US Security and Exchange Commission Rejected the idea of Bringing Bitcoin to Market

U.S. Securities and Exchange Commission on Friday denied a request to list what could have been the U.S. fund the first exchange-traded built track Bitcoin digital currency.

Investor Cameron and Tyler Winklevoss have been trying for more than three years to convince the SEC to let it bring Bitcoin ETF market. CBOE Holdings Inc's Bats exchange had applied a list of the ETF.

The price digital currency plunged, falling as much as 18 percent in trading after the ruling before Rebounding. It last traded down 7.8 percent to $ 1,098.

Bitcoin twice, either to a record of almost $ 1,300 this month, higher than the price of an ounce of gold, as investors speculated that the ETF holding digital currency could woo more people to buy property.

Bitcoin is a virtual currency that can be used to move money around the world quickly and with relative anonymity, without the need for central authority, such as a bank or the government.

However Bitcoin offers a new set of risks posed to investors given the limited its adoption, many cybersecurity breaches affecting Bitcoin owners and a lack of consistent treatment and the governments.

"Based on the record before it, the Commission believes that significant Bitcoin markets are unregulated," the SEC said in a statement. "The commission notes that Bitcoin is still relatively early stages of its development and that, over time, if you are within the Bitcoin-related markets may become a significant size."

The regulators have questions about how the funds would work and whether it could be priced and trade successfully, according to a financial industry source familiar with the SEC's thinking.

"We started this journey almost four years ago, and they are determined to see it through," said Tyler Winklevoss, CFO Digital Asset Services LLC. "We agree with the SEC that the regulation and supervision are important to the health of any market safety for all investors."

I Winklevoss twins is better known for their contention Facebook Inc founder Mark Zuckerberg over whether he stole the idea for what became popular global social networking website to them. The former Olympic team finally settled their dispute of the law, which was dramatized in the 2010 film "The Social Network."

Since then they have become major investors digital currency, which relies on "mining" computers validate transactions blocks competing to solve mathematical puzzle. The first to solve the puzzle and clear the transaction is rewarded with new bitcoins. Solutions to puzzle come roughly every 10 minutes.

Advocates of the money and technology it depends on the type of transactions, blockchain, they were dismayed by this decision.

Posted in: Banking