Kim Dotcom Predicts Crackdown on US Cryptocurrency Industry

News / 27.12.2019

The cryptocurrency industry has been encountering various challenges from governments and regulators. Kim Dotcom is a renowned internet entrepreneur and in recent times forecasted a huge crackdown within the United States cryptocurrency industry.

Dotcom warned that cryptocurrency may become illegal in the United States. The regulatory agencies in the United States have been keeping a close leash on the cryptocurrency industry in the country. Nevertheless, BTC has been suffering the most scrutiny than praise in the country.

Kim Dotcom founded Megaupload and he hugely supports anonymous transactions. He tweeted about his warnings regarding the harshness of the “US Empire” on cryptocurrency.

He noted that it is important to be able to carry out anonymous transactions without being traced, and warned that the cryptocurrency industry “will become unlawful” in the United States.

However, there is no much signals that his predictions are happening. The type of asset and the concerned network remarkably determines the vulnerabilities.

Due to the recognition of the record potential of BTC network by the United States 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 huge amount of fiat in exchange for cryptocurrency, unless there is sharing of comprehensive personal user data.

Due to increasing need for anonymity, market participants have come up with new ways to remain anonymous. An example is coin mixing but many people have some concerns over it.

It is still uneasy to promote the use of cryptocurrency in the U.S. due to numerous means to ensure consumer safety; full compliance is what some exchanges and brokers claim to enhance their reputation.

Such stringent regulation makes crypto startups quite difficult to start. The widespread criminal operations, specifically Ponzi schemes disguising to be cryptocurrency is staggering. Hence, the U.S. SEC is always wary, thereby scrutinizing any startup.

Companies such as Ciphertrace has made it possible for exchanges to scrutinize the blockchain network from 2020. Besides, exchanges keep records of transactions on their platform.

 

Featured image via twitter @KimDotcom. Source: Cryptopress.

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Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.