Tags: Bitcoin, Cryptocurrency Regulations, Blockchain, Know Your Client (KYC), Anti Money Laundering (AML), Defi, Cryptocurrency Exchange, FinCen

Bitcoin, Cryptocurrency Regulations & The Security of the Blockchain​

Originally Published: October 6th 2020, Updated with New KYC & AML Regulations: October 11, 2020

Bitcoin, Blockchain, Cryptocurrency, Exchange

If you haven’t kept up with Bitcoin news, and you still think cryptocurrency is insecure and a scam, this article is for you. People with no knowledge of what a cryptocurrency exchange or Bitcoin was talked about how the Bitcoin could be insecure and facilitate illegal activity. And that’s proved to be false if regulations work as intended, because this week at least in the United States big news in bitcoin and beyond includes new Know Your Client and Anti Money Laundering requirements; goodbye Defi and other platforms that don't verify investors. Hello more security in the already leading in privacy protection blockchain network.

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We have a world leading Cryptocurrency and Bitcoin News Feed.  

Our renowned objective independent registered investment advisors will help guide you in the diversification of your portfolio in a way like no other.

Bitcoin Regulations

Bitcoin has been claimed to be deregulated, and that’s false too. In the U.S., the FinCEN (Financial Crimes Enforcement Network), which analyzes transactions to flag financial crimes, considers cryptocurrency exchanges financial services operators. Regulators classify tokens as “other property” that replaces currency. Exchanges are regulated by the FinCEN, and are constantly watched by the FinCEN. Bitcoin was an early regulated coin.

 

Regulations do not allow investing without knowing your customer deeply and transaction monitoring

 

FinCEN won early on the fight to regulate cryptocurrency no matter what your parents may think. And that’s really helpful to prevent all kinds of scams, and misuses of the cryptocurrencies. Now it’s more difficult to get a Bitcoin account than a normal bank account. You’re assured with a good experience now with Bitcoin when it comes to protecting your privacy.

 

Exchanges must obey the recommendations of the Financial Action Task Force and comply with the Bank Secrecy Act. So you cannot open an account without a lengthy verification process; and we mean lengthy. The Internal Revenue Service, the nation’s tax authority, on the other side when you are realizing your gains, views cryptocurrencies as property and has issued a tax guide as well.

Several federal regulators have also been fighting to oversee cryptocurrency exchanges. The Securities and Exchange Commission considers cryptocurrencies as securities, and the Commodity Futures Trading Commission oversees the cryptocurrency derivatives market and considers Bitcoin to be a commodity.

 

All these measures and regulation authorities are trying to clear all the possible insecurities in the cryptocurrency world. Check out our leading Cryptocurrency and Bitcoin news feed from Boracchia Wiviott Wealth Partners to stay up-to-date. This week'a Bitcoin news was the biggest in a while; and there's sure to be lot's more that follow as Defi and others who don't follow the rules disappear from us.

 

 

What is the blockchain anyways?

 Bitcoin, Blockchain, Cryptocurrency, Exchange

It’s a cryptographic database shared across a network of computers, and each of which stores a copy of the most up-to-date version. A blockchain protocol is a set of rules that dictate how nodes (the computers in the network), should verify new transactions and add them to the database. This is what makes the system so safe, and so hard to hack and change the records. Therefore, just good computers with enormous computational power can function as nodes, doing all the work that includes creating new Bitcoins. That is “mining.” For a comprehensive analysis about how Bitcoin works and the Technical Aspects of Transactions click here.

 

In the database, you have records, that are a customer's chain of transactions or part of the information about their financial portfolio. A bunch of records are tied up into a block. And finally, all the blocks are linked together in the chain.

 

One record contains information about the transaction in specific. To be added to the block, the entire network of that block must verify if it is valid. So, if it is valid, it’s added to the block.

 

One block contains a lot of different records, and it has a special hash, with information. One block connects to another, and it proportionates the hash to the other block. That’s why it’s a chain. Just the next block has the hash, not all the chain.

 

 

What about Bitcoin Hackers?

 Bitcoin, Blockchain, Cryptocurrency, Exchange

Complex calculations generate unique hashes. And that’s what keeps the system safe. If you want to change something, the hash would have to change, and the chain would break. In other words, if someone is trying to hack the database, it would automatically break all the chain, so that person wouldn’t have access to the next block.

 

This is great because this means that blockchains can’t suffer from a total attack. They can experience partial attacks but never attacks to the entire network.

 

Decentralized and Regulated, an Innovative & World Leading Network Comprises the Safety of Blockchain 

That makes this system so attractive for global trade. Bitcoin is a decentralized system that provides the opportunity to people around the world to exchange value (like any other currency) in a digital way. You just need an Internet connection. This democratizes access to an international currency that is backed up worldwide. Not everyone can access U.S. dollars or Euros from their countries. Cryptocurrencies fix this big problem.

 

The blockchain is safe, and it has a lot of engineering protecting the entire database. It is a clever system created only for these types of databases. Hence, is not a casual database containing vital and critical information, it has tons of ways of protecting itself such as the entire network not being in a large center but in millions of individual's properties. Anyone can mine if you have the technical know - how.  

 

Cryptocurrencies are gaining momentum. Would you be able to catch up and ride the wave? It’s up to you! 

Where NOT to Invest (hint: it's unsafe!)

The fragile point of the system are the Bitcoin exchange platforms. These are private companies that facilitate the transactions and acquisitions of cryptocurrencies. We need exchanges but they must be regulated and more. With our help, you will be able to select the right exchange in your country for your needs. You need this information to start on the right path.

 

You may think that picking the first exchange that you see is enough, but sometimes exchanges are better for some things, and some are frankly dangerous. Since exchanges hold your money, it's better to be safe than sorry with which exchange you choose. 

 

Are you unsure of how to start your cryptocurrency investments today with the right chains? We'll help guide you as we have for many clients as their investing partners. We are your accessible and objective registered investment advisors who specialize in the stock market, real estate and cryptocurrency,

Start on your Boracchia Wiviott Wealth Partners

Cryptocurrency difference today!

Blockchain Security is Leading Privacy Protection in all Financial Services:

 

We’ve already debunked 2 big myths about Bitcoin and cryptocurrencies and the blockchain. Because of Bitcoin regulations it all seem to indicate that other cryptos are on the same path.

 

Cryptocurrencies are gaining momentum. Would you be able to catch up and ride the wave? It’s up to you! 

 

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Lea Wiviott Boracchia, Co-Founder, FinancialPlans.Info and InvestingProfits.Pro, both apart of the renowned Boracchia Wiviott Wealth Partners

We are a registered investment advisory focused on accessible wealth planning for everyone. Our mission is to help women, men and people of all ages, races, locations, and anyone plan and secure their most successful future. We were originally established in 2005 by way of 3 firms before my husband Marc and I registered our independent advisory in California.

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