The US regulations for cryptocurrencies would remove anonymity

A proposed U.S. bill to regulate cryptocurrencies appears to end the anonymous use of virtual wallets, which not everyone will enjoy.

The proposal by the Financial Crimes Enforcement Network (FinCEN) is mainly aimed at identifying investors and traders in cryptocurrency like Bitcoin, Ethereum, Ripple and other variants. The goal is partly similar to the Know Your Customer principle, which established banks have had to apply for several years.

This means that « cryptocurrency exchanges » – the places where it is possible to buy and sell virtual cash – must to some extent identify their customers if they are in a transaction for more than three thousand dollars in cryptocurrency or more than ten thousand dollars virtual currency in a single day. The exchanges must also keep these transactions up to date.

This type of transaction is already largely traceable today, even publicly, since cryptocurrencies use the blockchain. However, it is not always known who initiates a particular transaction or « wallet » (virtual wallet). As a result, cryptocurrencies are partially traceable, while some players always remain anonymous. The current proposal aims to change this situation.

The proposal is now on the table and can be commented on. The operators of « cryptocurrency exchanges » do not seem particularly enthusiastic, however. In fact, they insist that they currently only have 15 days to respond, a period that begins towards the end of the year.

The Electronic Frontier Foundation is also critical and speaks of monitoring by the authorities who want to remove the anonymity of crypto cash.

The question is how strict this regulation will be. While some users may identify with a wallet, others may remain anonymous. This type of regulation should also be applied in several countries for it to be effective. Otherwise, cryptocurrency traders can do their job very quickly in countries where there is little or no regulation. .

All of this is also marked by the sign of irony, as ardent cryptocurrency defenders have been saying for years that cryptocurrencies are growing in popularity and will soon replace conventional currency systems. The popularity of these currencies is partly due to the fact that they are anonymous. If crypto cash is to really play a role in society, it needs to be regulated like normal money to prevent fraud and fraud. But it also marks the end of the anonymity that makes virtual money so appealing to some users.

The proposal by the Financial Crimes Enforcement Network (FinCEN) is mainly aimed at identifying investors and traders in cryptocurrency like Bitcoin, Ethereum, Ripple and other variants. Its purpose is partly similar to the Know Your Customer principle that established banks have been required to apply for a number of years. This means that « cryptocurrency exchanges », ie the places where virtual cash can be bought and sold, must identify their customers to a certain extent if they are in a transaction for more than three thousand dollars of cryptocurrency or for more than ten thousand dollars of virtual currency transfer in a single day. The exchanges must also keep these transactions updated. This type of transaction is already largely traceable today, even public, since cryptocurrencies use the blockchain. However, it is not always known who initiates a particular transaction or « wallet » (virtual wallet). As a result, cryptocurrencies are partially traceable, while some players remain anonymous again and again. The current proposal aims to change this situation. The proposal is now on the table and can be commented on. The operators of « cryptocurrency exchanges » do not seem particularly enthusiastic, however. They insist that they currently only have 15 days to respond. This period begins towards the end of the year. The Electronic Frontier Foundation is also critical and talks about surveillance by the authorities who want to suppress the anonymity of cryptocurrencies, the question is how strict this regulation will be. It could be that users identify themselves with one wallet, but that the others remain anonymous. This type of regulation should also be used in several countries to have an impact. Otherwise, cryptocurrency traders can do their job t run very quickly in countries with little or no regulation. All of this is also marked by the sign of irony, as ardent cryptocurrency defenders have been saying for years that cryptocurrencies are growing in popularity and will soon replace traditional currency systems. The popularity of these currencies is partly due to the fact that they are anonymous. If cryptocurrency is to really play a role in society, it needs to be regulated like normal money to prevent fraud and fraud. But it also marks the end of the anonymity that makes virtual money so appealing to some users.

The US regulations for cryptocurrencies would remove anonymity
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