Saturday, 22 May 2021

Regulations for Cryptocurrencies causing Another Wave of Panic

Regulations for cryptocurrencies from governments will be very much in place soon. China announced just yesterday that they will have tighter measures to protect the financial system hence in their statement, they mentioned that it is necessary to “crack down on Bitcoin mining and trading behaviour, and resolutely prevent the transmission of individual risks to the social field.”

China

So I am sure you know what happened next, here we go again....Bitcoin tumbled and fell. It was only just recovering and now with this news, more selling is set to happen. I think there are quite a few factors involved in this. China has all along been in the process of creating their own digital yuan yet according to the Cambridge Centre for Alternative Finance, roughly 70% of the hashrate for mining Bitcoin—that is, the processing power for verifying transactions on the blockchain’s ledger—is generated in China. Hence, it is quite ironic and with the government. With some banks in China like China Citic Bank barring customers from trading Bitcoin using their bank account, lots more regulation is going to be rolled out as China is aiming to reduce carbon dioxide emissions by at least 65 per cent by 2030, relative to 2005 levels, and then achieve carbon neutrality by 2060.

United States of America

The US Treasury is also rolling out stricter rules for cryptocurrency compliance where any transfer worth more than $10,000 needs to be reported to the Internal Revenue Service (IRS). This is definitely a huge step, if individuals who bought Bitcoin earlier on, their holdings would definitely be worth much more than $10,000 and with each transfer of >$10,000, they will need to report it to the IRS to ensure taxes are paid.

I am not surprised by US move to have more regulations for cryptocurrencies as the recent Colonial Pipeline hack which was caused by a cyberattack and the company had to shut down approximately 5,500 miles of pipeline in the United States, crippling gas delivery systems in Southeastern states, Joe Biden had to declare a state of emergency and Joseph Blount, CEO of Colonial Pipeline paid the ransom to DarkSide which was 75 BTC payment (approximately $4.4 million at the time of the transaction). It was later discovered that DarkSide, the hacker group behind the Colonial ransomware attack, received $90 million in bitcoin ransom payments from 47 victims. It is huge, although the wallets were traceable and funds were drained from it where there were speculation that this bitcoin had been seized by the U.S. government although no one can be sure of it, this definitely further enforced the need for regulation of cryptocurrencies to the US government. Joe Biden has also signed an executive order to strengthen US cybersecurity defences after the Colonial Pipeline hack.

Thoughts on more regulation

The governments would definitely wish to regulate cryptocurrencies as the volatility it has brought about in 2020 and 2021 is worrying for them. The run-up of Bitcoin and cryptocurrencies has brought about attention to it as it sparks concerns of market manipulation and uninformed retail investments. However, I definitely think there are ways to avoid the regulations but we will have to see how the regulations advance from here. In the meantime, I will hold on to my holdings of both BTC and ETH while continuing to DCA with a small amount that I have monthly. I do not hold such a substantial amount of cryptocurrencies (So I guess I won't be a millionaire anytime soon 😉) as the volatility is really 10X of the stock market as it reacts fast to news. As of now (22 May, 8.53am SGT), BTC is at a price of USD37,645.95 and ETH at USD2,449.00. Both looking rather attractive. 💎 🙌

You can also find me on

References:

-https://www.cnbc.com/2021/05/21/bitcoin-falls-after-china-calls-for-crackdown-on-bitcoin-mining-and-trading-behavior.html?utm_content=Main&utm_medium=Social&utm_source=Facebook&fbclid=IwAR23-PUM0QYttE1gKoE2mALKaks4CVBPxMeEmTlREgQvfjfbN69XWpyOFRQ#Echobox=1621608479
-https://www.cnbc.com/2021/05/20/us-treasury-calls-for-stricter-cryptocurrency-compliance-with-irs.html
-https://fortune.com/2021/05/02/bitcoin-mining-hashrate-china-inner-mongolia-ban/
-https://www.cnbc.com/2021/05/18/colonial-pipeline-hackers-darkside-received-90-million-in-bitcoin.html
-https://www.scmp.com/economy/china-economy/article/3134058/chinas-cryptocurrency-crackdown-sees-inner-mongolia-call

3 comments:

  1. DO YOU NEED A LOAN?
    DO NOT KEEP YOUR FINANCIAL BURDEN TO YOURSELF CONTACT US NOW FOR ANY KIND OF LOAN AT A LOW INTEREST OF 2%. stevewilsonloanfirm@gmail.com whatsapp: +14027300344, LINE ID:3091140693

    Our loans are well insured for maximum security is our priority, Our leading goal is to help you get the service you deserve, Our Loan program is the quickest.

    We give out loan in any currency of your choice Yuan, Dollar, Thai baht, Euro, Lira, etc} and duration of 1 to 30 years to pay back the loan (secure and unsecured).
    Do you need any kind of loan and have low credit score, Have you find it difficult to get loans from local banks and other financial institutions? solution to your financial problem is STEVE WILSON LOAN FIRM.

    The terms and conditions are very reasonable and considerate.
    We offer a wide range of financial services which includes: Xmas Loans, Business Loans, Debt Consolidation Loans, Personal Loans, Car loans, Hotel loans, Student loans, Home Refinancing Loans with low interest rate @2% per annul for individuals, companies and corporate bodies.

    Interested applicants should Contact us via email:stevewilsonloanfirm@gmail.com. whatsapp:+14027300344 Apply and be free from financial bondage.

    ReplyDelete
  2. Hi everyone, I saw comments from people who had already got their loan from Anderson Loan Finance. Honestly, I thought it was a scam, and then I decided to make a request based on their recommendations. A few days ago, I confirmed in my personal bank account amounting to $15,000 dollars which I applied for. This is really a good news and I am so very happy that I advise all those who need a real loan and who are sure to reimburse to apply through their email (text or call) +1 719 629 0982. There are sincere loan lenders! They are capable to lend you a loan. Contact Mr Anderson E-mail: andersonraymondloanfinance@gmail.com

    Phone: +1 719 629 0982


    E-mail: andersonraymondloanfinance@gmail.com

    Office address is (68 Fremont Ave Penrose CO, 812400).

    ReplyDelete
  3. Do you find yourself in a bit of trouble with unpaid bills and don’t know which way to go or where to turn? What about finding a reputable Debt Consolidation firm that can assist you in reducing monthly installment so that you will have affordable repayment options as well as room to breathe when it comes to the end of the month and bills need to get paid? ®Capital Managements Inc™ is the solution to your financial misfortune. We offer all types of loan ranging from $5,000.00 to $533,000,000.00USD with a low interest rate of 2% and loan duration of 1 to 35 years to pay back the loan secure and unsecured. Our loans are well insured for maximum security is our priority, Our leading goal is to help you get the services you deserve, Our program is the quickest way to get what you need in a snap. Kindly reduce your payments to ease the strain on your monthly expenses by Contacting us on the following WhatsApp:+19292227023 Email drbenjaminfinance@gmail.com

    Loan Offer Alert For Everyone! Are you financially down and you need an urgent credit/financial assistance? Or are you in need of a loan to start-up/increase your business or buy your dream house. GET YOUR INSTANT LOAN APPROVAL 100% GUARANTEED TODAY NO MATTER YOUR CREDIT SCORE. drbenjaminfinance@gmail.com
    Capital Managements Inc Website: https://capitalmanage-inc.com/

    ReplyDelete