Crypto

Fed Governor Blasts Bitcoin for its Ties to “Illegal Activities”

It is a well-known fact that US politicians don’t like bitcoin very much. Particularly the Federal Reserve governor still sees plenty of problems, primarily due it facilitating illicit activities. 

In a recent meeting, the bitcoin debate was reopened once again.

The Fed Still Hates Bitcoin

As regulators prepare to take a closer look at cryptocurrencies, such hostile comments aren’t entirely unexpected. 

Federal Reserve Governor Lael Brainard warned about the use of bitcoin in illicit activities.

It is a well-known fact that cryptocurrencies are the most favored payment methods on the darknet and underground marketplaces.

Brainard explains how over a quarter of bitcoin users are associated with illegal activity.

That would, according to the Fed’s findings, encompass nearly half of all BTC transactions on the network every single day.

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Further adding to these problems is the fact of mot exchanges not requiring KYC and AML verification.

That particular aspect appears to be a bit of a stretch, however.

A lot of trading platforms enforce these requirements, to much dismay of their customers.

How these remarks might affect crypto regulation in the US, remains to be determined.

There are plenty of conflicting results regarding the use of bitcoin in the shadow economy.

It seems safe to assume that governments will remain hostile toward cryptocurrencies for some time to come.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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