Jonathan Levin, co-founder at Chainalysis “We are now helping banks to understand how they can build programs facilitating cryptocurrency businesses to access banking services, and as well ensuring that no illicit activity is going on.”
The first efforts of Chainalysis focused mainly on studying how people used the Bitcoin. This will help individuals and companies move their value without the intervention of an institution like the bank.
Chainalysis report states that hackers are making about 1 billion in the past year. Chainalysis is now focusing on two business areas like crime-fighting and regulatory compliance. While fighting crime is a big deal, the day to day process of ensuring that the bank account established by the cryptocurrency companies are legitimate is also an important one.
The company’s revenue still comes from the process of working with state governments and other regulators, which include the Internal Revenue Service and the Federal Bureau of Investigation who look at the company to provide them with investigation software.
Brad Garlinghouse, Ripple CEO in his response to Mnuchin stated, “But as Mnuchin indicated the entire crypto industry is not be painted with one broad brush – it has already travelled a long way since the days of Silk Road. For the industry to succeed, we need to work with regulators and within policies. Full stop.”
Garlinghouse also stated that when he was reading about the White Paper of Libra focusing on creating new fiat currency, he felt that the efforts should be as much as to the standards of regulated financial institutions.
Garlinghouse previously stated, “I hope there is no ‘ignoring, laughing or fighting’ as it relates to the regulation of crypto. If we want to maximize progress forward, it’s about working with the existing financial system – not against it.” He meant to state that the entire regulation was about improving the financial system with regulation and not to sideline regulators as those who are working against it.
When regulators work against cryptocurrency in the name of innovation, it will lead to a situation where there will be no innovation leading to foreign forces taking control of the cryptocurrency economy, which is set to become the new global economy.
While crypto regulation continues to be a stumbling block for the wider adoption of cryptocurrency “Taxation, specifically, is among the sector’s biggest issues.” The US is considering at least three bills, which will resolve several murky legal issues around digital money.