Day: July 25, 2017

LedgerX has received full approval from the US Commodity Futures Trading Commission to be a DCO

People who are looking for a way to anonymize their bitcoins often have to go through various hoops. In most cases, the easiest way to do so is by using a cryptocurrency mixer. It now appears Bitmixer.io, the world’s largest Bitcoin mixer, will cease operations. It is unclear if this has anything to do with Bitmixer being linked to AlphaBay users.

Curtain Call for the Popular Bitmixer.io

This news comes as quite a surprise to the entire cryptocurrency community. BitMixer.io has been around for many years now as they are one of the few trusted mixing service providers. The company was designed in such a way it could provide all Bitcoin users with additional privacy, even though the popular cryptocurrency clearly lacked such traits. It has taken some years, but the Bitmixer team finally realizes this is done by design, rather than a flaw that needs to be addressed.

Moreover, mixing services have gotten a very bad reputation over the past few years. They are often seen as a facilitator for criminal activity on the internet, mainly through the darknet. Once popular darknet marketplace AlphaBay even redirected users to BitMixer if they wanted to remove any taint from their bitcoins before making a transaction on the platform.It is possible this “link” may have caused law enforcement officials to dig deeper into BitMixer and who is behind this service.

The shutdown of this popular mixing service has been announced on Bitcointalk. Even though the company is turning a healthy profit – which is to be expected – as mixers do not operate free of charge, the service will be shut down immediately. Something clearly spooked the operators, although no one knows for sure what is going on exactly. Bitcoin doesn’t need darknet transactions to be wildly successful, that much is evident. There are still other mixing services in operation, though.

In our interview with Bitmixer’s owner back in 2015, he mentioned that Bitmixer processed over 65,000 btc in one month. If that is indeed correct, that influx of users will have to move somewhere, and the alternative mixers may see a rise in volume. Otherwise, if users start using an alternative cryptocurrency such as Monero or Dash, those altcoins may see a rise in price as a result.

What is rather intriguing is how the BitMixer administrator acknowledges how other currencies are better suited for darknet transactions. Both Dash and ZCash have inherent privacy and anonymity traits which are most beneficial when conducting illegal business online. Bitcoin was never designed to be used in this capacity, even though no one can argue the darknet has done wonders for the popularity of Bitcoin, even if it is for the wrong reasons. It will be interesting to see whether or not the BitMixer shutdown affects darknet markets in the coming months.

So far, the Bitcointalk community is not too pleased with this decision, which is understandable. Having fewer mixers to go around, this entire ‘business” of removing taint from coins will become more centralized. That could prove to be a big problem moving forward. Moreover, there are very few mixers people actively trust right now, which will cause some issues in the future. Then again, the BitMixer team is also free to shut down their service whenever they want.

It does not appear someone will take over the platform or run the source code whatsoever, though. Nor does it appear the business will be sold to anyone else, which is somewhat of a strange decision. Then again, it seems the operator has had a change of heart and feels Bitcoin is now on course to become a legal currency in many countries over the next few years. The only way that can be achieved is without mixing services. Additionally, it is possible future versions of Bitcoin may offer more privacy, although that has not been officially confirmed by any of the developers so far.

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New Hampshire House Bill 436 is slated to take effect next week on August 1st. The bill exempts bitcoin from regulatory action and prevents New Hampshire bitcoin businesses from having to register as a money transmitter. The bill flies in the face of previous New Hampshire regulation that targeted bitcoin for harsh regulation. The bill was signed by New Hampshire governor John Sununu on June 2. 

Also read: Suspension Lifted: Japanese Exchanges and Merchants Resume Bitcoin Services

Bitcoin.com wrote about the bill back in June, saying, “The bill provides bitcoin with clear protection from debilitating and Orwellian regulations. The bill states that anyone who uses a “virtual currency” is exempt from having to register as a money transmitter. This is important news for a State that vouches for being one of the freest places to live in the U.S. ”

Freedom Mentality in New Hampshire; Divided Politicians

Previously in New Hampshire, a bill was introduced that added bitcoin to the money transmitter status. As a bill that reduced people’s economic freedom, this piece of legislation came as sort of an embarrassment to local activists. However, it appears the activists and politicians who supported it simply were not prepared. Ian Freeman, writing for Free Keene, expressed this view:

How did this happen in a state with the largest concentration of bitcoin enthusiasts per capita? Honestly, we were caught off-guard, but now that’s all changed. In 2016 a state house committee to study cryptocurrency was formed, whose meetings I attended and video recorded…This is further proof of the effectiveness of the active, growing libertarian migration to New Hampshire, many of whom are bitcoin/crypto enthusiasts.

Even though HB436 is now being passed with enthusiasm and joy across most of the State, not everyone in government agreed with the bill. The House of Representatives and Senate in New Hampshire were divided. Their decision was based on a 185 to 170 vote. Allegedly, several bankers and New Hampshire officials spoke against the bill, saying it would impede their jobs, making it more difficult to detect fraud and apprehend criminals.

Is a deregulated Bitcoin a good thing? Do you think other States will follow the example set by New Hampshire? Let us know in the comments section below.

Images courtesy of Shutterstock

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In the past couple of days, Bitcoin value has shot up to nearly 28% in reaction to the much-feared cryptocurrency split being averted. On July 20, the value had touched $3,000, which is a tremendous increase in value and it indicates the powerful influence of the impending August 1 SegWit activation. Earlier in the week, … Continue reading CEX.IO and SegWit Activation: What users can expect

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