Chinese Caution Banks to simply Say No to Bitcoins as Values Tumble

Chinese Caution Banks to simply Say No to Bitcoins as Values Tumble

As Chinese and Dutch authorities forbade their banks from accepting Bitcoins late last week, the cryptocurrency tumbled in value (Image: Information Week)

It’s almost come to symbolize the war between planned society while the maverick movement away from it, but whatever your views on Bitcoins the world’s best cryptocurrency and far in the news of late the news headlines was not good about them late last week. A stern warning from the central Chinese bank not to deal with the currency caused a tumble that, as of press time, had Bitcoins poised between $731 and $737 in US dollars after several weeks of skyrocketing value hikes that took the digital money from about $60 per Bitcoin last March to more than $1,200 in late November.

Meaningless Currency

The warning arrived following the bank noted that the cryptocurrency does not have any ‘real meaning’, does not have any backing that is legal should not be handled by the Asian country’s banking institutions at all. Also noted & most likely more at the root of the Chinese banking system’s disdain for the money were the current high-profile connection between Bitcoins and money laundering and illegal products procurement, especially on web sites like Silk Road, which had been recently seized and shut down by the FBI, only to reopen a month later ‘under new management.’

Prior to the publicly issued warning, Bitcoins were gaining in appeal with the Chinese as elsewhere where they were mainly traded on exchange web sites like FiatLeak. The authorities that are chinese perhaps not specifically prohibited the money for personal use, but have actually cautioned individuals to keep yourself informed for the risks tangled up in using it.

Nevertheless Has Some Fans, Though

The banking warnings may also be the result of China’s strict controls on capital movement, which authorities set in place to contain extreme Chinese wealth from being able to easily be moved into foreign bank accounts and out of the Chinese regulatory oversight although some mainstream approbation of the digital financial format continues China’s largest mobile phone provider China Telecom even launched a Samsung promotion that could be bought with Bitcoins, as did the Chinese version of Google, Baidu, for firewall service payments. Because Bitcoins are outside of the normal Chinese banking settings, users can buy an enormous sum in Chinese yuan then turn around and convert those into U.S. dollars.

It appears that much of the increase of Bitcoin values throughout the previous year and particularly last month’s seven-fold jump was based on what was regarded as the currency’s potential in the Chinese market; it’s subsequent tumble demonstrably is based on the opposing viewpoint. Because Bitcoins have no value that is inherent are maybe not tied to such a thing like gold, their entire market value is essentially determined by user perceptions.

In only one two-hour time period late last week, Bitcoins plummeted 28 percent in value, and no recovery is seen as of right now.

In markets outside of China, the headlines are at both ends associated with spectrum; Virgin Galactic said recently it would accept the currency for its planned space travel with regular citizens (therefore search for lots of Asians on board) and if you need a Master’s Degree in Digital Currency, you can get one at the University of Nicosia in Cyprus, as well as spend your whole tuition into the cryptocurrency.

The FBI and Dept. of Homeland safety might be offering some courses too, but you’ll probably be taking them from inside your prison cell you being a Bitcoin investor on the newly revamped Silk Road 2.0 if they catch. And the Dutch bank system has a similar view as the Chinese one, noting that should Bitcoins fail or simply disappear online there isn’t any Federal Reserve-type system in position to guarantee your money whatsoever.

Former Golden Nugget Owner Kicked to the Curb by Nevada Regulators

Former Golden Nuggett owner Tim Poster shown here in his more youthful and thinner times probably was not quite this jubilant at their recent certification suitability meeting in Carson City, Nevada (Image: piclookers.com)

UPDATED 18, 2013 december:

It seems like Tim Poster has certainly filed an appeal regarding his suitability that is recent hearing the Nevada Gaming Commission.

Word is the fact that he is gunning for the reversal in his favor (which would still keep him unable to obtain a real gaming license per se) so that they can return to his former position as chief operating officer of the Wynn Las Las vegas Hotel and Casino on the Strip.

The Nevada Attorney General states Poster will need a majority that is simple through the commissioners if he’s to reverse their prior 3-0 vote that occurred on Dec. 4.

He shall have to achieve that with just four of the five commissioners current, as John Moran Jr. will be recused; their son, J.T. Moran III, is acting as one of Poster’s solicitors. Isn’t it ironic.

It’s anticipated that Poster will come back at some of the allegations made for him combatting issues raised that included concealing evidence and a past relationship with strip club owner Rick Rizzolo, who’s alleged to have Mafia connections against him during the lengthy hearing that took place in Carson City; but the former Golden Nugget owner will likely have his work cut out.

Without the suitability designation, Poster can just continue working as a consultant into the video gaming industry.

Ah, the good ol’ days, when having Mafia hookups in online casino winner Vegas had been all you needed to succeed. Those times appear to be long in the rear-view mirror, now the tables have actually turned, as regulators every-where are getting very persnickety about the slightest hint of a semblance of a relationship with anyone shady whenever you want in your past if you happen to be looking for casino licensing now.

Of course, we’ve seen much proof this viewpoint in Massachusetts of belated with their regulatory body, but Nevada commissioners can be in the same way tough whenever they wish to be. And unfortunately for previous Golden Nugget owner and presumably soon-to-be-former Wynn Resorts Ltd. executive Tim Poster, they wanted become at final week’s suitability hearing regarding him getting a casino license.

Of course , as it turned out, Poster’s so-called connections with mob-related figures had been minimal of his problems.

Not Suitable for Much

Mind you, this hearing had been only to determine suitability, not really a real attempt to obtain a Nevada video gaming license per se. And it quickly spiraled right into a pillorying of types for this casino magnate boy that is bad their former ‘friends’.

Specifically, the Nevada commissioners were maybe not too worked up about the 45-year-old Poster’s past interactions with former strip club owner and reported mob affiliate Rick Rizzolo, along with his having allegedly concealed information that is pertinent the commish, along with his alleged sports wagering on the web, or together with his reputed dealings acting as a representative for an unnamed overseas online sports book.

The stockade can be heard by us clanging shut as we write this.

Needless to say, along with these controversial problems to deal with, Nevada Control Board member Terry Johnson said the regulators never also got around to Poster’s alleged tax evasion drama.

You can probably see by now where this really is going.

‘I’m not in benefit of this application,’ stated Board member Shawn Reid as the hearing relocated along. ‘A withdrawal or even a referral back to staff doesn’t get it done for me.’

Ouch.

Not Completely Place Out to Pasture

But there ended up being a slight glimmer of a silver lining on this stormy sky of the meeting: Poster will still be allowed to work in gaming, for as long since it’s in some kind of consulting capacity it doesn’t require licensing that is actual. After all, the Board could have dropped the guillotine and ended his casino career totally with an out-and-out denial.

So, now what?

Well, Poster has got the option to appeal the Board’s decision he has until December 19 to do so but as he’d then need a unanimous vote to overturn last week’s ruling, it seems unlikely he’d submit himself to that level of additional humiliation.

Aka UFC, as well as being co-owner of both Stations Casinos and its online presence, UltimatePoker); and former Wynn Resorts Ltd. exec Marc Schorr, among others besides, Team Poster has probably already left the building; the Carson City meeting showed pretty strong backing from industry luminaries such as Ultimate Gaming chairman Tom Breitling; his business partner Lorenzo Fertitta (whose resume includes dazzling bullet points like owning the Ultimate Fighting Championship. But none of them could save this ship that is sinking whom many would say tossed a unique anchor overboard with previous unsavory actions that were bound in the future to light.

Not only did Poster admit he placed illegal activities bets with offshore (i.e., unregulated) wagering sites, he put the bullet in his own head by the addition of that he hadn’t realized there was anything wrong with doing this. And just to be sure their regulatory death phrase was assured, he also admitted to wagering that is heavy sites that were tied to Pinnacle Sports, whose owners were indicted in brand New York State in 2012 for unlawful online tasks. But wait, it gets worse; some of those indicted were also Wynn and Encore high-rollers during Poster’s tenure being an professional there, which couldn’t have looked good at all. Poster was hoping to reclaim that work by passing the suitability finding; he had a better possibility of becoming president regarding the usa in 2016 once it was asserted that one or more of those whales had placed bets with Poster.

You might think this hearing that is regulatoryn’t have gone any further south after that, however it did. Whenever Board member Johnson queried Poster as to whether or not he thought he had a gambling problem, Poster replied, ‘I haven’t stopped gambling since this happened. I love it. It is something I really do for recreation. Am I a nagging problem gambler? No. Does it cause problems within my life? No.’

Denial is not just a river in Egypt, as the saying goes. Poster admitted to betting $100K on just one single big football weekend, and said Pinnacle still owes him about $800K. We’d recommend perhaps not holding your breathing on ever seeing that money, Mr. Poster. He also acted as a form of sports book go-between for friends and gambling sites, getting what he called ‘rebates’ but what most of us would refer to as ‘kickbacks.’

Control Board Chairman A.G. Burnett who we could only imagine need been stupefied that a man who had worked this extreme up in the industry could possibly be this stupid and naive chided Poster.

‘ At some point, you should have believed to yourself, ‘I shouldn’t be doing this,’ ’ Burnett said.

Even Poster’s attorneys could not conserve him from the gaming firing squad.

‘Tim has made a mistake, an error he admitted to and never shied away from,’ argued lead attorney Mark Clayton. ‘Tim has discovered, and also this is never going to be repeated.’

Actually? Cause it sure doesn’t seem like it.

We’re able to get on, cause there was more, but this is only a soap opera series that is one-hour.