Bitcoin Update

It’s been a relatively slow news week for Bitcoins after the turmoil of the week before, but there have been some developments in the virtual currency’s story. Failed Bitcoin exchange Mt. Gox is planning a telephone help line for depositors and Japan has ruled Bitcoins aren’t a currency.

Mt. Gox, the Japanese-based Bitcoin exchange that failed last month has announced the opening of a call center to answer depositor’s questions.

The site is also drawing heat for allegedly keeping the site open for several weeks, despite knowing that a vast number of its Bitcoins were stolen by hackers.

The site halted withdrawals of Bitcoins on Feb. 7, but did not go dark until Feb. 25. The company has filed for bankruptcy protection in Japan.

Meanwhile, regulators in Japan have ruled Bitcoins and virtual currencies aren’t currencies at all and will not be regulated as such. Transactions with Bitcoin will still be subject to sales and other taxes, and banks will be banned from making Bitcoin available, the government ruled.

There also fallout from Newsweek’s report that it had located Satoshi Nakamoto, the creator of the Bitcoin.

The same man, under the name Dorian Nakamoto denied his connection to Bitcoin telling the Associated Press that he had nothing to do with it.

Newsweek is standing by its story.

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