Governments concerned about money laundering are banning ICOs
Prepare for the new era of "no more ICOs" and "only the rich can invest (sophisticated investors)"
The crackdown has started and many governments are coordinated in banning ICOs. China, Korea, and to a lesser extent the United States. ICOs open up governments to the risk of money laundering and if would seem this is the actual reason for the ban of ICOs and for concern of rising prices in crypto. Now that crypto as a whole has a market cap in the 100+ billion range it becomes something governments cannot simply ignore anymore and the same pressures within governments to tackle money laundering with cash are the pressures pushing for bans on ICOs or in some cases digital currency as a whole.
The fact is, as cryptocurrency goes "private" with technology like zk-snarks and other forms of economic path obfuscation the governments of the world will not take it lightly. In addition with the market cap being higher the level of risk goes up with the rising market cap.
How do the members of Steemit feel about "money laundering"? Do you think this is the hidden reason behind why all governments are coordinating a crack down? I predicted a crack down months ago when the SEC and IRS made their moves in the US and I predicted a global crackdown. We are now starting to see the global crackdown starting with ICOs but it will not in my opinion end at ICOs.
References
- https://twitter.com/CryptoKorean/status/913579266222247936
- https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_coinofferings
- https://www.cnbc.com/2017/08/04/icos-may-be-seen-as-securities-by-u-s-and-singapore-regulators.html
- https://www.cnbc.com/2017/09/28/south-korea-bans-all-new-cryptocurrency-sales.html
- http://www.express.co.uk/news/world/860157/north-korea-bitcoin-hackers-steal-fund-kim-jong-un-south-korea-cryptocurrency
All the powerful governments and banks around the world definitely don't want what cryptocurrencies are doing. They want to control everything.
Governments and large financial institutions feel incredibly threatened by the rise of cryptos. Just as cash transactions were largely being killed-off, and our money was becoming entirely visible to authorities at all times, Bitcoin underwent a monumental rise.
As always, this is simply a question of control. The US only functions if the dollar remains positioned as the world's reserve currency, which the Federal Reserve can manipulate to their advantage.
Expect an awful lot of pushback against cryptos over the coming years. We have only witnessed the beginning of a huge campaign to thwart their progress.
If governments are concerned about money laundering I feel like it is a smokescreen: the bigger issue is the ideological war against the authority of the state to regulate currencies. Cryptocurrency is a threat to that economic authority.
Not really a threat if you can't get money in or take money out without permission.
Great post
I feel the world governments are butt hurt... Money laundering? plz... You can launder money effectively with a taxi, bar, restaurant... Are we going to ban these as well?
correct point
Koreans can participate in other ICO's, just the Ban is domestic for Korean ICO's.
How are you going to prove to them that you aren't a money laundering tax cheat?
What a flimsy excuse, money laundering, lol.
Money has always been the tool for mass control. Materialism IS the absolute trap. My blog proves this.
"First they ignore you, then they laugh at you, then they fight you, then you win." - Gandhi
The big talk is about shit Icos coming in as scams or money laundering scemes.
If you looked into the vast amount of ICO coming from china, you would begin to understand the concern.
Those ICO scammers essentially forced the hands of the regulators across the globe. Have you seen how some these scammers try to take pictures with Vitalik in order to lend more legitimacy to their scheme? With that kind of behavior, what are regulators supposed to do?? Just sit back and let these slime-balls run wild?
In the US, the Pentagon began an investigation into a soldier, a graduate of the prestigious military academy West Point, who openly confessed his pro-communist views. In the social network, Spencer Rapone published photos from his graduation, showing his cap, on the inside of which a black marker was written "Communism wins" and a shirt with the image of Ernesto Che Guevara.