What will be the effect of US regulation to crypto all over the world?

[Ehrakeziah]

What will happen to Cryptocurrency in US and all over the world if US regulator wants to stop banks from blacklisting legal businesses?

We all know that crypto is not illegal in US and most of the top crypto exchange is located in US.

Brooks, who formerly ran Coinbase’s legal team told Cointelegraph:

“There is no place within the United States where crypto is illegal, but there are different licensing requirements for companies involved with businesses so obviously if a bank was banking one of those businesses, one of the things that bank would look at as part of its diligence is whether that exchange or other business had the relevant approvals in that state.”

Which is to say, banks would not be able to disqualify potential crypto clients on the basis of their industry. A combination of uncertain regulation and reputational risk has led banks to cut off services to crypto businesses all over the world.
https://cointelegraph.com/news/us-regulator-wants-to-stop-banks-from-blacklisting-legal-businesses-crypto-included

What is your opinion regarding this matter?

[Spaffin]

At the same time, there are countries where cryptocurrency is legalized at the legislative level and nothing prevents administrations of cryptocurrency exchanges and other companies from opening branches in other countries, thus saving not only business, but also the market from possible encroachments by regulatory authorities. I believe that one should also use the examples of binance and other companies that prudently open in different countries, but do not want to have anything to do with the United States, avoiding problems.

[Fesatmas]

in this case, America is very influential on the world economy. This is usually the policy issued by America not only has an impact on crypto, stocks, oil etc. there is news from Bloomberg, which says that bitcoin is predicted to rise even without US policy. By 2021, the price of bitcoin is predicted to increase to USD 20,000.

[thesmallgod]

I suppose you mean if US want banks to blacklist legal business? I am just curious to know why they would do that. Many fintech companies developing and using both blockchain tech and cryptocurrencies if not guilty of invading tax or promoting scam do not deserve their business to be cut short. America has a large population and numerous people make use of crypto. So if that is going to happen, then it will affect everyone globally but I doubt this will even happen

[Chrystora123]

It cannot be denied, US problems really have a big impact on the economy, especially the regulation of crypto around the world.  However, different countries have different views on cryptocurrencies, so there is nothing for you to worry about crypto regulation if you live in a country far from the US.  My country alone has regulated the Bitcoin law "that cryptocurrency is included in the list of assets (equivalent to gold and commodities) and should not be a means of payment to replace the official fiat currency".   So whatever happens to Bitcoin in the US, of course, will not affect crypto regulations in my country..

in this case, America is very influential on the world economy. This is usually the policy issued by America not only has an impact on crypto, stocks, oil etc. there is news from Bloomberg, which says that bitcoin is predicted to rise even without US policy. By 2021, the price of bitcoin is predicted to increase to USD 20,000.

This further ensures that Bitcoin price is not influenced by external conditions (politics & pandemic), welcome $20k..

[BIT-BENDER]

in this case, America is very influential on the world economy. This is usually the policy issued by America not only has an impact on crypto, stocks, oil etc. there is news from Bloomberg, which says that bitcoin is predicted to rise even without US policy. By 2021, the price of bitcoin is predicted to increase to USD 20,000.

US policy affects the world may be more than any other country, the world is always watching what going-down in the US, the election is how far this is going, in any public world wide political group, the matters of the US is more discussed than any other country so the US affects global economy, but not so much with crypto-coins, the hold the US has globally on things is not as strong as they have on Crypto-coin even if they have high crypto-coin users, institutions, miners.

[Swopon]

US President can decide whatever he wants but he has his area to control over the people. But he can not impose strictly anything on other countries. In case, he can impose his decision on his allies but not all over the world though the country is the most powerful in the world. I don't think so he will do such things but if he does this then it will create an unconditional effect on Cryptocurrency. Many fintech companies are coming to crypto and they are accepting crypto, so it will not be more effective too.

[zasad@]

What is your opinion regarding this matter?

I am very glad that there are smart people in the USA!
Banks have been trying to resist the spread of cryptocurrencies for many years, calling them financial pyramids and high-risk assets. But after China launched its CBDC, it became clear to everyone that the integration of cryptocurrency and banking systems could not be avoided.

[blockman]

Then another country will take the lead. The US being strict with the spread of crypto in their country will only affect them but not the entire world and crypto market. Cryptocurrencies are a stand-alone market and don't rely on any market but the news does really affect it just like what your concern is. They can't just stop crypto services tied to them, if one is affected, they'll get into another country that's very much open and welcoming with their rules towards cryptocurrencies.

[Gozie51]

I don't think it can do much harm.

The effect of American president on bitcoin is not going to have any much effect in the crypto space. We can see currently that without any major news from America, bitcoin price is still rising and that is to say it won't matter if the US president bans her people to the use of bitcoin. China did that around 2016/17 but other countries continued growing the system.

[The Sceptical Chymist]

I suppose you mean if US want banks to blacklist legal business?

That doesn't seem to be what the quote says.  The situation in the US with banks is that they probably have blacklisted businesses that deal with crypto--but believe me, I don't know the particulars of such a blacklist.  What I do know is that banks right now don't want any part of bitcoin, and as evidence I would point out that none of them have offered any deposit or other banking products if bitcoin is involved.

We all know that crypto is not illegal in US and most of the top crypto exchange is located in US.

Yeah, and Coinbase is heavily regulated and from what I've heard provides various government agencies with their customers' information.  Screw Coinbase. 

As far as what you're asking, OP, I don't think any change in policy regarding bitcoin on the part of the US government would have major global implications--unless they passed a law banning it, but I don't think they're going to go down that route.

[Rengga Jati]

First, it is about power, the US still has a big power to make any influence on the other countries in this world.
Then, about the regulation, each country actually can make their own decision to legalize or not legalize cryptocurrency in their country. but how if a big country states that they will ban crypto? of course, it may give influence to some countries to follow what the big country did.

And about the new regulation to be planned, I am not sure it will work. It may be another drama? Who knows. Let's see what will happen for the next part of this news. I don't think this regulation will be applied fluently.

[exstasie]

Yeah, and Coinbase is heavily regulated and from what I've heard provides various government agencies with their customers' information.  Screw Coinbase.

To be fair though, any exchanges openly operating in the US do the same thing. Kraken, Gemini, Bittrex.....they all respond to government subpoenas, no question. Even exchanges like Bitfinex who supposedly don't allow US traders respond to the Treasury Department regarding sanctions and the IRS regarding FATCA compliance.

Coinbase happens to be the biggest exchange, which is why the IRS targeted them with that big John Doe summons a few years ago. So now everyone remembers them as the exchange who gave 14K of their customers over to the IRS. But in their defense, at least Coinbase fought it in court and got the initial summons thrown out for being overly broad.

Their willingness to fight in court achieved precedent for a $20K tax reporting threshold. And that's probably the main reason why exchanges are only issuing Form 1099-K instead of a more involved form of tax reporting with lower thresholds. For example, brokers normally issue Form 1099-B for gains less than $1 (and they send them to the IRS), so in that sense we should probably consider ourselves lucky.

[Darker45]

Crypto is not illegal in the US, that's right, but it is heavily regulated that the country is in effect actually pushing cryptocurrency-related businesses and startups to move to other countries where the regulatory climate is much more favorable for their free development and growth. Bitcoin is not illegal either but it seems the treatment is still characterized more with hostility than open acceptance.

If there is a much clearer regulation for crypto and an explicit order for the banks to stop blacklisting legal crypto businesses, crypto development will certainly thrive in the US. Others might actually move there from other countries.

[Casdinyard]

I don't think it can do much harm.

The effect of American president on bitcoin is not going to have any much effect.

Well, the president could ban the use of Bitcoin and other cryptos in its areas wherein many people of this industry are located. Well, it does not have a direct effect but there is a possible effect in this industry such that countries under its authority could also do the same thing so we better not hope a powerful country will do so. But this is just an exaggeration idea and on the other side there is still a possibility, right? Well for now it won't have that much of an effect, but let us see. Let us just hope that the effect will be something positive if there will be any.

[BrewMaster]

it depends mostly on what the regulation is. cryptocurrency is regulated in almost every country in the world including US and bitcoin is thriving more than even, more so in countries with regulations such as Japan.

if new regulations were put forth by US the same thing that happened in certain states after they added silly license requirements (i believe it was bit-license or something similar to this name), the businesses migrate outside of the jurisdiction of that stupid regulation.

with the growing crypto industry, that is in the trillions of dollars at this point and with the strained US economy exit of this much money and businesses is not desired.

[poodle63]

I know US is very influential in many countries for many aspects and sector of countries across the world but honestly even if the US blacklist crypto as a whole doesn't necessarily means other countries gonna follow that.
It all depends on the country's economy and many factors. My opinion is, the US regulation regarding crypto not gonna affect crypto regulation across the world that much.

[Fesatmas]

in this case, America is very influential on the world economy. This is usually the policy issued by America not only has an impact on crypto, stocks, oil etc. there is news from Bloomberg, which says that bitcoin is predicted to rise even without US policy. By 2021, the price of bitcoin is predicted to increase to USD 20,000.

US policy affects the world may be more than any other country, the world is always watching what going-down in the US, the election is how far this is going, in any public world wide political group, the matters of the US is more discussed than any other country so the US affects global economy, but not so much with crypto-coins, the hold the US has globally on things is not as strong as they have on Crypto-coin even if they have high crypto-coin users, institutions, miners.

That is precisely what we know in this case that America has an important role in the global political and economic sector. However, that does not mean that the movement of Bitcoin in the market is fully influenced by the hot issue in America. this is only a large part of it, because there are still other countries that contribute to the development of bitcoin.
And no one can deny that in the world of politics and economy America is very aggressive, because America does not want to feel that its position is stolen by China, which continues to try to shift America as a superpower

[fiulpro]

Hard fact  *Nothing*
If they are regulating it , that means more people will be able to use it more without any further ado. For most people who rely on governmental system, they tend to believe that whatever the government might approve will actually be good for them. Therefore we might be able to get more investors.
With the regulations , it would mean that the Bitcoins and other cryptocurrencies will be protected by the law , which is more + point for us. As long as the regulations are not unnecessary and excessive we are good to go.

America is not influential , America *was* influential , we have all seen the economy shatter and the political unrest. Right now I just hope they set a better example for everyone alike.

I would like to believe that , the regulations will bring more of a positive response from the public, since the government clearly doesn't want to ban Bitcoins there.

[Fortify]

Just because the US government does not regulate cryptocurrency heavily at the moment, does not mean they are protecting cryptocurrency related businesses in any way. It's probably more of a light touch approach to regulation and regulation will steadily creep into the field. The US has no say in how other countries regulate what is legal and what is illegal within their borders, it is an entirely arrogant mindset to think that they do. At most US banking regulators are able to pressure other countries because the dollar is the reserve currency of the world right now, but they also have to walk a very thin tightrope because if you push too hard or overstretch your requests, other countries will actively start to seek other reserve currencies to own.