’s enthusiasm, either. He described digital currencies as “quite dangerous” for the money market and stated that VTB Group doesn’t plan on getting involved.

“Our monetary authorities are only now formulating their opinion about this,” he said.

Russia’s ultimate plan

Last week, a set of amendments introduced in the Russian parliament caused a fair amount of FUD (fear, uncertainty and doubt) in the bitcoin community, as it wasmisinterpreted as potential bitcoin ban. Russian regulators are of course keeping a close eye on digital currencies, as are their counterparts across the world. However, they have not taken any noteworthy action against the proliferation of digital currencies in Russia.

President of the Russian Electronic Money Association Viktor Dostov told Bloomberg that it is still unclear how Russia would regulate digital currencies. He stated that the only point of control would be an exchange centre where bitcoins would be traded for money. However, we are not sure whether Dostov is advocating the creation of a centralised exchange on a national level, or simply referring to independent bitcoin exchanges. It is a case of lost in translation.

In any case, Gref’s statements should go a long way toward reassuring bitcoin investors and enthusiasts in Russia and CIS member states for that matter.

It is also interesting to note that in a recent interview with CNN, Russian Prime Minister Dmitry Medvedev admitted the country’s economy is slowing down, but pointed out that his government is gradually transforming Russia into a knowledge-based economy and introducing 21st century technology into various industries.

Whether or not Russia is ready to embrace 21st century payment systems and alternative currencies remains to be seen.

regulationRussiaSberbank

Richard Branson: 6 Bitcoin Customers Confirmed for Virgin Galactic Space Flight

Emily Spaven (@emilyspaven) | Published on January 24, 2014 at 17:30 GMT | Companies, Investors, News

Billionaire entrepreneur Sir Richard Branson has revealed a handful of people have paid in bitcoin for their place on board the Virgin Galactic spaceship.
Back in November, Branson announced his commercial space flight venture Virgin Galactic was to accept payment in bitcoins and, just two months later, “six or seven” people have already paid for their tickets in the digital currency.
Earlier this month, Virgin Galactic took its SpaceShipTwo on its third test flight, with the craft reaching 71,000 feet – its highest yet.
SpaceShipTwo is a consumer-ready vehicle designed to fly to the edge of space. It is partly based on the technology of SpaceShipOne, the craft that completed the first manned private spaceflight in 2004.

Sir Richard Branson

Advocate

Branson told CNBC he was very interested in bitcoin, but shouldn’t be considered its number one advocate.
“What I’m saying is we have a spaceship company and if people have made a lot of money out of bitcoin … we’ll accept their money and send them to space,” he added. 
Speaking in Davos, Switzerland, the entrepreneur revealed he has invested some of his own money in bitcoin, however he is not 100% convinced bitcoin will be the cryptocurrency that succeeds over all others. He said:

“I think there will be a global currency that will take on [J.P. Morgan CEO] Jamie Dimon and the other banks and other currencies. That will be the future. I suspect that if it isn’t bitcoin, someone else like Square will … come up with that currency.”

Branson’s comments follow an interview between CNBC and Dimon, in which the CEO said JPMorgan would be unlikely to have much to do with bitcoin.
“The question isn’t whether we accept it. The question is do we even participate [with] people who facilitate bitcoin?” he said.

Exciting opportunity

Branson, on the other hand, is much more open to the idea of a new, dominant currency. He deems the idea of a new global currency “very exciting” and said, in his CNBC interview, he supports the use of a currency that doesn’t require large fees and charges to move around.
“Whoever is behind bitcoin is brilliant – it’s a brilliant first step,” he added.
Branson was later asked who he believed to be the most instrumental person in the world of business over the past 25 years.
“I personally think Larry Page from Google, and obviously Sergey [Brin] who has worked very closely with him. They’ve created a formidable company. They’ve transformed the world in many ways,” he replied.
Richard Branson image via Prometheus72 / Shutterstock.com

Richard BransonVirgin Galactic