The cryptocurrency ban has sent shockwaves throughout the country, and for good reason. Billions of dollars in virtual currency as flying coins mhw have been seized by government authorities and millions more may be on their way as investigations and allegations continue to mount. There is no doubt that this is one of the most significant events that has ever happened in this industry, with only time to tell how it will affect public opinion, new legislation, and the future of bitcoin.
We’ll break down what this means for you now – what you should do to protect yourself from potential losses while also looking out for other investment opportunities that might make sense if you’re not a crypto-enthusiast.
1. Understand The Ban
The United States government has officially classified cryptocurrency as a form of property. This means that your wallet is no different than your safe deposit box or any other asset (such as gold or real estate) that was seized in the past.
Your crypto-wallet is just as ‘secret’ and ‘safe’ in the eyes of the government. You should assume that if you use common sense and reasonable precautions, there’s nothing wrong with keeping your bitcoin or altcoin where it is today.
2. Understand The Rationale
Why did the government do this? They likely took action because of potential tax evasion, fraud, and other crimes. It’s also possible that they wanted to ensure that virtual currency doesn’t become a preferred alternative to U.S. dollars in the future.
Private companies and individuals should have their own opinions about these reasons, but there is no need for them to make any comments or take action at this time. The best thing you can do is stay abreast of weekly updates from the IRS and SEC on the subject of crypto-assets in the news.
3. Understand The Effect
This is going to have far reaching consequences for everyone in the cryptocurrency community.
As more and more people are affected, you might have dear friends or family members who don’t realize that they’re sitting on something valuable.
4. Understand Your Options
There are several things you can do at this point:
You can keep your coins and wait it out – the crypto-community will probably shrug off this news over time, but your security measures may turn out to be foolishly predictable if they become mainstream knowledge. You should consider holding your coins in a storage service that you trust or in an offline wallet if possible.
You can use a safe storage service or leave it in your own control – no one wants to be unreasonable, but you should understand that the same people and companies that you trust to keep your bitcoin safe will probably also receive requests for similar information from federal agencies.
You can divest of your coins – this has been the most popular option so far, but it doesn’t make a lot of sense. On the record so far, not one person has reported any issues with disputing, returning or liquidating their crypto-assets. There’s no reason to rush anything at this point, and there shouldn’t be any worry that the government will suddenly do an impulsive audit and seize your wallet.
5. Understand The Consequences
This is frightening – the world of cryptocurrency is seeing a massive amount of wealth being destroyed. The potential for future crackdowns has already been realized and it’s only a matter of time before this becomes public knowledge. There is no doubt that this will affect the industry and the perception of bitcoin, ether, litecoin and other virtual currencies forever.
6. Understand Other Options
This might sound strange, since people just lost their money in what seems to be a major injustice, but remember that you still have options if you’re not feeling particularly lucky or comfortable leaving your funds in your exchange or cold storage wallet.
First, you can use alternate exchanges. We recommend Binance and Kraken both for their security and new user experience, but if you prefer an even simpler interface and are willing to deal with some strings attached, there are plenty of other options that might be able to help you out.
Second, you could leave the United States and keep the coins in your physical possession – this is a good idea if your family or friends worked here or are U.S. citizens themselves. You’ll need to make sure that they’re comfortable keeping the coins in their personal safe deposit box or other secure location outside of the country (which may also be a good investment at this point).
A Third option is to capitalize on the situation. Everyone in the cryptocurrency community wants to know what’s going to happen next, and you can take advantage of that by getting in on some of the new ICOs that are spreading like wildfire while they’re still hot. There isn’t much time before this information becomes common knowledge, so you’ll have to act fast if you’re not already informed about upcoming ICOs and blockchain projects.
This is a sad day for cryptocurrency and the United States alike. You don’t have to let this unfortunate turn of events impact your life much more than it already has, but you need to be prepared (and perhaps even a bit lucky) if you want to get out unscathed. Protect yourself from further harm by following our lead, and make sure that your assets are safe and secure in the future by staying updated on social media, news articles and forums about any new information about crypto-assets that might come up in the near future.
Best of luck!