Bitcoin’s usage might take a more complicated turn than its previous uses in the US, mainly because of the country’s agency, FinCEN. FinCEN is a body that acts as a watchdog against financial crimes in the USA. Years ago, experts predicted that the more Bitcoin grew, the more governments will try to restrict its use. The mission of creating a financial system with the owner’s sole autonomy does not sit well with some authorities and agencies.
Countries believe that giving people exclusive autonomy over their money could breed crime in various aspects. Today, criminals use the platform’s anonymity to request ransom from victims, especially after stealing their data and threaten to expose them to the public.
FinCEN’s regulation restricts transactions
The main goal of the body’s proposed wallet regulations is to restrict the use of digital assets. First, the body explained that transactions greater than $10,000 require trading platforms to send a report concerning that, defeating the purpose of achieving data privacy.
Also, the watchdog mandated know-your-customer requirements for exchanges, especially non-custodial wallets, to curb crime rates. Customers that transfer $3,000 and more BTC to another wallet owned by them must authenticate their ownership to continue their transaction with different identity cards.
The fast transactions users previously enjoyed might pause due to restrictions in withdrawals and deposits. For now, users can efficiently create an account in a trading platform, fill in personal details and enjoy speedy transfers to owned wallets.
When the US finalizes the bill, users might have no choice than providing physical dresses and other requirements to meet up with the regulations. The stringent laws could force US-based exchanges to exit for other countries if they fail to meet the North American country’s regulations. A few weeks ago, the G7 raised a notion concerning wallet regulations, which all members agreed to its importance.
The crypto industry as a competitive market
Unlike years ago when Bitcoin was the primary digital asset people knew, several cryptocurrencies have come up to stand as competitions against the crypto giant. Still, scalability problems remain the major problem most crypto face, and no competition has something better.
Ethereum is a fast-rising cryptocurrency that might one day overtake BTC, being the second-largest globally. Late last year, talks were envisioning 2021 being the year institution investors would see ETH as a suitable alternative for Bitcoin.
Other altcoins like LTC are showing some impressive performance besides Bitcoin. People used Litecoin for payments in the past, which forms a similar use to BTC’s. Unfortunately, years ago, things did not go smoothly for Litecoin as its performance went down the charts. Despite having some technical issues on its own, now, Litecoin regained some momentum, surging besides heavily valued cryptos like BTC and ETH.
The rise of several digital currencies shows that the industry is fast growing even with the unexpected hurdles. Even though the regulations would pass through strict requirements, experts say that there is a large possibility that the American government would approve the bill after more amendments.