Reports indicate that Joe Biden’s administration may impose regulations for Bitcoin users in the United States.
The famous cryptocurrency has caught the attention of many government administrations in recent times. The massive shoot-up in the price of Bitcoin no doubt contributed to the attention it gained.
According to reports, the proposed regulation will mean that Bitcoin users and traders may start paying taxes.
Bitcoin is has been adopted by many because of its decentralized nature. This means that there are no institutions in central control of Bitcoin. Joe Biden’s administration, however is currently seeking ways to ensure that some regulations can be placed.
At the moment, the U.S government is working towards implementing an anti-money laundering law that will fall out of favor with many holders of Bitcoin. Should the law be imposed, crypto users will compulsorily have to complete their KYCs if they are to perform transactions greater than or equal to $3000.
What This Will Mean For The Crypto Ecosystem
A lot of crypto inclined individuals strongly believe that this regulation will be impossible to impose. Given the decentralized nature of Bitcoin, Joe Biden’s administration may be unable to regulate the flagship currency.
As claimed by Satoshi Nakamoto, one of the reasons why Bitcoin was invented was to avoid unnecessary restrictions imposed by Government and Financial institutions. A regulated system with restrictions and regulations defeats this purpose.
On the other hand, should the American Government fully oppose the use of Bitcoin, such a move will definitely lead to a dip in the price of Bitcoin. This dip will surely be temporary as we have seen from similar situations in the past.