Fun

Just How Badly Will the U.S. Crypto Crackdown Hurt Bitcoin?

News Feed - 2019-07-23 02:07:46

Following U.S. Treasury Secretary Steve Mnuchin’s warning that the federal government will pursue “very, very strong” enforcement of existing cryptocurrency regulations, various federal agencies and self-regulatory organizations have started to take a step further in tightening oversight on the budding bitcoin industry.Regulators are starting to increase enforcement, will crypto sector improve as a result?Mnuchin Warns Bitcoin Users of ‘Very, Very Strong’ Regulations https://t.co/NFnQXLwuVC


— CCN Markets (@CCNMarkets) July 18, 2019




Secretary Mnuchin first criticized the use of crypto assets in financing illicit activities on July 15. He stated that with the establishment of the Financial Stability Oversight Council’s Working Group on Digital Assets, regulators will work at full capacity to combat risks posed by the emerging asset class.


At the time, Mnuchin noted that crypto entities and money transmitters are to be regulated in the same way as banks and financial institutions in the U.S., essentially warning companies to watch their backs.


He said:“The rules governing money service providers apply to physical and electronic transactions alike. As money service businesses, cryptocurrency money transmitters are subject to compliance examinations, just like every other U.S. bank. To be clear, FINCEN will hold any entity that transacts in bitcoin, Libra, or any other cryptocurrency to its highest standards.”Despite dropping below $10,000 as Mnuchin turned his attention to crypto, the bitcoin price has recovered nicely. | Source: CoinMarketCap


In a regulatory notice, the Financial Industry Regulatory Authority (FINRA) encouraged every member firm engaging in activities related to crypto assets to notify the organization.RelatedPostsCrypto Market Leaders Differ on Pace of Inst Adoption. Who’s Right?Elizabeth Warren Accidentally Just Made the Case for BitcoinPrecious Metals Rally but Are Gold Bugs Secretly Holding Bitcoin?“Firms that engage in activities related to digital assets, whether or not they are securities, are reminded to consider all applicable FINRA rules and federal and state laws, rules and regulations,” the document read.


FINRA has been cooperating with the U.S. Securities and Exchange Commission (SEC) to lead the approval process of broker-dealer custodians of crypto assets and said that members will have to open lines of communication on the matter throughout the short to medium term.“As securities regulators continue to provide guidance to members regarding the unique regulatory challenges presented by digital assets – e.g., Joint Statement on Broker-Dealer Custody of Digital Asset Securities – FINRA believes it is important to keep the lines of communication with members open on this important topic.”


In early July, the SEC jointly stated with FINRA that firms that intend to provide custody of crypto assets have to register with FINRA and the SEC, even those that are already registered with the agency.“Various unregistered entities that intend to engage in broker-dealer activities involving digital asset securities are seeking to register with the Commission and have submitted New Membership Applications (‘NMAs’) to FINRA. Additionally, various entities that are already registered broker-dealers and FINRA members are seeking to expand their businesses to include digital asset securities services and activities,” the SEC statement read.


With the skeptical stance of the Trump administration towards cryptocurrencies, FINRA and the SEC are expected to implement a rigorous approval process for broker-dealers.


Meanwhile, the Commodity Futures Trading Commission is reportedly probing BitMEX, the world’s largest crypto derivatives trading platform. Other industry giants including Bitfinex and Tether also remain under the regulatory spotlight.Good & bad news for bitcoin investors


All of this presents bitcoin investors with a mixture of good and bad news.


Stronger oversight of the cryptocurrency market could be seen as a protective safeguard for retail investors and could help institutional investors become more comfortable with the industry.


However, there’s also a concern that enhanced restrictions will hamper the industry’s growth, making it more difficult for legitimate bitcoin businesses to operate in the world’s largest economy. Tags: BitcoinfinraSteven Mnuchin

News Feed

Bitcoin.com Partners With Mecon Cash, Enabling Withdrawal at ATMs Across South Korea
Bitcoin.com Partners With Mecon Cash, Enabling Withdrawal at ATMs Across South Korea Bitcoin Cash has been added to Mecon Cash’s M.Pay platform which is integrated with ove
XRP Price Ready To Bounce Back Above $3 If Bulls Can Hold This Level
Este artículo también está disponible en español. The XRP price is getting ready to surge to new highsas bulls attempt to hold a critical resistance level. Recently, the
Player Bedazzled as Jewel-Themed Slot Gem Splitter Unlocks a $95,000 Jackpot With a $95 Bet
Player Bedazzled as Jewel-Themed Slot Gem Splitter Unlocks a $95,000 Jackpot With a $95 Bet Sparklingly hot casino slot game Gem Splitter unlocks a treasure worth 2 BTC for this lu
BTC price suddenly drops 5% as Bitcoin rejects low CPI print
William Suberg9 hours agoBTC price suddenly drops 5% as Bitcoin rejects low CPI printBitcoin shrugs off notionally good news on US inflation with a BTC price plunge below $59,000.9777 Total views13 Total sharesListen to
Ghana, Singapore conduct trade in semi-fungible token pilot project
Derek Andersen2 hours agoGhana, Singapore conduct trade in semi-fungible token pilot projectProject DESFT is meant to encourage trade between small businesses using a CBDC and a stablecoin, with an emphasis on credential
William Suberg29 minutes agoBitcoin eyes $30K, XRP price jumps 6% after Ripple’s legal victoryBitcoin keeps heading higher as BTC price strength flies in the face of a hawkish Fed, but concerns over a retracement are b
China Scraps Plan to Categorize Bitcoin Mining as Industry to Be Eliminated
More than six months after the China National Development and Reform Commission proposed to categorize bitcoin mining as an industry to be phased out from the country, it appears the agency has now scrapped that plan.
Helen Partz9 hours agoBinance successor in Russia: Everything you need to know about CommEx, so farThe sale has sparked chatter among local crypto enthusiasts, who say the two sites appear so similar that CommEx could be
Mad Money’s Jim Cramer Advises $731M Powerball Jackpot Winner to Put 5% in Bitcoin
Mad Money’s Jim Cramer Advises $731M Powerball Jackpot Winner to Put 5% in Bitcoin Mad Money host Jim Cramer has provided some investment advice aimed at the l
Robert Kiyosaki Predicts End of US Dollar — Says War Giving Rise to Crypto as Safer Haven Than Fiat Money
Robert Kiyosaki Predicts End of US Dollar — Says War Giving Rise to Crypto as Safer Haven Than Fiat Money The famous author of the best-selling book Rich Dad Poor Dad, Robert Kiy
British Auction House Christie’s to Present Full Set of NFT Curio Cards on October 1
British Auction House Christie"s to Present Full Set of NFT Curio Cards on October 1 The British auction house Christie’s has been immersed in the non-fungible token (NFT) a
DeNations, a Blockchain-Powered Metaverse, Launches the First INO – Initial Nations Offering
DeNations, a Blockchain-Powered Metaverse, Launches the First INO - Initial Nations Offering PRESS RELEASE. Smatoos , which is already known in the blockchain in