Criminal activities being one of the greatest challenges faced by digital coins everywhere, have fueled many global governments' controversies.
This has made the FATF and others to potentially enforce objectives to regulate cryptocurrency transactions.
Major Updates
- The government aims at facilitating crypto transaction monitoring.
- Bitcoin promoters continue to grow in numbers.
- Crypto supporters worry new government policies will erradicate decentralized innovations.
- Authorities aim at increasing government surveillance on cryptocurrency transactions.
Since recent times, cryptocurrencies have taken the world by financial storm. This has ranged from whale investments to crypto adoptions in major companies, a growing number of reputable supporters, etc.
Mainstream acceptance has been rampant in the year 2021. The hardships faced by global economies have highly influenced this. More individuals and businesses are left with no other choice than to rely on digital currencies for trade and investments. This has, in turn, dented global economies further as more people withdraw from government-controlled means of value. This has led to many oppositions by the government against these currencies.
One very critical issue faced by cryptocurrencies, and a major topic of criticism, is the fact that cryptocurrencies give way for criminal activities due to their decentralized nature.
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This, however, holds as such has been witnessed in many cases. This includes the January riots at the United States Capitol Hill.
It was thoroughly investigated that a month prior to the incident, a French programmer allocated about US$500,000 to groups involved in the protest.
Another example includes the ‘Silk Road’ incident, which was shut down in the early ages of cryptocurrencies in 2013. A few others include the use of cryptocurrencies by hackers in various criminal activities.
This has driven many government organizations to implement better ways of checking crypto transactions. This, however, would ultimately rid cryptocurrencies of their decentralized properties.
Plans have already been laid down to drive this, and one example is future proposals by the FATF. These proposals entail to increase the government’s access to monitoring crypto financial transactions.
This was proposed to involve service providers to give accounts on crypto transactions. The resources needed to carry out these activities are currently less than underway. Furthermore, this would lead to “mass warrantless surveillance.”
Do you think the government will achieve its goals in monitoring every real time transaction made using Cryptocurrencies?
