MyCoin, a local Bitcoin exchange based in Hong Kong, stirred a lot of interest after promising a 150-percent yield on investments. Naturally, it attracted a lot of investors’ attention, more than 2,000 to give an idea. But then it turned out too good to be true. Over $387 million disappeared, together with individuals associated with MyCoin.
Earlier this year, a number of the suspects have already been apprehended since the issue broke out. Just recently, Taipei’s Criminal Investigation Bureau took two more organizers into custody. Lu Kuan-wei and Chen Yun-fey are suspected for holding a number of events for MyCoin investors.
Moreover, the two convinced potential shareholders to spend approximately $49,000 for 90 BTC, which was promised to be given back in less than five months with additional returns. Similar to the typical Ponzi scheme out there, the MyCoin investment turned out to be one. All investors were blindsided by the offerings, and it left them in a rut in just a matter of months.
A wake-up call
This scandal should serve as a signal for investors and Bitcoin gamblers who are easily blinded by oversized returns, especially since these people also happen to be those who commonly face lucrative deposit bonuses and promotions upon entering online gambling websites.
If anything, this issue will encourage bettors around the world to be more aware that such websites exist. Proper precautions must be observed before engaging into any online activities. This goes for everything that surfaces on the World Wide Web.
With friendlier Bitcoin possibilities in China, Hong Kong’s Bitcoin industry might implement regulations on the use of digital currency to reduce the risks of such business bring, as well as the possibilities of similar incidents happening in the future. So far, Bitcoin is seen as a virtual commodity in the country. No regulations are being implemented regarding the use of Bitcoin. This will not limit the utilization of the digital currency, but rather provide better protection for the users against frauds such as MyCoin.
Bad before the good
On another note, issues of Bitcoin scams can be viewed as a positive trait for the developing virtual currency. Looking at it from another vantage point, the number of users willing to invest using cryptocurrency in Asian countries is fast increasing. It just so happened that investors were at the wrong place and at the wrong time.
This also comes off as a good indication for the online gambling market of Hong Kong. Users are given the chance look into other opportunities in order to make profit using bitcoins. Other than investing, the continuously growing Bitcoin gambling community is a viable option, and it promotes.
The Hong Kong government does not view online gambling as illegal, provided that its citizens wager on legal offshore betting websites. This means that indulging in online gambling using Bitcoin should be permitted, and therefore, it must function as another venue where players can have chances of winning while being exposed to quality entertainment.
Betcoin.tm, for instance, is a well-established, trustworthy, web-based casino providing online gamblers with one of the most advanced Bitcoin specific gaming networks in Asia through unique and original games. Operated by a subsidiary of an established Hong Kong investment house, this is a perfect example of a foundation that is built on Asia’s Bitcoin gambling scene.
There are other worthy and reputable Bitcoin casinos operating globally, forwarding Bitcoin games paired with cutting-edge payment system and security.
What everyone should keep in mind is that scams like the MyCoin investment scandal is not exclusive to Bitcoin. Several controversies of the same kind have existed on the fiat-ruled markets. Therefore, Bitcoin should not be singled out, let alone marked as a scam.
It all boils down to the need for individuals to become cautious in entrusting their funds online. This involves finding the right Bitcoin casino and gambling sites to play in.