How are they going to prove that someone owns a private wallet, even if they used coinbase at some point in time? You had money coming from a wallet to coinbase? Someone you don't know was sending you money for some job done online. You had money going from coinbase to an address? That's not your address, you were sending coins to someone that you don't know, but that person did some work for you, or had a birthday coming, or whatever. Whoever discloses all their addresses to the government just because they say so is a moron.
In the USA such 'proof' is the responsiblyt of who the regulations effects...dumb regulation or law or whatever in 2014 like 10 days before the IRS deadline for taxes the previous year..the IRS decided it was
gonna make a statement and 'slap down' that pesky Bitcoin. So I was required to write down 'every day' the LTC I mined and total LTC...on paper (nothing existed to do this like excel spreadsheets) then go through
my main wallet and print it out and highlight with a note where it went...this was guite challenging because some of the miner groups and exchanges that existed went away along with any proof I mined
the BTC legally. I also in 2014 had my banker sic the SEC on me because BTC was illegal....and showed up with my CPA taxes done and shot him down...not to mention the plumber I wanted to have stuff
done in my basement in 2013...and he asked about the KNC Jupiter BTC Miner and I told him it 'mined' Bitcoin..he said, that is for drug dealers right, and walked out my door never to be heard from again.
fun times not.
NOW my CPA says that IF I was ever audited they have to be 'specific' and the IRS has since said that good faith records from that time period were fine....so if I was audited..i can follow my massive
paper trail down to whatever I did back in the day (less exchanges and miner pools that went poof)
So, indeed from like 2013 to 2016 or so ...if I would have been audited I would have been screwed after 2016 with enough snafus/mess-ups like coinbase forms mistakes at IRS telling people they owed IRS by the IRS
when it was the other way around...they were asking taxes on bought btc/crypto..well less so after 2016.
so if this rule of a USA exchange MUST track the in and outs of every transaction per each address being KYC at each end..(fine...you have my name and KYC to look at for that.. BUT if they insist that it goes for sellers
of goods and every frigging address spinning out and away like ..what...forever?
one of 2 things will happen
1) Biden administration and new treasury head will kill this obvious WTF rule ASAP...and that will be that.
or
2) Biden administration will let it stand and that means coinbase and all the USA exchanges will threaten to leave the country as it being unmanageable to do....wait 2 years as this was done in china
and all the exchanges left...and then an adjustment like china for USA exchanges this time around and times move on again. At best would be an 'uncomfortable' 2 years or price and BTC/crypto confusion.
So, if it stands IMHO with above confusion ...we could be looking at 9k to 13K coin and the past returns with BTC/Crypto going sideways in price for a bit...fomo price pump etc effectively killed..we have
seen BTC/Crypto do the sideways price thing in the past after the 2014 IRS rules....it would be the same IMHO.
I myself, am beginning to think that every time BTC/Crypto starts to look like it is really going to put the moves on gold/silver/fiat currency/stock market returns etc
Suddenly, dubious regulations pop up to cool BTC/Crypto's price jets for a period of time. BTC/Crypto making big money/govt/power/corps nervous...Indeed the returns this
year from $7,200 or so Jan 1st, 2020 to the high of what $18,500 this month...well...that needs to be stopped is the consensus in the Trump Administration..it Never works long term.
But I suppose if you are conspiracy minded it lets the traditional money and
powers that be catch up, and buy in at much lower prices, to the crypto revolution and buy in at a much cheaper rate than $25k to $35K coin..if such FUD/Regulations and the rest were not added to the mix.
I myself, expect this indeed to be done by the Treasury Secretary....before years end...would even bet my one $$$ this will be so...
that the rule will demand ALL crypto going to any BTC address empty or trezor or not must have a KYC at each end...and addresses KYC.
that should liven things up some huh?
So look at it as 'cheap coin' because if such regulations can put the btc/crypto back in the toothpaste tube after getting out..well...BTC/crypto is doomed anyway.
But again, cooler heads should prevail as soon as someone (adult) in the Biden Administration is shown the how addresses used or not are generated on the fly in trezor's and etc all over
the place and they are in a sense asking the equiv of USD dollar users to keep track of the serial numbers on your fiat money and when buying something make sure the other person is legit
in his use of the USD as well...as you check his USD registration numbers on his cash too boot.
Funny, if this rule goes through, or even before..if someone was to sell their BTC/Crypto HODL for say 2 million USD....the only thing coinbase would be know your customer and an
expectation that you pay 15% - 20% cap gains and maybe your states income tax on such..paper on such will go to IRS 1099...once it hit your bank and you put it in a suitcase and wandered off to spend it on hookers
and blow..the tracking would stop....in that USD would not be under these rules. The Secret Service in court cases in the past has always said USD bills are much more hard to trace than BTC/crypto in illegal acts
and such.
Again, just another way of the use of regulations and FUD to keep BTC/Crypto prices down and muddy the waters...and such will work IMHO..so 'cheap coin it is" I guess and moving on.
Again, power concentrates with wealth, power/influence and traditional finance...in that Voting by mail as an example of 'decentralized' power and labor unions (or something equiv) as push back
against corporation's sometimes illegal greed and now BTC/Crypto...I guess we should just get used to the fact that every time we get near an ATH or too much 'noise' in how well BTC/Crypto is doing
vs traditional centralized wealth and power etc. This kinda stuff is gonna happen 'regulation' wise to slap our uppity decentralized project down some..at least in the short term and in price.
So cheap coins everyone, if not cheap coins as a concept..and they win..well...the BTC dust I will accumulate from now till then won't matter compared to my hoard so I may as well go down fighting such.
BTC/Crypto...always drama!
(sorry end of rant..i type really fast...bored...pandemic and all and have seen this kinda thing above at least 3 or 4 times since 2013)
Brad