GETTY Bitcoin graffiti in Russia

FREE now SUBSCRIBE Invalid email Make the most of your money by signing up to our newsletter fornow We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.

Evening UPDATE - Bitcoin technology and international sanctions With a number of G20 countries contemplating how to best regulate the emerging technology associated with cryptocurrencies, a handful of other countries have considered issuing their own virtual currencies. Michael Harris, Director of Financial Crime Compliance at LexisNexis Risk Solutions, spoke to Express.co.uk about how digital currencies can be used to evade international sanctions. Mr Harris believes, so-called “bad actors" could evade international sanctions by exploiting the anonymity of the distributed ledger technology beneath some cryptocurrencies. He said: "This high degree of anonymity makes it possible to transfer huge sums of money across jurisdictional borders without detection. According to Mr Harris, recent reports indicate that Russia is exploring the idea of creating a "‘cryptorouble", which could help evade international sanctions. This would work, according to Mr Harris, because, "virtual exchanges, which allow cryptocurrencies to be transferred between parties and be converted into fiat, i.e. real currencies, are currently not subject to the same regulation as mainstream financial services, so transactions can be anonymous. "A cryptorouble could therefore, in theory, aid Russian entities in avoiding detection by international authorities when transferring funds. "Other state-owned cryptocurrencies, such as Venezuela’s controversial ‘petro’, could also help to overcome sanctions imposed by the United States." Ahead of the forthcoming G20 meeting, Mr Harris says that there’s no doubt that regulatory authorities need to heighten the level of scrutiny on trading in cryptocurrencies, and it is encouraging to see proposed amendments to the Fourth Anti-Money Laundering Directive bringing virtual currency exchanges into scope. He adds: "The government, regulatory authorities and financial services sector must work together to identify any money laundering or sanction busting ‘red flags’ when money is transferred into or out of the crypto-sphere and crack down on this illegal activity.”

GETTY Bitcoin will be on the agenda at the G20 meeting

18.15 - UPDATE - Litecoin leads to surge Iqbal Gandham, UK Managing Director at eToro, one of the UK’s largest cryptocurrency retailers said:“News of backpedalling from South Korea on plans to ban exchanges has bolstered the cryptomarkets today, and Litecoin is no exception. "But the surge can also be explained by reports of the launch of a new payments solution, Litepay. Any news that brings the currency closer to the mainstream is bound to have a positive impact. “Investors are also mindful of next week’s hard fork. "The original coin is expected to split on Sunday evening, giving each Litecoin holder 10 new coins for every one – an obvious motivation for those looking to get involved ahead of time.” 17.21 - UPDATE - Bank of Italy: Bitcoin is a speculative UFO, not a currency Salvatore Rossi, general director of the Bank of Italy said "UFOs" are not currencies, in reference to bitcoin. Rossi recalled that, beyond bitcoin, "it must be kept in mind that high returns are associated with high risks”.

17.14 - UPDATE - Mario Draghi, president of the European Central Bank (ECB) believes bitcoin is not a currency As part of the third Youth Dialogue held by the ECB, Mr Draghi made hsi comments clear on bitcoin when asked about it. He said: "Frankly I would think carefully before investing.” Due to the fact he does not see bitcoin as a currency. He explained how the euro is backed by the ECB and the dollar is backed by the federal reserve. All countries currencies are backed by a central bank or a Government. Bitcoin has no backing. As he said: “Nobody backs the bitcoin.” The second reason in which why he thinks it is not a currency is because of how widely it fluctuates. He said how currencies such as the euro is stable where as bitcoin oscillates widely.

The 10 richest people in Cryptocurrency Wed, February 7, 2018 Cryptocurrency: 10 of the wealthiest people in Cryptocurrency according to Forbes first ever Crypto rich list. Play slideshow Getty 1 of 11 The richest people in Cryptocurrency

16.13 - UPDATE - Bitcoin exchange CEO predicts market will be worth $1trillion this year Bitcoin may be having a bad year but Jesse Powell, CEO of Kraken, a bitcoin exchange predicts the market will be worth $1trillion this year. Mr Powell, thinks this year within the crypto market we will see an “acceleration” of growth as the market value of cryptocurrencies will more than double in 2018. Mr Powell said: “You’ve got a lot more kids graduating from crypto programs at universities now. I think we’re just going to see it continue exponentially from here.” According to CoinMarketCap, Kraken is ranked 8th by trading volume as it trades around $300million over a 24-hour period. The market value of the world’s virtual currencies currently stands at $432billion. 14.10 AFTERNOON HEADLINES Updates below throughout the day.... Bitcoin and cryptocurrencies could soon become mainstream, as regulation is constantly being talked about. Regulation is something bitcoin enthusiasts seem to back as different nations are calling for it. Zeeshan Feroz, Cocibase CEO said: “Regulation is imminent and that’s a good thing.” Bitcoin also seems to be permeating into everyday situations now as cryptocurrencies are now disclosed during divorce talks. Law firm Royds Withy King is acting on three separate high value divorce cases where spouses are seeking the disclosure and a potential share of cryptocurrency assets. Vandana Chitroda, a partner in the family team leading the divorce cases in London said: “Cryptocurrencies have been with us since 2009 when bitcoin was launched but have only recently become an issue for separating couples as awareness, values and media interest have soared.” Still, Juan Zarate a former security advisor to ex-US President George W. Bush has warned that cryptocurrencies make it easier for countries under sanction to circumvent the rules imposed on them. He said: “Actors that are less invested in the global financial commercial system are likely to be more reliant on technologies or techniques that give them asymmetric capabilities to threaten that very system." This comes as President Vladimir Putin has mandated regulation around cryptocurrencies, including registration requirements for miners and the application of securities laws to Initial Coin Offerings (ICO). He has also commissioned a national cryptocurrency cryptoruble. Sergei Glazev, an economic adviser to the Russian leader, told a government meeting the cryptocurrency would serve as a "useful tool" to evade western economic sanctions. Mr Glazev said: "This instrument suits us very well for sensitive activity on behalf of the state. We can settle accounts with our counterparties all over the world with no regard for sanctions."

GETTY A man mining bitcoin in Russia