After a summer of doldrums in a tight price range, bitcoin this week broke downward and dipped below $500, before bouncing a little above that mark, its lowest level since May.
A week full of mostly negative developments contributed to the cryptocurrency’s new bearish trend.
The U.S. Consumer Financial Protection Bureau issued an advisory for consumers this week to be aware of potential issues such as “unclear costs, volatile exchange rates, the threat of hacking and scams, and that companies may not offer help or refunds for lost or stolen funds.” And for the first time, the CFPB also said consumers can file complaints with the agency related to virtual currencies.
Then there the ongoing issue with New York state’s proposed “BitLicense.” The recent publication of BitLicense proposals by the New York State Department of Financial Services (NYDFS) concerns the bitcoin community, which is seeking more time to provide recommendations.
Circle CEO Jeremy Allaire told CoinDesk this week that his Boston-based bitcoin startup would block New York customers from using its service should the BitLicense proposal become law.
Many bitcoin businesses would not be able to comply with the complex and technical requirements of the proposed regulation, writes Allaire in a blog post.
“However, as it stands, the BitLicense is likely to have the opposite impact (instead of opening of commercial possibilities) — radically limiting those who can participate in this industry, pushing firms offshore and into sometimes shadier jurisdictions,” the Circle CEO wrote.
New York’s proposal was introduced last month, but since then a growing number of bitcoin’s business leaders have made moves or announced they would formally contest the proposed regulatory framework.