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Senate Bill 1241, also known as “Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017, may stifle Bitcoin’s growth and innovation.
More limits than solutions
Along with fellow Senators Dianne Feinstein, John Cornyn and Sheldon Whitehouse, the bill aimed at modernizing and strengthening criminal laws against money laundering which is a potent source of funding for terrorist organizations, drug cartels and other organized crime syndicates.
Moreover, US Bill S.1241 also aimed at deterring individuals entering the United States borders from bringing with them undeclared assets in the form of Bitcoin or other digital currencies.
It would allow for civil asset forfeitures of Bitcoin and other cryptocurrencies, and require users to declare cryptocurrency assets exceeding $10,000 whenever they cross the US border.
In separate statements, the four Senators pushing for the bill say it is crucial time for United States to address terrorist threats and other criminal activities by targeting the source of their funding, thus the need to recalibrate their anti-money laundering law to keep up with the digital age.
Senator Chuck Grassley says:
“Terrorist organizations, drug cartels, and other criminals are actively looking to exploit and harm Americans, whether by attacking our way of life, flooding our country with highly addictive drugs, or defrauding unknowing victims. The recent terrorist attack in the United Kingdom is the latest somber example of how real these threats are to our country and its allies. We must continue to fight them on every front, and that includes going after the profits of crime that are also used to fuel the ongoing activity of these diabolical enterprises. Our bill updates our money laundering laws for the 21st Century”.
Senator Dianne Feinstein comments:
“Terrorist groups like ISIL and other transnational criminal organizations wouldn’t be able to finance their activities without illegal funds. Blocking these funds is an effective way to disrupt these organizations and prevent crime and terrorism. Our bill adopts many of the recommendations made by the Justice Department to ensure that transnational criminal organizations, including terrorist groups, face consequences for laundering illicit funds, evading laws and promoting criminal activity”.
Senator John Cornyn:
“We’re living in a time where the threats from our enemies are constantly evolving and it’s not enough to fight terrorism and crime in a reactionary manner. To protect our country and Americans, we must aggressively and proactively go after their funding streams, and by strengthening our money laundering laws, we can help curb the illegal flow of money to terrorist organizations, drug cartels and crime organizations that fund their illicit activity”.
Senator Sheldon Whitehouse:
“One of the best ways to track crime and serious threats to our country is to follow the money. That’s why we need to crack down on the range of tricks criminals and terrorists can use to launder their dirty money to sustain their illegal enterprises. I’m glad to join this bipartisan bill to bring our money laundering laws up to date”.
While the bill was lauded for crossing party lines to address the nation's pressing problem, experts warned that the bill, once enacted, may actually stifle current innovations in the financial world.
Center for New American Security (CNAS) report reveals:
“There is no more than anecdotal evidence that terrorist groups have used virtual currencies to support themselves".
Thus, questions of the bill’s necessity are becoming a concern to the Blockchain community.
According to Jerry Brito, Executive Director of Coin Center, Blockchain technology which underpins Bitcoin and other cryptocurrencies, is somehow as important as the web. While like the web which also attracts illegal activities, fighting those illegal actors should be down by reducing and not adding regulatory burden on digital currency companies.
"One particular challenge in this area is the requirement for a virtual currency firm to obtain licenses in all states in which it operates and maintain compliance consistent with both federal and applicable state standards where they are licensed to operate. With only a single federal registration for virtual currency firms, compliance costs would be more manageable for smaller firms, and regulators would be better able to oversee firms”.
Expect some form of regulation
Most government organizations are still exploring Blockchain and cryptocurrencies potential. Whether it be to augment existing innovation plans such as the case for the state of Illinois or the US Navy improving the security of their manufacturing process.
Truth is, different states have different stance on cryptocurrency. Lastly, it is only a matter of time until some sort of regulation is put in place for Bitcoin and ICOs as there’s still a growing interest in various government regulating bodies, especially the SEC and Senate.Continue Reading
This week a cryptocurrency trader who traded altcoins and bitcoin on the digital currency exchange Bittrex lost over 7 BTC ($18,000 USD) while recording the entire theft. The trader from New Zealand revealed his testimony and believes he was hacked by malicious bots created to steal digital assets.
A Trader’s Worst Nightmare
A trader named Shayne who calls himself “Crypto is Key” detailed an unusual experience watching his Bittrex account that held eleven BTC drain down to four BTC. The victim explains the Bittrex account was shared with a buddy of his who helped him make decisions and trades. Additionally, he says the account was protected with two-factor authentication and a very long password. However, when he woke up and logged into Bittrex, he noticed his holding were being sold, and his account was missing 7 BTC which was withdrawn to an unknown address.
“Everyone’s worst nightmare concerning trading is losing their wealth to thieves,” explains the Bittrex trader.
Last night I was in the nightmare, and what’s worse is I had to fight while they tried to take my last four Bitcoin.
Shayne Vows to Never Store Large Amounts of Digital Currency on Exchanges
During the recorded video the trader and his buddy were logged into the Bittrex account while the thief was siphoning his digital assets. The victim thought the hacker might have been a bot or script program that worked very fast to sell his altcoins at spot price and then withdrew the bitcoins after each sale. The “fight” Shayne described, shows the trader continuously stopping open orders and trying to remove the remaining digital assets held on Bittrex. Every time he tried to cancel the order the hacker or bot was able to resume selling the remaining digital assets, but Shayne was able to recover 4 BTC in the end.
“I think sometimes these things happen to make us stronger and to be very well prepared to help prevent it happening again — I know now I will never leave any large amounts on any exchange ever again,” details Shayne. “This lesson has been a very hard one and one I will never forget, but I will not give up, and I will come back even stronger again.”
This has now lit a fire under my ass and I will not let this beat me mentally. I hope you watch the video and you can take something from it and it makes you aware of how dangerous holding any coins on any exchange can be.
Accidently Revealing API Keys Through Trading Videos
The interesting aspect of the occurrence was that Bittrex allowed multiple IP addresses to log into one account. Moreover, according to a follow-up post from Shayne, the trading platform Bittrex detailed the account was compromised due to the hacker gaining access to the trader’s API keys. “Checking your account history we can see however that these sales are happening through API calls,” explains Bittrex. Shayne details the API keys may have been leaked when he aired trading videos via his Youtube channel.
“So it seems somehow my API keys were stolen. Now, this could have quite possibly been my fault as I have used API keys in video tutorials before and may have somehow deleted the wrong ones and not double checked before I uploaded the video,” Shayne concludes.
The story reaffirms the fact that people revealing their digital assets to the general public via social media, forums and Youtube videos clearly creates targets for hackers and unfortunately many victims of cryptocurrency theft.
What do you think about Shayne’s loss on Bittrex and how he accidentally shared his API keys on video? Let us know in the comments below.
Images via Shutterstock, Shayne’s blog post, and Youtube.
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Hong Kong’s Open ANX Foundation has unveiled openANX, a project aimed at building a new decentralized cryptocurrency exchange and trading platform built on the Ethereum blockchain. The open source, decentralized exchange platform promises both the liquidity of a centralized exchange and the security and transparency of existing decentralized exchanges. “Up until now, the cryptocurrency trading […]
The post New Ethereum-Based Decentralized Cryptocurrency Exchange Aims to Improve Security and Transparency appeared first on Coinjournal.Continue Reading
US-based startup Ambisafe has unveiled its newest development, Orderbook, a venture operating a trading platform for Ethereum-based initial coin offering (ICO) tokens. The new trading platform, which is currently available in alpha version, aims to streamline operations and ensure transparency for both ICO founders and traders. It seeks to tap into the craze surrounding ICOs, […]
The post New Trading Platform Taps Into Ethereum-Based ICOs Craze appeared first on Coinjournal.Continue Reading
In our previous BTC-USD analysis, there was a fear of a massive Head and Shoulders pattern that had very low price projections for the entire crypto market. In a turn of events, when BTC-USD made its test of the Head and Shoulders neckline, it actually responded in a market reversal.
Figure 1: BTC-USD, 6-hr Candles, GDAX, Head and Shoulders Rejection
Yesterday, the crypto market took a turn upward as the market leader made a Double Bottom Reversal pattern that sent a market-wide bear run into an immediate bull run. As the BTC-USD market made an attempt to test the boundaries of the lower prices of the bear run, volume began to pick up and sent us into a market reversal. How does one spot this pattern and where are we headed in the next few days?
Figure 2: BTC-USD, 30-min. Candles, GDAX
Characteristics of a Double Bottom Reversal pattern include the following:
A descending trendline within an established bear trend (shown in white)
An initial bottom that temporarily reverses before retesting the established low (basically forming a “W” pattern)
After a test of the previously established low, the test is rejected
It is important to note that in order to confirm the reversal pattern, typically you want to see consistent increased volume at the lower values (shown in dark pink)
After the low is rejected a second time, it continues upward and breaks the descending trendline established in step 1 (shown in yellow)
After breaking the descending trendline, the price then forms a “neckline” with the rest of the pattern (shown in light pink)
From there, to confirm the trend reversal, we would want to see a break of the neckline followed by a retest of the neckline (shown in light blue)
All the above characteristics are very strong indicators of a complete bear market reversal into a bull market. As mentioned in the previous BTC-USD analysis, the bear run would continue the trend downward until significant volume picked up. In our case, the volume picked up very strongly and made a complete market reversal. Much like BTC-USD, this pattern is seen throughout several major players in the crypto market: ETH-USD, LTC-USD, ETH-BTC, etc.
It is unclear where the top of the bull run will lead us, but what is clear is that volume has dramatically picked up, indicating market interest in the higher prices. Until the volume begins to die down, the price will continue to push higher.
Head and Shoulders pattern was strongly rejected in the form of a Double Bottom Reversal
Bearish trend has ended in a strong bull trend
Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTCMedia related sites do not necessarily reflect the opinion of BTCMedia and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.
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