Cryptocurrency RegulationNews

Blockchain Group Speaks Against Rumored Crackdown On Financial Institutions

A US-based blockchain group’s executive explained that the region was not having a regulatory crackdown on crypto usage. Some days ago, a rumor broke on various social media platforms that the country was enforcing stricter regulations for financial institutions that use cryptocurrencies by charging them of money laundering.

One of the executives at the Blockchain Association in the US, Kristin Smith, assured the public that the nation’s treasury department was not cracking down on crypto usage. People have been sharing news of a particular rumor that the US government had charged numerous institutions who used the coins for transactions with money laundering. This news ignited fear in the space, and some linked the rumor to the recent crypto price decline.

Executive debunks the crackdown rumor

The rumor started around the price assets saw massive gains, and it could be the cause of the growing selling pressure that came after. The rumor caused the digital asset space’s market cap to drop by 8%, and Bitcoin tested the $52,000 mark on Sunday.

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The executive came out to debunk the presently circulating rumor. In an interview by CNBC, he explained that it is the Department Of Justice that can charge entities with money laundering. One of the strongest people in the Treasury department is the current secretary, Janet Yellen.

Janet Yellen is one of the most prominent crypto critics, and she has spoken some discouraging things about the asset. The recently appointed secretary had pointed out cryptocurrencies as one of the mediums that facilitates terrorism funding and money laundering. However, she explained that the technology behind cryptocurrencies could encourage development in the financial sectors.

Interestingly, many statistics show that the asset’s usage for illicit and malign purposes is far smaller in proportion to other uses. One of the people who believe that people exaggerate the illegal usage of crypto is Michael Morell. He was a former director of the CIA, and he published some reports regarding people’s generalization of the crypto’s use for criminal purposes.

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Firms lobby to promote the use of crypto

His report explained that forensic tools in blockchain could help authorities detect illegal transactions linked to the asset’s usage. Kristin Smith revealed that many individuals and bodies had cleared the growing misinformation by people concerning the virtual asset space. He encouraged their continuous lobbying to ensure a remedy with the exaggerated generalization. Businesses within and outside the digital asset space have announced numerous lobbying plans.

One of the most prominent initiatives is Coinbase and Square, and they called it the “Crypto Council For Innovation.” Another notable group that has been pushing for cryptocurrency freedom is the Blockchain Association. The group has been clearing misinformation, and this has helped people understand the crypto space. Coin Center also wants Americans to create sensible regulations for America’s digital asset space.

The executive revealed that he sees the recent Coinbase’s listing as a publicly listed company confirms the growing interest and demand for digital assets. Coinbase became a publicly listed company through directing listing sometime last week. Sources see the exchange’s move as an opportunity to encourage other crypto-related firms.

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Adebayo Owotunse (Nigeria)

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

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