Bitcoin News Update – Bitcoin was the first digital currency and remains the most traded crypto asset. Virtual currencies have improved the payment system and can be used by the unbanked. They also help users to avoid issues associated with the traditional banking system. However, they have become a new haven for money launderers and other criminals.
Bitcoin News Today – Digital Currencies Allegedly Promotes Criminal Activities Globally
Steven Mnuchin, the U.S. Treasury Secretary, believed that transactions with crypto assets may pose certain risks to the financial system. According to him, the cryptocurrencies could possibly be used to finance illegal activities such as drug trafficking and money laundering. Also, Mnuchin’s recent comments seemed to imply that the leading cryptocurrency, Bitcoin, might not be a major financial asset in the future.
Bitcoin (BTC) Price Today – BTC / USD
Mnuchin also talked about Bitcoin when he appeared on CNBC’s Squawk Box. He declared that he wouldn’t be loaded up on Bitcoin in the next 10 years. He bet that he won’t even talk about the cryptocurrency as the Treasury Secretary in five to six years.
Recently, Mnuchin argued that fiat money especially cash has never been used to fund illicit activities. He claimed that Bitcoin and other cryptocurrencies are the only means through which billions of dollars are being laundered. The chief scientist and co-founder of the blockchain intelligence firm, Elliptic, Tom Robinson, also agreed that cryptocurrencies are used for financing criminal activities.
In an opinion piece published on VentureBeat, disclosed that less than 0.5% Bitcoin transactions are used to fund illegal activities. An analysis carried out by Robinson’s company revealed that $829 million in Bitcoin has been used to make unlawful purchases through the dark web. The study also proved that more than $2.2 trillion of unlawful fiat currency transactions are carried out each year.
Bitcoin News Update- Strict Regulations for Cryptocurrencies
Analysis has shown that financial crimes committed through cryptocurrency transactions surpassed illegal activities involving fiat currency. The Treasury Secretary has ordered the Financial Crimes Enforcement Network (FinCEN) and the Financial Action Task Force (FATF) to carefully monitor the use of cryptocurrencies in order to prevent financial crimes. Besides, both agencies were also instructed to set regulations that will guide cryptocurrency transactions.
Mnuchin remarked that there will be more regulations from the agencies. However, he pointed out that a unified approach will be used to prepare the guidelines. The Treasury Secretary made these comments in a statement on how American authorities will jointly draft rules and policies for business and individuals dealing in digital currencies.
Mnuchin also claimed that Bitcoin could possibly become an “equivalent of Swiss-numbered bank accounts.” Barry Silbert, the CEO of Digital Currency Group, referred to Mnuchin’s comments as a complete validation of Bitcoin. The Treasury Secretary further expressed confidence in the US dollar. He referred to it as the world’s reserve currency and urged others to maintain it. However, several reports have shown that unlawful crypto transactions pose a lesser threat than financial crimes involving fiat currencies. Mnuchin pointed out that to a great extent, speculations have dominated the crypto sphere.