Treasury Rule’s influence on Cryptocurrency

Introducing the Treasury Rule:

The use of virtual money is gaining popularity especially among the users who black money and the buyers and sellers of illegal products. The anonymity in the Blockchain remains to preserve and it does not expose the users on either end. So, where there is its popularity there are government concerns regarding it as well. The United States has passed a new treasury rule for Cryptocurrency.

Many of the businesses are in direct opposition to it. According to the United States of America, this virtual money is going to cost so much to their digital foreign market. The illegal and implicit buying and selling are already causing much harm to the internal markets of the United States.

Concerned authorities are requested to trace the transactions that contain a large amount of money. They then have to report these transactions via unhosted wallets to the higher authorities and they then maintain a piece of evidence against the virtual money. The main purpose of making this rule wasn’t to invade the privacy of individuals but to make a safe future for them. The tracing of these transactions helps the Monetary Crimes Enforcement Community (FinCEN) to stop crimes and make the nation safe.

The Reaction of Cryptocurrency Advocates:

Soon after the declaration of the treasury rule of the US, some seven thousand teams of cryptocurrency emerged and pointed out the lack of privacy for the users of virtual money. The users of virtual money started to impose questions of the legality of the proposed treasury rule. But the government officials have rejected those proposals and made them as if they never existed. But the advocates have been threatening the government that if they will track the route of transactions their counterparties will also work in the opposite direction.

Chain analysis:

Chain analysis is software that was made for tracking the transactions made through virtual money and it depicted at the end of 2019 that 1.1 percent of the total transactions have their roots in illegal activities. The total money transferred through this trade was around ten billion dollars.If there are still some uncertainties regarding the cryptocurrency you can visit the Yuan Pay Group platform.

Difficulties at Technical Level:

Since the virtual money transaction does not include any check and balance and the information of the person performing the transaction is not exposed so the only possible solution that seems applicable now is the use of force to the users to give a public input about their data and their identity. This will cause hurdles in the transactions as the data moving towards any company by any unknown user will not be able to stop in between until the transaction completes. Moreover, the charity collection through virtual money will also face drawbacks.

The government of the US also decided to launch their own digital currency just like the government of India because that currency would be less attractive for the illegal activities to the criminals under the treasury rule.

What sort of information is required to keep track of virtual transactions?

Under the treasury rule, the government needed the entire information related to the virtual transactions. These are:

1. The total of convertible virtual currency used in the transaction
2. The measured value of the transaction should be measured in the United States dollars as regard the prevalent rate of exchange
3. The time at which the transaction initiated
4. The kind of convertible virtual currency that is being used in the transaction
5. Name and address of the participants who are involved in the transaction at all ends
6. The instructions that the participants receive before performing any transaction from the customers of financial institutes

Conclusion:

The article under discussion highlighted an important achievement in the race to stop the illegal buying and selling through the Dark Web operated cryptocurrency. The government of the US has passed a treasury rule according to which the transactions that are carried out through Bitcoin will not remain anonymous. This step is taken to ensure state safety. The illegal activities take place through this unregulated system of transactions. Chain analysis as depicted 1.1 percent of the transactions that were for illegal buying and selling have transacted some ten billion dollars in the year 2019. So, the government of the US has given some measures that are needed to be known by it in the transactions that are performed virtually.