Cryptocurrencies are gradually losing their main advantage
Over the past ten years, cryptocurrencies have gained unprecedented popularity among people working online or wishing to conceal their income.
And this is not surprising, because the main advantage of Bitcoin and similar assets is the complete anonymity of the sender and recipient.
Moreover, unlike a bank, you can’t send a request and receive an answer – How much money is stored in a particular person’s account.
This means you can make a profit in cryptocurrency without anyone knowing about it, and then buy expensive items while remaining anonymous.
It's clear that this situation won't please the government and its officials, who rely on the tax revenues of ordinary citizens, and they are gradually introducing new rules and restrictions.
The restrictions primarily affected certain crypto wallets, which, after installation, require identity verification by uploading copies of documents:
Then China almost completely banned not only mining, but also speculative operations with cryptocurrencies.
Now the UK has also contributed to the fight against the cryptocurrency market by banning Binance, one of the largest exchanges, from operating in the country.
Furthermore, the UK's Financial Conduct Authority requires all companies operating in the cryptocurrency market to comply with anti-money laundering regulations. Similar measures are being taken by countries such as Japan and Germany.
It's clear that the primary requirement in the fight against money laundering is personal identification, meaning that the primary advantage of cryptocurrencies—anonymity—is gradually being lost.
What's the point of paying large fees and going through the hassle of making payments when you can't save on taxes?
If this trend continues to gain momentum, the popularity of digital money will become a thing of the past, and it will only be usable in those very same offshore zones.
