Bitcoin Jumps To New Record High As Governments, Regulators, Bankers Panic

Another dip to be bought as the weekend's pump'n'dump in Bitcoin has led to yet another new record high this morning at $11,850.

Bitcoin's market cap is now $200 billion...

This resurgence comes after a week of considerably more active propagandizing from the establishment.

As we noted previously, this week has seen a new group of establishmentarians jump on to the offensive against anti-decentralization, de-control, pro-freedom cryptocurrencies - urging bans, crackdowns, fatwas, taxation, creating their own cryptocurrencies, demanding citizens sell, and outright confiscation (this group includes governments world wide and their mainstream media mouthpieces)...

India

India's finance minister, Arun Jaitley, has clarified that the government does not recognize bitcoin as legal tender. According to the Economic Times, when asked about the government's plans to regulate the cryptocurrency, Jaitley told reporters, "recommendations are being worked at." He continued:

"The government's position is clear, we don't recognize this as legal currency as of now."

Concerned over bitcoin's anonymity and its potential illicit uses, justices issued a notice to the central bank and other agencies asking them to answer a petition on the matter, reports indicated.

Turkey

Turkey has claimed Bitcoin is in fact “not compatible” with Islam due to its government being unable to control it.

In a statement from a meeting of the state Directorate of Religious Affairs (Diyanet), lawmakers said that Bitcoin’s “speculative” nature meant that buying and selling it was inappropriate for Muslims.

“Buying and selling virtual currencies is not compatible with religion at this time because of the fact that their valuation is open to speculation. They can be easily used in illegal activities like money laundering, and they are not under the state’s audit and surveillance,” Euronewstranslates the statement republished by local news outlet Enson Haber.

Diyanet added that the same principles of “unsuitability” in particular applied to Ethereum.

South Korea

Kim Dong-yeon, South Korea’s deputy prime minister and the minister of strategy and finance, revealed earlier this week that the government is investigating various methods to better regulate the local Bitcoin market and tax Bitcoin users accordingly.

While the South Korean government and its local financial authorities are actively discussing the possibility of enforcing a policy on Bitcoin taxation, at a press conference, Deputy Prime Minister Kim stated that the government does not intend to include any Bitcoin taxation policy in 2018’s amendment of the tax law.

Holland

A Dutch news paper urges its citizens to sell their bitcoins patriotically because cryptocurrencies can undermine government and destabilize the economy.

A bitcoin world can destabilize the real economy, a euro is also solidified trust.

First, the bitcoin undermines the government because a lot of transactions are about money laundering and tax avoidance. Another problem is that the profits of new bitcoins that come with it do not benefit the government (as with normal money creation), but are absorbed in heavily environmentally harmful computer power.

Central banks also have less influence on keeping the economy stable. In times of crisis, central banks can, through their influence on ordinary banks, ease credit conditions and encourage people to consume. The bank has no control over the bitcoin economy and an economic crisis can become deeper.

The investor has air in his hands when the bitcoin crashes, but also when the company turns out to produce baked air.

France

Putting money in an empty type of asset is “very, very worrying,” Robert Ophele, chairman of France’s market regulator. Bitcoin has no link to the real economy, Ophele says in a panel discussion at the Paris Europlace Financial Forum, warning that cryptocurrencies are a way to commit cybercrimes, allowing access to illicit goods and services.

If bitcoin was a currency, "it would be a bad one," Ophel exclaimed, as it poses major challenge for central banks and regulators.

UK

The Telegraph reported just around the time of the big drop, UK "ministers are launching a crackdown on the virtual currency Bitcoin amid growing concern it is being used to launder money and dodge tax."

Taking a page out of the Chinese playbook, the UK Treasury has announced plans to regulate the Bitcoin that will force traders in so-called crypto-currencies to disclose their identities and report suspicious activity. 

According to the Telegraph, while "until now, anybody buying and selling Bitcoins and other  digital currencies have been able to do so anonymously, making it attractive to criminals and tax avoiders. But the Treasury has now said it intends to begin regulating the virtual currency, which has a total value of £145 billion, to bring it in line with rules on anti-money laundering and counter-terrorism financial legislation."

John Mann, a member of the Treasury select committee, said he expected to hold an inquiry into the need for better regulation of Bitcoin and other alternative currencies in the new year.

 

He said: "These new forms of exchange are expanding rapidly and we've got to make sure we don't get left behind - that's particularly important in terms of money-laundering, terrorism or pure theft.

 

"I'm not convinced that the regulatory authorities are keeping up to speed. I would be surprised if the committee doesn't have an inquiry next year. "It would be timely to have a proper look at what this means. It may be that we want speed up our use of these kinds of thing in this country, but that makes it all the more important that we don't have a regulatory lag."

The proposed changes come amid increasing fears that Bitcoin is being used by gangs to launder the proceeds of crime while also attracting currency speculators - with the value of the coin soaring in the past 12 months.

In other words, the same reason why the IRS is cracking down on Coinbase clients in the US is also why UK and European regulators are joining China in cracking down on capital flight.

United States

The US Senate Judiciary Committee is currently tackling bill S.1241 that aims to criminalize the intentional concealment of ownership or control of a financial account. The bill also would amend the definition of ‘financial account’ and ‘financial institution’ to include digital currencies and digital exchanges, respectively. According to ranking committee member Senator Dianne Feinstein, the proposed bill is needed to modernize existing AML laws.

The bill would amend the definition of ‘financial institution,’ in Section 53412(a) of title 31, United States Code, to include:

“An issuer, redeemer, or cashier of prepaid access devices, digital currency, or any digital exchanger or tumbler of digital currency.”

If passed, the bill would likely have far-reaching effects for users of digital currencies both in the US and abroad.

Earlier reports also indicate that the White House is actively monitoring cryptocurrencies which could only mean more attempts to regulate the world’s first successful decentralized monetary system. With the growing involvement of Wall Street and the ever escalating media attention, it is not surprising that governments are stepping up their attempts to regulate digital currency.

image courtesy of CoinTelegraph

Simply put, Bitcoin must be providing something of value to the 'people' if all these establishmentarian status-quo-defenders are panicking.

Comments

Haus-Targaryen Soph Tue, 12/05/2017 - 08:58 Permalink

I'm a butthurt nocoin goldbug -- but I see BTC rallying and I can do nothing but cheer it on.  Anything to burn the powers that be I am completely fine with.  I always thought it would be AG and AU getting away from them; looks like BTC is the Hydra that will burn this thing down.  Burn it down, burn the entire thing down. 

In reply to by Soph

The_merovingian tmosley Tue, 12/05/2017 - 11:28 Permalink

IOTA has been the subject of much hype but I believe some scepticism is warranted. The last time I checked it was still using a central coordinator server because their revolutionary tech was not quite ready for primetime. The attitude and basic cryptographic credentials of the development team also raise questions for me. They invented their own hash function (Curl) which cryptographers quickly discovered had serious collision problems. The developers then claimed they had deliberately designed a defective hash function - on purpose - as a copy protection measure. They then did not replace it with a standard, well analysed, hash function but once again decided they knew better than the entire academic cryptographic community and created their own. IOTA also uses ternary arithmetic rather than binary, making it very inefficient on actually existing computers for no practical benefit.

In reply to by tmosley

Laowei Gweilo tmosley Tue, 12/05/2017 - 11:54 Permalink

bear case for IOTA ever being broadly adapted. maybe bull cash for IOTA having some of the most practical application between decentralized partners tho.of all the B.S. ICOs (cryptos for car industry; etc), IOTA is founded on some pretty good concepts ASSUMING you have agreed upon decentralized partners. it'll never work fully decentralized any uncertain/unspecific set of partners, but for partners that want to use it for financial purposes between one another it has some cool practical application. for me, IOTA for me is similar to Ethereum and Ripple in that I think they have some of the best practical application for different purposes, and the speculation actually hurts them. the sooner their prices stabilize the better the sooner they can reliably serve a financial (networking) purpose. imo =p

In reply to by tmosley

DjangoCat Mementoil Tue, 12/05/2017 - 11:38 Permalink

In case you forgot, gold was confiscated from the Amercan people some years ago.  The US public holds very little gold and has been discouraged from buying it while the CBs in Asia load up at discount prices.I would be willing to place a small wager on the meme that the USG has been robbed of all its gold by the likes of the Bush family.

In reply to by Mementoil

shamus001 Chuck Norris Tue, 12/05/2017 - 11:23 Permalink

All thus talk about money launderig and criminal use! What do they propise as a solution? BAN CASH and use ONLY GOV DIGITAL CURRENCY?FU! Banks are and ALWAYS HAVE been the ones laundering money through their digital and fiat system! You and your lobbied GOV are the real criminals pushing drugs and doing crime on a global scale.CONSTITUTIONAL MONEY = Silver. REAL silver, coin...untraceable, free commerce, and whike were at it, Federal Taxation is Illegal, and criminal! So you dont need to worry about taxation dodging, because you do not need a single $! States to donate a small % of staye tax to provide a DEFENSIVE military ONLY.

In reply to by Chuck Norris

Laowei Gweilo InjectTheVenom Tue, 12/05/2017 - 09:20 Permalink

I doubt they care about the price per se... Bitcoin price is arbitrary in the sense that, it's created from nothing and it's essentially just 1 person giving another person their FIAT. it still ultimately relies on a zero sum winner and loser of FIAT. no matter if the last trade was $12 or $12,000, it's still a zero sum game because someone basically just gave their USD to someone else. reason they care is they want their cut of the transactions, not the actual 'value' per se.

In reply to by InjectTheVenom