The decentralized Bancor exchange and trading platform is currently planning to restrict the United States residents from trading tokens on July 8, as the company confirmed in a blog post on June 18.
The exchange cited a lack of clarity from the regulators side. According to its executives which went viral in our altcoin news section, the decision to ban all of the users with a US IP address from exchanging cryptocurrency was a shared one.
“This decision has been made in light of increased regulatory uncertainty; at this time, we believe this is the most judicious decision for all the members of our ecosystem,” the blog post shared on Bancor exchange reads.
It also continues stating that the decision will “enable the Bancor community and ecosystem to innovate faster and with greater clarity.” Currently, Bancor runs as a decentralized protocol using a P2P setup. As many best cryptocurrency news sites noted, it is unclear what was the factor that motivated the move.
The regulatory situation now involves another decentralized exchange (DEX) named Etherdelta, which did the same thing in 2018 – illustrating the difficulties of operating such a service in the US. Last year, the country’s Securities and Exchange Commission (SEC) charged the founder of Etherdelta, Zachary Coburn, with operating an unregistered securities trading platform and a $300,000 fine.
Right now, the Bancor exchange is in the latest cryptocurrency news on many websites. As it adds in the blog post, all of its users will still be able to hold and transfer tokens, while conceding that the decentralized portions of its network were beyond its control and would thus remain open to the US traders.
“We would like to clarify that this functionality will be blocked to users accessing the website bancor.network, which offers an interface to blockchain activity. As the Bancor Liquidity Network is a collection of smart contracts on the blockchain, and a non-custodial system, we cannot restrict users from accessing the blockchain itself. This cannot be blocked,” the blog post concludes.
If you are new to the latest regulation frenzy in the US, you should know that new international recommendations from the Financial Action Task Force were brought up – placing stringent new ID requirements on any entity and user facilitating crypto trading – both for US residents living in and ones living out of the country.
India Will Ban Cryptocurrencies But Not The Digital Rupee
“No person shall mine, generate, hold, sell, deal in, issue, transfer dispose of or use cryptocurrency in the territory of India.’’Sethi described the new document as ‘’the proposed Banning of cryptocurrency and regulation of Official digital currency bill 2019.’’ He noted that the bill is not drafted yet completely and is tabled in the parliament to become an Act without modifications. The punishment for those who will go against the law includes prison sentences up to 10 years long. As noted, India will ban cryptocurrencies since now they are sitting in a grey area. Since last year, the banks prohibited serving the industry business with services involving cryptocurrencies and they also refused to provide services for exchanges which led to many companies leaving the country while others shut down. In the absence of the decent regulation, some remained hopeful and believed in a positive outcome in the long term as the opponents of the banking ban even sued the Reserve Bank of India over the decision. India still appears to go even further than China but it is still unclear how the authorities will enforce a ban on an entity which is not under their direct control. The issue comes in a very important time as the US government is starting to grip the realities of decentralized networks. During the press conference on Monday, the Treasury Secretary Steven Mnuchin noted his desires to combat the role of cryptocurrencies in illicit activities while noting the words of the US President Donald Trump who described bitcoin as being based on thin air as noted in the coming altcoin news.
US Treasury Secretary Shares Trump’s Concerns On Crypto
“Cryptocurrencies such as Bitcoin have been exploited to support billions of dollars of illicit activity, like cybercrime, tax evasion, extortion, randomware, illicit drugs, human trafficking … This is indeed a national security issue.”In response to questions from the press and journalists from the best cryptocurrency news sites, Mnuchin further commented and talked about the role of crypto in financing crime. The US Treasury Secretary said:
“I think to a large extent, these cryptocurrencies have been dominated by illicit activities and speculation.”Secretary Mnuchin also commented on Trump's latest tweet storm (his Twitter posts on crypto) and stated that "“As the President has said: ‘Bitcoin is highly volatile and based on thin air’” and “Treasury takes very seriously the role of the U.S. dollar as the world’s reserve currency.” As previously reported in our latest cryptocurrency news, President Trump tweeted out a series of anti-crypto and anti-Bitcoin remarks on July 12. This came after his "Social Media Summit" for conservative personalities. Trump said that the value of crypto is “highly volatile and based on thin air” and that as such, it can “facilitate unlawful behavior.” This is why the US Treasury Secretary felt the need to explain the issues further. As Mnuchin said, digital financial services are bound by the same Anti-Money Laundering and Combating the Financing of Terrorism policies as traditional institutions such as banks. On top of this, the US Treasury Secretary noted that any crypto transmitters must comply with the Bank Secrecy Act (BSA) as well as register with the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the Treasury and the federal regulator which implements the BSA in practice.
Tougher Crypto Regime Announced In The UK: The ‘Dirty Money’ Crackdown
“All parties will work together on longer term funding for developing richer intelligence and improving operational effectiveness in the fight against dirty money,” the announcement reads.The agencies also want to take action and ensure that cryptocurrencies are not used for money laundering and/or other illicit activity. The tougher crypto regime is designed to ensure that, officials say. The illicit activities will crypto will be regulated by the establishment of a new crypto assets regime in conjunction with the UK's Financial Conduct Authority. The tougher crypto regime stated that this will “go beyond international standards to create one of the most comprehensive global responses to the use of crypto assets in illicit activity.” Furthermore, an Asset Recovery Action Plan will be set in place to help and recover the proceeds of crime, including funds held outside the UK. The announcement shows that £1.6 billion was clawed back from criminals between 2010 and 2018.
“The UK has one of the toughest systems for combatting money laundering, but too many people are still falling victim to fraud. This crime fuels everything from drug dealing to modern slavery, fundamentally undermining people’s faith in our financial system and impacting economic growth. By bringing together leaders from across government, law enforcement and business, we can better tackle the scourge of dirty money, and ensure the UK continues to be one of the safest places in the world to invest and do business," the Chancellor Hammond said in the coming altcoin news.
IRS Confirms That It Has Trained Staff For Detecting Crypto Wallets
“Issuance of a Grand Jury Subpoena should be considered for Apple, Google, and Microsoft for the Subject’s complete application download history."Prepared by James Daniels who is the program manager for cyber crimes at the IRS criminal investigation unit, the deck proves that IRS confirms the claims. It also reads:
“Each application’s function should be explored to determine whether or not the application can transmit, or otherwise allow, transactions in bitcoin."If such is the case, it should be checked whether the app allows only peer-to-peer transactions or transactions with crypto related businesses. The deck also leaked on Twitter and showed that IRS confirms its trained staff for crypto wallets. Justin Cole, who is the director of communication and education at IRS' criminal investigation unit, said that the materials were presented to agency staff at an event at the World Bank in Washington, DC on June 5 to June 7.
“The training material has been used around the world to various law enforcement partner audiences and was again given at this forum in a room that included partners from dozens of countries around the world as well as various press members,” Cole wrote in an email featured on many best cryptocurrency news sites.However, Cole did not say whether the IRS will definitely implement the suggested measures. “I can’t discuss specific investigative actions that the agency may or may not take in the future,” Cole said. Meanwhile, the IRS is getting ready to issue new guidance on reporting crypto for tax purposes, the first coming out with an initial notice published in 2014. As it stands, IRS confirms that new developments are happening everywhere around the organization.
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