Apparently, the United States of America (US) is going tough on cryptocurrency and the new US crypto guidelines are a telltale of what to expect. William Barr, the attorney general for the United States unveiled the department of justice guidelines, and to make matters simple, it is laden with words like crime, criminal and similar notions.
New US crypto guidelines in a gist
To understand the very purpose of new US crypto guidelines the glossary or table of contents pages may suffice. It gives a pretty clear idea of what to expect from the guidelines document. The first part of the document focuses on the basics in three pages, the legitimate uses in less than one page, while the illicit uses and the role of darknet markets are stretched over 15 pages.
Part two of the report focuses on the criminal authorities, the regulatory authorities, and of course the international regulations. Last but not the least, part three focuses on the challenges and DoJ strategies.
The very flaw in the new US crypto guidelines report stands that it banks on the fraction of money lost in frauds and thefts amounting up to the $4.5 billion lost during the year 2019, citing a Reuters report. While the transactions and business conducted within the same year amount up to hundreds of billions of dollars making the $4.5 billion less than 1 percent of the market share.
Crypto community on new US crypto guidelines
The cryptocurrency community immediately took notice and some traders are anticipating an outright ban as an eventual step down the line. They see the current activity a step close to the eventual ban on Bitcoin and cryptocurrencies.
Bitcoin Hoarder is one such trader who also believes that given the uncertainty, the upcoming elections and the new US crypto guidelines from DoJ are going to affect the market. He furthers that all of this may just be a hint on an upcoming ban on cryptocurrencies that provide anonymous transactions.
Crypto Twitterati Crypto Penny also believe that the new guidelines report is an attempt to highlight everything that is bad about the cryptocurrency regardless of the reality and the factual scales of theses activities in order to enforce laws.
Discussing the report on Twitter, Ripple CEO Brad Garlinghouse expresses that the current report provide no further regulatory clarity but rather puts the market in an extremely uncertain condition with over five agencies overseeing the cryptocurrency realm.
The cryptocurrency community is often threatened by stricter regulations here and there but the fact that in the post-COVID-19 world digital currencies and cryptocurrencies are going to continue to make their way into the world is an inevitable reality.
Given the sheer magnitude of capital investment in Bitcoin alone, it is perhaps about time that the United States government seek a workaround for regulatory compliance, instead of working towards an outright ban.