CryptoBusiness

JPMorgan Chase against crypto businessJamie Dimon, CEO of JPMorgan Chase & Co made a sharp statement to the US Senate Banking Committee. He said that if he were in the government, he would ban all crypto businesses.So, one of the leaders of Wall Street is demanding that the entire crypto business be shut down. Even crypto-skeptics like Gary Gensler weren’t as determined. I must say that Dimon has nothing against blockchain technology as such, JPMorgan Chase has quite successfully released its own stablecoin.Dimon’s claims relate to the lack of control over cryptocurrencies.Fiat currencies allow states (especially US) to control financial flows. Banks are bound by anti-laundering legislation, which makes it easy enough to see their customers and block suspicious transactions.And suddenly, a technology appears that makes control extremely difficult. For example, simply to block a Bitcoin transaction is almost impossible - actually, this impossibility was Satoshi Nakamoto’s initial goal.Both the banking community and American authorities found themselves in uncomfortable situations. For the first time in decades, they cannot control part of the world’s finances. Hence the demand voiced by Dimon: if the crypto business wants to survive, it should introduce anti-laundering rules similar to the banking one.Wishes, of course, are understandable, however, it is not clear how to persuade the entire crypto business to voluntarily accept restrictions. It is clear that some fields that require government authorizations, such as Bitcoin-ETF, will adopt anti-wash restrictions. The rest will have to be forced to retaliate.However, the possibilities of punitive measures are limited. How do you intend to limit the work of decentralized platforms? Are you going to block access to Bitcoin wallets? Are you sure you can do this worldwide?I don’t think the authorities are going to attack the crypto business soon. Not because they do not want to take control, but because of the lack of "controlling" technologies. But in the future, such an attack is almost inevitable. However, the crypto business also does not stand still, so the battle will be at least equal.#cryptobusiness #JamieDimon #controlovercryptocurrencies

On the regulation of crypto businessThe US Congress is training to develop cryptocurrency initiatives.Senator Ted Budd announced a presentation of "Keep Your Coins" Act, which proposes to conduct cryptocurrency transactions using their own self-custody wallets only, without any intermediaries. The Senator argues that such an approach would avoid FTX-like situations.Last year, another US Senator Elizabeth Warren proposed a bill to the contrary. It aimed to prohibit self-custody, and allow crypto coins to be stored in special repositories. This will arrange effective tracking of all cryptocurrency transactions. Thus, it is intended to solve the problem of opacity of the cryptocurrency business.Both ideas are beautiful. The first one sounds like a freedom manifesto, the second one is like the voice of a digital dictatorship. However, they all share a technical unrealizability.Let’s start with the second sentence. It completely contradicts Satoshi Nakomoto’s original idea, its endorsement signifies a de facto declaration of war to the entire cryptocurrency community and will immediately trigger a huge black market. I have long since lost faith in the sanity of the authorities, but I doubt she’s ready to take such a step.The first idea sounds quite populist. Indeed, the exchange works as an intermediary and gets funds to its account. However, in return, it provides a full range of exchange services. I don’t see how this can be realized in the case of self-custody. Perhaps the senators, who put forward such proposals, know this, but they are in no hurry to share technical solutions.The more popular the topic of cryptocurrencies becomes; the stranger legislative initiatives will be. And it scares me that some of them might be accepted. My position is simple: regulation, even for good purposes, destroys crypto business, so leave it alone!#regulation #cryptobusiness #LegislativeInitiatives