Banks or crypt currency: pros and cons

Olena Dubchak

Olena Dubchak

May 8, 2020
Cryptovalues are increasingly being introduced into our lives. The most popular Bitcoin (Bitcoin, BTC or XBT) coin has gained popularity almost immediately since its launch. We would like to remind you that its issue was carried out in 2009, and now the total number of produced coins has passed the mark of ten billion US dollars.

In parallel with Bitcoin other cryptovariants were created and developed, but they faded against the background of their main competitor and never became worthy of it. But that does not mean that something new and more interesting will not be created in the future.

Attitude to cryptovoltaics in Russia and the world

If we compare Russia with other countries, its attitude towards Bitcoin and other coins is frankly bad. They are not just not developed, they want to be banned. Only a proposal from Finance Minister Mosesev that equates Bitcoin with foreign currency soothes the situation.

If this offer is implemented, the coin can be purchased and used in other countries, but the issue in the Russian Federation will still remain. There is one more good news. The authorized services have refused to pass the law on criminal liability for the production and use of cryptographic currency, i.e. it cannot be equated to a "monetary surrogate".

How do other countries feel about Bitcoin? The U.S. and Canada have long legalized bitcoin, and the CRA (Canadian Tax Agency) has concluded that cryptovite performs roughly the same functions as goods and services, which means that its distribution must be taxed.

The Swiss government has gone the other way, we will give the crypt currency payment status. Bitcoin can now be exchanged for francs or any other official currency at actively changing rates. Such transactions are not subject to VAT because they have payment status.

If we take Norway as an example, here Bitcoin is considered an exchange asset, but it does not acquire the status of currency.

Germany and several other countries have not yet decided what legal status they want to give the BTC, but are actively monitoring transactions, worrying about the financing of terrorism.

This experience covers many countries, so, for example, in the same States, the accounts of start-up entrepreneurs or organizations that perform any activities related to the cryptographic currency in question are often blocked. What is the attitude towards Bitcoin and other coins at banks? If a financial institution continues to work with a client without closing the cryptographic account, this is not common. I mean, there's no total confidence in the same bitcoin yet.

Supporters of conspiracies, including high-ranking individuals, should not be ignored. They believe that most of the blockades and restrictions are due to concerns that Bitcoin will be a huge competition, displacing the usual currency.

The FATF, an intergovernmental community established to combat money-laundering, settles the issue. It was launched by the Big Seven back in 1989. At present, the company's tasks are based on tracking terrorist financing, which is why accounts can be blocked, as banks are obliged to comply with FATF and follow all regulations.

For or against cryptology.

There are several reasons why Bitcoin is being driven into a "submission" position. They were anonymously voiced by a bank employee at a cryptographic meeting in Sydney, affecting not only Austrian politics, but the whole world. Let's analyze the main theses:

1. It is not recommended to cooperate with bitcoin companies at this time due to the risk of conducting operations with them.

2. A requirement called "know your client" also limits this kind of interaction.

3. As early as June 1, new laws will enter into force, according to which the standards of customer identification will be raised, and more thorough monitoring will be carried out. This will probably change the situation.

Other requirements for CDD accounts relate mainly to political persons and their environment, which may be related to corruption.

PoS Mining is gaining momentum for a reason, cryptocurrencies have many advantages:

· They're decentralized;

· Anonymous;

· Not geographically bound;

· Not subject to sharp inflation;

· Transparent.

In other words, cryptocurrencies can become a new financial instrument - this is what banks are afraid of. There is no trust in bitcoins and other coins yet, and this is understandable - a cautious attitude causes everything new and rapidly developing. Or maybe banks are not so much afraid of risks as of healthy competition?
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