U.S. Based customers will no longer be able to add credit cards as payment options on Coinbase. After JPMorgan Chase, Bank of America, Citi, and Capital One banned credit card payments for cryptocurrency exchanges, Coinbase decided it was best to remove their credit card platform altogether. Debit cards payments will still be supported.
Takeaway:Removing credit card payments from exchanges is a good thing. This prevents users from buying cryptocurrencies with money that they do not have. Unless you have advanced knowledge about a certain coin, you should never buy a cryptocurrency on credit or a margin. This will prevent negative publicity of cryptocurrencies and stories of people defaulting on their credit card payments because of investing in crypto. The downside to this is that it is slightly less convenient for the average Joe to buy a cryptocurrency, but that person may still use debit cards and traditional banking methods to interact with exchanges.
Arizona added terms to the government’s list of definitions. They included Blockchain, Virtual Coin, and Smart Contract, and Virtual Coin Offering. Additionally, they amended an old bill to recognize information and signatures on blockchains and smart contracts under the court of law.
Takeaway:The US government is paving its way towards being able to effectively regulate and tax cryptocurrencies. This is a slow process, which starts with widespread recognition. The government is gradually starting to acknowledge cryptocurrencies and their corresponding blockchain technology. This is a small step towards regulatory policy, which will ultimately be a good thing for cryptocurrencies that require distributed networks and the use of a coin.
Binance temporary shutdown
Binance temporarily shut down for unannounced maintenance on February 7th. What was supposed to be a short maintenance fix turned into a 36-hour shut down. In the meantime, many people were spreading doubts and rumors about Binance saying that it was hacked and that funds were lost. Some even went as far as photoshopping Binance’s logo into a message saying that the exchange was hacked. Fortunately, Binance’s official twitter account and their CEO actively communicated on Twitter to discredit any rumors. No money was lost during the maintenance time, but users were upset that the exchange abruptly shut down. Traders who set precise limits on their buy and sell orders may have been stuck with orders that they wanted to cancel. Binance allowed users to cancel their positions 30 minutes prior to the exchange reopening but 30 minutes is a small window compared to a 36 hour down time.
Takeaway:The Binance team did a great job communicating their problem through twitter with an update every 2 hours, which makes us more confident about the future of Binance. When negative stories hit the headlines, always visit primary sources first on Twitter instead of reading secondary news sources on sites like Reddit. If people read the tweets from Binance and from the CEO of Binance before reading other news sources, there would have been no uncertainty about Binance.
My Ether Wallet Split
The two founders of MyEtherWallet.com split up and subsequently MyCrypto.com was created. For those that do not know, MyEtherWallet is one of the most popular tools to interact with cryptocurrency wallets. Users worried that the split would lead to security breaches, but that was not the case.
Takeaway:A fork in a common tool used for interacting with wallets is unfortunate. Development of such tools may be hindered by this split but as long as no private data was lost (which it wasn’t), it is not a big deal. Using hard wallets for storage will always be the safest way to store your cryptocurrencies. The keys to get into those wallets is not shared with sites like MyEtherWaller nor MyCrypto so no security was breached with this fork.