Regulators are talking about the dangers of bitcoin again

Despite the fact that bitcoin is gaining widespread popularity not only among users, but also among Wall Street investors, US regulators still believe that cryptocurrency is made for criminals.

USA intends to strengthen supervision of bitcoin turnover

While cryptocurrencies are gaining support on Wall Street, regulators still see them as a tool for criminals to hide shadow transactions. This opinion was expressed by the staff of the Financial Action Task Force, which included 39 analysts and financial experts. In their opinion, regulators should strengthen control over the circulation of digital currencies in order to prevent cases of money laundering or terrorist financing.

In particular, the FATF recommended that financial firms that provide services related to the circulation of cryptocurrencies should more often provide reports on large transactions and information about their clients. In addition, the FATF rules require participants in the cryptocurrency network, even if they do not hold any currency, to register with the regulatory authorities and report their activities and the activities of their users to the authorities.

Such participants may include software developers who have created decentralized cryptocurrency exchanges or who operate certain types of nodes that process transfers over the Bitcoin network.

As arguments, American analysts cite examples of the use of bitcoin as a means of payment for drugs that were sold on the Silk Road darknet marketplace. Its activities were terminated back in 2013.

The recent riots at the Capitol were also allegedly funded with bitcoin, experts say. A month before the scuffle, a late programmer in France sent over $ 500,000 worth of cryptocurrency to extreme right-wing groups that helped orchestrate the attack. All this testifies to the insecurity of bitcoin, experts say.

It is worth noting that earlier Ray Dalio said that the US authorities will begin to significantly limit the turnover of cryptocurrencies in order to preserve the dominance of the American dollar. At first, American analysts accused the cryptocurrency miners of extraordinary consumption of electricity, and then announced that bitcoin is completely dangerous and is used by criminals.

Crypto enthusiasts are shocked by such a statement

In turn, crypto enthusiasts are confident that such statements are caused by the desire of the US authorities to restrict access to bitcoin, given that its value has reached $ 60,000, and on some exchanges has exceeded $ 65,000. market.

“We in the industry think this is extremely problematic,” said Blockchain Association Executive Director Christine Smith of the proposed control rules.

She said the authorities would place a heavy burden of supervision on investors and cryptocurrency network operators, making it difficult to decentralize some services.

Read also: JPMorgan named the advantages of the lack of volatility in bitcoin

The security of using bitcoin is also confirmed by the Chainalysis company. According to experts, criminals are using cryptocurrency less and less for criminal operations. New technologies that are used by law enforcement agencies today prevent fraudsters from using cryptocurrencies with impunity to pay for prohibited goods.

“Law enforcement investigators are becoming more savvy at tracking down criminal activity on the bitcoin network,” said Jesse Spiro, chief government relations officer at Chainalysis.

Earlier, BeInCrypto wrote that Bitcoin will begin to fall in the summer of 2022 – opinion.


All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website.


Karice Dabule

Read Previous

Forbes’ list of crypto billionaires tripled

Read Next

Ledger filed class action lawsuit over last year’s data breach