The growing popularity of the cryptocurrency market made regulators take notice. Governments around the world began responding with enforcement actions to the plague of fraudulent activity in the new market. While many news stories examined criminal activity on Bitcoin, a lot of them did not report appropriately. One glaring aspect was the media’s ambiguity in distinguishing between hacks of conventional exchanges versus those on blockchains. The SEC’s recent prosecution of a crypto exchange illustrates the real problem. Both fraud and dark web transactions (i.e. illegal drugs) are reasons why regulating cryptocurrencies were discussed at the recent G20 summit in Buenos Aires.
Criminal activity plagues fiat currencies just as it does cryptocurrencies that run on blockchain technology. The difference is that blockchains present records as an immutable ledger of these transactions. This is something that cash cannot do. Additionally, the centralized ledgers of conventional digital transactions can be altered by a single authority. Decentralized blockchain ledgers are widely distributed which is an essential part of their immutability. These advantages are why more companies are employing their own private blockchains.
As transactions become more common on blockchains, world governments need new ways to collect taxes. The transition is happening quickly. While the cryptocurrency market capitalization has fallen substantially, new crypto projects continue to emerge. On December 5, 2018, CryotoCoinNews reported that the ICO market saw a remarkable 22,000% growth since 2016. No wonder why G20 leaders seek a Financial Action Task Force (FATF). They aim to standardize taxation for international electronic services.
Roger Ver is an outspoken voice for the cryptocurrency community. He is most closely associated with Bitcoin Cash, but his recent comments about international markets pertains to the whole cryptocurrency market. Ver believes that global regulatory attention is a good sign for cryptocurrencies. It might provide the needed recognition that makes blockchain transactions mainstream. Setting a global standard for crypto taxation removes the ambiguity for large-scale business operations.
The G20 summit will probably slow down the growth of the cryptocurrency market over the short-term. However, as a global standard becomes clear, businesses will be able to take advantage of a more secure crypto world. It is not blockchain technology that is insecure, but its compatibility with technology. As G20 leaders reshape the digital landscape, fraud and crypto crimes expect to fall. Businesses expect to thrive when blockchain is the foundation, rather than, an adjunct of electronic services.
Roger Ver is an outspoken voice for the cryptocurrency community. He is most closely associated with Bitcoin Cash, but his recent comments about international markets pertains to the whole cryptocurrency market. Ver believes that global regulatory attention is a good sign for cryptocurrencies. It might provide the needed recognition that makes blockchain transactions mainstream. Setting a global standard for crypto taxation removes the ambiguity for large-scale business operations.The G20 summit will probably slow down the growth of the cryptocurrency market over the short-term. However, as a global standard becomes clear, businesses will be able to take advantage of a more secure crypto world. It is not blockchain technology that is insecure, but its compatibility with technology. As G20 leaders reshape the digital landscape, fraud and crypto crimes expect to fall. Businesses expect to thrive when blockchain is the foundation, rather than, an adjunct of electronic services.
