Bitcoin Weekly Wrap – Virtual Currency Industry Supports Authorization of Regulated Venue

Digital currencies welcomed a new bill drafted by Republican Marc Roberts to promote trade and commerce by accepting Bitcoins, read

BTC/ Source: dcmagnates.comThe world of Bitcoins and digital currencies went through a busy week with both positive and negative news impacting the sector. Among the many stories covered on DC Magnates was news of politicians supporting the use of virtual currencies in the state of Utah, coupled with support from industry participants for the launch of the first authorized trading venue under the CFTC, pending approval.

Accept Bitcoins in Utah, Draft Bill Proposed by Republican Marc Roberts

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A bill drafted by Rep. Marc K. Roberts proposes that Utah accept bitcoin payments for state services. Its first reading in the state legislature took place on Tuesday.

The bill notes how Utah was “founded upon the principles of industry and entrepreneurialism” and that “technological industries, including industries in emerging technologies, play an increasingly important role in Utah’s economy and culture.” Therefore, the state should accept bitcoin, which is “based on the principles of free-market capitalism and is not centrally regulated.”

Practically, the bill says merchants save on transaction fees with bitcoin relative to other payment mechanisms. It also points to the fact that several companies already accept bitcoin for payment, including Utah-based Overstock.com.

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Industry Supports LedgerX’s CFTC Application

Participants in the virtual currency space were supporting LedgerX’s application with the CFTC as it seeks authorization. A number of key players provided comments on the application.The comment period offered by the US Commodity Futures Trading Commission (CFTC) on LedgerX’s application for registration as a Derivatives Clearing Organization and Swap Execution Facility has been extended until February 20.

LedgerX wants to become the first approved facility where physically settled options on bitcoin can be listed and cleared. Last October, the start-up received funding from Lightspeed Venture Partners, Google Ventures and others.

Among notable commenters were BitPay and Circle. Both businesses engage in the exchange of bitcoin for fiat on behalf of their clients, requiring them to maintain a sufficient reserve of bitcoin. Thus, derivative products will help hedge exposure to price volatility and the approval of a registered facility will instill confidence in its users.

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Online Gambles to Benefit from Bitcoin USafe at VGambling

VGambling, an internet gambling company, has partnered with GoCoin to enable Bitcoin, Litecoin and Dogecoin payments.

VGambling, which is publicly traded on the OTC markets, says it “intends to combine “video games” and “Internet gambling” to create and lead a global “online video gambling” (i.e. vgambling) industry. The objectives are to “enhance the player’s entertainment experience” while generating more revenue opportunities for game developers, affiliate marketers and players.

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Virtual Currency Ponzi Scheme MyCoin Could Leave Investors in the Lurch

Investors in the MyCoin Ponzi scheme are unlikely to get much of their money back, based on the latest developments in the case.

The company disappeared with possibly as much as HK$3 billion ($390 million) of investor funds. Whatever remained of them has reportedly been transferred by one of the company’s directors to an account in the British Virgin Islands.

Unlike in the Bernie Madoff case, authorities in a Ponzi scheme involving bitcoins may return empty-handed. The laws of the blockchain do not grant any more power to police than to criminals.

At least 30 investors filed reports with police, with more likely on the way. The company had previously claimed 3,000 clientele, a figure that has yet to be verified.

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