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CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

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Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#31

Post by Alupis »

pjc50 wrote: post #5

People have been saying this for a decade, and several failed exchanges later plus a few attempts at banning US persons from using crypto, the crackdown has yet to really arrive.

Well, what has changed is we now have CEO's of publically traded companies openly and brazenly participating in crypto-currency pump-n-dump schemes[1] because they are currently unregulated markets.

Now, with major publically traded companies buying up other crypto-currencies, seemingly speculating on their rise in value, we may have a problem that compels some government agency to step in and ensure these organizations are truly acting in shareholder's best interests.

It's not a far stretch to see these events ushering in new crypto regulations.

[1] https://tradetheday.com/crypto-analysis/dogecoin-elon-musk-p...

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#32

Post by tinus_hn »

kec wrote: post #24
tinus_hn wrote: post #11

Earlier quoted context omitted.

If only there were an international, barely regulated network that allows people in one country to interact with people in another.

you can't reliably opt-out of laws in the place where you physically reside, especially where money is involved.

You can’t reliably restrict what you can’t see

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#34

Post by riskneutral »

goonogle wrote: post #2

I really want someone to ask Janet "do you have plans to ban Cash transactions because they are used for illicit activity?" I would guess USD inflation is far worse than expected and they know Bitcoin's initial intended purpose (as an alternative to government money) has come to fruit. It just sounds better to use the illicit boogy man.

> I really want someone to ask Janet "do you have plans to ban Cash transactions because they are used for illicit activity?"

There are already existing controls on cash transactions. If you deposit cash in a bank account, you need to prove your identity and you're subject to anti-money laundering surveillance. Securely transporting and storing large amounts of physical cash, outside of a bank, is very difficult. I imagine that making or receiving large payments with physical cash is often impossible or would attract a lot of attention from authorities and perhaps even criminals.

> I would guess USD inflation is far worse than expected and they know Bitcoin's initial intended purpose (as an alternative to government money) has come to fruit.

Gold can play the same role, and has been banned in the past, but is unlikely to be banned again. The more likely story is that there are serious money laundering and terrorist financing risks posed by Bitcoin's intended purposes, and governments are trying to figure out how to get a hold on the national security / law and order situation without being to heavy handed.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#35

Post by Consultant32452 »

NaturalPhallacy wrote: post #3

How? How do you 'crack down' on a currency that doesn't require any existing state or bank controlled apparatus to operate? Other than the exchange point, which private exchanges for cash can circumvent, how do you crack down on what is essentially math conducted via computers that everyone has access to? Neither the article, nor the linked one from December say.

Taxes. They make a sacrificial lamb out of a few high profile tax dodgers. All the power structure has to do is convince norms that crypto is scary/dangerous/tax risk and they will have done their work. I think someone else made the torrent analogy. The crackdowns on torrenting were quite successful. They scared the public with some messaging, made a big noise about canceling regular people's internet service, etc. Torrenting has ben kept as a niche instead of mainstream. That's all the power structure needs, it doesn't have to completely kill crypto.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#36

Post by rawtxapp »

captn3m0 wrote: post #30
liquidise wrote: post #4

> U.S. Treasury Secretary Janet Yellen and other officials have warned about the use of cryptocurrencies for illicit transactions. Wait until you hear about cash. More seriously (and hopefully less reductionist) i feel nations who embrace cryptocurrencies early will see mixed results as the landscape matures. I am more confident that nations which turn their back on it, or shut it out completely, will see a loss of o…

You can't transfer a billion dollars worth of cash by sending an email with your private key.

If you have billions of dirty money to launder, you don't need to worry about cash, you just call your pals at HSBC [1][2].

1: https://www.icij.org/investigations/fincen-files/hsbc-moved-...

2: https://www.investopedia.com/stock-analysis/2013/investing-n...

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#37

Post by iudqnolq »

rawtxapp wrote: post #29
iudqnolq wrote: post #22

Earlier quoted context omitted.

Satellites are the easiest thing to ban. Sure, the govt has the tech to jam/shoot them down, but they're also almost certainly associated with a real person with a real bank account and a real door they can knock on/down depending on their cooperation.

Sure, I guess my point is there will always be some kind of functional messaging in place. If people can communicate any message, they will be able to communicate the blockchain data. Satellites, p2p networks, ham radio, but again, I don't think we'll ever see a global internet shutdown just to shutdown BTC.

I disagree. Take the war on drugs. They can't get rid of them, but they can make everybody sad. And that's the real world, which is harder to intercept.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#39

Post by larviz »

ballenf wrote: post #8
pjc50 wrote: post #5

People have been saying this for a decade, and several failed exchanges later plus a few attempts at banning US persons from using crypto, the crackdown has yet to really arrive.

Torrents or file sharing in general is maybe a good parallel. My impression of torrenting is that crackdowns have made file sharing a niche instead of mainstream activity. Of course it can't be 100% wiped out, but the general public is now wary of file sharing because the message is out there that it's risky.

I think online poker is a good example too.

Online poker never went away but it also didn't take that much to cripple the market to a point it couldn't come back from.

It also somewhat caused all the scams and shady practices to see the light of day.

Re: CEO of a top Bitcoin exchange warns: crackdown on cryptocurrencies may be coming

#40

Post by vmception »

Capture US regulatory agencies while you can.

This has already had varying levels of success with the Chief Legal Officer of Coinbase being the acting chair of the OCC and telling banks it was okay to custody crypto and settle transactions on cryptocurrency networks instead of just SWIFT, ACH, FedWire

There are some at the SEC, and the new SEC chair was pro-crypto when he was previously the chair of CFTC

Cabinet level positions and the Federal Reserve and Treasury would be ideal

If this is important to you, you don't have to be just a passive holder or entrepreneur. Use your platform to assume power. Make the world as comfortable for your generation as older generations did for themselves.

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