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

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

It’s very nearly come to symbolize the war between arranged society as well as the maverick movement away from it, but whatever your views on Bitcoins the earth’s most popular cryptocurrency and much within the news of late the news headlines ended up being 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 came after the bank noted that the cryptocurrency does not have any ‘real meaning’, lacks any backing that is legal should not be managed by the Asian country’s banking institutions at all. Also noted and most likely more at the base of the banking that is chinese’s disdain for the money were the recent high-profile connection between Bitcoins and money laundering and illegal products procurement, specially on sites like Silk Road, which ended up being recently seized and shut down by the FBI, just to reopen a month later ‘under new management.’

Prior to the publicly issued warning, Bitcoins were gaining in popularity with the Chinese as elsewhere where they were primarily traded on exchange sites like FiatLeak. The authorities that are chinese not especially prohibited the funds for personal use, but have cautioned people to keep yourself informed regarding the risks involved with using it.

Still Has Some Fans, Though

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

It appears that a lot of the rise of Bitcoin values on the previous year and particularly last month’s seven-fold jump was based on what was regarded as the currency’s potential into the Chinese market; it’s subsequent tumble demonstrably is situated on the opposite viewpoint. Because Bitcoins have no inherent value and are perhaps not linked with anything like gold, their whole market value is essentially determined by individual perceptions.

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

In areas outside of China, the news headlines reaches both ends associated with spectrum; Virgin Galactic said recently it would accept the currency for the planned space travel with regular citizens (therefore look for lots of Asians agreeable) and if you want a Master’s Degree in Digital Currency, you can get one at the University of Nicosia in Cyprus, and even spend your complete tuition within the cryptocurrency.

The FBI and Dept. of Homeland protection might be offering some courses too, but you’ll likely be taking them from within your prison cell when they catch you being a Bitcoin investor on the newly revamped Silk Road 2.0. And the banking that is dutch requires 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 place to guarantee your money whatsoever.

Former Golden Nugget Owner Kicked to the Curb by Nevada Regulators

Previous Golden Nuggett owner Tim Poster shown here in his more youthful and thinner days probably wasn’t quite this jubilant at winner casino app download his licensing that is recent suitability in Carson City, Nevada (Image:

UPDATED December 18, 2013:

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

Word is he is gunning for the reversal in his favor (which would nevertheless keep him unable to obtain a genuine gaming permit per se) to ensure he can get back to his former position as chief running officer of the Wynn Las Vegas Hotel and Casino on the Strip.

The Nevada Attorney General says Poster will need a majority that is simple from the commissioners if he is to reverse their prior 3-0 vote that happened on Dec. 4.

He will have to achieve that with simply four of the five commissioners present, as John Moran Jr. will be recused; his son, J.T. Moran III, is acting as one of Poster’s attorneys. Isn’t it ironic.

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

Without the suitability designation, Poster can just continue being employed as a consultant in the video gaming industry.

Ah, the good ol’ days, when having Mafia hookups in Vegas had been all you needed to succeed. Those times seem to be very long in the rear-view mirror, now the tables have turned, as regulators every-where are getting very persnickety about the slightest hint of the semblance of the relationship with anyone shady at any time in your past in the event that you happen to be searching for casino licensing now.

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

Of program , as it turned out, Poster’s alleged connections with mob-related figures were minimal of his problems.

Not Suitable for Much

Mind you, this hearing had been just to find out suitability, not an attempt that is actual get a Nevada video gaming license per se. And it quickly spiraled in to a pillorying of kinds for this casino magnate bad boy and their former ‘friends’.

Specifically, the Nevada commissioners were maybe not too stoked up about the 45-year-old Poster’s past interactions with former strip club owner and reported mob affiliate Rick Rizzolo, together with having allegedly concealed pertinent information from the commish, with his so-called sports wagering on line, or together with his reputed dealings acting as an agent for an unnamed offshore online sports book.

We could hear the stockade clanging shut as we write this.

Of course, with all these controversial dilemmas to deal with, Nevada Control Board member Terry Johnson said the regulators never ever also got around to Poster’s alleged tax evasion drama.

You can probably see by now where this will be going.

‘I’m not in benefit of this application,’ stated Board member Shawn Reid as the hearing moved along. ‘A withdrawal or perhaps a recommendation back to staff doesn’t take action for me.’


Not Totally Put Out to Pasture

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

Therefore, now exactly what?

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

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 state tossed its very own anchor overboard with previous unsavory actions that had been bound in the future to light.

Not just did Poster admit he placed unlawful activities bets with overseas (i.e., unregulated) wagering sites, he place the bullet in his own head with the addition of that he hadn’t realized there was any such thing wrong with doing so. And just to ensure their regulatory death sentence was guaranteed, he additionally admitted to hefty wagering on sites that had been tied to Pinnacle Sports, whoever owners had been indicted in brand New York State in 2012 for unlawful Web activities. But wait, it gets worse; some of these indicted were also Wynn and Encore high-rollers during Poster’s tenure as an executive there, which couldn’t have appeared good at all. Poster was hoping to reclaim that work by passing the suitability finding; he had a better possibility of becoming president for the United States in 2016 once it had been asserted that at least one of those whales had placed wagers with Poster.

You might think this regulatory hearing couldn’t have gone any further south after that, but it did. When Board member Johnson queried Poster as to whether or otherwise not he thought a gambling was had by him problem, Poster replied, ‘I haven’t stopped gambling since this happened. I like it. It’s something I really do for recreation. Am we a nagging problem gambler? No. Does it cause problems in my life? No.’

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

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

‘ At some true point, you should have said to yourself, ‘I shouldn’t be carrying this out,’ ’ Burnett said.

Even Poster’s attorneys could not save your self him from the gaming firing squad.

‘Tim has produced mistake, a mistake he admitted to and never shied away from,’ argued lead attorney Mark Clayton. ‘Tim has discovered, and this is never going to be duplicated.’

Really? Cause it certain doesn’t seem like it.

We could go on, cause there was more, but this is only an one-hour soap opera series.