BTC Volatility Won't Hurt CME and CBOE, Moody's Says

Popular rating agency released new bitcoin-related report
15 February 2018   39

Moody's rating agency believes that the launch of futures for Bitcoin by the CME and CBOE is unlikely to affect their credit rating.

Moody's report was approximately two months after the launch of derivatives. In the 11-page document, the agency states that the measures taken by the two trading floors to minimize risks, combined with the early stage of market development, do not allow to consider these risks serious.

To date, the volume of trading in bitcoin futures is small, but CME and Cboe expect to play on the interest of the investment community to the underlying asset. The price of bitcoin is highly volatile, but we do not think that the risks of this market will affect the credit rating of CME and Cboe, given the small volume and strong risk management system used by central counterparties.

Moody's Report

The report provides an overview of the formation of the futures market, as well as the problems that, according to Moody's, restrain its development, including the volatility of the bitcoin price.

Moody's suggests that the requirements of CME and Cboe can be changed along with the growth of bitcoin volatility, while brokers, in particular TD Ameritrade and E * Trade, will have nothing else to do but follow the vector set by the trading floors.

First real-life cryptocurrency robbery reported in Taiwan

Four men stole 5 million Taiwanese dollar worth of Bitcoin, the police has already arrested the suspects
22 February 2018   55

Bitcoin has attracted lots of unwanted attention from hackers and scammers alike. Recently not a week passes without news of an exchange or user being hacked or some company's computers being hijacked to mine cryptocurrency. And now Taiwanese news outlets report first real-life robbery of Bitcoin in their country.

The robbery took place in Taichung, Taiwan's central city. The police reports three men being involved in the robbery itself and one as a planner. Criminals persuaded the victim to meet with them face-to-face under the guise of being interested in buying Bitcoin from him. After the victim showed the robbers the proof of his bitcoins on his phone, the men attacked him and his friend and transferred 18 bitcoins worth 5 million Taiwanese dollar via the phone wallet.

The suspects then forced the unfortunate seller to drink strong local liquor to make everything look like a drunken fight had taken place. The police arrived at the scene after receiving the reports of a fight and found two victims. Two of the offenders had fled, but the third has been arrested at the scene of the crime. He later provided investigation with information about his accomplices. They were arrested soon after.

The police later apprehended the man believed to be the mastermind behind the plan. All this was released in the yesterday's report by the Taiwanese law enforcement and the case is already viewed as “the first domestic case of bitcoin robbery”. The report doesn't mention if the crypto was returned to the rightful owner.

Similar cases has been rumored to happen in the US, but no records are released as of yet. So the unofficial governmental advice is to be more cautious of the buyers requesting face to face meetings in the light of this event.