Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Rare Joint Statement From U.S. Regulators Proves Crypto Centralization Is Here

Rare Joint Statement From U.S. Regulators Proves Crypto Centralization Is Here

The U.S. SEC, Fincen and CFTC issued a rare joint statement Friday addressing regulation of "activities involving digital assets.

” Citing crypto’s perceived role in money laundering and terrorism, the regulatory power trio prescribed stricter adherence to anti-money laundering (AML) policies and know your customer (KYC) protocols. The statement is a highly visible product of the new crypto reality: for many, it’s no longer about Satoshi’s vision, but regulated, de-clawed digital assets for the obedient masses.

Centralization of Decentralized Money

For all the bluster about “Bitcoin revolution” that pervaded the cryptosphere not so long ago, permissionless money, along with calls for death to central banks, the once roaring lion of crypto opinion now seems to have been transformed into a skittish, whimpering kitten. Bitcoin maximalism has brought with it the unthinking zealotry common to religious fanaticism, and those who want to moon lambo as fast as possible are happy to hear about government adoption and approval even if it means sacrificing core utility.

Let’s be clear, Bitcoin as a technology cannot be centralized if people don’t want it to be, but if they fail to use freely, it can indeed be neutralized as such. It’s not a silver bullet or standalone cure-all. Bitcoin requires human action.


In their joint statement, the U.S. regulatory groups assert:

In and of themselves, such prescriptions for adherence to regulation are nothing at all new. Taken with the cropping up of new international regulatory bodies, calls for globalized tax regulations, and increasing talk of the necessity of KYC/AML policy, however, and a new picture emerges. One of an already operational crypto surveillance state. The polar opposite of what Bitcoin was designed to create.


The World Financial Dragnet

Major financial and economic regulatory bodies are becoming less and less confined to their own respective nations. The Joint Chiefs of Global Tax Enforcement (J5) is a coalition formed in 2018 by the United States Internal Revenue Service (IRS) consisting of the IRS and related agencies from Australia, Canada, the Netherlands and the U.K. The coalition was created in part to help fight “the growing threat to tax administrations posed by cryptocurrencies and cybercrime and to make the most of data and technology.” The J5 maintains:

The existence of the J5 also makes another recent story all the more pertinent — the Organisation for Economic Co-operation and Development’s (OECD) call for a unified taxation approach. As the OECD’s recent proposal maintains: “In a digital age, the allocation of taxing rights can no longer be exclusively circumscribed by reference to physical presence. The current rules dating back to the 1920s are no longer sufficient to ensure a fair allocation of taxing rights in an increasingly globalised world.”

In other words, major corporations and their digital revenue may soon be taxed internationally, regardless of physical presence in a country. This could make practices like relocation to avoid harsh economic conditions or sanctions less efficacious or outright impossible. With the current state of rampant KYC/AML requirements for individual users of centralized exchanges, one wonders how long it will be until individuals are taxed similarly on their own digital assets via similar “guidelines.” The proposal states openly:


A Decentralized Pushback

Not everyone in the crypto space is standing in wide-eyed wonder at Bitcoin’s supposed acceptance from the “big boys” of Washington and Wall Street via vapid talk about the importance of blockchain and sensible regulation. Bitcoin was explicitly created to be a P2P cash system that was open to everyone. Cropping up in the face of the growing global dragnet are peaceful, permissionless solutions such as decentralized exchanges, peer-to-peer trading platforms, and privacy protocols.

What first gave Bitcoin its value and meteoric rise to success was its decentralized, permissionless financial power. Heading right back to the same dying, unethical system cryptocurrency advocates were seeking to escape in the first place, and begging for its acceptance, is ultimately a dead end. Contrast this with the powerful adoption of crypto now happening worldwide in spite of obstacles, and there’s no need to “fight” the powers that be, per se. With enough people simply using crypto as cash peacefully, regardless of politicians’ scribbles, the old castle is set to fall under its own weight once a critical mass is achieved. Now that’s something Satoshi, surely, could be proud of.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
×