The crypto boom is starting to calm as world powers begin to tackle the unregulated virtual currency. As cryptocurrencies like bitcoin continue to grow sporadically, virtual money laundering is becoming a very real issue for governments worldwide.
Last month, China responded to the crypto boom by banning crypto mining in the country. The European Union has quickly followed with new plans to regulate the virtual market. As it turns out, miners aren't having it.
Bitcoin prices plummet
The value of cryptocurrency has been turbulent for the past few months. While most cryptocurrencies found success earlier this year, the loss of enthusiasm, increase of scams and heightened regulations are causing prices to drop.
As CNET reports, the bitcoin high of $62,000 is now below $30,000, less than half of its boom price. Ether, a currency that was just starting to become a serious competitor, has dropped from its May height of $4,000 to $1776.
Of course, the price of the meme currency DogeCoin has also dropped. While it was once worth $0.72 per coin, it’s now worth just $0.17.
Regulations scaring people off
CNET reports that increased regulations of cryptocurrency is coming in the face of massive money laundering. According to one analysis, over $2 billion of money laundering was conducted through bitcoin and similar virtual coins.
The EU is working to make this activity far harder by forcing traceable elements to virtual currencies. As the virtual money market can be used to launder illegal finances as well as fund terrorist groups anonymously, it's a dangerous market.
The EU writes:
“Given that virtual assets transfers are subject to similar money-laundering and terrorist-financing risks as wire funds transfers. It therefore appears logical to use the same legislative instrument to address these common issues."