The value of Bitcoin has bounced $600 after Donald Trump tweeted about it, despite the fact his tweets were rather negative.
The President of the United States of America posted a series of comments on Twitter, surprising many that he actually knew what Bitcoin was. He is not a fan however, stating this categorically and adding that they “are not money” and that their value is “based on thin air”.
His comments come in the midst of a debate on how to regulate Facebook’s recently announced cryptocurrency offering, Libra. Unsurprisingly, many with a lot to lose have spoken out against the proposal, citing regulatory and legal concerns.
For now, it is unknown as to whether Trump’s anti-crypto sentiment is shared by his administration and as a result, would be regulated against. Whilst Libra signals a big step forward for crypto in terms of widespread and mainstream adoption, the lashback has been severe as governments, banks, and government stakeholders have vowed to clips its wings.
$32 million stolen from Bitpoint following hack
Tokyo-based cryptocurrency exchange Bitpoint has frozen all services following a $32 million loss after hackers attacked it this week.
The company that runs the exchange, Remixpoint discovered that over 3.5 billion yen had gone missing in the form of different kinds of cryptocurrency. The hack emerged after an error appeared in the funds transfer system on Thursday evening. This notified staff that funds were missing from the hot wallet which is connected to the internet. The company noted that currency held in cold wallets had not been affected.
This is the latest in a number of large-scale hacks that have become synonymous with cryptocurrency exchanges. Just last year, Japanese exchange Coincheck was hacked with over $500 million in cryptocurrency stolen. In 2017, South Korean exchange youbit was shut down and filed for insolvency after it was the victim of two separate hacks.
Japan is a crypto-friendly country, regardless of the high profile heists. It has also set up a national licensing system to regulate and oversee their use.
US Senate approves Blockchain Promotion Act
On the same day that President Trump openly criticised cryptocurrency on Twitter, the US Senate Committee has approved the Blockchain Promotion Act.
The bill provides a clearer definition for blockchain at a federal level and it also creates a blockchain working group within the Department of Commerce. Members of this working group will be representatives of federal agencies that could potentially adopt the technology in the future, as well as stakeholders from outside the government. They will include vendors, experts service providers, software providers, suppliers, manufacturers, and communications technology experts.
Within one year, this working group must submit a report that will recommend a definition of blockchain to congress.