Drastic measures by the UK and the US will not stop Bitcoin trading

In recent days, companies like Bitcoin received good news to end 2020: Paypal announced that it is in a transition stage in which it hope...

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In recent days, companies like Bitcoin received good news to end 2020: Paypal announced that it is in a transition stage in which it hopes to start accepting the transaction with cryptocurrencies.

The measure is expected to come into force in the last tranche of 2020; For 2021, the plans go beyond accepting this method of exchange in Paypal, and if everything turns out as Paypal executives have planned, the measure will also be extended to Venmo.

This means that people who have cryptocurrencies will be able to make their payments and these will be automatically converted to US dollars when paying for a product or service via Paypal.

Now, it is believed, a fight will begin to make cryptocurrencies accepted around the world, especially in United States and the UK, where regulatory measures pose an alleged threat to some exchange rates like Bitcoin.

  • Cryptocurrency trading is in serious trouble in the United States due to its extreme regulations
  • According to the United States Securities and Exchange Commission, cryptocurrencies represent a safe value, so they must be regulated in a different category than the dollar
  • Some companies already process their transfer to other countries where the cryptocurrency is accepted for regular use

There are more and more measures taken by the authorities to prevent financial fraud caused by cryptocurrencies.

Photo: Shutterstock

In recent years, transactions with virtual currencies derived from companies such as Bitcoin, Ripple and XRP have been under the scrutiny of the US and British authorities, since, it is believed, this type of currency could represent a serious risk to the interests of the most vulnerable consumers.

Until now, Bitcoin, for example, is a type of cryptocurrency that has been allowed for use by large companies and investors.

Now, the sale and promotion of Bitcoin and other companies offering cryptocurrencies has been banned in the UK; this, when said sale and promotion is aimed at amateur investors.

The one in charge of publicizing this prohibition was the Financial Conduct Authority (FCA) of the United Kingdom.

In theory, this decision represents a severe blow to the cryptocurrency market, after the US authorities accused two companies in the branch of operating without authorization in the United States.

These companies are accused of operating without authorization in the United States, in addition to showing an alleged violation of anti-money laundering laws.

According to a report from the University of Cambridge, the majority of companies dedicated to investing with cryptocurrencies continue to operate without authorization, so it is believed that several of them could be prosecuted in the near future.

According to the portal The Conversation, the UK Financial Conduct Authority (FCA) aims to prevent retail investors from buying and selling cryptocurrencies.

They explain, for example, that in the case of Bitcoin, a person can buy the option to sell a specific amount of this currency and, in return, receive insurance to prevent losses in the event of a market crash.

The efforts of the UK’s Financial Conduct Authority (FCA) were born out of latent concern; This, they explain, is directed towards the risk that cryptocurrencies such as Bitcoin represent for small entrepreneurs, since their use could lead to sudden and unexpected economic losses.

The FCA maintains that many of the investors do not fully understand the implications of investing in cryptocurrencies; The fact that this market is so volatile means that the authorities have concentrated on regulating this sector.

Photo: Shutterstock

The use of Bitcoin in the United States and the United Kingdom, what is its future?

The good news, at least for the largest corporations, is that the ban does not include professional brokers who are authorized by their firms to carry out risky moves, since they have full market dominance.

In practice, the ban is intended to protect those who have seen Bitcoin as a “future” exchange rate against possible fluctuations in the stock markets.

According to the newspaper The New York Times, the US authorities filed criminal charges against BitMex, a Hong Kong-based company, due to its involvement in money laundering and other illegal transactions that were not specified.

This lawsuit includes BitMex CEO Arthur Hayes, as well as three of the company’s owners: Benjamin Delo, Samuel Reed, and Gregory Dwyer.

So far, the only one arrested has been Hayes; the three remaining defendants are at large from the authorities.

In the application, it is established that “BitMex lent itself as a vehicle for money laundering ”; In addition, it is added that the company, dedicated to the exchange of Bitcoin, has made daily transactions of up to $ 1.5 billion dollars, which makes it one of the exchange houses with the largest operation.

Although for some people the lawsuit filed against BitMex represents a surprise, for close followers of Bitcoin, although it is an extreme measure, it is only the result of a long investigation that has been carried out since 2019.

According to statements by Jerry Brito, CEO of the Coin Center, “The vast majority of firms that serve the United States abide by the law, so it is not surprising that the government is now turning its gaze to those who refuse to fulfill them. “

Photo: Shutterstock

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