AML Will Transform Cryptocurrency into a Tool of Unprecedented Control

AML Will Transform Cryptocurrency into a Tool of Unprecedented Control

The Financial Action Task Force (FATF) plans to set international regulation standards for crypto by June 2019. According to FATF, these standards will be obligatory for exchanges, financial services providers and even crypto wallets

Those people, who deal with banks more or less frequently, are familiar with their AML procedures. You can’t send or receive your own money without filling a ton of papers. Over years the AML framework becomes more and more complicated. Customers accounts get frozen left and right with the requirement to provide evidence of the origin of the funds. That makes the banking system very ineffective. Now they want to do the same with crypto.

Crypto always was the opposite of banks and regulations. It was the money for the free people, that can’t be tracked or associated with its owner. That regulation, proposed by FATF, changes the nature of cryptocurrencies, transforming them into the tool of unprecedented control. Exchanges, financial services, even crypto wallets are subject to regulations. That means that you won’t be able to buy or sell crypto without being monitored.

One year ago there were talks about the possibility of issuing government-backed cryptocurrencies. Now with this kind of regulations, there's no point for governments to bother themselves with any developments. The right of the strongest allows them to control all points where common people are able to enter crypto until there won't be any uncontrolled entry points. After that, the existing infrastructure and the nature of blockchain-based transactions can help to build the system for tracking every single citizen in the country. The libertarian idea of uncontrolled money can fail and become the same thing that it tried to fight with. The reason is simple: governments still have power and they control the circulation of fiat money. All of us buy crypto for fiat money, and that's the transactions that can be tracked or blocked by banks. In many cases, wire transfers to exchanges get blocked with an explanation that it's not safe. People can decide what to do with their own money? It seems that we can't. Governments are winning, and it was very naive to think otherwise. Crypto is becoming an alternative way to save and transfer money under the control of same old regulators.

What could be done in this situation? Of course, there are solutions to this problem. Blockchain is still a public domain and everybody can use it without restrictions, the only thing we need is to have an internet connection and a set of tools to make transactions. The most popular crypto wallets may require a KYC verification. But those same people who were anonymously developing open source clients for years will give us the new wallets. The more puzzling problem is the AML procedures on exchanges. What does it mean? The ban of all private coins? The crackdown on all exchanges, noncompliant with the international AML law?

Of course, common people won't care about it. They will care only after the next scandal, a Snowden-like leak, about governments still spying on their citizens, this time on even a larger scale. Those who want to evade the surveillance of the Big Brother... well, it's time to get back to cash, we suppose? Anyway, mainstream crypto was never supposed to be very private, but its qualities give to governments another way to control us. And we created it by ourselves. Let's see how it turns out.

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The Push to Kill Cash – Australia’s Proposed Ban Shows It’s Not Conspiracy Theory

The supposed coordination of governments and tech companies to create a one-world, cashless society is often viewed as little more than fodder for silly Youtube conspiracy videos. After all, cash is still king in daily life, even in extremely high-tech, innovative societies like Japan. Upon closer examination, though, current realities like Australia’s proposed cash transaction ban for 2020, the continuing removal of higher denomination bills from several world economies, and the creation of centralized, state cryptocurrencies by governments worldwide cannot be ignored. These trends signal a global push to kill paper money in the name of safety, security, and financial inclusion. Also Read: Major Swedish Bank Orders Negative Interest Rate on Euro Deposits You Can Pay, But It Better Be Our Way Australia’s “Black Economy Taskforce” wants to put people accepting over 10,000 AUD (~$6,750) in cash in the slammer for up to two years, or fine them up to 25,000 (~$16,890), in an ostensible bid to fight black market economies. The Currency (Restrictions on the Use of Cash) Bill 2019 states: Transactions equal to, or in excess of this amount would need to be made using the electronic payment system or by cheque. The Black Economy Taskforce recommended this action to tackle tax evasion and other criminal activities. Long lines of people wait to exchange their obsolete rupee notes in India. Note the similarity here with talking points of other governments. India’s Prime Minister, Narendra Modi, when announcing the devastating surprise removal of 86% of the country’s circulating paper cash in 2016, proclaimed: Black money and corruption are the biggest obstacles in eradicating poverty. Not surprisingly, Modi’s shock move put the dominantly cash-based society in a panic, forcing people to take their now worthless 1,000 and 500 rupee notes to banks within 50 days of the announcement, to exchange them for smaller denominations. Now The Royal Bank of India is moving to ban all cryptocurrencies but one, the state-approved, digital rupee. 500-dollar federal reserve notes were officially discontinued in 1969. The removal of large cash bills is a worldwide, ongoing reality, with the European Central Bank (ECB) stopping production of the 500 euro note earlier this year. The note, dubbed by the media as “the Bin Laden,” was said to be used disproportionately in financing terrorism. The U.S. used to have banknotes worth $500 and higher as well, some which were known as gold certificates, entitling the bearer to physical gold upon redemption. As fractional reserve banking took over, however, and national debt increased, these systems were progressively abandoned. The trend continues today in the form of Negative Interest Rate Policy (NIRP), and the resultant push for digitization of money. Stop Holding Cash and Take Our Debt “If everyone is holding cash, negative interest rates become useless.” These are the words of former People’s Bank of China (PBOC) governor Zhou Xiaochuan after the Chinese government had just completed a trial run of their new national cryptocurrency back in 2017. Now the country’s sovereign digital currency is “almost ready.” Zhou has also officially stated: At the current stage, the central bank’s major goal of issuing digital currency is to replace the physical cash. Earlier in the same interview, he maintained that “The cost for cash transaction will gradually increase in the later stage. For instance, banks do not charge any fee for counting a large amount of coins now, but in the future they may charge their clients for such services.” Zhou’s remarks about negative interest rates are arguably the biggest giveaway as to what is going on here. If people are holding cash outside of banks, reckless, Keynesian NIRP policies won’t have the desired effect of coercing spending in the populace. New Zealand Reserve Bank governor Adrian Orr agrees with Zhou: Let’s tax cash holdings, simple as that: we’re back to monetary policy as usual; people are disincentivised to be holding large lumps of physical cash; they are having to think harder about putting money to work. Big Tech: We’ll Create the Digital Money, Thank You While draconian government monetary policy is alarming, the lack of support for actual financial sovereignty in the crypto and tech space is indicative of another problem. Government’s designs on eliminating paper money and fighting permissionless, decentralized crypto exchange — both moves to control money supply and populations of individuals — are obvious, and to be expected. But even big tech companies and exchanges like Facebook and Binance are jumping on the propaganda bandwagon, dragging many well-meaning enthusiasts into the fight against financial freedom (even if unintentionally) right along with them. “We believe that we all have a responsibility to help advance financial inclusion, support ethical actors, and continuously uphold the integrity of the ecosystem.” – Libra whitepaper “This is why we believe in and are committed to a collaborative process with regulators, central banks, and lawmakers…” – Facebook’s David Marcus “Binance is looking to create new alliances and partnerships with governments, corporations, technology companies, and other cryptocurrency companies and projects involved in the larger blockchain ecosystem, to empower developed and developing countries to spur new currencies.” – Binance’s ‘Venus’ announcement The common theme here is eager compliance with Keynesian value destroyers. And these examples are illustrative of the true financial epidemic. Forced ‘Perfection’ Digital currencies really are extremely convenient. Everybody in the world really should have a chance at financial inclusion. Holding wads of paper cash and coins really can be a bother, as well as a safety hazard, where crime is concerned. In Finland, passengers on state railways won’t be able to purchase tickets with cash for long-distance trips, starting in September. Much easier than messing with the paper stuff. ATMs are becoming less common worldwide, even in countries like China, the U.S., and cash-obsessed Japan. Settlements and payments can be made effortlessly, though, with just a quick scan or entering a PIN, so it’s no big deal. But this is not a perfect world. Governments are corrupt. Artificial monopolies and seas of red tape exist, keeping the life-threateningly impoverished and entrepreneurial from accessing crypto and banking services via strict KYC and AML policy, and by mandating, like Modi in India, that their hard-earned and hard-saved money is worthless. People already have the opportunity for extreme financial inclusion. A $40 smartphone and an internet connection enables anyone, anywhere in the world, to make or receive money with Bitcoin. In the name of regulation, safety, and financial inclusion, however, the state makes the situation more chaotic, less safe, and extremely exclusive where real human need is concerned. Some of us crazy people still like paper cash, and prefer to pay that way. Some annoying, behind-the-times luddites still put money in their mattresses, where global financial policy turns more and more toward negative rates, continued inflation, and devaluation of money sitting in banks. Some entrepreneurs and tech-savvy fans of crypto simply think it’s nobody else’s damn business, preferring paper wallets, coin shuffling, and VPNs, in a world where everyone but those in power are presumed guilty until proven innocent. Some of us “conspiracy nuts” just like crypto for crypto, and paper cash is still closer to that clean and private model than any slimy, centralized digital state currency could ever hope to be. Do you think there is a global push to end cash? Let us know in the comments section below. OP-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article. Images courtesy of Shutterstock, fair use. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post The Push to Kill Cash – Australia’s Proposed Ban Shows It’s Not Conspiracy Theory appeared first on Bitcoin News.
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Coinbase Releases Open-Source Software for Dapp Integration with Crypto Wallets

Decentralized Applications or Dapps have only been available on web3 browsers for desktop users until now. Nevertheless, Coinbase has introduced an open-source Dapps extension compatible with any browser. Coinbase is one of the most trusted platforms for crypto exchange and custody. It works like a web application for the mobile wallet app, similar to WhatsApp Web. The press release noted WalletLink acts as a secure bridge between your Coinbase Wallet app and your desktop browser. To get started, all you have to do is scan a WalletLink QR code with your Wallet app. Currently, Opera and Brave are the two leading Web3 browsers. The users of decentralized exchanges or other applications will now be able to use them through Safari and Chrome just as easily. Payment Confirmation for users on Coinbase App Moreover, a link with the wallet and the Dapps would enable hasslefree payments and confirmations as well. This new feature introduced by Coinbase will promote blockchain and crypto-adoption. According to the press release, WalletLink has been tested with Google Chrome, Mozilla Firefox, Microsoft Edge, Brave, and Opera browsers. Open-Source Code for Crypto On-Ramp The press release noted that it would not take more than 5 minutes for developers to integrate the Dapps with Coinbase Wallet. Currently, the wallet supports only ERC-20 tokens for now. However, the press release also noted, We plan to roll out support for native mobile apps and more currencies in the future. Popular decentralized applications like Compound, dY/dX, iDAX and so on have already extended support for Walletlink addition. Furthermore, Coinbase has made the WalletLink open-source which provides an opportunity for inclusion of numerous Dapps. The WalletLink can also be integrated with other crypto wallets as well. Hence, Coinbase Wallets is just the beginning, we could see integrations with many other popular wallets in the future. Do you think that the future will be based on a tokenized economy? Please share your views with us.  The post Coinbase Releases Open-Source Software for Dapp Integration with Crypto Wallets appeared first on Coingape.
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