Bitcoin Update: Week of August 25

As we continue to cover the bitcoin space, two things happened this week that seem worth discussing in more detail: 

Korbit raises $3M

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Korbit, a South Korean-based bitcoin exchange, wallet, and merchant payment solution, got $3M in a Series A financing. As I mentioned last week, we’re still seeing how bitcoin companies will breakdown between international conglomerates and local power players, and this is just another piece in that puzzle.

Another interesting component of the Korbit raise is that SoftBank Ventures Korea (SBVK) was one of the investors. Calling South Korean venture investors conservative might be the understatement of the year. And who can blame them when the startup scene there is so nascent? But I think this deal does a good job of (a) generally showing the acceptance of bitcoin and (b) specifically showing the foresight of SBVK in seeding the creation of a Korean startup ecosystem. 

North Carolina believes they already have the authority to regulate bitcoin

In contrast to New York, which is looking to develop new regulations to handle crypto-currencies, North Carolina authorities believe they already have the regulations they need, and might just simply offer clarifying guidance. 

I think this shows how regulatory agencies are slowly developing a better understanding of bitcoin and how it’s currently being used as a currency. If I’m moving something around that has value, be it dollars, pork bellies, or bitcoin, the government has some ability to regulate those transactions. Now, obviously it’s fair game to debate how smart or effective those regulations are, but the mere fact of having regulations on bitcoin shouldn’t surprise anyone.

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