Will a Ban on Bitcoin be Unconstitutional?July 21, 2019
BTC/USD exhibited a resistance level at $10,575 and $10,700 respectively; however, confluences have not been detected. The 100-day simple moving average (SMA 100) shows a support level at $10,500.
The recently conducted G-20 summit took place in Osaka, Japan, and they will be adopting the standard set by the Financial Action Task Force (FATF). When discussing this issue, Flex Yang, CEO of Babel Finance, stated:
“When these standards are into effect, interexchange transactions will require transparency regarding senders and receivers of cryptocurrency.”
This will lead to a lot of scrutinies from the regulators eventually warranting a need to probe different ledgers to identify illicit participants from crypto exchanges, hacks, etc. Bitcoin continues to be interesting to institutional investors; however, the risk threshold is lower, and therefore, traditional investors are working with a lot of caution.
Yang further stated, “It’s like trying to deposit money in a bank that is from a drug cartel or criminal enterprise; banks will refuse to process transactions.”
China prefers virgin Bitcoin, and the mining industry in China is thriving well. Yang further stated that the actual buyers are from the US and other regulated areas. Miners in China are mostly sellers.
Buyers buy these coins in approval of its novelty and by perceiving the ease-of-compliance associated with the token in a situation involving regulatory uncertainty.
In reality, virgin Bitcoin will not help family funds or individuals making the buy, but there is more confidence in virgin coins, and therefore, this coin fetches high premiums.
The transaction history of the Bitcoin might reveal whether it has passed through a host of illegal pathways or money laundering attempts. Bad history might be a reason for why some Bitcoin has low value. Just a few bad tokens might render a symbol to be unclean.
CEO of CipherTrace stated, “While this is less likely to affect those holding small amounts, larger traders could potentially, and unwittingly, hold larger amounts of stolen assets, lowering the value of their investment pool through association.”
This is noteworthy because even a single shady transaction might render the coins from an entire cryptocurrency exchange to appear shady.
The new question doing the rounds now in the market is on whether Donald Trump can ban the Bitcoin? Several investors have a knee jerk on listening to this proposition. Will a ban on Bitcoin be unconstitutional? Some believe that a bill to ban Bitcoin will be invalid even if it is passed.