The Federal Crackdown On Cryptocurrencies Is Starting To Get Pretty Crazy – Investment Watch

by Michael Snyder

Most cryptocurrency house owners would by no means even think about that sometime closely armed federal brokers might come to arrest them after they least anticipate it.  However this form of issues is beginning to occur with alarming frequency.  So long as you adhere to the entire very strict federal guidelines which have been put into place to control cryptocurrencies, you’ll be fantastic.  However in case you attempt to use Bitcoin and different cryptocurrencies because the actually unbiased mediums of trade that they had been initially designed to be, you could possibly quickly have an armored car come crashing by way of the facet of your house.

I do know that sounds actually weird.  And Ian Freeman actually by no means anticipated that such a factor would occur to him.

However then very early one morning, it did

The sky was nonetheless darkish when the brokers arrived at Leverett St. in Keene, New Hampshire, a leafy block of package homes on the quiet edges of the small school city. They settled on a home on the nook, surrounding it with two armored BearCat G3s and a fleet of unmarked SUVs. Each BearCats had gunners stationed in a hatch on the roof, clad in camo fatigues. The one mild got here from the blue-and-red sirens, strobing off homes in each course.

Ian was upstairs sleeping when one of many armored BearCats got here crashing by way of the facet of his home.  What occurred subsequent is like a scene out of a science fiction movie

Inside, Ian Freeman was asleep together with his girlfriend and their small canine Coconut. He woke to the sound of exploding glass. A ramming pole, tethered to the entrance of one of many BearCats, had plowed by way of a primary ground window, tearing off the body because it backed up. Freeman threw on a bathrobe and stumbled downstairs, nonetheless shaking off sleep. There was shattered glass all over the place. His first thought was that some stranger had thrown a brick. However then he heard a whirring sound, a small hovering drone that police had deployed to discover the home. He seemed outdoors and noticed blinding lights. Coming into focus beside the lights, males pointed rifles at him.

So what had been Ian Freeman and different libertarians in New Hampshire doing that warranted such remedy?

They had been charged with conducting “an unlicensed money transmittal scheme”.

In different phrases, they had been attempting to make use of Bitcoin as an unbiased medium of trade outdoors of the very strict authorities laws which have now been put into place.

After all it’s nonetheless completely authorized to “make investments” in Bitcoin and different cryptocurrencies.  You’ll be able to roll the cube on the worth of those extremely speculative “investments” all you need, however simply just remember to pay your taxes on any winnings.

As a result of in case you don’t pay your taxes, closely armed IRS brokers might present up at your door.

Today, IRS brokers are seizing extra cryptos than ever earlier than.  In fiscal yr 2019, the overall worth of cryptos seized by the IRS was about $700,000, however this fiscal yr the grand complete has already topped 1.2 billion dollars

Koopman’s staff of IRS brokers don’t match the stereotypical mildew. They’re sworn legislation enforcement officers who carry weapons and badges and who execute search, arrest and seizure warrants. Additionally they convey again file quantities of cryptocash.

“In fiscal yr 2019, we had about $700,000 value of crypto seizures. In 2020, it was as much as $137 million. And up to now in 2021, we’re at $1.2 billion,” Koopman informed CNBC. The fiscal yr ends Sept. 30.

That’s completely nuts.

However that is the course the complete world is heading.

Simply have a look at what has been occurring in China.  In latest months, there was crackdown after crackdown

In May, China banned monetary establishments and fee corporations from offering crypto-related providers. In June, there have been mass arrests in China of individuals suspected of utilizing cryptocurrencies in nefarious methods. That very same month, regulators dialed up the pressure on banks and fee companies to cease offering cryptocurrency providers, and Weibo, the Twitter of China, suspended crypto-related accounts.

At this level, it has change into exceedingly clear that the Chinese language intend to completely eliminate cryptos from their society

As of July, half the world’s bitcoin miners have now gone dark following Beijing’s call for a severe crackdown on bitcoin mining and buying and selling.

“China’s authorities is doing every thing they will to make sure that bitcoin and different cryptocurrencies disappear from the Chinese language monetary programs and financial system,” stated Fred Thiel, CEO of Marathon Digital Holdings and a member of the Bitcoin Mining Council.

As I’ve at all times stated, nationwide governments weren’t going to only stand by as personal residents created model new currencies that had been fully outdoors of their management.

Within the western world, governments appear content material to permit folks to deal with cryptos like collectibles.  They are often legally purchased and offered by way of authorized marketplaces similar to different speculative investments can.

However any makes an attempt to make Bitcoin or another cryptocurrency right into a viable medium of trade that operates fully outdoors of presidency management will merely not be tolerated.

This is the reason I’ve by no means gotten very enthusiastic about cryptos.  If they’re by no means going to be allowed to be true unbiased “currencies”, what kind of a future do they really have?

All around the globe, nationwide governments have gotten extra authoritarian with every passing yr, and that course of has drastically accelerated through the present pandemic.

I do know that lots of people on the market dream of actually unbiased libertarian “utopias” that exist outdoors of that paradigm, however as nationwide governments change into more and more authoritarian the place will it’s attainable for such “utopias” to truly exist?

All through human historical past, tyranny has been the norm.  Our founders tried to determine a society through which sure freedoms and liberties had been assured, and that society drastically flourished for a time, however now our freedoms and liberties are being stripped away a little bit bit extra with every passing day.

So allow us to mourn for America, as a result of the trail that we’re at the moment on doesn’t lead anywhere good.

Management over cash means every thing to the ruling elite, and plenty of believed that actually unbiased currencies may usher in a brand new period of freedom and prosperity for humanity.

Sadly, nationwide governments appear fairly decided to make it possible for new period of freedom and prosperity by no means materializes.


Source link