U.S. currency laws can only be made by the U.S. government / Federal Reserve. They cannot control how another country regulates their currency.
UK Financial Watchdogs Publish Plans to Regulate Stablecoins
The BOE’s plans focus on stablecoins pegged to the value of the British pound because the central bank considers these to be likely to be used widely for payments, the bank said in a press statement. Among other things, the central bank is considering limits on individual stablecoin holdings.
-Indeed. But my point was that should states decide to implement the use of a stablecoin that was pegged to a foreign currency, then the federal government should have limited power. I expect that much more will be regulated and governed at the state level over the next couple of decades.
Using foreign currency in the United States without permission of the federal government is a big no-no, I don’t see how that will work.
My point is, Any stablecoin pegged to the top currencies in the world will certainly be regulated
BoE Considers Limits on Stablecoin Payments as Parliament Debates New Crypto Rules
The Bank of England (BoE) will consider whether to put limits on stablecoins used for payments in new rules for the sector, Deputy Governor Jon Cunliffe said in a speech on Monday.
The BoE and the Financial Conduct Authority plan on consulting on new rules for stablecoins later this year, Cunliffe said. Last May the bank said it will regulate stablecoins that could have an impact on financial stability. Meantime, the Financial Services and Markets Bill, which will help regulators put in place rules for crypto and bring stablecoins under existing payment legislation, is nearing its final stages in Parliament.
Well, it wouldn’t be a foreign currency, it would be a digital currency. But, I do not foresee the states doing any such thing. I only mention it based on your previous comment of states using a stablecoin.
With regulation coming into play for stable coins should offshore brokers continue to offer deposit and withdrawals in stable coins or it doesn’t really matter?
I do not see why not. There is only so much that they can realistically regulate, especially for decentralized stablecoins. Even centralized stablecoins that can be controlled by the issuer would require special intervention as a result of suspected criminal activity, or, newly-issued legislation that could grant the government special regulatory oversight and access, which seems unlikely.
The proposed legislation in the article that you posted seems to be related to putting limits on stablecoin purchases in an effort to maintain financial stability. If that is the case, then I do not see how that would come into play here, since you would simply be transferring stablecoins to an exchange and then exchanging them into fiat, which is certainly not their concern.
That being said, if such limits could be imposed and enforceable on offshore brokerages that operate anonymously (unlikely), then that is where such limits might come into play. However, due to the decentralized nature of having all transactions validated on public blockchains through consensus mechanisms, it would be impossible to realistically put limits on anyone from obtaining more stablecoins, especially since all they would need to do is use more wallet addresses to spread things out. Not only that, but brokers would only need to obtain stablecoins at the point of transfer, and would not need to accumulate large quantities.
With Exodus wallet, you can exchange any supported cryptocurrency into a stablecoin of your choosing. You do not even need to have direct access to an exchange (or provide KYC). Just as one example. In order to put limits on that, realistically, they would need to impose KYC requirements for ALL wallets and wallet providers of ALL kinds in ALL countries. It just is not realistically possible.
I could be wrong.
I believe Exodus still uses exchanges to exchange cryptos. A wallet in essence is just keys, right?
Yes, Exodus uses an exchange, but it does not require the end user to have direct access; users can exchange currencies anonymously, without the need for any KYC.
Wallets can serve multiple purposes, as we can see in the case of Exodus. However, yes, their primary purpose is to store cryptocurrency keys for accessing your crypto, sort of acting like a bridge.
That being said, even if you lose access to your original wallet, you can still access your funds by using a different wallet, so long as you still have the keys or seed phrase that is associated with your wallet, simply by importing the keys into any wallet that supports the currencies that you wish to access.
Thanks for this additional information about Exodus. I didn’t realized the system could be used to exchange currencies. I was put off by these negatives in the NerdWallet review:
Exodus does not have multisignature support, open-source software or two-factor authentication.
https://www.nerdwallet.com/article/investing/exodus-crypto-wallet#short
However, since it seems that an exchange can close/refuse an account for any reason (which they do not need to explain), and you say Exodus has no KYC requirements, it might be good to have an Exodus account if only as a backup for exchanging or sending/receiving crypto, while there might be other more secure places to store it long-term.
Exodus does not charge to use the wallet, but it charges some transaction fees. Do you have a sense of how those fees compare to other methods?
Since this is a private company, and the code is not open-source, how do we know they can be trusted? I’m not asking this to be provocative. They seem to have a good reputation in general, but just wondering if you know anything about the company in this regard.
There are many options for wallets. Exodus is just one that I reference as an example. I would advise each person to do their own, due diligence and decide what options are best for them. I generally do not like to make any recommendations for anything.
I understand.
Looks like to buy crypto with Exodus or sell it for fiat currency, you need to also establish an account with Ramp, MoonPay, or Sardine. I assume they would have KYC procedures. Is that correct? Then Exodus could still be used for exchange from one crypto to another without KYC?
Crypto wallets were meant to be like a personal wallet, in that what’s in my wallet is none of your damn business, but we know the regulators will ruin that somehow.
We also have to look at laws by states.
Digital or virtual currency is an electronic medium of exchange that is not a representation of U.S. or foreign currency. Cryptocurrency is a type of digital currency that utilizes cryptography to secure transactions that are digitally recorded on a distributed ledger, such as a blockchain. According to the IRS: “Units of cryptocurrency are generally referred to as coins or tokens. Distributed ledger technology uses independent digital systems to record, share, and synchronize transactions, the details of which are recorded in multiple places at the same time with no central data store or administration functionality.”
State by State Cryptocurrency Laws and Regulations | Bloomberg Law - Bloomberg Law
-Generally, any exchange from crypto into fiat will require KYC. Crypto-to-crypto exchanges may often not.
-Yes. And predictably more so going forward, as the states become more divided.
Last week was an incredible demonstration of the power of crypto voters. In ‘Super Tuesday’ elections across the country, crypto owners and voters made their voices heard across the country, making a loud enough noise that even the traditional media noticed. And Stand With Crypto was there pushing hard for crypto; we hosted a get-out-the-vote rally in Los Angeles with legendary rapper (and crypto enthusiast) Nas.
We don’t agree with all the framing in these pieces, but it’s a testament to the power of your voices that politicians are starting to notice that crypto matters.
Here are some of the stories:
FAST COMPANY: Crypto was a big winner in the Super Tuesday elections
On Super Tuesday, where voters in 16 states and 2 territories went to the polls, crypto’s boosters collected their first big wins of the cycle, especially in the contested Democratic field for the open U.S. Senate seat in California.
POLITICO: One Super Tuesday winner: The crypto industry
The PACs also spent more than $1.7 million backing Shomari Figures, a House candidate in Alabama who finished on top of a crowded field of candidates running to represent a redrawn district in the Montgomery area. Figures will advance to a runoff next month against Democratic state Rep. Anthony Daniels.
New York Times: Crypto Super PAC to Target Races in Ohio and Montana That Could Swing the Senate
Stand With Crypto organized an election eve rally in Los Angeles with the rapper Nas and the Coinbase chief executive Brian Armstrong.
Even though Super Tuesday has passed, there’s still a lot of elections coming up – and things you can always do to raise your voice:
Just looked over my results for February copying a signal that trades only EURUSD into a live account at ForexChief. According to Signal Start, the trader’s gain for the month (using a different broker) was 10.69%. Mine was 12.10%. Just one data point.
Just logged in to see the word “Bulgaria” in the bio of LQDFX…
Are they still a trusted, “trusted”? Or is it time to move on? And if so, where? I don’t want to be stranded with Oanda.
I have an old Traders Way account, but I’ve read so many bad reviews that I stopped funding.
Also should mention LQDFX is now only crypto as they received so many complaints with Payredeem.
