People holding coins in their own wallets are entirely unaffected.
I'm not a crypto guy, so this may be a very basic question: If people can hold coins in their own wallets, why did they give them to these companies acting like banks? Were they promised interest or something?
I hope that crypto exchanges are outlawed soon.
Isn't the primary use case for crypto that it's beyond the reach of laws?
So who decides who can prevent another person from getting his/her coins? I thought the whole purpose of cryptocurrency was to prevent that sort of thing.
They do it because they'd lose business by the metric ton if it was possible to irrecoverably lose access to your account.
It's probably not even legal.. I would bet it's not for a bank and if it's not for crypto exchanges it's only because of some legislative gap that hasn't been filled yet.
Crypto exchanges aren't known for their well staffed support departments, either, and they'll reset your MFA even if you haven't provided them with income (you don't pay simply to have an account, only when you buy & sell).
ii) that's not how these exchanges work. if they are non-fraudulent, they'd have to hold cryptocurrency and cash on behalf of their clients. they'd never have a problem meeting withdrawal requests (the critical element of bank runs)
iii) crypto exchanges, if they are non-fraudulent, would be an equivalent to stock brokers, not banks
They are more than welcome to do it if I break any law but I have to say you I'm not. By the way they can seize funds from your or my bank account as well there is nothing special about "crypto" coins they are not outside the law code is not law.
> In a recent regulatory development, cryptocurrency payments of any size using unidentified self-custody crypto wallets are now illegal in the European Union (EU).
Payments are illegal (not wallets), and only if the sender/receivers are not identified (that is, you can ask for identification before transfers from those wallets are made).
You may not need to trust that the central bank won't fire up its printing press, true. But you're absolutely trusting that someone somewhere will want to exchange your bitcoins for something other than bitcoins, and there's no inherent reason why they would.
Crypto transfers aren't subject to these issues because they aren't regulated. For instance, cards (Visa, Mastercard & Verve) can't be used to deposit on these exchanges because they'll have to be processed by a fiat operator, which usually requires a license. Because the government has banned the use of crypto, any entity caught wanting will have their accounts frozen. This also makes it really hard to deposit money into these entities by anyone. They can easily be blacklisted because they have accounts in their names. I used to work for one of such entities. I've also had my bank account frozen by the Central Bank of Nigeria for withdrawing naira that was sent from said 'blacklisted' entities.
Because these crypto exchanges are P2P based (e.g. Binance P2P), I can exchange my USDC for Naira that's deposited directly to my account. Because these are individuals, it's hard for the government to isolate bank transfers that are made for the purpose of crypto. For caution, people making such transfers tell each other not to add a description with a crypto-related word to these transactions.
Adoption for real day-to-day payments in low-volumes (like paying for groceries at a shop) is quite low, but high among high-volume merchants who import/export goods and are in dire need of USD liquidity and ease of payment across countries. Tough Central Bank policies give them an incentive to find the best rates & transact with lesser barriers. There are no official figures/solid data, because all that activity happens in informal channels (like P2P).
I have. I can't stand that a third party 'owns' my money and the fact that it's not based off anything. It could be gone tomorrow. You can say the same for BTC, but that's only if someone steals my coins. You also failed to address the use case in my OP.
Imagine trying to pay for something with crypto and having the seller deride it as fake money that they refuse to accept. That is illegal with officially minted currency.
Indeed was just discussing the same thing. Perhaps they simply are tracking if the money goes anywhere or using this as a way to hide their incompetence? Just saying they can do something they really can’t or put a legal hold on that wallet so if any exchange receives it they get fined?
That appears to be one exchanges policy, not law. There may be a law I'm unaware of but in any case this wouldn't come into play using something like LocalBitcoins. Exchanges need to do this in order to conduct transactions with banks—obviously something that isn't needed for unbanked populations.
I'm not a crypto guy, so this may be a very basic question: If people can hold coins in their own wallets, why did they give them to these companies acting like banks? Were they promised interest or something?
I hope that crypto exchanges are outlawed soon.
Isn't the primary use case for crypto that it's beyond the reach of laws?
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