Regulatory uncertainty that bitcoin cannot be widely used
It seems that the supervision of bitcoin has become a difficult task, at least according to the private intelligence firm Stratfor released a report, this is true. Stratfor is a geopolitical intelligence to individuals and organizations worldwide.
The Stratfor report called “TheArduousTaskofRegulatingBitcoin”. They predicted that regulatory uncertainty will continue to act as a deterrent to the widely used encryption currency.
Why not become a dominant force in crypto currency
According to the analysis of the status of the Stratfor, although a “greater” effect of encryption technology will money behind, but money itself is widely used in encryption facing some problems.
“Regulatory uncertainty will continue to be widely used for suppression of encryption currency. Although the federal government has money on regulation has been encrypted progress at the national level, but the uncertainty and ambiguity will be more difficult to overcome. The influence of the bottom – block chain technology will encryption currency ratio derived from this technique of encryption currency is more.”
The fear of the unknown
When it comes to digital currency bitcoin and other forms of the future, what looks like a crypto currency is the biggest problem.
Stratfor uses a similar idea, and said in the report:
“Before being fully used in the new technology, individuals and businesses will be inevitable for law was enacted. Especially for the encryption of currency – the most obvious is the bitcoin and financial technology, these technologies due to the lack of regulation and a lot of confusion hampered.”
The current situation of encryption currency users
Stratfor said in the report, the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued guidelines under these guidelines, managers and traders (non personal) will be considered “funds transfer”. At least in the United States, which means that the sender is responsible for the provisions of KYC and AML at the same time, they also must be registered in FinCEN. Stratfor think this is a heavy burden for smaller companies and start-up companies, some of the traditional encryption due to monetary benefits, such as anonymity, basically be thrown out of the window.
Encryption can go to gay marriage in the United States monetary way
Pay attention to the news of the people may have noticed that in the past few years, the United States is how the marriage equality from state to state, and finally to the Supreme Court, ushered in the nationwide popularity. The development of the current monetary curve encryption similar to this. According to Stratfor, only a few states have issued guidelines for encryption currency.
“Registered as a federal money sender is relatively simple, but want to get in the 48 state a state license is difficult and time-consuming. New York advances in the supervision of bitcoin, considering New York in the U.S. financial system status, this is not what strange. In June 2015, New York made BitLicense, it will be possible to become a model for other states to follow.”
Before accepting a national definition of encryption currency in the United States, we may see many conflicting laws and regulations and more chaos.
We really need regulation?
Bitcoin regulation variable has led to some problems, but there are many people who think that more laws and regulations may mean “freedom” in the end, may frustrate bitcoin is developed to.
Wirex co-founder Dmitri (DmitryLazarichev) for the current state of regulation said bitcoin:
“Obviously, if we aim to further the use of bitcoin, we would not be able to avoid the regulatory framework, it should be useful to everyone. On the other hand, if there is no standard and rules on how to avoid regulatory requirements may still have a choice. Therefore, the bitcoin community should embrace regulation. Regulators can use the existing AML and KYC rules and supervision of legal entities, such as exchange. However, in the current encryption services and platform how to supervise the pure encryption, there is no reliable entity.”
On the other hand, bitcoin itself has become a new asset class is also good. The authorities are taking the “conventional” approach to the supervision of bitcoin may be difficult.
BnkToTheFuture.comCEO Simon Dixon (SimonDixon) said?:
The method of global bitcoin to vary, global regulators not sure how to deal with the financial institutions bitcoin. The first one is to define it as an asset class. If they do, they may put bitcoin into their traditional laws and regulations, but it is very dangerous, because bitcoin is a new asset class. Attribute of bitcoin has a currency, because it has a global payment system, bitcoin is a commodity, because it can be used as a store of value. But as a kind of stock, the value of it by the entity tracking. Bitcoin is a protocol / technology, allows the company to build financial products in this technology.”
New wine in old bottles is not used
The pace of development of supervision need to keep pace with the new technology, with not known labels in the unknown things. The problem is we in bitcoin and other currencies are now facing the encryption.
As DmitryLazarichev said:
“Maybe this standard regulation in adapting to the new technological breakthroughs and learning from past cases should be adjusted. If the whole community can participate in the development of this standard, it will be very ideal.”