x Abu Dhabi, UAETuesday 24 October 2017

Bitcoin powers above $5,000 for first time

Cryptocurrency has notched up a more than five fold increase in price since the start of the year

A Bitcoin sign is seen in a window in Toronto, Canada. Mark Blinch/Reuters
A Bitcoin sign is seen in a window in Toronto, Canada. Mark Blinch/Reuters

Bitcoin smashed through the US$5,000 barrier for the first time ever on Thursday, jumping as much as 7 per cent to chalk up its biggest daily rise in over two weeks.

Bitcoin, the original and still the biggest cryptocurrency, has been on a tear recently, rallying nearly 75 per cent in barely a month.

It has chalked up a more than five fold increase in price since the start of the year.

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The rise comes a week after Abu Dhabi Global Market’s (ADGM) fin­ancial regulator said it had set out guidance on initial coin offerings and virtual currencies that allow companies to take advantage of what it says is a more cost-effective way of raising funds.

“ICOs have transformed the capital formation landscape and global regulatory frameworks are evolving to adapt to such innovation,” said Richard Teng, the chief executive director of the ADGM.

“Participants exploring the issuance of ICOs that offer real value to the market and wish to operate within our regulatory framework are encouraged to engage us early to gain insights into the applicable regimes.”