VISA and Mastercard Increase Fees for Crypto

Buying cryptocurrency on any crypto exchange using a credit card will cost 10% more
06 February 2018   1129

Last week investors started noticing additional fees on their bank statements. Both Mastercard and VISA decided to change the way cryptocurrency purchases are processed on their networks.

Most people who purchase cryptocurrency using a credit or debit card were charged the standard 4% transaction fee. From now on customers will have to pay additional 5% fee to a credit card provider as well as 4% service fee to the exchange.

At the moment, transactions to purchase any cryptocurrency are considered  as a “cash advance” rather than a “purchase.”

Moreover, cash advances do not fall under the standard interest-free grace period that consumers expect for other credit card purchases. Cryptocurrency transactions are accrued and compounded daily. The interest rate is also higher for cash advances forming 25.99 % in one case.

This means that charges applied to any crypto purchase using a credit card will equal 10% plus interest.

By reclassifying crypto exchanges, VISA and Mastercard intend to complicate investing in cryptocurrency.

Miners Arrested in 2 Chinese Cities For Power Theft

Six people were detained in Tianjin and two in Wuhan
25 April 2018   58

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.