Call me crazy, but I see a host of problems for cryptocurrency fanatics hanging around, just around the corner, like that.
Yeah, see governments are starting to worry about the financial power their losing. And, to be honest, I'm not seeing the light at the end of the tunnel here. Maybe I am a bit blind.
I dunno.
When you have Japan’s Financial Services Agency (FSA) cracking down on cryptocurrencies over security concerns (1), and you have China's Bitcoin mining manufacturer Bitmain refraining from allowing activity in Israel "Until the Israel Tax Authority clarifies its attitude to digital currencies," (2) well that tells me one thing.
The financial power brokers that be are looking for a way to get their claws on the cryptocurrency market.
Now, maybe Japan has some legit concerns considering that the "Tokyo-based exchange Coincheck was hacked for a record $530 million in Jan. 2018."
If anyone knows how Steem is working to make sure its own currency can't be hacked in a similar fashion, please feel free to comment on this post and let me know. I haven't personally read any specifics on that front.
Going back to the issue of governments getting control of the cryptocurrency markets though …
How can citizens work to ensure that the governments of the world simply cannot control these currencies? How do we ensure that corporations cannot control them? How do we ensure that ONLY we, the people, privately and individually control them?
Now, I have read some. And, I am only now becoming familiar with a lot of these concepts. Maybe there are articles out there that have already addressed the issues and fears I am suddenly experiencing.
Maybe I just need to do a lot more reading.
Yet, if one considers JUST the examples of Japan, and Israel …
Japan may demand that the Coinbase exchange have a physical presence in Japan … moving some of its operations from the USA to Tokyo … the better to keep a watchful government eye on the exchange, and on cryptocurrency in general.
In Israel, the issue is something else entirely.
Apparently, the tax authority is not clear on whether it will allow sales of Bitcoin mining hardware (even though an Israeli citizen could theoretically buy an Antminer S9 etc. from Amazon and have it shipped to Israel) because the Israeli government doesn't have the ability to tax their citizens' cryptocurrency activities.
At least, not until or unless, that citizen exchanges digital cash for real world money and it's deposited in that citizen's bank account.
Good news is the USA doesn't seem to be adding new laws (well, at least not yet) to try and control cryptocurrency. However, one wonders how long before that becomes the case.
Instead, according to CNBC.com, "At the end of 2017, the Securities and Exchange Commission (SEC), the regulator in the U.S., issued a warning to investors.
Got that?
Big risk. No new laws to regulate, BUT ... remember, traditional markets are less risky. (And, hey … as long as you stick to what WE know … we can ALSO track and tax ….)
Sneaky bastards.
Except they’re not so sneaky. They're right out in the open with it.
So yeah, the question again becomes how to keep their government regulating, rat bastard, hands out of the pie.
If you got thoughts, hey. Leave a comment below.
I'm all ears.
References:
“Coinbase: Japan's Crackdown on Cryptocurrency 'Good for Us'.” CCN, 10 Oct. 2018, www.ccn.com/coinbase-japans-crackdown-on-cryptocurrency-good-for-us/.
“‘Globes’ Goes down the Cryptocurrency Mine.” Globes, en.globes.co.il/en/article-bitmain-developing-new-digital-currency-mining-pool-in-israel-1001223647.
Kharpal, Arjun. “How the World Is Regulating the $220 Billion Cryptocurrency Market.” CNBC, CNBC, 9 Aug. 2018, www.cnbc.com/2018/08/09/cryptocurrencies--regulating-the-new--economy.html.