An 85% decline in the price of bitcoin in 2018 from the initial peak in 2017 made people believe that it was the end of bitcoins. Within one year, the cryptocurrency trend has hit the market with a boom with major firms investing in the tech trend. Facebook, for instance, launched the Libra currencies. According to Forbes, the currency is set to enable Facebook users to make payments within its software in WhatsApp, Instagram, and Facebook. However, the project received a lot of mixed reactions from lawmakers and investors globally.
The price of bitcoin rose significantly by up to 300%. It is after several tech firms launching crypto projects within the U.S. and other countries.
Below are Crypto policy themes expected this year.
Cryptocurrencies are a threat to monetary value
The announcement of the Libra project by Facebook got diverse reactions that cryptocurrencies may soon complicate central banks’ tasks to supply money. President Donald Trump went ahead and attested that bitcoins and cryptocurrencies would never be currencies of the U.S. as there was only one form of currency.
Cryptocurrencies pose unique risks for illicit activity
The current banking system is the primary route for human trafficking, money laundering, and terrorism trafficking. The U.S. Treasury Department in last year classified several money-laundering fines against Deutsche Bank and Citigroup, amounting to over $425 million. Yet after these scandals, people still believe that criminals do take advantage of sophisticated management systems and sound risk management.
According to research conducted by Elliptic and Chainalysis, bitcoins exchange transactions that involve illegal activities are less than 1%. However, most cryptocurrency firms have registered as financial institutions with the Treasury Department Financial Crimes Enforcement Network and still end up suffering like New York’s BitLicense.
Moreover, the trend is expected to continue in the finance business.
“privacy Token” Cryptocurrencies represent a threat to national security and law enforcement
The department of Homeland Security, at the end of 2018, enforced an investigation into the cryptocurrencies. Such private and secure feature at first may cause an alarming sign that illegal activities are going on. It’s not hard to remember the internet site migration from the old “HTTP” protocol to the encrypted “HTTPS” protocol. The addition of security socket layers at this time would perpetuate the authority to investigate in search of illegal activities. However, after a series of hacking of government high-profiles, the government orders its agencies to protect all government data. However, in the crypto sector, you shall notice increased regulations and policy activities in 2020.
