Cryptocurrencies have been around for more than 11 years since the birth of Bitcoin. From the beginning, they were just a niche thing, and they have become a market of more than $200 billion today. In the beginning, it was not noticed by the local governments. Until recent years, the relevant supervision became more and more strict, but the official supervision may start earlier than most people think.
According to the blockchain news media “Cointelegraph” reported yesterday, the U.S. government began to pay attention to the cryptocurrency market earlier than the advent of Bitcoin, especially at the Japanese cryptocurrency exchange Mt.Gox which was hacked at the end of 2013 and lost 850,000 After a bitcoin, monitoring activities are more frequent. The report quoted a person responsible for the compliance work of cryptocurrency exchanges and Bitcoin ATM companies, saying that the US government has long been involved in the business of these companies.
According to sources, the US government will closely monitor users of cryptocurrencies and prefer to use suspicious activity reports (SAR) to act. Although SAR is common in most fund transfer activities, the monitoring standards are different. For example, in a traditional institution, most transactions need to touch several conditions before they can be regarded as suspicious transactions, but as long as the cryptocurrency is involved, the suspicious red line has been touched immediately.
Institutions subject to government supervision are required to submit SAR when there are suspicious transactions of more than US$5,000, and the law prohibits institutions from disclosing these reported data to users or other members of the public, otherwise they will lose operating licenses and even be fined Or imprisonment. As for these reports, they will be shared with different US government departments such as IRS and FBI. Other countries such as China, Japan and Russia will have laws to review all cryptocurrency transactions.
At the same time, the government will require institutions engaged in the cryptocurrency business to report the transaction status of their users, such as transaction frequency and profit earned. Even if users withdraw cryptocurrencies from their centralized platforms into their own electronic wallets, they will be tracked to the wallet addresses by various governments. According to sources, according to the current situation, unless users use the services of decentralized exchanges or privacy coins, they must bear regulatory risks.