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

Popular rating agency released new bitcoin-related report
15 February 2018   293

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.

Miners Arrested in 2 Chinese Cities For Power Theft

Six people were detained in Tianjin and two in Wuhan
25 April 2018   91

Bitcoin miners were arrested in two Chinese cities on charges of stealing electricity. This is reported by CoinDesk.

In the first case, 6 people were detained in Tianjin. The suspects used 600 devices for mining bitcoins that were connected to a local substation. The police claim that the connection was made bypassing the counters.

The investigation was initiated after one of the electric power companies discovered a discrepancy between the actual and claimed consumption of electricity.

The police seized all equipment for mining, as well as 8 powerful fans.

Events are taking place while China continues to play a dominant role in the mining of bitcoin, despite the pressure on the cryptocurrencies. As Xinhua notes, this case of electricity theft turned out to be the largest in recent years.

According to another report, which appeared today on the website of the Supreme Prosecutor of China, two more suspects were detained in Wuhan. They also stole electricity.

The detainees used empty stores since March 2017 to house miners and did not pay for electricity, as did the defendants from Tianjin.