The crypto regulations in the US are an example of how political decisions can lead to some very bizarre outcomes. The US is one of the few countries that does not require identification numbers for every payment, which means that when you buy things on the internet, it’s easy to make a payment without having to tell anyone who you are.
There was a time when hackers and governments both wanted this system to work. Hackers wanted it because they could get into systems and download files they weren’t supposed to have; governments wanted it because they didn’t want people to be able to hide money or transmit information anonymously. This made the world less safe, but neither side cared much about that.
Since then, however, the hacker community has mostly lost interest in payments; there have been too many successful attacks on them. And governments have been losing interest as well. They were once happy for people to use Bitcoin as a way of moving money around without anyone finding out who was paying whom where. But now Bitcoin is being used as a way of sending money around without anyone finding out who is sending it where. This runs counter to the government’s main interest, which is controlling where money goes and what happens with it after it gets there.*
So now the US government is trying to
I have been following the crypto world for a while, and I thought I would share my general outlook on it.
The US is considered to be the hub of crypto world. As such, US government will implement regulations and guidelines which will lead the market in a certain direction.
The SEC has already started enforcing their new rules upon the exchanges.
These rules are meant to make sure that investors are protected while they trade in cryptocurrencies since they cannot be controlled by traditional methods or methods that involve going through financial institutions.
There are two parts of these rules:
1. A minimum investor size of $1 million will be required for Initial Coin Offerings (ICO) conducted by companies that are not yet registered with SEC (Security Exchanges). The ICOs will either be regulated by SEC or self-regulated by the company conducting the ICOs.
2. More importantly, there will be higher risks for founders of non-registered (and unregistered) ICOs to raise money from the public because their activities may not be legitimate and could even lead them to jail time if they misbehave through fraud or manipulation of funds during the fundraising period.For example, ICOs will have to obtain licenses from securities regulators such as SEC and FINRA before selling tokens or coins
The U.S. may soon have to do something about Bitcoin, Ethereum, and other cryptocurrencies. The U.S. Securities and Exchange Commission (SEC) is considering requiring companies offering digital tokens to register with the SEC as a utility, broker or exchange and follow many of the rules for those registered entities. The proposed regulations would also require companies that offer digital tokens to register with the SEC before those tokens could be offered to investors in the United States.
The changes are part of a broader effort by the SEC to protect investors, uncover fraudsters and stop theft of funds from corporate accounts.
The best way to protect yourself against a future regulation is to prevent it from happening. So the best way to fight regulation is to be ahead of the regulators.
The problem is that it’s very hard to be ahead of the regulators, because they have so much power. The government can tell Apple and Google and Amazon not to do things they want them to do. The government can buy up as many patents as it likes, then steal them by forcing companies to pay extortionate license fees. The government can pay companies not to make certain products, or stop making certain others. And most of all, in a legal system that requires you to give up your privacy and freedom in order for society to protect you from any possible harm, the government can threaten people with imprisonment if they don’t give up privacy and freedom.
This is why the crypto community needs better communication with lawmakers and regulators. If we can persuade them that crypto has a chance of working, then we might be able to convince them that we should be allowed to operate in a legal environment where we are not forced into giving up our privacy and freedom for society’s benefit.
As a result of the criminal investigations, there is growing concern about the security of web-based crypto exchanges. The US Securities and Exchange Commission (SEC) is asking for information from crypto exchanges that operate in the US. It asks them to explain how they are protecting their customer funds. Specifically, they write: ‘The SEC’s Division of Enforcement also is seeking additional information on how you will protect client funds, including whether you have anti-money laundering (AML) programs in place or have established procedures to adequately monitor transactions and report suspicious activity.’
The SEC’s letter doesn’t mention regulated exchanges by name but it seems clear that the regulator is referring to licensed money transmitters under FinCEN rules, such as Bitfinex and Poloniex.
The point of a crypto currency is that it is a decentralized, anonymous, on-the-fly settlement system. The value of the coin is based on the underlying technology and not on who holds it. In an unregulated environment, the value of the coin is solely dependent on the hype cycle. There were huge price increases in the beginning of December 2017 but then fell dramatically when there were no further announcements or new developments which led to a lot of people selling their coins at low prices. However, this was a short-lived dip as there were rumors that Coinbase would add Bitcoin Cash to its exchange platform and thus increase the price again.
The best way to learn about crytos is to read the news, and this blog does a pretty good job of that. But I’ve been thinking about it for a while, and I’ve come up with a suggestion for the way we should think about them.
Crytos are one way for people to store money, and one way for people to pay each other money. They are not just electronic cash. For example, if you want electronic cash, you have to trust that the person who created it will be around in the future to redeem it. But if you have a cryptosystem that’s secure against theft and counterfeit, then everyone will agree that the cryptosystem can be trusted – even if no one knows anything about its inventor – and they’ll all see an easy way to make money by using it.
Cryptosystems sound complicated, but they’re really not hard. If you’re worried about how long it takes to create them, don’t worry: it takes longer than you think.