Trust Issues Created Over Cryptocurrency – Foreign Narcotics Kingpin Designation ActAugust 23, 2019
People are being put off from investing in digital assets. BTC was high a couple of days ago and was trying to work its way towards $14,000 with a growing trading volume; however, things took a bad turn.
The advance of Bitcoin was stopped in its tracks when the U.S. president stated the Bitcoin was based on “nothing but thin air.”
Senior financial analysts in the U.S. began linking a string of scandals and created trust issues over cryptocurrency. Despite all, Bitcoin continues to be the most dominant crypto to a considerable margin. However, it slipped down from its new best price ranges from $12,000 and down to $10,000 and low.
The U.S. Treasury Department is beginning to tighten versus cryptocurrency addresses, which are associated with “Drug Kingpins.”
The Office of the Foreign Assets Control in the U.S. Treasury Department has listed three Chinese Nationals along with their cryptocurrency addresses. The allegation against the Chinese nationals is that they have violated the drug smuggling and money laundering laws.
Per the Foreign Narcotics Kingpin Designation Act, the U.S. Treasury Department has constituted different cryptocurrency addresses to its SDN list (Specially Designated Nationals). The individuals and the addresses in the list have been claimed to have some association with a foreign narcotics superintendent. “Naming Xiaobing Yan, Fujing Zheng, and Guanghua Zheng” are the three Chinese nationals deemed to be associated with the address.
Reportedly, Zheng and Yan have delivered several hundred packets of synthetic opioids to the U.S. focusing on selling to their customers via online advertising and other methods of sales.
This is for the second time that the department is adding cryptocurrency addresses to its sanction list. The actions of OFAC looks consistent.
Steven Mnuchin, US Treasury Secretary, believes that Bitcoin will open its gates to more of such monetary crimes. Mnuchin firmly believes that several dollars converted to cryptocurrencies have already been and will be used for illegal trades. He further stated, the government is focusing on avoiding “bad actors in the U.S. dollar each day to save the integrity of the U.S. financial framework.”
Several venture capitalists are making severe warnings about the Bitcoin.
Spencer Bogart, General Partner at a Venture Capital Firm, stated, “When you think about really severe crises taking place, a liquidity crunch, another global financial crisis, I think that Bitcoin will struggle to do very well from a price perspective.”
Several indicators are also triggering alarm bells about a stall of the world economy.