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US Regulators Devote to Make Crypto Market More Transparent by Accessing Personal Information
Summary: According to a "Sources Sought” notice issued by the Securities and Exchange Commission (SEC), they are calling on blockchain data companies to help identifying the owners of crypto wallets to obtain personal blockchain data for “conducting market research”. The notice says that the SEC is seeking relevant sources for its program to support its goal ...
According to a "Sources Sought” notice issued by the Securities and Exchange Commission (SEC), they are calling on blockchain data companies to help identifying the owners of crypto wallets to obtain personal blockchain data for “conducting market research”.
The notice says that the SEC is seeking relevant sources for its program to support its goal of obtaining blockchain ledger data, including available information and transaction details.
According to Fundstrat’s Tom Lee, these information could be used to identify wallet holders and crack down on U.S. tax evaders who may owe as much as $25 billion to the Internal Revenue Service (IRS).
In fact, this is not the first time that the United States has taken steps to try to penetrate the anonymous cryptocurrency market and track the information of its participants. Cryptovest has reported in 2018 that the U.S. government has spent more than $5.7 million to obtain transaction data from blockchain analysis companies like Chainalysis, CipherTrace and Elliptic, etc.
Cryptocurrencies have been seen by global financial regulators and governments as a potential threat to the financial order due to its anonymity and lack of regulatory. The increasing number of people involved in crypto transactions has lead to the demand for blockchain analysis. Blockchain analysis is a form of surveillance using sophisticated software that allows companies to track and link to cryptocurrency addresses and the identities of traders.
More recently, the SEC's Office of Compliance and Examinations (OCIE) has also made cryptocurrencies a top priority for 2019, with the aim of strengthening its oversight in the sector.
The agency said, “In particular, through high level inquiries, OCIE will take steps to identify market participants offering, selling, trading, and managing these products or considering or actively seeking to offer these products and then assess the extent of their activities”.
Privacy and anonymity are the two basic pillars of virtual currency, which decentralizes control of such assets from the centralized banking system.
The SEC's latest move shows that they are eager to gain an upper hand in the fast-growing cryptocurrency market and to take control of it. NSA whistleblower Edward Snowden foresaw the series of events in late 2018, predicting that lawmakers would ultimately decide the fate of privacy in the crypto space.
Image: pexels.com
Author: Max Li
Tags: anonymity,Blockchain,Crypto Wallet,Data,Ledger,market participants,Privacy,SEC
Link: US Regulators Devote to Make Crypto Market More Transparent by Accessing Personal Information [Copy]
