Central Bank of Israel Refuses to Recognize Bitcoin

The Deputy Governor of the Bank of Israel spoke at the Knesset Finance Committee on a number of issues related to the phenomenon of cryptocurrencies
09 January 2018   840

The Deputy Governor of the Bank of Israel Nadine Baudot-Trajtenberg revealed on Monday the central bank’s official position on the recognition and regulation of cryptocurrencies. The central bank official also admitted fielding a number of public complaints about banks making it difficult to move fiat money from their accounts to purchase cryptocurrencies while adding it would be difficult to issue regulations for cryptocurrencies.

Bitcoin and similar currencies do not fit the legal definition of a currency or foreign currency. A currency fulfills the functions ascribed to it in the economic literature — a unit of account, a mean of payment, and stability that enables it serve as a store of value. None of these exist with Bitcoin or similar currencies, which are characterized by higher volatility, difficulty in making transactions, and a lack of certainty regarding the parties that stand behind it.

 

Nadine Baudot-Trajtenberg

The Deputy Governor, the Bank of Israel

Addressing customer concerns about using their fiat money to buy cryptocurrencies, she added that banks face compliance risks, particularly when fiat funds swapped into cryptocurrencies may be used to launder money, finance crime and so forth.

Recently, we have reported that the Bank of Israel announced its plans to issue digital currency in order to create a faster payments system as well as reducing the amount of cash in the economy.

US Authorities to Sell $4.3M Worth Seized BTC

As reported, the Bitcoins were seized during different federal investigations
18 October 2018   155

The US Federal Penitentiary and Marshals Service has announced an auction, during which 660 Bitcoins will be sold, previously confiscated by law enforcement agencies. The current market value of the coins put up for sale is about $ 4.3 million, CoinDesk reports.

Bitcoins offered for sale were seized during federal criminal, civil and administrative investigations.

The auction will be held on November 5, and to participate in it, you must register no later than October 31 and make a deposit of $ 200,000.

The trades will be divided into two parts and include the sale of six blocks of 100 BTC and one more block of 60 BTC. Auction participants will not be able to view other people's rates or change their own.

The Office clarified that part of the assets put up for auction includes Bitcoins, which were seized during the recent investigations into the cases of the traders Teresa Tetley and Thomas Mario Costanzo. Teresa Tetley was sentenced in July to a year in prison on charges of trading in cryptocurrency without the necessary license and laundering money obtained from drug trafficking.

The Marshals do not report which part of the bitcoins seized from Tetley and Costanzo is put up for auction, however, it was previously known that 40 BTC were withdrawn from the first, and 80 BTC from the second.

Two previous major auctions for the sale of confiscated bitcoins were held in the United States in January and March of this year. In the first case, 3813 BTC was sold, in the second - 2170 BTC.