New concerns about regulations of the raising crypto economy in the United States drive the market in reds, as the Trump Administration releases propositions to regulate Crypto, and prevent access to biggest Cryptocurrency Exchanges from the US.
What proposed as an Anti Money laundering laws, aims to change the fundamental principles of the cryptocurrency market trade.
With the Trump Administration staying in power until January 20, conceding the office to the Joe Biden’s team, the rushed regulations might be considered as the “last will” of the Trump Administration.
The Trump administration sees threat in the Digital Yuan and cryptocurrencies as a way to pass through the transaction surveillance on the United States soil.
As a measure to fight the power of uncontrollable money and protect interests of the traditional US capital, the US Authorities changed the recent Anti money laundering act, widely known as “money travel rule” forcing Banks to keep data on all cross-border transactions over $250. Previously the threshold was set on much higher number – $3500.
USDT, the stablecoin owned by Terther Ltd based in Hong-Kong China has the highest daily volumes out of all coins on the crypto market (including Bitcoin). Recently it minted over 1,5 Billion USDT tokens, which are supposed to be backed by real USDT value. Previously they used 1 USDT = 1 USD model, but today the token is backed by what described as various assets including “loans made by Tether to third parties”.
What seemed to some analysts as a main reason behind the November’s crypto bull season, have been seen as a threat by the Trump’s office.
Tether USDT is widely used as an analogue of fiat USD to conveniently exchange crypto for USD value on exchanges. As it’s known, the exchanges operating in the USA must process a strict KYC policy to allow users trading for fiat, the stablecoins can be considered a “workaround” to walk through this obstacle.
The largest exchange, a Malta based, (Previously Chinese based) Binance have been hit with the first stone of this upcoming avalanche.
The Binance Exchange was forced to stop providing services to the US citizens, a decision that was enforced by a series of corporate lawsuits.
Apart from allowing to trade USDT, the Binance BUSD (Binance USD) and BGBP (Binance Great Britain Pound) for trading.
Surveillance of money
Reportedly, the U.S. Treasury Department is planning to set a list of requirements for self-hosted wallets, making it necessary to track information on each individual transaction and holder.
Experts see it’s likely that the Financial Action Task Force (FATF), which is an intergovernmental body, to apply the “Money travel rule” to the crypto businesses in member countries. If true, it will make it necessary to document all crypto transactions in value of $250 or higher with legal information on sender and recipient parties.