Binance crackdown: regulators tussle with ‘wild west’ of crypto

“You have to have an entity, you have to have a headquarter, you have to have a bank account. All of those things don’t need to exist for blockchain companies” according to a “non-entity” called Binance

True. A public database can be maintained without a single entity that owns it. A database developer (tied into her personal bank accounts) can cash in on this ledger by selling homogeneous binary data entries that everyone else wants to use. Stablecoins, paper napkins, tokens, coins, etc. I call these things pirate currencies.

To develop pirate currencies does not require a separate bank account, the same way a counterfeiter does not typically deposit their illicit products to a bank. These things must be washed first.

What does require a bank account: a pirate currencies exchange. Coinbase Robinhood PayPal Cash App Kraken Digital Asset Exchange Bitfinex Gemini #PirateXchange, you name it, make a boatload of cash on fees transferring pirate currencies into fiat, and they all need a bank account for that. These entities, effectively, convert pirate currencies into fiat via legitimate bank accounts.

Here is another thing. A crypto exchange does not have to have a bank account in the United States to wash pirate currency. As long as ANY one country (with at least one active bank connected to the SWIFT network) does not prosecute the act of converting pirate currencies into fiat, pirate currencies CAN exist. Some things (such as money launderers, drug cartels, you name it) are willing to take 20 cents on the dollar (after fees or aggregate loss of token value) and still walk away with profit.

It will, literally, take a worldwide banking ban on all online pirate currencies, at this stage, to solve for this problem, something for INTERPOL to enforce around the world.

#cryptocurrency #currency #bitcoin #blockchain #digitalcurrency #crypto #banking

Author: Litesand

Antitrust, real estate, e-commerce, fintech, proptech, bigtech

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