U.S. Congressman Introduces a Bill to Outlaw Cryptocurrencies

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Yesterday at The United States House of Representatives Congress, Brad Sherman introduced a bill to outlaw cryptocurrencies. Bradley James Sherman is an American politician serving as a Democratic member of the United States House of Representatives since 1997.

“I look for colleagues to join with me in introducing a bill to outlaw cryptocurrency purchases by Americans…”

Brad Sherman

Outlaw cryptocurrencies because…

So the general reason for him to call out a bill on banning cryptocurrencies is because he thinks that because of crypto, the United States along with the dollar is losing power.

“An awful amount of our international power comes from the fact that the dollar is the standard unit of international finance and transactions clearing through the New York Fed. Critical for major oil and other transactions. And it is the announced purpose of the supporters of cryptocurrency to take that power away from us. To put us in a position where the most significant sanctions on Iran, for example, would become irrelevant. So whether it is to disempower our foreign policy our tax collection enforcement or our traditional law enforcement, the purposes of cryptocurrency, the advantage it has over sovereign currency is solely to aid in the disempowerment of the United States and the rule of law,” he said in his speech.

Openly admits that crypto is more advantageous than Dollar.

This is not the first time when Brad Sherman is bashing cryptocurrencies. Earlier his argument was that terrorists, money launderers and drug dealers are using crypto. This statement as such is absurd because the US Dollar is the most used currency when we are talking about terrorism, money laundering or drug dealing. Many Tweeters were surprised that he actually mentioned the real reason why the U.S. would want to ban cryptocurrencies. Centralization and power over others. Well, that is the main reason why Satoshi Nakamoto created Bitcoin.

Brad Sherman’s illegal financial activity

A crypto analyst @TheCryptoDog on his Twitter profile published publicly available evidence that one of the top Brad Sherman’s 2017-2018 campaign contributors was an online payments processor “Allied Wallet”.

It is a provider of e-commerce merchant services and online payment services. A sector which is possibly at risk if crypto becomes more widely adopted. Allied Wallet, on the other hand, has been forced by the U.S. Justice Department to forfeit $13.3 million because of illegally acquired funds. They traced the money to illegal gambling sites at offshore websites, including Isle-of-Man based pokerstars.com. Now he sounds a little bit like a hypocrite. It is a battle between the old-school lovers and the new-school admirers. Old-school lovers believe that the world should be divided into privileged and unprivileged people. Him along with the U.S. being the privileged ones.

You can’t ban cryptocurrencies

This was one of the top topics in 2017 when the biggest crypto bull run occurred. What happens if governments ban cryptocurrencies? Well, the price would drop and some existing businesses would suffer, but Bitcoin and crypto as such would stay. Only then it would be an underground thing and users would want to hide their activities even more. This would once again prove that banning something only makes it more appealing.

Best advertisement about cryptocurrencies

On the other hand, people are calling this the best advertisement for cryptocurrencies. A government official openly admitting that Bitcoin is a worldwide form of money which disrupts the government issued currency? Of course! That is why Bitcoin was created. And not only to disrupt the US Dollar, but fiat in general.

China Proposes a Ban on Bitcoin Mining!

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In recent news, China’s National Development and Reform Commission (NDRC) has added Bitcoin mining to its draft list of industrial activities that the agency is seeking to stop. This list, however, is live since 2011, but only now they added proposals of cryptocurrency mining ban. This has started a massive FUD (Fear Uncertainty Doubt) on the price and future of Bitcoin since China accounts for almost 70% of Bitcoin mining hash rate.

Bitcoin mining wastes resources and pollutes the environment

The agency has ruled out this draft proposal to the public and asks for additional comments until May 7. It lists out thousands of industrial businesses in three categories: Promoting, Restricting and Eliminating. Cryptocurrency mining has been categorized as “business that is recommended to be eliminated” and is grouped with other activities that produce high levels of pollution. However, a Twitter user @DoveyWan who is considered to be a legit source of information eases everyone by saying that this is only a proposal and actual implementation could be “tens of years down the road”.

He refers to a similar list China released in 2011. The 2019 draft still contains many proposals from 2011. He points out that many of the proposals from 2011 still haven’t been eliminated today.

Additionally, the belief that Bitcoin mining pollutes the environment is not as bad as previously reported. A report from CoinShares in late 2018 states: “based on historical data on energy mix and locations of cryptocurrency mining operations in China, we have shown that contrary to the common narrative, the vast majority of global Bitcoin mining capacity (minimum 77.6%) is running on renewable energy.”

China mining

While this is only a draft proposal, it is worth mentioning that Bitcoin mining in China is the largest portion of Bitcoin mining as such in the whole world. According to CoinDesk approximates, China’s southwestern region could hold around one million mining machines.

Moreover, China is the home for many top crypto-mining pools such as: BTC.com (17,6%), AntPool (13,9%), F2Pool (9,8%), Poolin (8,9%), BTC.top (7,7%), ViaBTC (7,6%), Dpool (3,9%).

Circled mining pools are from China. Source: https://coin.dance/blocks/thisweek

Overall, China accounts for almost 70% of the Bitcoin hash rate.

Why China? China has one of the cheapest cost for electricity in the world. However, according to Anthony Pompliano, the companies and people of China “are investing more in mining today than ever before. And that doesn’t look like it will stop anytime soon.”

Not only about polluting the environment

As Anthony Pompliano writes, he thinks this is not only about Bitcoin being a massive threat to polluting environment. He refers to China as a “notorious government” which will ban everything that is not in their control. As we all know, China banned Facebook and Google due to a reason of centralization.

“..the government has prevented centralized, for-profit companies from entering the country. In this case, the government would be waging a battle against a decentralized network by attacking the infrastructure necessary to run the networks,”

writes Anthony Pompliano.

Moreover, Pompliano rules out numerous questions that asks for an answer in this particular situation:

“If they ban commercial mining activities, would they also ban individuals from running the Bitcoin software on their personal computers? Would they ban miners only if they are using non-renewable energy sources? Could miners continue only if they agree to pay high rates of tax or evolve their operations to become government-sponsored? What type of enforcement would be implemented if the recommendation was to discontinue mining activities?”

It sure looks like this issue has more questions than answers and this is still an open discussion until May 7.

Source:

Anthony Pompliano newsletter
https://www.reuters.com/article/us-china-cryptocurrency/china-says-it-wants-to-eliminate-bitcoin-mining-idUSKCN1RL0C4
https://www.buybitcoinworldwide.com/mining/pools/
https://coinshares.co.uk/wp-content/uploads/2018/11/Mining-Whitepaper-Final.pdf

Photo by Flickr.com

India on the path of legalizing crypto

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Judging by recent reports, India has changed their strict attitude against cryptocurrencies. New India Express reports that the Indian government set up yet another interdisciplinary committee. This second committee is in favor of legalizing cryptocurrencies rather than putting an absolute ban and neglecting them from the economy. The members consist of the revenue secretary, officials from RBI (Reserve Bank of India), SEBI (Securities and Exchange Board of India), and MeitY (Ministry of Electronics and Information Technology). They already have had two meetings with panel discussions.

“There is a general consensus that cryptocurrency cannot be dismissed as completely illegal. It needs to be legalized with strong riders. Deliberations are on. We will have more clarity soon,”

a senior official told New India Express. 

The previous committee says a strict “No”!

Best Coin Investments recently reported that India is planning to ban cryptocurrency asset class as a whole. Recently in October, the president of NASSCOM (National Association of Software and Services Companies), Debjani Ghosh, announced that cryptocurrencies are illegal within the borders of India.

“It is the law of the land, and hence, we have to work with it, if we do not agree, we have to go back to the government and speak about why cryptocurrencies aren’t correct,”

said Debjani Ghosh.

At that time, this caused a severe resistance from the community. It resulted in a wave of petitions from irritated traders. Companies fled the Indian grounds to move to more crypto friendly areas like Singapore or Malta.

The main argument was the reason that crypto can cause illegal activities. It would encourage money laundering or other criminal activities. However, after this harsh decision, the president of NASSCOM cleared the air by saying: “…even the government at this stage, will not be knowing how technology will play out and know what is right and what is wrong.”

Two meetings down, one to go

There is another meeting for the second committee, scheduled for January. Perhaps the stock market plunge which is happening right now is the cause. Or at least they want to “dip their finger in the water” to test it out a little. The consensus is that there is no need to ban cryptocurrencies. So the main topic in this meeting will be the ways how to regulate cryptocurrencies more strongly. I can’t imagine how it could differ from regulations of other countries, but that is what makes this event so interesting and expected. Perhaps this is the meeting which sets India’s long-term position on cryptocurrencies. “We have also taken inputs from cryptocurrency exchanges and experts and will be examining legal issues with the law ministry. It’s a complicated issue. Once all aspects are decided, then we will have more clarity,” added the official.

Source:

https://www.financemagnates.com/cryptocurrency/regulation/india-might-legalize-cryptocurrencies-says-report/
https://unhashed.com/cryptocurrency-news/president-nasscom-confirms-cryptocurrency-illegal-india/

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