CoinLab files formal complaint in Federal Court against Mt. Gox

Julia Dixon on May 4, 2013

Last November Mt. Gox and CoinLab, a small US based Bitcoin exchange, entered into an agreement “to service the Bitcoin exchange market in a mutually beneficial manner”. According to CoinLab’s formal complaint, the agreement allowed CoinLab an exclusive license in North America to use Mt. Gox’s software in providing exchange services, in return CoinLab would provide the Japan based Mt. Gox with access to its US banking relationships.

CoinLab alleges that Mt. Gox failed to uphold their end of the bargain and is requesting damages for breach of contract.

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Banks too scared to work with Bitcoin businesses

Julia Dixon on April 24, 2013

What was an incident now appears to be a trend. Banks are refusing to work with Bitcoin businesses…It would seem out of fear.  In the latest example TransferWise, a business that offers low fee international money transfers, has announced that they will no longer be processing transfers to Bitcoin exchanges as their banking providers are “not comfortable with Bitcoin”.

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Mt.Gox fighting Bitcoin price manipulation

Julia Dixon on April 23, 2013

As Mt.Gox is by far the largest Bitcoin exchange the USD price listed on the site is the unofficial Bitcoin price.  With such market concentration Mt.Gox is the obvious first choice for any attempt at market manipulation.

Anyone following Bitcoin will be well aware of the constant DDoS attacks that the exchange has been subject to, but ComputerWorld is reporting that Bitcoin’s Mt.Gox price is also being influenced traders who use the sites trading software to submit large quantities of trades for very small fractions of bitcoins.

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TradeHill planning Argentinian Bitcoin exchange as locals continue to struggle with severe capital controls

Julia Dixon on April 18, 2013

Argentinian’s are increasing looking for monetary alternatives as the country’s high inflation rate has brought on tough capital controls. Argentinian’s are banned from buying dollars, are subject to a 20% tax on foreign credit card purchases and restrictions on owning and valuing foreign assets. The country’s official inflation rate is 10.6%, but many estimates have the rate much higher, around 26%.

The Bitcoin market in Argentina is small but expanding (having doubled since February) and TradeHill, the recently resurrected Bitcoin exchange, is betting that the digital currency will take off in Argentina.

In an interview last week TradeHill founder Jered Kenna said that “Argentina possibly has the most demand I’ve seen out of Latin America for Bitcoins,” adding that his business has been talking to local banks and is planning a local office.

Libertarian Party now accepting Bitcoin donations

Julia Dixon on April 14, 2013

Libertarian_LogoThe party’s website states…

“Many Libertarians have begun using Bitcoin, a decentralized digital currency. The Libertarian Party is now equipped to accept Bitcoin donations through the services of BitPay. Although BitPay cannot currently handle automatic recurring monthly donations, you may donate through this system as often as you wish.”