Cryptos Slide Accelerates Since Congress Warned Bitcoin Poses Threat To US Election

Bitcoin has tumbled back below $6,000 in early Asia trading and the rest of the crypto space is following suit. No imediate catalyst for the move - aside from technical pressure - but tougher AML rules in South Korea and US Congress being told Bitcoin is a threat to the US election may have sparked it earlier in the week and this is follow-through.

Bitcoin can't catch a bid off the weekend's $6,000 slump...

And as usual, the rest of crypto is following (though we note that Bitcoin had been steady as the rest of crypto fell)...

As we noted, other than just momentum running through the psychological $6,000 barrier, there is little immediate headline catalyst.

But two stories of note this week may have helped drive some of the weakness.

As CoinTelegraph reports, South Korea’s top financial regulator has released a set of revised anti-money laundering (AML) guidelines for virtual currencies, according to a press release published this week.

The press release notes that the Financial Services Commission (FSC) conducted on-site inspections of three domestic banks - Nonghyup, Kookmin, and Hana Bank - the results of which prompted the update to AML guidelines.

The new guidelines note that cryptocurrency exchanges must conduct Customer Due Diligence (CDD) and Enhanced Customer Identification (EDD) to ensure the trade purposes and funding sources of users are legitimate. If a business refuses or is unable to provide information for customer verification, the guidelines note that any transactions from that entity must be rejected or terminated.

According to the revised guidelines, crypto exchanges are also responsible for making certain that foreigners are not using local crypto exchanges, criminals are not using the personal accounts of other people to launder money, and that there are no suspicious transactions and payment processing, CCN news site writes.

And, as CCN reports, for a significant part of 2017 and even this year, social media platforms have taken a lot of heat over their alleged role in influencing the 2016 U.S. presidential election. And for a period of time on Tuesday during a congressional hearing, cryptocurrencies were put in the same spot — at least with regards to the future.

According to Dueweke, the danger of using virtual currencies to influence the U.S. electoral process is acuter now considering that there are state actors who are hostile to the United States that are turning to cryptocurrencies as a way of bypassing the financial system of the West as well as its Anti-Money Laundering and Know-Your-Client regulatory requirements. Per Dueweke Russia was a particularly big threat.

“Considering that a large percentage of global criminal hackers and many cybercriminals are Russian or speak Russian (it is estimated that 25% of Darknet content is Russian),  and given Russia’s current state of tension with the United States and Europe, this development should be closely monitored,” Dueweke warned in his prepared testimony.

This comes about a week since the U.S. Secret Service’s Office of Investigations deputy director, Robert Novy, called on lawmakers to enact legislation which would curb the use of anonymity-enhanced cryptocurrencies or privacy coins. Novy was testifying before a Terrorism and Illicit Finance subcommittee of the U.S. House of Representatives Committee on Financial Services.

So while many were worried about The Fed or regulators cracking down on cryptos - now it's even worse - Congress will unleash the full FUD in their ignorance.

Comments

inhibi Thu, 06/28/2018 - 20:11 Permalink

Well, those congressmen thought BTC was a little too high to buy..

EDIT: And someone other than China (Korea) finally realizes BTC is all about money laundering/illicit transactions.

lookslikecraptome inhibi Thu, 06/28/2018 - 20:15 Permalink

gotta go there.

paging crypto homo,

yellow snow (mr. good news this week)

and coinista.     

help us understand the science     puuhhhllleeezzzeeee

 

https://bitcoinwisdom.com/markets/bitfinex/btcusd

 

The reason for "the slide" is a semantics game. It is down. Only the Crypto PPT will save it. There are no new buyers or wallets opening up.

The coin world has a major problem with the mass adoption stuff. Which is required.

Charts like the one referenced are a thing of beauty on the SP and the minis. Where you can execute in seconds and short the futures. In cryptos its a pain in the ass cause of major slippage. Horrible fill times, etc etc. and the fact, that even with a beautiful waterfall on a 15 minute chart, there are basically NO traders of any magnitude truly able to push back. The war between the locals and the institutions was a thing of beauty. Scalping is an art.

The coins seem to be indexes with no one truly home except the Crypto PPT.

I wish no people ill except those dumb enough, unless they learn from their lumps and losses, without a strategy to fight a waterfall, or basically too stupid to get out of the way of a military tank.

In reply to by inhibi

overbet Truther Thu, 06/28/2018 - 20:32 Permalink

Tell the truth truther. Nothing to be butt hurt about unless you were very late to the party or if youve only been buying PMs the past two decades. I'm still waiting for my gold and silver to move. Maybe 5-6 generations from now my future great great great grand kids will profit from my foolish metal inventory. 

approaching the 1 year mark on the gold bull btc dump paper trade. Still much better off having dumped your gold then and bought BTC. We'll see where it stands at 1 year. 

tmosley  overbet Sep 30, 2017 2:40 PM

One BTC sold for $4340.   UPDATE: 5,898.72
3.4 ounces of gold bought at @1280.   UPDATE: $1,252.80
http://www.zerohedge.com/comment/10369339#comment-10369339
http://www.zerohedge.com/comment/10369399#comment-10369399

In reply to by Truther

rtb61 Yellow_Snow Thu, 06/28/2018 - 21:04 Permalink

Crypto is dead, a zombie thing. It started a while back and now it is simply ramping up, people who hold crypto are now playing musical chairs to the tune corporate main stream media is playing and playing on purpose, take a seat and cash out before it is too late. Energy backed crypto will be the international form of exchanged and they will kill off unbacked crypto before doing it, you make their currency look bad, it's perceptions.

Those that hold the most crypto will of course be those who desperately try to talk it up the most as they try to sell out, tick tock, threat to democracy means the end in nigh in PR parlance, being set up for the hammer to fall.

In reply to by Yellow_Snow

Golden Phoenix BallAndChained Fri, 06/29/2018 - 06:58 Permalink

You may not understand this but many people who hold and transact in Bitcoin have never used an exchange. Exchanges are not Bitcoin.

As an example in a couple minutes someone can buy anything on Amazon using Bitcoin but for a 15% discount compared to cash or credit buyers. 

People who got BTC at $0.20, $2, $20, $200, or even $2000 are still staggeringly in the money. Notice 'got' because buying on an exchange or buying at all isn't necessary to acquire Bitcoin. There are many ways of doing it which include most of the same ways people acquire dollars.

In reply to by BallAndChained

BallAndChained Think for yourself Fri, 06/29/2018 - 06:09 Permalink

Blockchain gold is transferable without teleportation. There is already a blockchain gold stored at the Royal Canadian Mint supported by major gold miners like Goldcorp.

Even blockchain tin or copper has more value and substance than blockchain NOTHINGNESS.

Government gold backed dollar during gold standard is instantly transferable. Instantly transferable does not mean it has to be NOTHINGNESS controlled by 1% of the population at the top of the Pyramid scheme.

In reply to by Think for yourself

Golden Phoenix BallAndChained Fri, 06/29/2018 - 07:37 Permalink

Paypal, Visa, Mastercard, Amex, and Western Union typically charge retailers a 3-10% fee on every transaction.

Payment processors such as CoinGate provide similar services for crypto purchases deposited into the retailer account as USD for 1%. CoinGate is beginning to roll out live transactions on Bitcoin's Lightning System which should reduce network fees to a minor fraction of current rates.

According to Fortune magazine in 2009 the average department store profit margin was 3.2% and the average food or drug retailer profit margin was 1.5%.

Which system has more value to a retailer, the one charging 3-10% or the one charging <1%? 

Currently the only defense old school payment processors have are lobbyists and legislators. 

 

 

In reply to by BallAndChained

inhibi overbet Thu, 06/28/2018 - 20:39 Permalink

Most people WERE late to the party though. Most people bought BTC at the 5/6/7/8k range and held onto it throughout its rise because they seriously thought it was going to go to $100k range. Dead serious. High school friend of mine runs this company Bitwage, and though I admire him as a person, he is fucking CRAZY when it comes to BTC. Literally, nonstop tweets/fb posts on how BTC is the new gold, how it will go to $10k no $25k no $50k no $100k...everytime I checked his 'high' went up another 2000%.

Its like the Musk cult or the Apple cult: people truly believe that some electronic software/car/network/IoT device is going to change everything about the world and cure cancer to boot. It's like a cancer of the mind, up there with today's uber-liberalism.

In reply to by overbet

overbet inhibi Thu, 06/28/2018 - 20:57 Permalink

I read the board regularly and from what I gathered, the far majority on here were and are very anti crypto, anti stocks anti everything thats not gold, silver, land or lead. The guys I noticed that were pro crypto were all in earlier. Im sure there are some that got burned. There always is, but I wouldnt say most. 

The futures unknown. Musk hasnt started peddling time machine bonds yet. Gold or BTC could be a million usd per unit in a week for all I know. I think spreading the wagers is best for me. I will say that I do not ever think metal will go to 0, but cryptos could so allocate accordingly. 

In reply to by inhibi

HRH of Aquitaine 2.0 inhibi Thu, 06/28/2018 - 21:50 Permalink

I was honest about my crypto experience. I jumped in when it was around $4K and traded the volatility, when BTC was going up in price. But I only traded what I was willing to lose and I viewed it as an experiment and as a gamble. I put in about $400 and cashed out with $500 back in December and another $300 a few weeks ago. Left $15 in ETH.

I don't see how it will work due to slow transaction times, the expenses when you go outside of an exchange, the mulitple splits by various factions that are motivated by the usual things: greed and power.

I'm out. I came out ahead a few hundred bucks. I got lucky. I didn't put in anything I wasn't willing to lose 100%. Interesting experiment.

Oh, my final conclusion? Too technical for anyone but former PC gamers (like me) or programmers or tech nerds to figure out how to use. I traded on an exchange and it was obvious, from early on, that customer service was not a priority. Anything without top notch customer service is never going to have mass appeal. That is the difference between Coinbase (and a bot reply) and my Discover card, which has all of their customer service reps in the US.

I also have a PayPal account that has excellent customer service and is easy to use on various devices (IPad, android).

Cryptos didn't measure up. It reminded me of an older page game I played where we would copy / paste HTML code to create our own little game pages. Only nerds want to fuck around and waste time doing that stuff.

In reply to by inhibi

HRH of Aquitaine 2.0 AE911Truth Thu, 06/28/2018 - 23:52 Permalink

Well for mass adoption it has to be idiot proof.

Certainly there is the issue of quantum computing and other devices that may speed up processing. But the miners and developers gained control, and I stand by my claim that these forks, and the ability to change the code, are not good and not an improvement.

Trust is still a factor. I did everything above board, my interest, as I said, was to try to see how it worked, as a speculative endeavor and experiment with new tech (I have been an early adopter for years so that is not new).

People don't want to be told, poof, it's gone.

However, for me, for now, I am out. I will go back to the sidelines as an observer.

For those that have money with which to speculate, I wish them well.

In reply to by AE911Truth

Golden Phoenix inhibi Fri, 06/29/2018 - 08:36 Permalink

When Bitcoin first started people ran nodes to host the network and mined it essentially for free with no concept of profit to come because they believed it was a good idea and an alternative to the inflationary cluster fuck that is fiat. People still host nodes for free and many of them are busy setting up Lightning nodes. If Bitcoin were to go to a penny they'd still do so because price was never the most important objective. Not to say price appreciation isn't fantastically useful. Being able to eat while you donate your time nad/or resource to something is a good thing.

What is a cancer of the mind is the 97% who constantly shit on the 3% who are doing the right thing for precisely the right reasons. If you can't get with the program then go make sammiches in the kitchen.

 

In reply to by inhibi

rejected overbet Thu, 06/28/2018 - 22:09 Permalink

"Nothing to be butt hurt about unless you were very late to the party or if youve only been buying PMs the past two decades."

If you bought physical then you bought it for the wrong reasons. 

Anyway,,, if you bought it in the mid 90's it was about $3-400. It's now $1250 or so, That's several hundred percent which keep up with the inflation.  Gold will never make money because it is money. It buys the same today as it did a thousand years ago. And that's even when it's being manipulated. 

BitCoin is the modern day Tulip frenzy. I have no clue how long the crypto craze will last. Governments will kill it when they finally get their digital crapola up and running. 

In reply to by overbet

Baron von Bud lookslikecraptome Thu, 06/28/2018 - 20:25 Permalink

The Secret Service is under the Treasury department. So this warning to Congress is coming from the money men. You are soon to witness BC de-anonymizing legislation and the full force and fury of federal law enforcement going after monetary coiners who don't comply. I would say to BC fan boys on utube to get the message out. Sell while you can. It was a great bubble. Some made good money and some will hang on till it's sub $100. Bix Weir are you listening?

In reply to by lookslikecraptome

Golden Phoenix Baron von Bud Fri, 06/29/2018 - 09:36 Permalink

People said all the same things about the regulation/normalization of Paypal. For Paypal regulation wasn't the end, it was the beginning of mainstream acceptance. Recently Paypal was said to have assets worth $40,000,000,000. 

If a regulated/normalized Bitcoin were to have a similar valuation with 21,000,000 coins they'd still be worth about $2000 each. 

That said Paypal fees to retailers are 3% + $.30 per transaction. Fees to retailers using Bitcoin's Lightning System appear likely to be a fraction of 1%. Unless they manage to lobby and legislate it completely out of existence cheap, deflationary money will replace expensive, inflationary money slowly then all of a sudden.

 

In reply to by Baron von Bud

Harry Lightning Lanka Thu, 06/28/2018 - 22:00 Permalink

The last price bitcoin will trade is one penny. Between now and then, I don't know.

The only event that saves bitcoin from that ignominious ending will be if a lot of major companies around the globe all start accepting bitcoin or other cryptos at the same time as payment for their products and services. Or when a major country does a large debt re-financing through crypto.

The crypto market is sort of where the AFL was heading into Super Bowl III. They needed a big win to gain legitimacy. They got what they needed on the arm of Joe Namath. 

If and when that question gets answered, then crypto will have life. Until then its a wither on the vine process. I just wonder how many of the world's crypto owners got in at prices higher than now. The more there are of those owners, the harder it will be for any kind of significant rally in cryptos to take place.

In reply to by Lanka

shizzledizzle MGTOW_MONERO_XMR Thu, 06/28/2018 - 20:30 Permalink

Absolute bullshit. People here trade in a wide array of things. The folks worth listening to never steer people into a trade but offer good insights. Avoid the shills for anything... be it PMs, crypto, pink sheets, whatever. They are shilling for a reason.

If you have the stomach for volatility and want to trade in crypto that's fine by me. But don't piss on tyler and accuse him of having an agenda because it ain't what you want to hear. I'll agree the threat to elections is bullshit as these cocksuckers will always find a way to get dirty money no matter where the source and mechanism.

In reply to by MGTOW_MONERO_XMR

PoppinFresh inhibi Thu, 06/28/2018 - 20:47 Permalink

Excuse me, when was the last time you sent a wire transfer? It’s a pain in the ass. You have to shlep down to your local bank branch, wait in line, fill out the form and pay $25-40ish depending on where the money is going. If it’s a domestic wire sent via FEDWIRE you can expect your money to get were it needs to be in 72 hours. International you have a week. 

 

Or use crypto currency from from your home. Pay a few cents or $10 depending on what coin you are using and the money will get there in about an hour.

In reply to by inhibi