A difficult week for cryptocurrencies, and more specifically for bitcoin.
Bitcoin has been falling steadily throughout the week and this has alerted many scheduled sales to move to other currencies that are rising percentage.
One of the causes was Coinbase the most important exchange company based on bitcoin.
Just four hours after introducing Bitcoin Cash to its platform, Coinbase has suspended transactions in this digital currency due to internal accusations that its employees did insider trading shortly before its official launch on Tuesday, December 19. .
It prohibits its employees from making transactions with information that is not public or sharing it with external people, including friends or relatives, such as when they are adding a new asset, explained Brian Armstrong, co-founder and CEO of Coinbase, in the official blog of the platform, and added:
“All employees and contractors of Coinbase were explicitly prohibited from exchanging Bitcoin Cash and disclosing our launch plans for more than a month. This was communicated several times through multiple channels to employees.”
“I take the confidentiality of material non-public information very seriously as CEO. Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter. If we find evidence of any employee or contractor violating our policies — directly or indirectly — I will not hesitate to terminate the employee immediately and take appropriate legal action.”
On the other hand exchange houses are attacked by hackers and other bad news:
“The exchange, Youbit, announced on its website that it had been hacked at 4.35 a.m. local time on Tuesday and lost 17% of its total assets.
On Wednesday, a group of Australian researchers published a study that found almost half of all transactions in bitcoin were associated with buying and selling illegal goods and services, including drugs, weapons, and pirated software.
Using techniques usually associated with forensic accounting, the group of researchers — led by Talis Putnins, a professor at the University of Technology Sydney — found that the blockchain technology underpinning bitcoin held significant promise for revolutionising many industries.” Business Insider
“The European Commission (EC) is monitoring the elements related to bitcoin and cryptocurrencies and in recent weeks the bitcoin has required more attention,” said the head of Financial Services at a press conference.
Dombrovskis said that “there are clear risks for investors and consumers” associated with price volatility, including “the risk of complete loss of investment, operational and security failures, market manipulation and liability gaps”.
He also insisted that the value of the bitcoin is not guaranteed by any country or issuer, but is determined solely on the basis of supply and demand, so he said that “investors should realize that it can fall at any time” .
“There is only one currency in the eurozone that is the euro and virtual currencies such as bitcoin are not really foreign exchange, as its name might suggest,” he said.
Dombrovskis also announced that he has asked the European financial market supervisory agencies to “urgently” update the warnings they have already issued on these cryptocurrencies.
Cryptocurrency Adviser and Virtual Investments