Digital Currency Derivatives Exchanges Prepare for Regulation after CFTC Bitcoin Ruling

Bitcoin Magazine
Digital Currency Derivatives Exchanges Prepare for Regulation after CFTC Bitcoin Ruling

Only a week after ruling that bitcoin and other digital currencies are commodities, the U.S. Commodity Futures Trading Commission (CFTC) announced on Thursday that they have settled charges filed against TeraExchange LLC (Tera) for arranging a “non-deliverable forward contract” last October.

Neither of the parties entering the trade were looking to profit off of future bitcoin price changes, but rather to test Tera’s network. However, Tera subsequently released a press release that indicated the pre-arranged swap was a real trade, which would violate both the Swap Execution Facility (SEF) Core Principles found in the Commodity Exchange Act and CFTC regulations.

This was the first charge filed by the CFTC against a bitcoin exchange following last week’s announcement, which gave the CFTC jurisdiction over online bitcoin exchange and derivative markets.

Other digital currency platforms that offer similar services have prepared for this moment. LedgerX applied for both an SEF and Derivatives Clearing Organization license last year but has received only a temporary SEF registration at this point.

In a statement released September 10th, CEO Paul Chao said, “[LedgerX does] not intend to launch with only [an] SEF license… Only with both SEF and DCO licenses from the CFTC can we clear and physically deliver the underlying commodity, offer an order-book trading venue, and attract institutional traders.”

LedgerX has even contracted Ancoa, a surveillance technology provider in order to identify “manipulative behaviors and suspicious trading practices” on the LedgerX platform, according to a statement released earlier this year.

While this type of regulation might seem counterintuitive, as it forces exchanges to push back release dates, industry players welcome the oversight. In a private interview, Alt-Options co-founder Marco Cuesta conveyed that “[the CFTC’s] regulation does positively impact the bitcoin derivative market, since its purpose is to protect clients and their assets. As regulation for the Bitcoin derivative market becomes more aligned with that of traditional financial markets, there should be wider adoption, which is good for the industry.”



Image via CFTC

The post Digital Currency Derivatives Exchanges Prepare for Regulation after CFTC Bitcoin Ruling appeared first on Bitcoin Magazine.

Bitcoin Hardware Wallet KeepKey Launches and Begins Shipping

In a rare move in the Bitcoin space, KeepKey has simultaneously begun to take orders for and to ship their flagship bitcoin hardware wallet. As of Wednesday, customers are able to purchase the USB device for USD$239 on Amazon, or directly from the KeepKey website using bitcoin. Worldwide shipping is included in the cost.

The KeepKey hardware wallet is designed to store and secure bitcoin while protecting them from virtual attacks such as malware and viruses. The device generates and stores bitcoin private keys, never sharing them with the connected computer. Another key feature is a large OLED screen that displays every transaction before it can be approved, thus allowing users to verify that they are sending funds to the correct address and reducing the chance of error.

“Our guiding principle is to empower individuals and organizations with bank-grade bitcoin security,” says Darin Stanchfield, the founder of the company. “This is what our device does, and it is simple to use. Other products that are available require a high level of sophistication to operate. With KeepKey, it is very difficult to do the wrong thing,”

KeepKey currently works with Google Chrome using the KeepKey Wallet Extension. It is also supported by popular bitcoin wallets, including Electrum and MultiBit.

“Our security model was designed to ensure that the user always has complete control over their private keys,” said Ken Heutmaker, a software engineer at KeepKey. “We feel that relying on trusted third parties degrades the security and privacy that the bitcoin ecosystem offers.”

As for KeepKey’s decision not to take pre-orders in order to fund the hardware wallet’s development, Stanchfield cites his own personal experience with being “burned” by other companies who have pre-sold items and then not been able to deliver.

“A customer takes enough risk when they buy any product,” Stanchfield said to Bitcoin Magazine. “We don’t think they should assume the risk of funding manufacturing, too. We made this promise to ourselves early on in development of KeepKey. Fortunately, we have had the finances to pursue this route to get KeepKey to market.”

The post Bitcoin Hardware Wallet KeepKey Launches and Begins Shipping appeared first on Bitcoin Magazine.

Press Release: BitStarz Player Lands Record-breaking Win at the Bitcoin Casino

Just a couple weeks ago, one lucky player at BitStarz managed to land the biggest win the casino had ever seen. A few days later, it was time again. A new depositing player won a whopping 95.106 BTC while playing the ever-popular slot Lucky Coin, thus breaking the record again.

BitStarz Casino pays out two record-breaking wins in less than 2 weeks time!

Beginners luck strikes again at BitStarz where yet another new player managed to land an incredible record-breaking win. The player, know by his nickname “badwinner” won an incredible 95 BTC (equivalent of over €20,000) in just one spin, and is thereby the record-holder for the single largest win in BitStarz history!

The win occurred on one of the most popular slot games in the casino, Lucky Coin. The slot itself is a stunning premium slot with an Asian theme, and features a thrilling free spins bonus round combined with a generous multiplier. The generosity of the game was something the player experienced first hand as one of his spins resulted in 5 scatters and a 95 BTC payout. is the leading Bitcoin Casino in Europe, and is offering an extensive range of premium slots and table games from top game providers.

Sasha Jade, marketing manager at BitStarz, had this to say: “Once more we are able to bring much joy to the life of one of our players. What was really surprising was the amount won, which far exceeding our top win, becoming the greatest single win we have had at our casino so far. Our hard work has paid off and we continue to be able to offer a great experience to our users while maintaining the highest quality of services and games.”

BitStarz got in touch with the player right after the big win and needless to say, he was incredibly happy: “I was at a restaurant and when the 5 scatters came I jumped out of my seat! I was blown away! I will use the money to upgrade to a newer car and will print and frame the winning round to have as a trophy on my wall!”



About BitStarz

BitStarz is a well-established casino brand and is pioneering the Bitcoin Casino industry. The company was the first to offer wagering in both Bitcoin and real money and offers more than 550 games in its portfolio. It boasts a gaming license issued from Antillephone N.V., based in Curacao.


For more information, please contact Sasha Jade at

Press contact:

Sasha Jade

Marketing Manager

The post Press Release: BitStarz Player Lands Record-breaking Win at the Bitcoin Casino appeared first on Bitcoin Magazine.