November 24, 2022
  • November 24, 2022

Bitcoin cannot replace traditional banking services – Explica .co

By on May 30, 2021 0

According to Peter Van Valkenburgh, research director at the Coin Center, Bitcoin may not mean the end of traditional money and banking.

“I think there are people in the Bitcoin community who are probably making too much noise about how Bitcoin is going to dominate all economic systems. And, that no one will use dollars or banks anymore. I think it’s actually a little reckless, ”Van Valkenburgh said in an interview with the Washington Journal Friday on C-Span.

During the interview, he pointed out that the way Bitcoin is used can depend on the geographic location of the users. In some countries, Bitcoin (BTC) is viewed more as a speculative asset, used for trading and investing.

Generally speaking, here in America you will probably still be using credit cards and Venmo and things like that. But maybe you want to buy Bitcoin because it can be a way to balance your investment portfolio against the threat of inflation, ”Van Valkenburgh said, later referring to the similarity to gold in limited supply terms.

Crypto Firms Fail to Comply with Anti-Money Laundering Standards, Says UK Minister

Cryptocurrency companies in the UK have struggled to meet anti-money laundering standards set by the Financial Conduct Authority. According to a senior official.

John Glen, UK MP and Economic Secretary to the Treasury, highlighted the major difficulties in the process of registering cryptocurrency companies under the FCA’s AML regulations in official remarks on Friday.

According to the official, only five cryptocurrency companies received FCA registration as of May 24. After the authority became the official AML supervisor of the UK cryptocurrency industry in January 2020.

“Among the companies evaluated to date, more than 90% have withdrawn their candidacy after the intervention of the FCA. There are 167 crypto companies with great applications, ”Glen noted. He added that 77 crypto startups have apps awaiting full assessment.

Australia’s tax office urged citizens to report their income or there will be consequences

The Australian tax office has urged citizens to accurately report any profit made in the process of trading cryptocurrencies such as Bitcoin. Anticipate tax returns from a group of 600,000 Australians who now assume they’ve invested in digital assets.

ATO Deputy Commissioner Tim Loh said people always make the mistake of treating cryptocurrencies as a currency rather than an asset. The ATO wants to rid citizens of the myth that cryptocurrency income is tax exempt. Or that they only need to be declared when they switch to fiat money.

Loh said the tax office already knew who was investing in cryptocurrencies. Thanks to the cooperation he received from stock exchanges and banking institutions.

“We track the money to the taxpayer and we do it through the ATO which has data matching profiles with cryptocurrency exchanges. They give us that information and we use it to compare it to people’s tax returns, ”Loh said.

Quick Notes

President Joe Biden’s 2022 budget proposal includes several new crypto reporting requirements, according to a pair of documents released on Friday. The first proposal, mentioned in the White House budget, would expand the broker’s disclosure of information regarding cryptocurrency assets. An integration with Google BigQuery makes it easier for developers to parse data on-chain in Polygon, according to an announcement sent by email on Friday. With BigQuery support, Polygon datasets are now included on Google Cloud Marketplace under the Public Financial Services category. The potential benefits of integration are said to include monitoring gas tariffs and smart contracts, and determining which tokens or applications are most popular on the network.

What do you think Bitcoin cannot replace traditional banking services? Let us know in the comment box.

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