U.S. Tightens Compliance Regulations for Bitcoins

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currencyThroughout the last few years we have seen financial regulators forcing tight compliance measures towards the financial services sectors and all its affiliates. All financial services, in a probe of being fined and/or shut down adhere by new rules. There is no doubt that it is a huge learning curve for many financial services and corporate services business as to how business and new rules are followed. As a result, we have seen many large and small services either dissolve or survive and prosper which solely depends as to how they now perceive and conduct their new business and compliance measures. An example on the above is the challenge of opening a new bank account. Which beforehand was thought as a tool which was granted to every citizen in the world regardless of their previous financial history – today individual credit reports have changed this perception. The U.S. has now officially turned their eyes towards Bitcoins. Companies investing or trading in Bitcoins – which is an online currency not tied to any one country or regulator that exploded in popularity earlier this year. Even though, Benjamin Lawsky, state superintendent of financial services, said in the announcement Monday that while the state had an interest in supporting innovation in the financial sector, it had to ‘ensure that consumers and our national security remain protected.’ U.S. and worldwide regulators are open to new financial products; however their changed perception of knowing where monies derive from and what procedures are followed in determining exactly that are stricter. Many argue that regulation dissolves competition however history has shown that tighter regulated markets hold in recessions. For example, countries as Singapore and Australia even though heavily affected by the Global Financial Crisis, have with stood most impact due to regulation. Eltoma Corporate Services has a team of diversified industry professionals who can provide options and knowledge of worldwide compliance measures and bypass obstacles that you may face in your corporate and banking needs. Please call us for various options that we can provide.