Bitcoin Bulls Have To Prepare For Cryptocurrency Regulation Challenges

The bitcoin bulls have started a wave of gains in the cryptocurrency markets. The positive break of the $10,000 mark with Bitcoin (BTC) it looks like it brought back in life the entire cryptocurrency market as per the latest bitcoin news.

The price of Bitcoin (BTC) at 4:30 hours UTC on 13^th February is $10,413. Together with considerable gains in altcoins, the total market capitalization of crypto markets is $305 billion. The dominance of Bitcoin (BTC) is at this time around 61.8%. While the technical charts are showing an upward movement, a new threat from regulations it looks like is developing to slow the growth.

The United States Financial Crimes Enforcement Network (FinCEN) bureau plans to make meaningful changes in cryptocurrency regulation. In his recent address before the Senate Finance Committee, Treasury Secretary Steven Mnuchin recognizes cryptocurrencies as a ‘safe haven’ for place illegal money similar to Swiss accounts. He said:

“We want to make sure that technology moves forward, but on the other hand, we want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts,”

The Financial Regulatory bodies in the United States can look to suppress the flow of unsolicited cross-border transactions. It could also try to curb suspect manipulations in trading on exchanges. Nonetheless, most of the cryptocurrency exchanges in the United States already suffered massive changes in the last few months. This includes Binance opening a different unit for the United States. Furthermore, it caused the withdrawal of several exchanges like Poloniex and Bittrex out of the United States.

Also, there are thousands of cryptocurrencies in the market at this time. The SEC is watching over the launch of new cryptocurrencies and has also in the past imposed certain fines on sales that were unregulated regarding the crypto regulation laws. Not long ago, Hester Peirce, the commissioner of SEC, proposed a three-year incubation period for new cryptocurrencies to be categorized as a security or a commodity.

At this time, Bitcoin (BTC) is the only asset that is accepted as a commodity entirely together from the Bitcoin bulls with the positive recommendations for Ethereum and Litecoin as well. Just as things looked quite good around the regulatory front, strict regulations are a threat, because they can result in a bad blow. They have been the number one cause of many crashes for Bitcoin (BTC).