Rising Regulations of Cryptocurrency

Jon Purizhansky - Cryptocurrency

According to Jon Purizhansky from Buffalo, NY illicit use of crypto currencies is on the rise globally and nation states, including Iran and North Korea are taking advantage of that. For example, the US has imposed heavy sanctions on Iran. Iran, in turn, is doing all it can to evade these sanctions by using crypto currencies. But the U.S. Financial Crimes Enforcement Network (FinCEN) is not happy with Iran’s use of cryptocurrencies to bypass the sanctions.

Due to US restrictions on Iran, the country was slapped with a universal prohibition from acquiring US dollar banknotes. However, Iran went ahead and released their plans to launch the country’s own state backed cryptocurrency.  According to the US, Iran’s crypto activities pose a significant threat to financial institutions across the world.

Jon Purizhansky says that according to the FinCEN directive, despite Iran’s Central Bank’s ban on domestic financial institutions from trading in cryptocurrencies, a lot of internet avenues are available for potential investors to access crypto platforms and exchanges. Consequently, 15 global jurisdictions, including the G7 countries, will reportedly develop a system for tracking crypto transactions to prevent illicit uses of cryptocurrencies.

Rising Cryptocurrency

The Financial Action Task Force (FATF) is planning to prepare detailed measures by 2020, according to a report by Tokyo-based newspaper Nikkei. The new system intends to collect and distribute personal data on individuals who conduct crypto transactions in order to prevent funds from being used for illegal activities such as money laundering and terrorism financing, the report notes.

The Financial Action Task Force (FATF) is planning to prepare detailed measures by 2020, according to a report by Tokyo-based newspaper Nikkei. The new system intends to collect and distribute personal data on individuals who conduct crypto transactions in order to prevent funds from being used for illegal activities such as money laundering and terrorism financing, the report notes.

Jon Purizhansky from Buffalo, NY also says that according to Cointekegraph four major South Korean crypto exchanges, including Bithumb, Upbit, Coinone and Korbit reportedly faced tighter regulation when they renewed their banking accounts. Further, on July 18, G7 finance ministers voiced their concerns that cryptocurrencies such as Facebook’s stablecoin project Libra risk upsetting the global financial system if they are not regulated strictly. For these reasons, we will see more and more regulations and restrictions as they relate to crypto currencies and their movements.

Author: Jon Purizhansky

Jon Purizhansky is a lawyer, entrepreneur and commentator in New York. He is an avid follower of US and International economics and politics. With decades of international experience, Jon Purizhansky reports on a wide variety of economic and political issues.