PNC Bank Threatens to Close Customer's Account for Buying Bitcoin

The PNC bank recently threatened one of their customers for purchasing bitcoin. The bank wanted to shut down the customer's account. This has been a story floating around the internet the last few days. The victim was Elitoohey. He elaborated on the situation in a Reddit post, saying the bank started by asking him questions about recent bitcoin purchases. 

"For What Purpose are You Buying Bitcoin?"

The banker wanted to know why he was purchasing bitcoin. The bank PNC Bank Threatens to Close Customer's Account for Buying Bitcoinseemed to be concerned about him buying and owning the digital currency. They goaded him about his purchase and pried into his business.

Toohey said, "He asked me to confirm a couple transactions then asked, 'For what purpose are you buying Bitcoin?' (he saw Coinbase and Xapo transactions). I told him I wouldn't answer, he then asked 'What are you going to do with the Bitcoin?' I again told him I wouldn't answer."

The conversation escalated to the level of threats.

"Exit the Relationship"

The banker went on to tell Toohey that their security team would "exit the relationship" with him if he did not provide them with information. Under their threats and pressure, Toohey relented. He provided them with information, because he appears to not want to close his account and change banks.

I relented and told him "for investment purposes" hoping to avoid needing to switch banks. He said he thinks that might satisfy them but that PNC Bank wants nothing to do with Bitcoin.

The Story Emerges as Influential Bankers Voice Concerns

This story crops up as more news emerges of bankers and well known investorsPNC Bank Threatens to Close Customer's Account for Buying Bitcoin voice concerns about bitcoin and cryptocurrency. They are usually calling it a fraud as with the case of Jamie Dimon, or talking about how it is a bubble ready to pop in the case of Ray Dalio.

However, since some people in the cryptocurrency ecosystem believe bitcoin will undermine banks, it seems logical that bankers are pushing back against the technology.

The Chinese government will likely resume cryptocurrency trading in the upcoming months with necessary Know Your Customer (KYC) and Anti-Money Laundering (AML) systems in place.

Earlier this week, Xinhua, the state-owned news publication of China, revealed that the Chinese government is concerned with criminal activities surrounding cryptocurrencies such as bitcoin. It emphasized that cryptocurrencies have become the "top choice" for underground economies and revealed that the government will take appropriate measures to regulate the market by implementing a licensing program and strict AML systems.

Why the Ban on Chinese Exchanges is Not Beneficial for the Government

Last month, the Chinese government, the People's Bank of China (PBoC), and local financial regulators imposed a nationwide ban on cryptocurrency exchanges. Consequently, the price of bitcoin fell to $3,000 and the cryptocurrency market endured a major correction.

Since then, the global cryptocurrency exchange market has restructured as the majority of trading volumes from China moved to neighboring markets such as Japan and South Korea. More to that, the Japanese government officially authorized 11 cryptocurrency exchanges in the same month, providing an efficient and well-regulated ecosystem for Chinese traders. As a result, the bitcoin price has recovered and has remained above the $4,000 margin.

But, the Chinese government's ban on cryptocurrency exchanges also led to the increasing trading volumes of over-the-counter (OTC) markets and peer-to-peer trading platforms such as LocalBitcoins. For the Chinese government, such trend is a major concern in terms of KYC and AML policies because traders are now able to exchange cryptocurrencies and trade the Chinese yuan without the control and the involvement of Chinese authorities.

Previously, when regulated Chinese cryptocurrency trading platforms such as BTCC, OKCoin, and Huobi were around, the overwhelming majority of cryptocurrency trades were overseen by the PBoC through KYC and AML systems adopted by businesses within the Chinese cryptocurrency exchange market. Today, it is not possible for the Chinese government to regulate cryptocurrency trades because they are being processed and settled in markets that are outside the reach of the local authorities.

Licensing Program Similar to That of Japan Likely

Xinhua noted that the government is considering the possibility of licensing and record-keeping cryptocurrency trades, as local sources including CnLedger have shared. CnLedger, a trusted source of cryptocurrency news in China, stated:

"Xinhua News, official press agency of CN: Virtual currencies have become the top choices of underground economies. We shall adopt '0-tolerance policies' towards crimes hidden underneath and take measures such as record-keeping, licensing, AML processes, real-name, limiting large transactions."

In order for the government to adopt a zero-tolerance policy on cryptocurrency-based criminal activities, it needs to have infrastructures in place that can allow the government to oversee payments and disclose the identities of cryptocurrency users. Without KYC and AML systems, as seen in trading platforms like LocalBitcoins and other OTC markets, it is virtually impossible to execute a zero-tolerance policy on cryptocurrency crimes.

As Xinhua suggested, it is definitely possible that the cryptocurrency exchange ban in China is only temporary until the Chinese government releases a stricter record-keeping, licensing, and AML policies for trading platforms.

Also, as experts and executives at overseas exchange markets such as Hong Kong revealed, the ban on cryptocurrency exchanges have not stopped Chinese investors from buying and investing in cryptocurrencies.

"The ban did not stop them [Chinese investors] from buying cryptocurrencies. In the last few weeks, we have seen a lot of mainland customers opening up accounts at TideBit. They still want to play the game. I see a growing need in that they will come to Hong Kong or Singapore to buy cryptocurrency," said Terence Tsang, chief operating officer at TideiSun, the parent company of TideBit.

Eleven Japanese bitcoin exchanges have been granted approval to operate under the country's new financial services regulations.

Though home to one of the most infamous events in cryptocurrency history — the collapse of bitcoin exchange Mt. Gox — Japan has largely embraced cryptocurrency, and regulators have stated a desire to promote "sound market development."

To that end, Reuters reports that Japan's Financial Services Agency (FSA) has announced that it has approved 11 domestic bitcoin exchanges to operate within the country. Registration with the FSA had become necessary as part of the April bill that recognized bitcoin as legal tender and eliminated the consumption tax on purchases at bitcoin exchanges.

In the months following this legalization, bitcoin adoption has surged within Japan, and the country has become a central hub for Asia's crypto-economy in the wake of China's ICO and bitcoin exchange ban.

Now that bitcoin is recognized as a legal payment method, cryptocurrency exchanges are subject to increased security guidelines, including segregating funds in customer accounts, verifying customer identities to combat money-laundering, and having adequate systems and policies in place to prevent cyber attacks. The FSA has also stated it will put bitcoin exchanges under "full surveillance," which may include on-site inspections.

Notably, bitFlyer–whose BTC/JPY trading pair regularly ranks as one of bitcoin's top three highest trading volumes–was one of the exchanges licensed during this first round of approval.

Quoine, another cryptocurrency exchange to receive licensure, issued a statement saying they will continue to work with regulators to promote the "healthy development of the cryptocurrency industry within Japan."

The world of cryptocurrency once more welcomes the latest addition to the crowdfunding platform and perhaps the most efficient blockchain project support so far; Swarm Fund. Swarm Fund, is a new cryptocurrency that makes traditionally exclusive investment opportunities in private equity possible. The process works by pooling smaller investments to larger while also incorporating institutional-sized blocks. Swarm Fund, a fully decentralized capital market, creates possibilities for investors seeking access to a new asset class of institutional type investments. This system is designed to avoid internal hype cycles that have traditionally failed to deliver any real value while at the same time making the rich even richer.

So what's with all the hype around Swarm Fund? For starters, it goes well beyond traditional initial coin offering by carrying the following advantages: Compared to typical ICO offerings where there is no governance whatsoever, Swarm Fund operates on a Liquid Democracy Model which means, the token holders get to choose board members. Swarm Fund offers sub-tokens that are backed by existing and highly profitable subfunds that hold real assets with real value. The Swarm Fund system is designed to be versatile, allowing full regulatory compliance in numerous jurisdictions. The pathway between the private and public blockchain tokens is additionally designed to be "KYC" and anti-money laundering compliant. This ensures due diligence in its operations. Since Swarm Fund's inception, cryptocurrency investors have realized and come to appreciate the versatility and functionality that tokenization has introduced.

So What makes Swarm Fund Unique?

Interested investors buy or sell tokens at will while retaining the final word o how long to engage. Transactions are strictly made using blockchain technology, which makes them that much faster, transparent and secure. Swarm Fund has managed 10 Billion dollars in portfolios and platforms built to handle more than 25 Billion dollars worth of monthly deal flow. This is evidence enough that Swarm Fund technology in cooperation with the blockchain model will be a vital tool in industries such as real estate and manufacturing in the coming years.

The Swarm style has two layers. The primary layer is a software token which permits get admission to to the underlying subtokens and grants get admission to to the Swarm’s governance generation. The second one layer comprises the various monetary alternatives run via the Swarm syndication companions and made conceivable thru their very own packages and tokens at the SUN (Swarm Application Community).





The usage of Swarm Services and products and Utility layers occurs at the Swarm Application Community (SUN). Individuals of SUN can be charged charges, very similar to the ones of a buying and selling marketplace (SUN Charges). Those charges will to begin with be denominated in cryptocurrency, specifically ETH or BTC, however later additionally in SWARM tokens.

SUN tokens can also be customized to every challenge. As soon as the Swarm community clears manner for a brand new software to be established, contributors of SUN can unlock their very own tokens (SUN Tokens) for his or her software, towards which they are able to elevate their very own software liquidity, in the end in each crypto and fiat finances. SUN tokens can evolve into other variations in accordance with more moderen options or governance constructions.

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Five Different Development Teams Are Working With the Bitcoin Cash Project

Bitcoin Cash Network Continues to Grow With an Ambitious RoadmapAs the blockchain's days continue, BCH developers have been revealing the upcoming plans to improve the cryptocurrency's protocol. Discussions revolving around bitcoin cash development shows the protocol's programmers have a very ambitious roadmap for the digital currency's future. This includes a deep focus on on-chain scaling, and not fearing hard forks down the road in order to upgrade the BCH software. Currently, there are five development teams who say they are working with the BCH project, which include developers from Bitcoin ABC, Unlimited, Nchain, XT, and Classic.

Bitcoin Cash Developers Don't Fear Hard Forks

At the moment there are lots of ideas being tossed around like a malleability fix without the  additions Segregated Witness adds, and a different difficulty adjustment algorithm. To push these new ideas forward, some BCH developers are not afraid to hard fork the network occasionally.   

Bitcoin Cash Network Continues to Grow With an Ambitious Roadmap

"If we want to scale big we'll have to do a hard fork from time to time," explains developer Amaury Séchet

"If we want to scale big we'll have to do a hard fork from time to time," explains Bitcoin ABC developer Amaury Séchet recent developers mailing list post. "Longer term, we may want to use extension point to add new features, but we are not there yet — more on extension points later on."

Séchet and many other developers have been discussing quite a few different concepts regarding the future of Bitcoin Cash. The lead Bitcoin ABC developer Séchet mentions a new Merkle tree format and improving light client security with UTXO commitments. Other developers would also like to work on non-consensus changes to improve and make the BCH network more reliable. Development discussions have also revolved around how a hard fork should be coordinated and combining multiple changes in a consensus change.

Bitmain's Jihan Wu: 'Satoshi Made it Clear That Blocks Would Have to Grow'

Last week the CEO of Bitmain Technologies, Jihan Wu, was interviewed by the Chinese exchange Huobi and discussed the Bitcoin Cash network in great detail. Mr. Wu explains that he believes Satoshi made it clear that blocks would have to grow and hard forks were important to Bitcoin's upgrade process.

"This was already apparent in Satoshi's white paper, emails, and his discussions on bitcoin forums where he expressed similar views," explains Mr. Wu's translated interview.          

Although we are only now starting to realize the potential of cross-chain atomic swaps, there are more advanced solutions in development. The main downside of atomic swaps is that they only support currencies of the same type. SmartBridge, on the other hand, is capable of communicating with blockchains powering different types of cryptocurrencies. Although the technology is far from finished, it warrants a closer look.

Cryptocurrency developers are looking for new ways to exchange value between different blockchains and currencies. So far, these efforts have not resulted in any major changes. Virtually all trades still take place through centralized platforms. These exchanges and service providers are a weak link in the world of decentralized cryptocurrencies. Removing these intermediaries from the equation will not be easy, though.

This is where cross-chain atomic swaps come into the picture. Litecoin developer Charlie Lee is actively developing this concept as we speak. In fact, he completed such an atomic swap between Litecoin and Decred just the other day. While that was a major breakthrough, it is not necessarily the best solution for exchanging cryptocurrencies directly. A SmartBridge would make a lot more sense in this regard, assuming developers are willing to experiment with it.

What the SmartBridge does is effectively connect different blockchains with one another. Every currency making use of this technology will become more powerful and valuable as a result. Additionally, applications developed on any of the supporting blockchains will be able to use all of these coins and currencies without friction. Plus, it can even bring specific altcoin functionality to Bitcoin users in the process if needed. It's a very interesting concept to look forward to, assuming it is implemented in the first place.

No one will be surprised to hear blockchains cannot communicate with one another directly, as they are not built for that purpose whatsoever. However, a small piece of code would certainly make communication between blockchains possible. Blockchain developers will need to integrate a specific data section which is capable of bridging the gap between different blockchains. In its current state of development, this snippet of code poses no harm to blockchains whatsoever.

The one downside to the only working SmartBridge available today is that it needs to go through the ARK blockchain. The ARK project has been focusing on SmartBridge technology for some time now. ARK chain will consequently be the go-to intermediary for all other cryptocurrencies utilizing this concept. That's not necessarily a solution most people will readily use, as the goal is to decentralize anything and everything. Rest assured some developers will come up with ways to avoid reliance on such intermediaries in the future.

All things considered, SmartBridge seems to be more advanced compared to cross-chain atomic swaps. However, both concepts have their advantages and drawbacks, regardless of how you want to look at things. SmartBridge is definitely something to look forward to, as it would make all supported cryptocurrencies more appealing to the masses. It would effectively eliminate competition between coins, as everyone could access the same features on an even playing field. Such a technology will significantly impact the cryptocurrency sector as a whole; that is for sure.

Things are once again looking quite bad for the cryptocurrency sector as a whole. All currencies have taken yet another hit in terms of value, and it does not appear this situation will change over the next few hours. The Bitcoin price lost another 5.58% overnight, although no one knows for sure why this is happening exactly. 

WHAT IS GOING ON WITH THE BITCOIN PRICE?

It is evident the Bitcoin price is still in a very volatile phase right now. Despite some big gains earlier this week, things are slowly heading back in the wrong direction again. Although the Bitcoin price is still holding its own around the US$3,500 mark for the time being, it is evident things may head toward US$3,000 in the coming days. That would be a rather unfortunate turn of events, especially considering there is no valid reason for the Bitcoin price to go down in the first place.

More specifically, the news coming out of China should, in theory, only affect Chinese Bitcoin users. Just because the country's main exchanges are halting trading at the end of October – which is still six weeks away, mind you – doesn't mean Bitcoin itself has suddenly become worthless. Moreover, China only represents 12% of all Bitcoin trading volume, making it a blip on the radar when looking at the bigger picture.

It is true that the Bitcoin price initially relied on Chinese traders first and foremost. However, that situation changed quite a bit when the PBoC introduced new anti-money laundering requirements for all exchanges earlier this year. All companies complied with those demands, even though they were forced to suspend withdrawals for weeks on end. Even then, the Bitcoin price only budged briefly and quickly returned to its original value soon afterward.

It is during times like these that a lot of people forget that Bitcoin is a global cryptocurrency and not a token used by China first and foremost. The situation affecting Chinese Bitcoin exchanges has nothing to do with the Bitcoin protocol whatsoever. Moreover, the rest of the world shouldn't care about what is happening in China, as that country will always do its own thing regardless of what the rest of the world would prefer. This is also not a precedent whatsoever, and it will most likely turn out to be a temporary situation in the end.

If more people kept this information in mind, the Bitcoin price wouldn't be going through another bearish period right now. Unfortunately, it is what we must deal with regardless. With the Bitcoin price losing another 5.38% in value overnight, it is evident things are not evolving in the right direction. Despite US$1.5 billion in 24-hour trading volume, it appears to be a matter of time until the price drops below US$3,500 once again. Whether or not next week will bring any improvement remains to be seen.

What is rather interesting is how the Bitcoin price is still hovering around US$3,000 in China for the time being. This shows that the local users are not giving up on Bitcoin just yet, despite some major selling pressure on OKCoin and Huobi right now. Bitfinex, Bitstamp, and bitFlyer are all generating a lot more volume and value Bitcoin at US$3,500 to US$3,540. There is no reason to push the Bitcoin price down any further whatsoever, as China's trading volume is all but drying up. It is now time for the rest of the world to determine the proper Bitcoin value, without being weighed down by the Chinese government in any noteworthy capacity.