Cryptocurrency is a wild west. The United States’ Financial Crime Enforcement Network is looking to pass new regulations which would keep it in check. Investors and those in the technology sector have been discussing its revolutionary potential and sounding warnings about its danger for years. It is polarising. The currency is acknowledged by many governments around the world – either accepted and not legitimated or outlawed – but is largely unregulated. Countries do not view it is as legal tender. Canada, for instance, deem it a trading good, like a sheep at a medieval market being traded for horses. As mentioned, those involved see it as far more than another means of payment. It is supposed to remove the need for sheriffs
The New Regulation
FinCEN are looking to make cryptocurrency transactions easy to track. This threatens a core concept and principle of cryptocurrency: pseudonymity/anonymity. What FinCEN wants is if a transaction happens between a crypto-exchange and a private wallet over $3000 then the owner of the private wallet must identify themselves. Also, the exchange would have to report personal information if more than $10000 worth of transactions are made by a single account in a day.
The wallet system for bitcoins is complicated. The essential information is that there is an address, which is the software that will store data of how much of a cryptocurrency is owned, and there is the key, which is kept securely private and is the thing which allows users to sign transactions and move funds around. The address doesn’t store the funds, only displays what is in there. The private key enables users to spend those funds stored on a network. Wallets can be paper, mobile, desktop, or hardware. Some are more recommended than others.
Transactions tend to be publicly recorded. However, the wallets are pseudonymous/anonymous, so there are no identifying features. If FinCEN’s regulation passes, and personal information must be reported along with the transaction, the government will have access to every transaction that wallet has been involved in.
Law enforcement are worried bitcoin is being used for nefarious ends. Therefore, the new regulation is implemented in the interest of stopping criminal activity or funding it. This is understandable. There are, though, bitcoin users that just appreciate anonymity, for personal reasons, and not for criminal ones. There will inevitably be push back from the majority of bitcoin users who use it legitimately.
Use and Embrace
Bitcoin – and cryptocurrency in general – is nothing something that the masses have embraced yet. It is still fairly secular and niche. However, one area that users have found good use of it is in the online casino industry. Many casinos accept it as a payment method or use it exclusively. Gamers can wager it on for live roulette, blackjack, and progressive slots, for instance. Bitcoin can be used in tiny or massive units. It is a flexible asset. Additionally, it can be withdrawn and deposited at much faster speeds than bank transfer and e-wallets. The pseudonymity of cryptocurrency is a draw too, much like other investors, as they have privacy and security concerns.
It’s embrace in other areas is happening, but is still slow. It is still a question whether cryptocurrency is an investment which will have forecastable returns or a speculation which cannot be truly estimated. Samsung’s new line of handsets might help push it further into the public’s hand by focussing on the security of private keys, as well pins and passwords, etc., on mobiles. Bitcoins are able to be traded on mobiles in the same way that someone can transfer money or purchase things already. However, they are risky and are targets for hacks as they are easier to gain access to than other modes. If Samsung heightens the handset’s security, shops might have more of a demand to accept it as a payment method.
Cryptocurrency will receive more attention from governments and the public as its implementation is naturally increased in business spheres and incorporated into everyday apps like PayPal. How cryptocurrency copes or reacts to such regulation and legislation will see whether it becomes another financial asset or more fundamentally shake the world.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
