Apple will start accepting virtual currency in App Store

Home prices continue to rise, with April recording a 10.5 percent gain over the same month a year ago. Home prices continue to rise, with April recording a 10.5 percent gain over the same month a year ago. Photo: Lynne Sladky, Associated Press Photo: Lynne Sladky, Associated Press Image 1 of / 1 Caption Close Apple will start accepting virtual currency in App Store 1 / 1 Back to Gallery

CURRENCY

New money for App Store

Apple has changed its policy to let software developers include virtual-currency transactions in their applications, paving the way for new forms of money like bitcoin to appear on iPhones and iPads.

While Apple didn't mention bitcoin specifically, its developer terms now allow for certain "approved virtual currencies." Apps that use the digital money must comply with state and federal laws where they're designed to work, the terms say.

The change signals that Apple is warming up to virtual currencies after previously blocking programs like Blockchain.info from its App Store. Bitcoin is the most popular of the digital currencies, which governments are struggling to determine how to regulate because they exist only as software.

"Get ready for a plethora of bitcoin iOS apps!" venture capitalist Adam Draper said in an e-mail. "Very exciting news!"

MBA BY THE BAY: See how an MBA could change your life with SFGATE's interactive directory of Bay Area programs.

Bitcoin operator settles with SEC

The co-owner of two bitcoin-related websites is paying $50,843 to settle federal civil charges that he sold shares in the businesses without registering them as securities offerings.

The Securities and Exchange Commission on Tuesday announced the settlement with Erik Voorhees in connection with soliciting investors to buy shares in the two sites, SatoshiDice and FeedZeBirds. The SEC says investors paid for the shares they bought with bitcoin.

Voorhees, who co-founded a separate bitcoin company, made nearly $16,000 in profit from the unregistered offerings, according to the SEC.

He neither admitted nor denied wrongdoing.

REAL ESTATE

Home prices see small gain

U.S. home prices rose in April compared with a year earlier, but the increase was the smallest annual gain in 14 months. Price gains have slowed this year as sales have faltered.

Data provider CoreLogic said Tuesday that prices rose 10.5 percent in April from 12 months earlier. But that is down from March's 11.1 percent increase and February's 12.2 percent rise.

On a month-to-month basis, April prices rose 2.1 percent. But CoreLogic's monthly figures aren't adjusted for seasonal patterns, such as warmer weather.

Higher mortgage rates, tight credit and a limited supply of homes have slowed the housing recovery. Sales of existing homes rose in April after falling to a 20-month low in March, but were 6.8 percent lower than a year ago.

Prices rose in the 12 months ending in April in every state, CoreLogic said. California led the states with a 15.6 percent gain, followed by Nevada, 14.8; Hawaii, 14.1; Oregon, 11.8; and Michigan, 11.3.

Ninety-five of the 100 largest metro areas reported higher prices in April compared with a year earlier.

VENTURE CAPITAL

Zenefits lands $66.5 million

Less than six months after a sizable fundraising round, cloud-based human resources software company Zenefits has received $66.5 million in additional financing.

Andreessen Horowitz led both rounds of funding in rare back-to-back deals. Zenefits has raised a total of $84 million since the San Francisco company was started a year ago.

Its platform helps businesses manage and automate tasks associated with hiring employees, such as benefits and payroll. The software is free, but the company makes money by acting as an insurance broker.

Zenefits says it is growing by 30 percent each month. It presently works with more than 2,000 companies.

The sector has seen remarkable growth, particularly among companies that provide human resources software, with Pleasanton's Workday leading the pack.

Institutional Venture Partners, SV Angel, Hydrazine Capital, former Twitter executive Elad Gil and actor Jared Leto also participated in the most recent Zenefits funding round.

AUTOMAKERS

Injuries tied to GM recalls

General Motors Co. filed 2,004 reports on injuries and deaths stemming from accidents in cars that have been recalled for ignition-related defects, the Center for Auto Safety said.

The advocacy group, citing its research of the carmaker's reports to regulators, urged an adviser of GM to investigate each incident to determine whether the ignition-switch defect played a role in it.

The center referred to the 2.59 million cars called in for switch repairs.

Musk to remain CEO 4-5 years

Elon Musk reiterated Tuesday that he won't consider stepping down as Tesla's chief executive officer until after volume sales of its third-generation car begin. That wouldn't occur for at least four or five years, he said.

Musk also told shareholders at the company's annual meeting that Tesla won't decide until year end where to build a battery "gigafactory," even as it readies multiple plant sites.

The battery plant will supply low-cost lithium-ion cells for its cars and packs for home-power storage devices. Tesla will soon start preparation for those plants in as many as three states.