The prediction of a $30,000 low happened on Tuesday morning, with about $89 billion being wiped off the entire cryptocurrency market, according to CoinMarketCap data. The factors that hinder BTC to get back on its feet are diversified, one of them that can not be ignored anymore is the regulatory scrutiny.
On Tuesday, the EU proposed, coinciding with BTC’s plummet, that the regulation on cryptocurrency has to be tightened. The rule is recommended by the Financial Action Task Force (FATF), dubbed as the watchdog of inter-government of the EU.
The rule is carried out in the name of anti-money laundering by making cryptocurrency traceable with the requirement that the company handling crypto assets for a customer must include the customer’s name, address, date of birth, and account number, and the name of the person who will receive the crypto assets.
“Today’s amendments will ensure full traceability of crypto-asset transfers, such as bitcoin, and will allow for prevention and detection of their possible use for money laundering or terrorism financing,” said the Commission in a statement.
Analysts predict that the rules could include banning anonymous crypto asset wallets, which tells that things are not that simple. So why do governments rush to regulate cryptocurrencies?
The question brings us to decentralization, the biggest feature of cryptocurrencies. With this technology, cryptocurrency is not subjected to central banks, that is to say, it is anarchical.
But looking closely at fiat currency, we can see that governments have entire control over it. On the one hand, governments manipulate the monetary system to exert economic influence by issuing or destroying fiat currency. On the other hand, they collect taxes and trace criminals with their bank systems which record every users’ information.
However, the thriving of bitcoin in recent years, especially 2021, does not sit well with governments around the world. Two typical examples are from China and El Salvador. Chinese government regulatorily banned cryptocurrency service for promoting its central bank digital currency—digital Yuan, while EI Salvador legalized Bitcoin with the hidden purpose of banking the unbanked as the country has 70% of its population without a bank account.
Regardless of cryptocurrency’s downsides in volatility, cyber fraud, and environmental impact, people do not support severe political regulation and argue that cryptocurrency will not be regulated for its Peer-to-Peer trading and decentralized exchanges.
In a trend that countries like the US, France, UK, Thailand, China, etc are taking action against cryptocurrency exchanges, It is not easy to find one without requiring your personal information. According to the 2019’s Q3 Cryptocurrency Anti-Money Laundering (AML) Report published by CipherTrace, ⅔ of the top crypto runs compliant KYC procedures.
Bitwells is one of few platforms dedicated to safeguarding your private information with its No-KYC policy. Providing a one-step registration form that only requires an email address to set up a full-function trading account. A nickname and an email verification are all you are supposed to provide to the site and you would access all pages without any warnings.
After sign-up, you will be impressed by Bitwells’100% deposit bonus for every user as you see in the above picture. When you deposit into Bitwells, the same amount of bitcoin will be accredited to your account (max. 10 BTC each deposit). If you deposit 1 BTC, you will get 2 BTC. The bonus is not withdrawable, but traders can use it as a margin to open bigger positions and take more profits. Profits made with the bonus are withdrawable.
Bitwells is a futures trading platform focusing on the Bitcoin market, providing futures leveraged trading of mainstream digital currencies like Bitcoin, Ethereum, Litecoin, Ripple, etc. It has extensive popularity among more than 200,000 traders from over 200 countries for the advantages below:
- High Leverage: Bexplus offers 100x leverage perpetual contracts to make you a high profit.
- High security: Your crypto assets are stored in cold wallets to avoid hacking.
- High liquidity and super-fast execution: Our orders come from 15 market makers to ensure high liquidity. Bitwells executes 200K orders per second with minimum spreads.
- Demo account: practice with the demo account to improve your skills.
- 24/7 support: Our support team is always there to help you with any inquiries and provide market analysis and industry news.
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