Jordan Ross Belfort declared that eventually bitcoin will be crushed by regulators in America. Belfort widely known as the Wolf of Wall Street said that he doesn’t believe bitcoin is a scam, but the nature of its operation allows money laundering.
Belfort stated in the interview that it is unlikely that the government gives up its control of the money supply. He believes that financial regulators will not allow the existence of a system that they cannot regulate.
When asked of the similarities between the scams he used to run and cryptocurrencies and ICOs, Belfort responded that he does not think that Bitcoin is actually a scam. However, he pointed out that the nature of the market allows the presence of bad eggs.
Further, Belfort stated that he does not believe that SEC will come in to clean up the bitcoin market. Therefore the market doesn’t align with its interest. He explained that the government will only support a system where they can control the money supply. Hence, the decentralized nature of the bitcoin and most cryptocurrencies will only make their fight against money laundering and the tracking of funds impossible.
In response to a question on government’s plans to squash the bitcoin market, Belfort responded that he believes that plans to this are already in place, and it will become more aggressive with time. Further he added that scams and money laundering in the bitcoin market are just a tip of the iceberg. However, there will be an endless revelation of scams in the future.
Belfort revealed that his experience as a former money launderer has allowed him to review the whole risk surrounding Bitcoin. However the only way scams can be detected in the market is when the cryptocurrency is converted to regular fiat currency.
SEC History with Bitcoin
U.S. Security and Exchange Commission (SEC) has a long history of rejecting applications for listing and trading Bitcoin. In recent news, the regulatory body rejected a total of nine applications by bitcoin exchanges. However, the commission has continued to state that its decisions are not hinged on its take on the viability of bitcoin as an investment.
The statements made by Belfort reiterates the concern of crypt-investors that the commission has its reservations about the bitcoin market.
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Image Source: Jordan Ross Belfort