Cryptocurrency Sector In the US May Fall- Says Kim Dotcom
The cryptocurrency industry is experiencing challenges from governments and regulators. A renowned internet entrepreneur, Kim Dotcom, recently forecasted a massive crackdown within the United States cryptocurrency industry.
Dotcom warned that cryptocurrency might become illegal in the US. The regulatory agencies in the US are keeping a close leash on the cryptocurrency industry in the country. However, Bitcoin, to be specific, is facing the most scrutiny than praise in the country.
Kim Dotcom is the founder of Megaupload and hugely supports anonymous transactions. He tweeted about his warnings regarding the strictness of the “US Empire” on cryptocurrency. He noted that there are no many predictions that his predictions are happening. The type of asset and the concerned network remarkably determines the vulnerabilities.
Regulations that may Hinder Greater Crypto Adoption
Due to the recognition of record potential of Bitcoin Network by the US Internal Revenue Service, IRS, transaction history is now mandatory for proper regulation. This year, it was almost impossible to carry out a transaction involving a suspiciously colossal amount of fiat in exchange for cryptocurrency unless there is a sharing of comprehensive personal user data.
The increasing need for anonymity made market participants come up with new ways to remain anonymous. One example being coin mixing, although several people have concerns over that strategy.
It is currently challenging to promote Cryptocurrency’s use in the US because of the numerous means to ensure customer safety. Full compliance is what some exchanges are claiming to enhance their reputation. These harsh regulations are making crypto startups quite tricky to start.
The overall criminal operations, specifically, Ponzi schemes disguising to be crypto, are increasing; hence, the US SEC is wary, thereby scrutinizing startups. Companies such as Ciphertrace has made it possible for exchanges to monitor the blockchain network from 2020. Besides, exchanges keep records of transactions on their platform.