The blockchain industry has been under scrutiny from lawmakers on taxation with many myths surrounding the anonymity of Bitcoin and other cryptocurrencies.
Let’s take a moment to highlight and dispel three of the most common myths. Myth #1 Bitcoin is Anonymous False.
Bitcoin is not anonymous, it’s pseudonymous. Entering a sender’s address into a blockchain explorer allows you to see how much Bitcoin a sender’s wallet holds and lists their transactions.
Myth #2 Crypto is Only Used by Criminals False. About 17% of American adults own some crypto.
Cash and the banking system are most likely used for criminal purposes. More dirty money is laundered into the financial system every year than the entire crypto asset class.
Myth #3: Crypto is Unregulated False again. Most countries have tax guidelines for cryptocurrency. Know Your Customer and Anti-Money Laundering laws apply to all cryptocurrencies.
As cryptocurrency gains adoption, legislation must be passed that is fair for everyone and conducive to its innovation and growth.
