Is this the beginning of the end for Cryptos in the USA?
Today Poloniex (one of crypto's largest exchanges) updated their terms of service, and among other things, announced they are terminating service in Washington, New York, and New Hampshire for the foreseeable future. As I understand it, they are citing a new bill that officially designates crypto as a vehicle for transferring money, and are thus subject to government licensing and scrutiny similar to banks and credit unions.
Here's an excerpt from the letter they sent out to their customers in those states:
“After April 21, 2017, your account will be placed in a suspended state and access will be restricted. If you still have funds on balance at this time, you will need to file a support ticket in order to withdraw your funds. There is no deadline on this, but we request you withdraw as soon as possible.”
Bitfinex has also announced that they are suspending operation in Washington.
Furthermore, it's reported that Poloniex will no longer allow you to purchase coins with fiat on the exchange.
Additionally, there were rulings last week that could place ICOs under SEC oversight.
To me, it looks like cryptocurrency is definitely drawing the US government's attention, and they're on the attack.
How far will this go? I honestly, don't think the government will ever outright outlaw cryptocurrency, but I do think they are going to start to drastically interfere with our access to it. They will find a way to regulate and tax it at the fiat entry and exit points.
Additionally, if Poloniex is willing to make these changes and alienate so many of their clients, they are obviously under extreme pressure from an outside source. Now that Poloniex is rolling over, I'm sure other exchanges will follow.
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In closing I'd like to stress that I'm really not trying to spread FUD (Fear, Uncertainty, and Doubt). I am about the most optimistic person you'll ever meet when it comes to crypto. I'm banking on it having a bright long term future. I just want to warn people that the landscape is changing, and once it gets rolling, it will change fast. Stay aware of current events in the market! Have an exit strategy and an avenue to liquidate should the need arise.
https://coinidol.com/poloniex-shutting-down-in-washington/
I heard bitfiniex is creating a decentralized exchange which is a plus, but as the world advances the us will have no choice but to keep up, I think the usgov is just scared rn and are looking ways to slow things down so they can get a real understanding and grip
The 'grip' part is what I don't like
Hopefully a solution to this problem will arise before they really get enforcement. I really think unless they shut off the power and internet there will always be a way to trade with crypto but attacking exchanges would be a big set back.
Agreed
Sad and scary. Governments are the worst criminal entities on Earth.
All the most horrible crimes in history were government endorsed.
They see money, and they want a piece of the pie. No one makes money in America unless the feds, and government gets a cut out of it.
Exactly
Delaying the inevitable...go private with SAFEX
No matter how hard they try they can never stop the evolution.
True
You are right! Hope to be much better in the future! I am following you!
Thank you!
It was inevitably that governments would eventually try to control Cryptocurrency, I am not surprised by these developments. There will be many set backs along the way but I believe one day Cryptocurrency will reign supreme. Peace out @crypto-expo 😎
I couldn't agree more. I think cryptocurrency will end up being regulated, but will still win out over fiat in the end.
I love this writeup...
Thank you for sharing
Thank you very much! I'm glad you enjoyed it.
Upvoted with full power and followed! Good job!
Thank you very much!! Greatly appreciated!