[Blockchain Today Reporter Ji-eun Lee] The Biden administration is researching the’gap’ in cryptocurrency regulations due to market volatility in recent years, and it seems that this could lead to new regulations soon.
The Washington Post reported on the 25th (local time) that White House officials are studying whether digital assets such as bitcoin will be used for terrorist activities, and they are also interested in whether to protect retail investors from extreme price fluctuations in the digital asset market. did. It is said that this fact has been reported by those who are familiar with the problem.
Bitcoin fell below $30,000 last week, triggering a sell-off in the digital asset market, with more than $1 trillion disappearing in 10 days. The digital asset market, which reached its peak, almost halved from mid-April to mid-May.
According to Cointelegraph reports, there are a number of reasons for this decline. Among them, the new regulations requiring the U.S. Treasury Department to report all transactions over $10,000 to the Internal Revenue Office appear to have been affected. Investors also appear to be concerned that the plan to double the IRS workforce is also rapidly losing competitiveness in the US on issues related to tax and digital asset markets.
At its peak, the cryptocurrency market was worth more than $2.5 trillion in total. However, this is insignificant compared to the entire financial system. However, as cryptocurrency continues to increase, what the government considers to be an acceptable risk may also change.
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