The U.S. Congress has yet to deliver any uniform or actionable policy regarding Bitcoin and other cryptocurrencies. But with threats involving virtual currencies gaining national attention and supporters pushing for favorable legislation, the soon-to-be elected 114th Congress may not be able to ignore the new tech.
Another Bitcoin exchange has been embroiled in alleged fraudulent activity, with this incident potentially diverting more than $1 million worth of bitcoins into the hands of a CEO turned scammer (or vice versa).
Several agencies from multiple countries--including the U.K., Germany and Portugal--banded together in April to form a group called Illegal Trade on Online Marketplaces (IOTM), and it has already identified virtual currencies as a main support for Internet-based black markets, according to CoinDesk.
The JPMorgan hack, which compromised 83 million customer accounts, highlights the underlying weaknesses of a centralized banking system, writes CryptocoinNews.com.
With threats like ISIS on the rise, representatives from the U.S. Special Operations Command recently joined bitcoin advocates and business leaders to discuss the potential dangers of virtual currency.
The email address previously used by Bitcoin creator Satoshi Nakamoto appears to have been infiltrated by one or more hackers. The intruders made threats to release personal information about Nakamoto if a ransom was not met, but they have gone silent since the initial communications and the address is now shut down, according to an article at Forbes.
Russian lawmakers will likely ban the use of Bitcoin as legal tender by the end of their current parliament session as a precaution against funding for terrorism, organized crime and other illicit activities, according to a report from Russia Today.
Many Bitcoin enthusiasts believe the function behind the new tech is already superior to fiat currencies, and the reasons virtual currencies haven't taken over the world yet are perception based. Wences Cesares, CEO of Bitcoin security startup Xapo, says the technology needs broad international acceptance before it can be taken seriously, and organizations like his are pushing the message.
Startup Sound Wallet allows users of any kind of cryptocurrency to store their access codes on vinyl records or CDs, converting the keys to their digital fortune into an audio file, according to an article from CoinDesk.
For all of the notable security incidents involving companies dealing with Bitcoin and its variations, the technology behind cryptocurrency has been intriguing enough for investors and developers to take note. The infrastructure behind Bitcoin is innovative and flexible enough to be applied to other applications, such as securing the global payments system, according to FireEye founder Ashar Aziz.