Home
News
- Cryptocurrencies are volatile currency used for illegal activities, and influential people know this from the U.S.
- Jesse Powell, CEO of Kraken, has also warned about the use of cryptocurrencies as there will be a crackdown on crypto.
Earlier, Janet Yellen, US Treasury, had shown her suspicion about cryptocurrencies and warned about the use of Bitcoin and other cryptocurrencies and now singing the same tune, Jesse Powell, CEO of Kraken, a bitcoin exchange, is also worried about the use of Cryptocurrencies as he believes that there is going to be the crackdown on crypto.
Is Government views on degrading use of cryptocurrencies catching heat?
Governments worldwide have started clamping down on the use of cryptocurrencies and Bitcoin. The European Central Bank President Christine Lagarde has also warned about the use of Bitcoin for money laundering, terrorist financing and other illegal activities.
Powell further said that he believes that there will be a crackdown soon. He also noted that cryptocurrencies have surged in value of late with Bitcoin, surging the record high price of more than $61,000 last month. Bitcoin was trading at around $60,105 last Monday.
Kraken looking to go public with its IPO
Kraken is the fourth largest digital currency exchange globally in trading volume. The firm is now looking to go for a direct listing, unlike Coinbase. Coinbase is likely to go public on Wednesday and be valued at $100billion. The central venue trading operators like Intercontinental Exchange, the New York Stock Exchange owner. The company’s stock market debut will be a significant milestone in its history.
However, Powell thinks that crypto’s regulatory uncertainty is not going away anytime soon. According to the current anti-money laundering rule by the U.S. government, people dealing in cryptocurrencies or hold their crypto in a private digital wallet will have to undergo identity checks if they make transactions of $3000 or more.
Cryptocurrencies have always been linked with illegal activities. This is because people dealing in cryptocurrencies do not have any name, and they are anonymous, which means one can track where the funds are sent but who has received or send the funds cannot be traced.
There are other signs that the use of cryptos for nefarious purposes may be falling. Illegal activities accounted for 0.34% of all crypto transaction volume last year, as per the information by analysis firm Chain analysis. As per Powell, the U.S. government is shirt-sighted and susceptible to incumbent legacy businesses’ pressures.
Besides the U.S., other countries are also seeing to either make new rules that are more stringent or ban cryptocurrencies. In India, the government is considering banning cryptocurrencies and penalising anyone.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
