Hello Steemitians, 2021 was great for Bitcoin and crypto market in general. Bitcoin was able to set another record nobody is talking about. Is it good for the market or not? Let’s dive in and find out
Happening right now for all cryptocurrency holders as soon as i saw this I knew I needed to break it down and deliver it to you the us treasury just proposed new KYC rules for cryptocurrency wallets and this is specifically for any unhosted cryptocurrency wallet which is what the average person has this could be your treasure your ledger your meta-mask and this would instill record keeping and reporting requirements for transactions by or to a bank or money service business involving an unhosted or otherwise covered wallet i want to take you to the original source right here and by the way this is 72 pages we are not going to get all the answers today but i want to prepare you with the information that you need so you can make the best decision possible for you especially if you're in the u.s especially if you hold cryptocurrency so in layman's terms what does this proposed rule mean in other words users of centralized cryptocurrency exchanges who want to move their holdings onto their own private wallet or somebody else's private wallet would now have to provide detailed personal information for transactions greater than three thousand dollars and exchanges would be required to report either individual or groups of transactions that add up to more than ten thousand dollars to the financial crimes enforcement network what do you think well for those of you who choose to read the entire document i'm going to link all 72 pages down below in the description like right now check it out but a word that you'll find that they use a lot is legal tender digital assets legal tender digital assets i believe the only thing that's illegally tendered if your digital asset is a stable coin this proposed rule would affect cryptocurrencies and coins but i think they're preparing for the inevitable adoption of global stable coins i think and just to sum up the implication one last time for the folks in the back from Jake Travinsky who is a cryptocurrency lawyer not your lawyer but he has a great perspective on the market if adopted the rule would require regulated companies to verify the name and address of non custodial wall wallet users for any transaction over three thousand dollars that probably is gonna mean they're gonna log your social security number your driver's license those would be the things that verify your person in their system in the future thoughts on this give me a comment right now thoughts on this especially from a u.s perspective or a non-us perspective depending on where you're tuning in from today something that's interesting is bitcoin's price virtually no reaction to the news not bullish not bearish almost non-effective that's interesting and while i didn't read all 72 pages of this document my overall thoughts on this thus far is ultimately this could have been a lot worse this is bad for personal freedoms potentially is bad for some d5 just some new innovation but this is bullish for bitcoin and i say this because this is essentially intended to clear some of those bad actors out of the cryptocurrency space this news is bullish for the exchanges following the rules you already have to be KYC if you want to go use a regulated u.s exchange and i say this could have been a lot worse because of the following perspective from Ari Paul Fincenz proposed crypto KYC rules are the mildest version discussed and have basically no impact on the industry from my perspective although they may cause some minor problems for specific companies what does he mean by that while i eagerly await a more detailed analysis from legal experts my takeaway as a casual reader is as follows:
Institutions have to implement rules very similar to what they have to do for fiat so this is essentially making cryptocurrency on the same level as cash they have to more closely track transfers between institutions and report more to the government now i'm not saying that's right i'm not saying it's wrong i'm just saying this is sort of the same regulation that's done with cash as well fiat on crypto they're sort of imposing the same rules here and let's keep going why could this have been way worse well for unhosted wallets no reference was really made to transfer between two unhosted wallets the proposal only applies to transfers off an institution or from an institution to an unhosted wallet and that's still allowed by the way to transfer to any unhosted wallet they just have to do a bit more work confirming the recipient's address really in this case for the us a minor change because users effectively already head to KYC withdrawals to un-hosted wallets in the sense they have to KYC yourself to get an account with an institution in the first place this just means an added step in validating the withdrawal address in other words if you're withdrawing to a third-party un-hosted wallet like defy or friend either one you wouldn't have that KYC information to d fire friend this means you'll likely instead withdraw to an intermediate wallet that you control first too long didn't read for almost all Cryptocurrency users this maybe just adds a quick extra intermediate step minimal impact maybe this will be more impact for say ambitious D5 projects don't know but again i'll say it this is ultimately bearish for personal freedom but ultimately bullish for bitcoin in terms of number go up as this clears the way for large money to feel comfortable putting their money in this new digital gold-like asset as for D5 time will tell no conclusions will be made today although to throw some different perspective at you a lot of smart people like Andres are saying this is actually bullish.