The Strategist

Goldman Sachs to Invest in Bitcoins

04/30/2015 - 16:36

April 29, it became known that Circle Internet Financial company specializing in Bitcoins may receive an investment of $ 50 million from US bank Goldman Sachs. If companies manage to agree, Goldman Sachs will become the first major bank to go for such a significant investment in a company specializing in Bitcoins. On Tuesday, the US-Bitcoin Exchange Coinbase launched the first exchange outside the US - in the UK.

On Wednesday, the US company Circle Internet Financial, specializing in operations in Bitcoins, said that they are close to getting an investment of $ 50 million from US bank Goldman Sachs and the Chinese company IDG Capital Partners. Thus, Goldman Sachs could be the first of the major banks, which will make a substantial investment in a company specializing in Bitcoins. Startup Circle was founded in 2013, it allows users to store, send and receive Bitcoins. In the same statement, the company said that now its customers also can to make transactions in US dollars and will be able to, even not having a Bitcoin account, pay vendors using the cryptocurrency.

Goldman Sachs is not the first of the major companies interested in cryptocurrency. In mid-April, Samsung Research America Center stated about beginning to scrutinize Bitcoin technology. The company, in particular, is interested in the principle of storage, built on a chain of data blocks confirmation.

On Tuesday, the US-Bitcoin Exchange Coinbase opened its own stock exchange and Bitcoin wallet in the UK. Now, British users can convert Bitcoins not only in dollars but pounds sterling as well. Coinbase was established in 2012, this is a Bitcoin wallet, which enables users to trade using Bitcoin. In January of this year, Coinbase announced the launch of the first US-controlled Bitcoin Exchange. It managed to obtain a license from US regulators to work in 24 US states, including New York and California. The establishment of such licensed stock exchanges can enhance users' confidence in Bitcoins, which has been undermined by the collapse of Mt.Gox cryptocurrency Exchange, which declared bankruptcy in February last year after about 850 thousand bitcoins were stolen from its accounts. what is about $ 400 million, as well as other scandals with Bitcoins. The British market is the first launched Coinbase outside the US, despite the fact that the company’s Bitcoin wallet operates in 24 countries. The UK authorities are inclined to Bitcoin too: in February the Bank of England has published a report that compared the cryptocurrency with the Internet, which at one time had radically changed our lives. In this regard, the Bank of England is considering creating its own digital currency similar to Bitcoin.
With the growing popularity of virtual currency, Bitcoin market begins to attract more attention of international regulators. In September 2013, US federal authorities confirmed their intention to extend rules to combat money laundering that apply to ordinary rates to transactions with Bitcoin, and in November, following the hearing in the Senate, Bitcoins were found legal means of exchange. In Germany, Bitcoins are classified as private money, that is a unit of account, which means that the sale of Bitcoin is subject to value added tax, and any profits from transactions with Bitcoin - the income tax. In Norway, cryptocurrency is recognized as an asset exchange, taxable capital gains.

However, in some countries, financial institutions are barred from transactions with Bitcoin. I.e., in early December 2013, the People's Bank of China has banned the country's financial institutions from conducting transactions with cryptocurrency fearing that Bitcoin’s anonymity will play into the hands of criminals involved in drug trafficking, money laundering and other illegal transactions. Central Bank of Russia on January 29 announced that all operations with Bitcoin entities will be considered as potentially suspicious.