Janet Yellen believes that the risks associated with the cryptocurrency segment are growing

analytics602f4653d2b99.jpg

Investors are paying more and more attention to bitcoin and other cryptocurrencies, forcing them to grow even stronger. On the other hand, central banks and governments of many countries are either banning bitcoin (India, for example), or tightening legislation related to the cryptocurrency segment, introducing various taxes on mining or operations with cryptocurrencies. The governments of many countries continue to view cryptocurrencies as a threat to stability and want to control their turnover and clearly understand who owns what amount and where. However, for now, governments can only comment on cryptocurrencies and advise ordinary citizens not to deal with them, since, allegedly, cryptocurrencies are mainly used by scammers and terrorists. Although a few years ago, a study was conducted, the results of which showed that much more criminal operations are carried out in dollars than in all cryptocurrencies combined. Last week, US Treasury Secretary Janet Yellen took the floor again and stated that "the growing problem is the illegal use of cryptocurrencies and various digital assets. Cryptocurrencies are used to launder drug traffickers' money, as well as to finance terrorism." According to her, the private sector invests huge resources to find ways to prevent attackers from using technology improperly. Ergo, there is no doubt that central banks will continue to do everything to "curb" the cryptocurrency market. At a time when the Internet was just gaining momentum, a huge number of different online payment and settlement systems were created, which the states could not control in any way. But over time, the relevant laws were issued, the relevant concepts were defined, and now all these payment systems are controlled by governments. It is no doubt that it will be the same with cryptocurrencies sooner or later. At the moment, it is simply not clear how the state is going to track the owners of the cue ball and other cryptocurrencies. There are also a very large number of questions about taxation. For example: why should bitcoin be taxed if it is a debt repayment? The authorities of many countries believe that any transfer of bitcoin should be taxed and potentially brings profit to its owner. So, you need to share it with the state.

In the meantime, bitcoin is trading around $51-52 thousand per coin around the world. In Nigeria, the rate has already soared to $76,000. This happened after the central bank banned any financial institutions from providing services related to cryptocurrencies. It is believed that Nigeria is the most interested country in bitcoin. In the sense that its residents are most interested in bitcoin in the world. Previously, the Securities and Exchange Commission of Nigeria recognized digital assets as "securities," unless proven otherwise.

The material has been provided by InstaForex Company - www.instaforex.com

Pages