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Bitcoin Under Major FinCEN Attack

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Major Attack on Bitcoin (FinCEN)

Bitcoin, the world’s first decentralized cryptocurrency, has experienced numerous challenges since its inception in 2009. From market volatility to skepticism from governments and regulatory bodies, Bitcoin has always found a way to adapt and overcome. However, the crypto industry recently faced a major threat in the form of a proposed regulation by the Financial Crimes Enforcement Network (FinCEN) in the United States. In this article, we will explore the details of this attack on Bitcoin and its potential impact on the cryptocurrency industry.

Understanding the Proposed FinCEN Regulation

The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, aims to combat money laundering, terrorist financing, and other financial crimes. In December 2020, FinCEN published a notice of proposed rulemaking that would require financial institutions to collect and report additional information on certain cryptocurrency transactions. This proposed regulation was met with significant backlash from the crypto community and sparked a heated debate on the balance between privacy and financial transparency.

The main provisions of the proposed FinCEN regulation include:

1. Record-keeping and reporting requirements for transactions involving convertible virtual currencies (CVCs) or digital assets with legal tender status.
2. Reporting transactions exceeding $10,000 in value to the FinCEN within 15 days.
3. Enhanced identification and verification of customers involved in CVC transactions.
4. Expanded transaction reporting for hosted wallet providers, requiring them to verify customer identities for transactions over $3,000.
5. Requirements for the retention and availability of transaction records to law enforcement agencies.

Implications for Bitcoin and Cryptocurrency Industry

The proposed FinCEN regulation has sparked concerns among cryptocurrency enthusiasts, advocates of financial privacy, and industry experts. Critics argue that these regulations impose a significant burden on the crypto industry while potentially stifling innovation. Moreover, the requirements for increased reporting could compromise the anonymity and privacy that Bitcoin originally offered.

However, proponents of the regulations argue that they are necessary to combat illicit activities associated with cryptocurrencies, such as money laundering and funding terrorism. They believe that increased surveillance and transparency will help legitimize the crypto industry and encourage wider adoption by traditional financial institutions.

If implemented, the proposed regulations could have several implications for Bitcoin and the cryptocurrency industry, including:

1. A decrease in privacy: The proposed regulations would require increased identification and verification, compromising the anonymity of Bitcoin transactions.

2. Compliance costs: Financial institutions and cryptocurrency businesses would need to invest significant resources to comply with the stringent reporting and record-keeping requirements.

3. Innovation slowdown: The additional regulatory burden could deter startups and entrepreneurs from entering the crypto industry, leading to a slowdown in innovation.

4. Adoption challenges: The perceived loss of privacy and increased compliance costs may discourage individuals and businesses from using Bitcoin and other cryptocurrencies as a medium of exchange.

Frequently Asked Questions (FAQs)

Q1: What is the purpose of the proposed FinCEN regulation?

The proposed FinCEN regulation aims to combat money laundering, terrorist financing, and other financial crimes associated with cryptocurrencies by increasing reporting and transparency requirements.

Q2: How will the proposed regulation affect Bitcoin transactions?

The proposed regulations would require increased identification and verification for Bitcoin transactions, potentially compromising the anonymity that Bitcoin offers. Additionally, the reporting requirements would impose additional burdens on financial institutions and cryptocurrency businesses.

Q3: What are the concerns raised by critics of the proposed regulation?

Critics argue that the regulations could infringe on privacy rights, impose heavy compliance costs on businesses, discourage innovation, and deter individuals and businesses from using Bitcoin and other cryptocurrencies.

Q4: What are the potential benefits of the proposed regulation?

Supporters of the regulation believe that increased reporting and transparency will help combat illicit activities associated with cryptocurrencies, legitimize the industry, and encourage wider adoption by traditional financial institutions.

Q5: Are there alternative approaches to regulating cryptocurrencies?

Yes, there are alternative approaches to regulating cryptocurrencies. Some argue for a risk-based approach, where enhanced scrutiny is placed on transactions above a certain value threshold or originating from high-risk jurisdictions. Others suggest leveraging advanced technologies, such as blockchain analytics, to identify and track illicit activities while preserving privacy.

In conclusion, the proposed FinCEN regulation represents a major attack on Bitcoin and the cryptocurrency industry. While it aims to combat illicit activities, it raises concerns about privacy, compliance costs, and innovation. As the debate continues, it remains to be seen how these proposed regulations will evolve and impact the future of cryptocurrencies.

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42 Comments

  1. WARNING: There are a number of scammers who are using my image and
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    something. I am trying to ban these scammers as quickly as they pop up. You can
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  2. Matt. Millions cowered in their living rooms as their fellow brothers and sisters on earth were forced to injekt health-destroying opaque chemistry lest they lose their jobs, friends, family etc.

  3. Heads-up, just received a phishing attack on my Blockstream Jade saying that I needed to update firmware to keep bitcoin safe. I reached out to Blockstream and they confirmed they did NOT send the notice. I bought the Jade directly from them, so I asked how these scammers found out I owned a Jade, including my email? I'm assuming Blockstream was hacked to get their customer info. Blockstream did not reply with a comment.

  4. I offloaded my bitcoin to a cold storage wallet so my wealth isn’t taken on Coinbase. Is there a way to not be a target to the IRS. I’m holding till I die or my kids get it.

  5. The US Federal Government is completely captured, corrupt, and cannot be salvaged. The people who control it hate you and hate America. The most patriotic thing a person can now to is practice and advocate decentralized solutions. TEXIT, NHEXIT, and other secession movements could help us escape. 3D printing and home milling for firearms should be a focus (i.e. DefenseDistribured). And, definitely saving in BTC and running a node (i.e. Start9OS).

  8. This really is scary. I'm saving in the best form of money ever created so that my family can flourish, but may very well be treated as a criminal. When shit hits the fan, will I stand my ground or do what is best for my family, assuming the two are not aligned? Genuinely couldn't answer that right now.

  10. Wow, Matt. This is such a brave video. Behind you 100%. And yes, there will be Bitcoin martyrs.

    Just, wow. You open my eyes so many times. Pleasure to listen to you, sir.

  11. 🎯 Key Takeaways for quick navigation:

    00:00 🏦 Major attack on bitcoin by FinCEN
    – Matthew introduces the topic of major attack on bitcoin by FinCEN, and hints about the advanced control US is seeking on financial transactions,
    – Explains how US unfavourably controlled by the banks, big pharma, military industrial complex and other groups,
    – The traditional government roles and misconceptions are touched upon.
    01:49 🕵️‍♂️ The role of FinCEN
    – Breaks down what FINCEN is and how it works,
    – Discusses the irony of the US government's involvement in money laundering despite overseeing FinCEN,
    – Mentions the government's drive for more monetary control is less ever about moral righteousness and more about its desperate financial situation.
    03:54 🌐 Bitcoin's place in this scenario
    – The US government's stance against Bitcoin is highlighted,
    – Importance of Bitcoin as "freedom money" being explained,
    – He elaborates on the upcoming Black Rock Bitcoin ETF and the restrictions it could pose on the users.
    06:14 💼 FinCEN regulations and potential overreach
    – Discusses new FinCEN proposals regulating Bitcoin transactions, highlighting cases where typical transactions could be reported to FinCEN,
    – Cites potential abuses of these regulations, especially their broad and vague language,
    – Discusses the predicament of users to prove motivation behind transactions to FinCEN based on the new regulations.
    08:59 📜 Constitutional implications and historical precedents
    – Raises concerns about the constitutionality of these regulations, citing previous legislative infringements on constitutional rights,
    – Discusses historic instances where governments ignored constitutional rights for their own purposes,
    – Raises the need for resistance against unjust laws and regulations.
    11:19 ✊A call to action against unjust laws
    – Encourages Bitcoin users and enthusiasts to think about their roles in opposing regulations that infringe on civil liberties,
    – Explains potential outcomes and effects if such a regulation becomes law,
    – Talks about potential solutions, like submitting a formal comment against the U.S. government's proposal and disobeying unjust laws.

  14. With all the fraud in the VC world and the world in general , its not like an exchange traded fund is going to be a positive influence for any network including BTC

  18. Terrorist, money, laundering?! Are you freaking serious!

    The Biden administration left millions of dollars, billions of dollars of military equipment in the hands of our enemies! What other kind of terrorist, funding and laundering could you freaking possibly be talking about!

  20. A confusing dichotomy as to why the US govt or "deep state" would attack Bitcoin yet at the same time one of the deep state's biggest allies, Blackrock, is vying for a BTC ETF. It seems that TPTB wouldn't be doing that because why make it harder for their buddy, Blackrock? Why blacklist Bitcoin when their buddy, Blackrock , will soon be trying to sell it via their ETF? 4 D chess perhaps or no?

  23. Here and in another video I commented on a new system called “PLEDGE: People's Ledger Enabling Decentralized Grassroots Empowerment,” which uses a Bitcoin-based “Blockchain Social Contract” supporting irrepressible activism, especially civil disobedience. Youtube censored both. So I’ll try this summary without a link to see if it can get through.

  29. Dont know what HIS-STORY says about twisting the arm of the supreme court . But , you can see with your own eyes and ears how the deep state government ACTORS are looking for any reason to oust the current members of the court. And , if that isnt done holding their secrets against them until they cave like justice Roberts ( skeletons) . And although i dont like " lifetime appointments " it is really the only way that they ( being the highest court in the land ) may not be swayed by popular / government opinions!!!!. Make no mistake if the government is allowed to impeach a sitting justice, there will be even more legislation from the bench . Which was NEVER the job of the Supreme Court. It was only to clarify what was already legislated to the people. Impeachment and or revoking lifetime appointment would be worse for the people than expansion.

  31. Very good important considerations, thank you. I of course support buying your own BTC and self-custody. But… the US government would just push past poor helpless Mr. Fink and size all his Bitcoin… riiight.

  32. US foreign policy is not necessarily driven by its desperate financial situation, but more that its desperate financial situation is perpetuated by allowing the worse people to rise to the top and not allowing better leadership to take its place. It's also driven by political ideologies that do not necessarily follow credible IR theory based on proven historical track record and a solid causal logic (with no contradictions like how democratic states attack each other anyway in spite of the democratic peace theory). US policy is primarily progressive liberal with irrational strategies such as forcible democracy promotion. The system is flawed, but there is hope. Once the whole system collapses, we have an opportunity to rebuild fresh hopefully with a more decentralized store of value for all (BTC), a more decentralized government, and free market capitalism. For foreign policy, there aren't many credible theories out there. The best one would be offensive realism, which believes in maintaining balances of power in strategically important regions (for USA, it would be the northern hemisphere, Europe, Persian Gulf, and Asia). The grand strategy is also important, and offshore balancing would be the realist strategy of choice.

  40. Matt this is one of your best and most brave videos ever. thank you and greetings from switzerland (in the heart of europe but luckily still not a member of corrupt EU)

  42. If Governments will not want citizens to have physical Bitcoin wallets then what does this mean for Miners? Will there be efforts to stop mining by private citizens?

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