Article Hero

Bitcoin resumes selloff as countries call for regulation

1621843665.png
Miguel A. Rodriguez
Miguel A. Rodriguez
24 tháng 5 2021
The world’s largest cryptocurrency continues its downward trajectory

After a roller-coaster week of trading, China and the US decided regulation and tax compliance on cryptocurrencies, with Chinese Vice Premier Liu He and the State Council stating that tighter regulation is needed to protect the financial system. From their point of view, it is mandatory to “crackdown on Bitcoin mining and trading behaviour, and resolutely prevent the transmission of individual risks to the social field.” The Chinese crypto business accounts for as much as 70% of the world’s crypto supply.

Moreover, the US Treasury Department announced that it started to impose stricter regulation on crypto markets and transactions. Any transfer worth $10,000 or more will have to be reported to the Internal Revenue Service (IRS). According to the Treasury Department, “cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion.”

Following the news, Bitcoin fell approx. 16% to $31,772.43.

Despite the recent setbacks, Bitcoin is up 268% in the past year. At the same time, Ether, the second-largest crypto in the world, edged up more than 840%.

Sources: cnbc.com, coindesk.com

disclaimers_articles

article_share_title

article_rating_title

awful
ok
great
awesome

read_more

Miguel A. Rodriguez
Miguel A. Rodriguez
financial_writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.