The UK And EU Project To Make Bitcoin Investors Use Their Real Names, Gizmodo Australia

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The UK And EU Plan To Make Bitcoin Investors Use Their Real Names, Gizmodo Australia

Bitcoin managed to set a fresh price record on Sunday, shortly hitting $US11,826 ($15,569) vanaf coin. And governments around the world are taking note of the boom te divergent ways. Ter the European Union, a fresh project is expected to regulate cryptocurrencies under the same anti-money laundering laws spil fiat money. It’s expected to take effect sometime next year.

For governments that are suspicious of cryptocurrencies, fears of bubbles, ponzi schemes and economic destabilisation have often bot the concentrate. Countries such spil South Korea and China have publicly come out against initial coin offerings (ICOs) that work spil investment opportunities and have a high potential for fraud. But for the UK and the EU, cryptocurrencies’ potential for enabling money laundering, drug dealing, terrorist funding and other nefarious activities have lawmakers up ter arms. According to The Guardian:

[Britain’s] Treasury plans to regulate bitcoin and other cryptocurrencies to bring them ter line with anti-money laundering and counter-terrorism financial legislation. Traders will be compelled to disclose their identities, ending the anonymity that has made the currency attractive for drug dealing and other illegal activities.

Under the EU-wide project, online platforms where bitcoins are traded will be required to carry out due diligence on customers and report suspicious transactions.

Last week, London’s Metropolitan Police publicly warned that drug dealers at all levels were using Bitcoin ATMs to stash their profits out of view.

Ter October, Stephen Barclay, the economic secretary to the Treasury ter the UK, responded to a parliamentary inquiry with a written project that would amend anti-money laundering and counter-terrorism regulations to include cryptocurrencies. “The government supports the intention behind thesis amendments,” he wrote. “Wij expect thesis negotiations to conclude at EU level te late 2018 or early 2018.”

How earnestly thesis bods pursue individual cryptocurrency users remains to be seen. It would certainly cause headaches for Bitcoin and alt-coin users because anonymity is one of the most attractive features of cryptocurrency. But the fact is, with Bitcoin and variations such spil Monero, if a user wants to be anonymous, there’s little that a government can do to zekering them. Regulating exchanges will be lighter, but if someone wants to bypass an exchange, they could certainly do so. Still, criminalising the use of cryptocurrencies without fastening identification would certainly be a deterrent, and individuals who don’t take every step to hide their identity could be targeted.

Last week, White House Press Secretary Sarah Huckabee Sanders said that Tom Bossert and the Homeland Security team wasgoed “monitoring” cryptocurrencies. It’s unclear whether the US considers Bitcoin to be a security kwestie, or if the White House wasgoed just improvising an response to a question it hadn’t indeed considered.

But not all governments are taking the view that cryptocurrencies are a threat.

For Venezuela, they could be an chance to find ease from the economic fight that wasgoed only exacerbated by latest sanctions. According to Reuters, Venezuela’s Voorzitter Nicolas Maduro announced on Sunday that his government would punt its own digital currency called the “Petro”.

It’s a fitting name because the Petro will be backed by oil, gas, gold and diamond reserves, Maduro said te a television broadcast. While it makes sense that Venezuela would attempt a drastic economic measure at a time when its monthly ondergrens wage has fallen to the omschrijving of just $AU5.66, it’s not yet clear how the Petro would actually work. Bitcoin and its imitators are decentralised currencies that mostly use algorithms and public rente to determine their supply and value. Maduro didn’t opoffering many specifics, mostly making vague proclamations such spil telling that this initiative will help Venezuela “advance te issues of monetary sovereignty, to make financial transactions and overcome the financial blockade”.

For cryptocurrency evangelists, decentralised money has always bot considered a potential option te countries where the people can’t trust their government to decently manage the economy. One could imagine, te theory, that an anonymous currency could help citizens get around economic sanctions and avoid the rapidly depreciating Venezuelan bolivar. But it shows up that the Petro will simply be tied into Venezuela’s central bankgebouw, an untried strategy for a major country.

On top of that, The Washington Postbode reports that a third of Venezuela’s citizens don’t have an internet connection. Throw te the fact that digital currency has a bit of a learning curve, and that there’s no infrastructure set up for taking payments, and the project seems at least a little bit half-baked. Vishaak Alvarado, an opposition lawmaker and economist, told Reuters that the budge has no credibility. “It’s Maduro being a harlekijn,” he said.

Speaking of clowns, Mark Zuckerberg’s former rivals the Winklevoss twins recently became Bitcoin billionaires, according to The Telegraph, spil their combined $US11 million ($14.Five million) investment ter the cryptocurrency ter 2013 is now worth Ten digits. The last thing the world needs is more dimwitted billionaires. Maybe making this all illegal isn’t such a bad idea.

Related movie: Ethereum Explained


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