Bitcoin rate fluctuations due to cyberattacks

Cyberattacks have big effect on Bitcoin's exchange rate 
28 June 2017   567
Bitcoin

Is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen.

There is a big drawdown at the crypto-exchange markets since the beginning of the week. Some currencies lost about 20%, even Bitcoin's rate declined. At the same time, new ransomware called "Petya" copies the behavior of WannCry. Virus locks PCs and demands 300$ in Bitcoin for unlock. 

WannaCry attack in May and it's Bitcoin request spread panic all over the world. Also, it showed that a lot of institutes and big companies use outdated software, for example, British National Health Service used unsupported Windows XP.

Victims want to get their files back. New users are forced to create wallets. The number of injections in Bitcoin will increase. More money, more willing to buy - above the price. More active users - network utility increases. It is the same as in May, when in a short period of time Bitcoin not only regained its positions, but also overcame the highs.

As mentioned above, it is drawdown now. So buying a cryptocurrency is profitable. Bitcoin now is good for long-term investments. But it will also affect short-term deposits. Some experts talk that Petya, as WannCry, is used for speculations.

wannacry map spreadWannaCry Spread Map

Large amount of WannaCry attacks drew enough fiat money to Bitcoin, so, this theory has a right to exist. Hackers can use it to earn money on exchange rate fluctuations.

 

On these charts, you can see the Bitcoin's exchange rate before and during the May's attack. 

German Financial Regulator Clarifies Stance on ICOs

The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has clarified its position on ICOs
22 February 2018   32

German financial regulator admitted it was receiving many inquiries about the status of tokens and cryptocurrencies. According to an advisory letter, BaFin provides some basic definitions of ICOs and related terms. It is important because the results of a new survey showed that more than two-thirds of Germans know about bitcoin.

In this letter, BaFin educates the public and explains how tokens are typically generated, how blockchain works and that ICOs are used to raise funds for startup projects. The note states that for regulatory purposes, ICOs, tokens, coins, and cryptocurrencies are subject to the existing provisions in the field of securities supervision and other relevant national and EU laws.

The authority advises participants in ICOs to check and follow rules applicable to regulated financial instruments, such as securities. If businesses or individuals have any doubts about regulations, they should approach BaFin.

According to BaFin, companies should fulfill any obligations under the Banking Act and the Capital Investment Code, the Insurance Supervision Act and the Payment Services Supervision Act. The transactions may be prohibited if relevant regulatory requirements are not met.

The authority also states that legal classification of tokens requires precise examination. It will determine their status on a case-by-case basis after studying their features. The token should be transferable and tradable on cryptocurrency trading platforms in order to be classified as a security.