This page has been archived and commenting is disabled.
US Treasury Denies It Is Trying To Torpedo Bitcoin
Submitted by Simon Black via Sovereign Man blog,
In remarks given late last week to the curiously named United States Institute for Peace, the head of the Treasury’s Financial Crimes Enforcement Network (FinCEN) vociferously denied any attempts at regulating digital currency... specifically Bitcoin.
The speech, entitled “The virtual economy: potential, perplexities and promises”, can be downloaded here for your reading pleasure. But here’s the gist:
http://www.fincen.gov/news_room/speech/pdf/20130613.pdf
- The government views virtual currencies as a “financial service”, and virtual currency exchanges as “financial institutions” that are “as much a part of the financial framework as any other type of financial institution.”
- The government further views that these ‘financial institutions’ have “certain responsibilities.” Namely, to “register with FinCEN” and become an unpaid spy of the US government.
- Resistance is futile. If businesses which provide digital currency services fail to comply, those individuals and companies “are going to be held accountable.” While those who comply “have nothing to fear from Treasury.”
It’s clear that Bitcoin is smack dab on the US government’s radar, despite the digital currency’s tiny market size. But it’s also clear that they don’t understand Bitcoin at all.
They claim, for example, that a digital currency is a ‘financial service’, as if Bitcoin is some sort of mutual fund or home equity line of credit.
Like gold, digital currency is not a financial service. It’s a proxy AGAINST the financial system that takes one’s savings out of fiat currency.
Bitcoin takes things a step further in that it is completely decentralized. There is no Bitcoin issuer that regulates its supply like a central bank, and no tiny elite that has the power to conjure new Bitcoins out of thin air.
As such, Bitcoin itself is nearly impossible to regulate. And the government at least seems to understand this point. Which is why the director so emphatically denies attempting to regulate the digital currency.
But that doesn’t mean they can’t spread fear, uncertainty, and doubt.
In this short 4-page speech, the Director twice made a connection between Bitcoin and (you guessed it) terrorism. Twice more connected Bitcoin to those who would exploit children. And four times linked digital currency to ‘criminals’ in general.
It’s certainly enough to scare most people away.
And, even though they cannot control Bitcoin, FinCEN is obviously laying the foundation to regulate every business that touches Bitcoin, from exchange houses to swap websites to digital wallet providers.
These companies will undoubtedly be forced to bed down with Uncle Sam and join the Big Brother network of financial snitches.
As we reported a few weeks ago, the government already took down the operators of the Liberty Reserve digital currency service... as well Bernard von Nothaus, the issuer of the now defunct Liberty Dollar.
They even went as far as to brand Nothaus a domestic terrorist for “making, possessing, and selling his own currency”. And even though he was convicted over two years ago, von Nothaus is STILL awaiting sentencing.
It just shows the depths they will sink to enslave people to their fraudulent fiat system. They’ll use any obscure law they can find, and they’ll imprison people if they have to.
And if they can’t, they’ll just regulate an entire industry... all to ensure that people have limited alternatives to their rapidly devaluing paper money.
(As an aside, it’s perfectly legal, and non-reportable in some instances, to hold gold and silver outside of the country, locked away in a non-bank safety deposit box. This is still a great option.)
»
- 13486 reads
- Printer-friendly version
- Send to friend
- advertisements -
Why not just trade in Carl's Jr. coupons, prepaid TGI Fridays gift cards, and TracFones?
Don't get Zhou Tonged
If they close the banks any corporation can continue operations with a BitCoin backup plan.
I say be prepared for when the FED globalists attack the United States of America.
My silver that I purchased with BitCoin arrived today. (Not enough to consider stealing so don't get any ideas--fools.)
The plot thickens: a cryptography expert with a name that seems an anagram of "Satoshi Nakamoto" is credited by the NSA for his "good work" in pioneering digital currency back in the 90s. see http://thebitcoinnews.co.uk/2013/06/17/the-bitcoin-created-by-the-nsa-tatsuaki-okamoto-is-satoshi-nakamoto/
Why did the NSA not brief FinCEN about Project Bitcoin? Or is this an obfuscation trick?
Damn... Luke Skywalker is - afterall - the lovechild of Darth Vader
Gold bitchez
It is the same old over again.
“Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism,” U.S. Attorney Tompkins said in announcing the verdict of Von NotHaus.
http://www.zerohedge.com/article/fbi-busts-mastermind-criminal-issuing-s...