Tensions with Iran could also be behind U.S. Treasury Secretary Steven Mnuchin’s cryptocurrency compliance feedback on Wednesday.
The New York Occasions reported the Trump administration “has expressed rising concern” that this know-how is getting used to “evade American sanctions on international locations like Iran.”
Earlier this week, the Parliament of Iran Analysis Middle printed a report suggesting cryptocurrency mining licenses issued in January may generate new tax income and bureaucratic charges. A associated proposal by the identical government-run middle instructed this might convey the federal government upwards of $1 billion in annual income from the home cryptocurrency mining business, which is estimated to be valued at $8.5 billion.
The report additionally recommends allocating a portion of the Iranian authorities’s 2021 funds to cryptocurrency mining, although the specifics of that proposal are unclear.
In brief, if the Trump administration is making an attempt to starve the Iranian regime into submission, bitcoin might give the Islamic Republic a lifeline.
Mnuchin’s feedback come days after the Trump administration proposed growing the Treasury Division’s 2021 funds for cryptocurrency oversight. In 2019 alone, varied U.S. authorities companies spent $5 million on blockchain analytics providers from Chainalysis.
In July, Mnuchin referred to Fb’s proposed Libra stablecoin as a “nationwide safety challenge,” citing considerations about terror financing and cash laundering.
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