Steven Terner Mnuchin, Trump’s Treasure Secretary, commented about Bitcoin in an interview about US tax code.
Bitcoin Closely Analysed by the Treasure Secretary
As the same time that Bitcoin grows in price it increases the interest in the media. More people pay attention to it and mainstream media start to cover things that they would not do before. But governments and institutions have been following Bitcoin since its price increased this year. Even when governmental offices do not give their position on the matter, they do follow it and have their opinion.
This is why Steven Mnuchin and its office, as well as other institutions are looking at Bitcoin very closely. “Well, (Bitcoin) it is something that we are looking at very carefully and we will continue to look at,” said Mr. Mnuchin to Yahoo Finance.
During the last months, Bitcoin market cap crossed the $100 billion barrier, and institutional investors are betting in this cryptocurrency. But one of the main reason why governments want to regulate cryptocurrencies is because of the illicit activities around them.
“The first issue and the most important issue is to make sure that people can’t use bitcoin for illicit activities. So we want to make sure that you don’t have the dark web funded in bitcoins. And that’s something that is a concern of ours today,” Steven Mnuchin commented in the interview.
But What to Regulate?
Some time ago, we covered the Bitcoin News regarding cryptocurrency regulations in Singapore. What the Asian government wants to do is not to regulate cryptocurrencies but to regulate the activities around them. Something similar to what Mnuchin proposes. Ravi Menon, the head of the Monetary Authority of Singapore commented on the topic.
“Our attitude is to keep an open mind about it (Bitcoin). Very few jurisdictions regulate cryptocurrencies per se. The currency itself does not pose the kind of risk that requires regulation. Our intention is to look at the activity around the cryptocurrency and then make an assessment about which regulation would be suitable,” Menon told.
But, another country that took a further step to regulate ICOs and cryptocurrencies was Russia. The Russian government has decided to work and develop its own virtual currency, the CryptoRuble. Russian President, Vladimir Putin, is concerned about the illegal activities that Bitcoin and cryptocurrencies could bring. But they have decided to impose a 13 percent tax to users that can’t explain where they got the CryptoRubles from.
Some time ago, Bitfinex announced that they were going to leave the United States because of different reasons. One of these reasons was the fact that they had privileged information regarding future regulations on the Cryptocurrency market. It is obvious that when the time passes and Bitcoin rises in price, governments and institutions will try to understand how it works and how it will develop. But, what will happen when Bitcoin will penetrate to more than 1% of the society?
Give us your thoughts on the matter. Do you think that the US will regulate Bitcoin and cryptocurrencies soon?
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