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Thread: Trump admin quiet international crackdown on cryptocurrency

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    Default Trump admin quiet international crackdown on cryptocurrency

    The "crackdown" is not on the exchange of money itself, but the funding of illegal activities.

    Quote While all eyes were distracted with the Trump-demeaning headlines of the foreign sanctions bill, few spotted the hidden mandate that foreign governments monitor cryptocurrency circulations as a measure to combat "illicit finance trends" in an effort to "combat terrorism."


    http://www.zerohedge.com/news/2017-0...yptocurrencies


    The take-away for me is the obvious, what we all expected, other issues aside: cryptocurrencies won't stay "crypto" for very long. Their blockchains will have to become transparent, which will inevitably open the door to more intrusive government regulations, such as taxes on large transfers.

    But the upside is that if Bitcoin, for example, does become accepted as a valid currency through its transparency (and it is fairly transparent by this point), a greater social and governmental acceptance of it will also increase its value considerably, since demand would increase.

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    Avalon Member TrumanCash's Avatar
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    Default Re: Trump admin quiet international crackdown on cryptocurrency

    Your Bitcoin is NOT Anonymous: IRS Moves To Track Bitcoiners With New Chain Analysis Tools

    Last month Alt-Market.com founder Brandon Smith warned that Bitcoin may not be all that it’s cracked up to be in terms of its purported anonymity:

    For years, one of the major original selling points of bitcoin was that it was “anonymous.” It always surprised me that so many people in the liberty movement bought into this scam. Surely after the revelations exposed by Edward Snowden and organizations like Wikileaks, it is utterly foolish to believe that anything in the digital world is truly “anonymous.” The feds have been proving there is no anonymity, even in bitcoin, for some time, as multiple arrests using bitcoin tracking have indeed occurred when the FBI decided it was in their interest. Meaning, when the feds want to track bitcoin transactions, they can, and it does not matter how well the people involved covered their actions.

    Because every transaction exists on a public blockchain ledger, an enterprising organization – say like the NSA or IRS – could conceivably implement blockchain analysis tools to track down Bitcoin fund transfers around the globe. These days most bitcoin transactions are originated on “trusted” exchanges that exist in Western nations, where governments have always found new and innovative ways to ensure citizens have no privacy whatsoever, especially when it comes to personal finances. This means that there is more than likely a record of your original Bitcoin transaction, perhaps involving a credit card or bank transfer, and if regulators ask an exchange to turn over the information you can bet they’ll do so in order to avoid unwanted government scrutiny. Moreover, most exchanges now require a driver’s license, passport and even a phone number in order to approve your account for trading.

    The point is, for government investigators with a bone to pick, your crypto currency activities online may not be as anonymous and private as you may think.

    In fact, so exposed is the blockchain to Big Brother monitoring and interference, that the Internal Revenue Service has now implemented blockchain analysis tools to help them track down individuals who are profiting off the crypto currency and not declaring these profits on their tax returns.

    According to a contract recently obtained by the Daily Beast, the IRS can now track bitcoin and other cryptocurrency addresses. They can do this to route out potential tax evaders. They purchased software from the blockchain analysis group Chainalysis.

    The document details that “criminals” have used digital currencies to launder money, deal drugs, and commit other unlawful behavior. However, criminals have also been using digital currencies to ignore tax liabilities and evade responsibility. The Daily Beast article elaborated:

    The document highlights how law enforcement isn’t only concerned with criminals accumulating bitcoin from selling drugs or hacking targets, but also those who use the currency to hide wealth or avoid paying taxes.

    Reason for IRS Crackdown; Tracking Bitcoiners

    The reason the IRS is cracking down on digital currencies appears to be because only 802 people declared bitcoin profits or losses in 2015. The Daily Beast article suggests that many people may have not expected the IRS to collect on digital currencies. Others may have just thought they could easily sidestep this alleged obligation.

    As a result of this failure to pay taxes, the IRS consulted with Chainalysis. They are now providing the IRS with tools to track bitcoin addresses through the blockchain and centralized exchanges. A Fortune article captured a screen shot of the letter:

    btc-chain-analysis

    The tool that Chainaylsis gave the IRS is called a refactor tool. It visualizes, tracks, and analysis transactions on the blockchain. Agencies from law enforcement, IRS, and banks will be able to use the tool, according to sources. To date, records show the IRS has paid Chainaylsis $88,700 since 2015 for its services.
    Full article at bitcoin.com

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    Default Re: Trump admin quiet international crackdown on cryptocurrency

    Bitcoin was never anonymous. You cant read the Satoshi white paper that describes how it works and come to this conclusion or that anonymity was a selling point for bitcoin. What was the selling point is that it was decentralized and there were no controls on how you, the controller of your bitcoin, decided to transfer your "coin" to the control of others. No central banks, no embargoes, no need for KYC/AML, and practically no way for people to interfere with your choices - AWESOME!!!

    DASH, is another crypto-currency based on the same technology but with a slightly different operating model. It includes features that do offer the potential for anonymous usage - but probably wont be hearing the media go on about DASH as much as Bitcoin since its anonymity features will not make it popular with those who control the media.

    I don't see how you can get from a government deciding to do a "Trend Analysis" to "International Crackdown..." from the information presented in the OP. Lots of companies are doing the same thing, and there wont be any crackdown that has not already happened. The government are winning the battle to control the interface between Bitcoin and fiat. The real changes will come when fiat is no longer used and that probably bothers TPTB more than anything.

    Disclaimer: I own both Bitcoin and DASH##. My investment in hardware to mine said currencies from 2014-2015 was fully recovered and has resulted in me having the remaining currencies hold a current market valuation five times my investment and that takes into the account recovering the exorbitant costs of the power used doing it. In fact approx 0.8 MWh was used for the Bitcoin i mined, but the DASH was done with Solar power.

    Electricity costs are high in Australia mainly because our electricity is generated using large mobs of kanagaroo's in giant hamster wheels attached to dynamos.

    ##Update: I don't as of a few weeks ago own any DASH anymore I exchanged them all for XRP
    Last edited by Anchor; 19th August 2018 at 07:29. Reason: Update
    -- Let the truth be known by all, let the truth be known by all, let the truth be known by all --

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