Essay Example on Bitcoins and Other Cryptocurrency Regulations

Bitcoins and Other Cryptocurrency tumbled on Dec 28th, 2017 as South Korea and Australia and the UK are freezing Bank Accounts. Cryptocurrency Speculation has been heated up and there is an immediate need to regulate the cryptocurrency trading. Bitcoin the world s biggest and the best-known cryptocurrency has fallen about 28 from its highest record. Bank Accounts Vs Bitcoin. Traders The Bitcoin attraction towards the investors has been increasing from day to day due to the increase in the growth of the Bitcoins and other Altcoins. The growth is tremendous which is more than 200 within the last 6 months. The catch is when you buy those virtual currencies which is decentralized the banks are considering the transaction towards the Bitcoin and other Altcoin as anonymous. When you buy those virtual currencies through the debit card or through the direct bank account the transaction is marked as anonymous. As a result of it the bank does not allow any such transactions it immediately freezes their account without any notification. The history of the banks freezing the accounts due to the purchase of the Bitcoins has been happening from 2015 onwards. The UK's reputed Barclay Bank has shut down a student's account after his dealing with the Bitcoin the digital currency.

The financial advisor's suspect that buying and selling of the Bitcoins is considered to be controversial. Hence the Bitcoin is said to be the controversial digital currency. The reason for the closing of the account is that the destination account was connected to an attempted fraudulent transaction. Freezing Bank Accounts due to Cryptocurrency Trading. The freezing of the Bank accounts has been increased much more over the last year. This is because the Bank is considering the transaction which is carried out for the cryptocurrency as Threats. The word Thread comes into the picture because lot of fraudulent transaction are happening and the banks are clearly investigating the transaction process. Even though the cryptocurrency has gained a major attraction when compared with the Banks laws these cryptocurrencies are not regulated enough and considered unreliable. Hence the banks are canceling the transaction and block the money transfers to the exchanges. Reason for Banks against Cryptocurrencies transaction. The actual purpose of creating the Cryptocurrencies as stated by Satoshi Nakamoto in his Bitcoin white paper which was released on October 2008 was to create a peer to peer network getting decentralized and detached from banks and governments. This has been the major attraction for Bitcoin investors.

Most of the Bitcoin investors and other cryptocurrency investors wanted to use this advantage by completely emancipating themselves from those powerful sectors and have their own control of their finances and personal assets. This is against the Banks' Policy because there will be security issues. Financial Organizations fear illegal activities will increase and we cannot have control on it. So the Banks are trying to prevent the money flow into those exchanges and try to reduce the crime. Example of an Illegal Crime. Criminals were trading online through silk road specifically for drugs and other weapons using the Bitcoins. These Bitcoins are becoming a popular investment option for illegal activity. Cryptocurrency Trading Problems. Worldwide Analyzing the market and finding the right bank to buy and sell those Bitcoins and other cryptocurrencies is the biggest challenge for the investors. Worldwide Banks are denying the transactions for the cryptocurrency trading Countries like UK, Australia, South Korea, China, and Poland are notable amongst that. Barclay's leading bank in UK is denying to accept Bitcoin transactions as it is against their policy. In Australia, the problem is more fuming and the investors are worried about their bank account getting freezing. The four major Australian Banks namely National Australia Bank ANZ, the Commonwealth Bank of Australia and Westpac Banking Corporation has been blocking the transaction of transferring funds to the exchanges. CoinJar CoinBase CoinSpot and even freezing the customer accounts who attempt to use them.

The Australian government considers this as unregulated currencies In order to control the money laundering the Australian government has announced a new law. The law states that all the Bitcoin exchanges should register with the Australian Transaction Reports and Analysis Centre. 1 This agency will be watching the money laundry and other finances related to terrorism. 2 This law has a key feature of jail time for illegal transactions. There will be a fine for the crime of operating on an unregulated cryptocurrency exchange. This will help in staying in line with the fiat currencies. In Poland Bank had a crackdown shut down due to the bitcoin activity in 2015. China holds 80 of the world s bitcoin trading in 2014 Despite the fact still Chinese banks closed the services to the Bitcoin exchanges as the illegal transactions are increasing South Korea in Dec 2017 stated that it will be closing the cryptocurrency exchanges duo the anonymous cryptocurrency accounts. They don't want to handle the abnormal situation and have better transparency.

Write and Proofread Your Essay
With Noplag Writing Assistance App

Plagiarism Checker

Spell Checker

Virtual Writing Assistant

Grammar Checker

Citation Assistance

Smart Online Editor

Start Writing Now

Start Writing like a PRO