Blockchain

Putting the hammer down on Bitcoin and the likes of it by the Senate

MEDICI

Bitcoin as you know is a virtual currency which is getting quite popular and is causing some serious concerns to the Government(s) and most importantly to the traditional financial institutions. Taking a cue from Bitcoins popularity and usage, there have been other virtual currencies on the rise.

Earlier last week, a letter was sent to the law enforcement agencies and the financial regulators by the Senate’s committee on Homeland Security in the USA. The letter clearly referred to the “threats and risks related to the virtual currency.”

Over 20 companies also got legal notices that have had any sort of involvement with the trading of Bitcoins. In the past there have been efforts by the Government to regulate the trading of Bitcoins and other virtual currencies. The latest one’s have been the most serious so far, to get a coordinated control over how these currencies are accessed and transacted online and is a borderless phenomena.

Some of the major concerns that the lawmakers have about such currencies is that they have not been regulated and can be used to evade taxes, purchase and sell drugs illegally, defraud investors, etc.

LTP View: If the Senate sees the existence of virtual currencies as a threat to the National Security through which criminals and narcotraffickers can be benefited, the existence of virtual currency industry can be deemed illegitimate.

We foresee a string of rules and regulations and amendments coming out soon which will put regulation in place to the deregulated virtual currency industry. Bitcoin could well be the biggest revolution ever in the field of payments.

Some of the drivers for BItcoin uptake are increased virtual goods and transactions related to them, some firms and establishments accepting bitcoin payments such as wordpress read more

MEDICI Team

MEDICI

MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI team who collaborate to create FinTech insights.

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