Ep225: Overstock Regulated ICOs, FireEye Report Fails to Link North Korea to Bitcoin

Overstock launches alternative trading system for exchanging Securities as a Token in the U.S. Ukraine’s Central Bank declares Bitcoin not a currency or means of a payment. Zimbabwe pays more for Bitcoin after the Reserve Bank of Zimbabwe throttles payment processing for locals. European Central Bank claims they lack the authority to regulate or prohibit cryptocurrency. Running a Bitcoin Miner in your home is all the rage in Malta. Japan increases scrutiny over exchanges with a focus on customer protections. John Crudele seems to have no problem writing terrible blog posts. FireEye Threat Research is a bogus report that provides zero evidence of North Korea holding, mining, or hacking bitcoin. CoinDesk manufactures controversy regarding Ethereum mining. The Gentleman’s Guide to Forum Spies is a good primer for understanding the social manipulation at play. Elgin Air Force Base features tax payer funded social media manipulation. With Chinese tyrants cracking down on crypto exchanges more people are resorting to peer-to-peer trading. Announcing NeoWare Apparel — fine crypto themed apparel and accessories.

We’ve written out short overviews of the topics discussed on today’s show below! Be sure to listen in to the whole podcast to get more information, insights, and thoughts on each of them from Pedro and JJ!

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Traditional Financial Markets Cryptocurrency Markets
Gold $1,296 Bitcoin (BTC) $4,168
Silver $16.94 Ethereum (ETH) $304
Oil $55.50 DASH $347
Dow Jones 22,340 points Litecoin (LTC) $55.76
30Y UST Yield 2.76% Bitcoin Cash (BCH) $454

Regulated ICOs Arrive: Overstock to open exchange for legal token trading


Announced today, tØ, the capital markets arm of Overstock‘s blockchain-focused subsidiary Medici, is launching a first-of-its-kind alternative trading system (ATS) that will provide a platform for the exchange of cryptographic tokens categorized in the U.S. as securities.

A joint venture with RenGen (a fintech firm that will serve as the market maker) and Argon Group (an investment bank specializing in ICO capital raising), the ATS will be regulated by both the SEC and the Financial Industry Regulatory Authority (FINRA).

In short, the ATS will offer a legally approved, regulated alternative to a major securities exchange, such as the New York Stock Exchange and Nasdaq.

As such, the platform may be seen as a major step forward for the token space. Simply put, there are currently no other regulator-approved ways for U.S. investors to trade security tokens.

Patrick Byrne, CEO of Overstock.com, told CoinDesk:

“I think it’s a historic event. We’re opening a new type of capital market.”

Crypto is not a Currency According to Ukraine’s Central Bank

According to an official from the National Bank of Ukraine, “We can say that this is definitely not a currency, because there is no central issuer. And we cannot recognize this as a means of payment.” He also added that cryptocurrencies are susceptible to fraud. The NBU is developing a framework for regulation of crypto.

Zimbabwe Bitcoin Price Soars

The Reserve Bank of Zimbabwe has set a priority for payment processing leaving many without a way to make payments. The priority list puts offshore credit cards and payments for services in Zimbabwe at the bottom. Many companies and individuals are having issues getting payments transferred. Banks are starting to create new policies for accounts that limit online and international payments. The response has been a premium on the price of Bitcoin of 85% more than other parts of the world. While others are paying $3900 for Bitcoin, folks in Zimbabwe were paying as much as $7200.

EU Central Bank Lacks Authority To Regulate, Prohibit Cryptocurrency


President Mario Draghi of the European Central Bank (ECB) has said that the body he leads lacks the authority to regulate or prohibit bitcoin and other digital currencies.

He made the comment during a Q&A session following a speech he delivered to the European Parliament’s Committee on Economic and Monetary Affairs, in response to a question on whether the ECB intends to regulate or ban cryptocurrencies.

Draghi explained that while the ECB has yet to formally discuss the topic, he anticipates that the major issues to consider will be the scale, extent of use, and economic impact of cryptocurrency, adding that the ECB’s top concern around the technology has to do with cybersecurity.

Bitcoin Miners for Malta

The IT company 3 Group in Malta is selling 10 to 30 Bitcoin ASIC miners a week. The miners are installed in the home of the buyer and produce about .005 BTC per day. What’s more the 3 Group has recently offered Bitcoin miners a debit card that is linked to the wallet their mining rewards go into. Miners in Malta can save or spend their mined coins right away!

Japan Increases Exchange Monitoring

Home to the infamous Mt.Gox and recently legalized cryptocurrencies, Japanese regulators are putting cryptocurrency exchanges under the microscope. Some of the key points focus on customer protections. Regulators are looking for policies and procedures that protect customer assets, separate customer deposits from companies funds, and for each exchange to register with the country’s FInancial Services Agency.

John Crudele Makes False Statements Regarding Bitcoin and North Korea

In this poorly written piece John manages to plant falsehoods in 4 out of 5 sentences. 80% of this “article” is false. There is no evidence that North Korea is using Bitcoin.

This brings us to a recent article that has been the source of much of the news regarding North Korea and Bitcoin. This blog post from FireEye.com is all conjecture and ‘we believe’ statements. There is not one link to any factual evidence that supports the idea that North Korea is hacking bitcoin exchanges, mining bitcoin, or even holding bitcoin. The blog post is categorized as ‘Threat Research’ when it is really just a source blog post for numerous mainstream media outlets to put forth a narrative that links Bitcoin to North Korea.

CoinDesk Looks to Manufacture Controversy regarding Ethereum

Complete with a sensational headline, Coindesk’s article is all smoke no heat. This sort of reporting has become much more commonplace recently. This same tactic was used to exaggerate the divide regarding the bitcoin blocksize increase – it’s called ‘Consensus Cracking’. Check out the Gentleman’s Guide to Forum Spies for more information on the tactics used to control the narrative.

This brings us to the story of Elgin Air Force Base, home to professional internet trolls! Prior to being redacted reddit posted a geographical breakdown of the reddit visits and the number one most-addicted city was Elgin Air Force Base, Florida. American Tax dollars are hard at work manipulating social media and the Air Force Personnel at Elgin AFB are just doing what their ordered. Let me just spell this out a little more clearly: American military members are being paid to manipulate American social media.

A Crack In the Great Wall: The Return Of OTC Cryptocurrency Trade in China


This week, over-the-counter (OTC) trade in Chinese yuan reached an all-time high on LocalBitcoins, demonstrating how peer-to-peer economies continue to overcome heavy-handed institutions.

As Chinese authorities renew their assault on cryptocurrency, there remains one major loophole for ravenous traders. To date, (OTC) cryptocurrency trade remains legal – and ostensibly unrestricted. Even while Chinese authorities force the country’s largest virtual currency exchanges to end domestic trade, the people’s republic of crypto cannot be stopped. As exemplified by the high yuan volume on LocalBitcoins, OTC trade is the people’s salvation. The peer-to-peer platform is emblematic of bitcoin itself, as citizens have bypassed government to transact with one another directly.

Announcing: NeoWare Apparel

NeoWare Apparel aims to make fine crypto-themed clothing and accessories! Is there a certain coin or token you want to see designs for? Email neowareapparel@gmail.com

An Important Disclaimer

We would like to remind you that any content on the Neocash Radio podcast and/or website should not be regarded as financial or legal advice. Please be mindful of any and all regulations regarding cryptocurrency in your particular jurisdiction. Never invest/gamble more than you are willing to lose and always safeguard any digital currencies you own by keeping them in a wallet whose private keys you control.

Contact Us
JJ – jj@neocashradio.com
Co-Founder, Producer, Managing Director

Darren – Darren@neocashradio.com
Co-Founder, Technical Writer

Pedro – pedro@neocashradio.com
Ethereum and Crypto-mining Expert

Randy – randy@neocashradio.com
Former Co-host and Cool Dude

Tips Appreciated!

BTC Address: 1MmFwDeZPgxJ4GyzbfmZVLJv3aZcpxSfR5
ETH Address: 0xe4689EF88F239C6eed1Ff262876e2499495c1617
DASH Address: XtLEPo6DKeu45e2czdHLEb5EzJRVDz2aLZ
NXT Address: NXT-TT49-WV65-HZJA-5EJF9
BCH Address: 173ADKUvvRcSmb9tnKiYAMQAoB6RhsgQQd

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