Bitcoin Jumps To New Record High As Governments, Regulators, Bankers Panic | Zero Hedge
Description: Another dip to be bought as the weekend's pump'n'dump in Bitcoin has led to yet another new record high this morning at $11,850.
Keywords: Zero Hedge,Zerohedge,Finance,Economics,Markets,Politics,Analysis,Bitcoin,Central Banks,China,Credit Conditions,France,India,KIM,Turkey,White House
Date: 2013-01-07T00:00:00Z

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# Bitcoin Jumps To New Record High As Governments, Regulators, Bankers Panic

by Tyler Durden
Dec 5, 2017 8:54 AM
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Another dip to be bought as the weekend's pump'n'dump in Bitcoin has led to yet another new record high this morning at $11,850.

Bitcoin's market cap is now $200 billion...

This resurgence comes after a week of considerably more active propagandizing from the establishment.

As we noted previously, this week has seen a new group of establishmentarians jump on to the offensive against anti-decentralization, de-control, pro-freedom cryptocurrencies - urging bans, crackdowns, fatwas, taxation, creating their own cryptocurrencies, demanding citizens sell, and outright confiscation (this group includes governments world wide and their mainstream media mouthpieces)...

### India

India's finance minister, Arun Jaitley, has clarified that the government does not recognize bitcoin as legal tender. According to the Economic Times, when asked about the government's plans to regulate the cryptocurrency, Jaitley told reporters, "recommendations are being worked at." He continued:

> "The government's position is clear, we don't recognize this as legal currency as of now."

Concerned over bitcoin's anonymity and its potential illicit uses, justices issued a notice to the central bank and other agencies asking them to answer a petition on the matter, reports indicated.

### Turkey

Turkey has claimed Bitcoin is in fact “not compatible” with Islam due to its government being unable to control it.

In a statement from a meeting of the state Directorate of Religious Affairs (Diyanet), lawmakers said that Bitcoin’s “speculative” nature meant that buying and selling it was inappropriate for Muslims.

> “Buying and selling virtual currencies is not compatible with religion at this time because of the fact that their valuation is open to speculation. They can be easily used in illegal activities like money laundering, and they are not under the state’s audit and surveillance,” Euronewstranslates the statement republished by local news outlet Enson Haber.

Diyanet added that the same principles of “unsuitability” in particular applied to Ethereum.

### South Korea

Kim Dong-yeon, South Korea’s deputy prime minister and the minister of strategy and finance, revealed earlier this week that the government is investigating various methods to better regulate the local Bitcoin market and tax Bitcoin users accordingly.

While the South Korean government and its local financial authorities are actively discussing the possibility of enforcing a policy on Bitcoin taxation, at a press conference, Deputy Prime Minister Kim stated that the government does not intend to include any Bitcoin taxation policy in 2018’s amendment of the tax law.

### Holland

A Dutch news paper urges its citizens to sell their bitcoins patriotically because cryptocurrencies can undermine government and destabilize the economy.

A bitcoin world can destabilize the real economy, a euro is also solidified trust.

First, the bitcoin undermines the government because a lot of transactions are about money laundering and tax avoidance. Another problem is that the profits of new bitcoins that come with it do not benefit the government (as with normal money creation), but are absorbed in heavily environmentally harmful computer power.

Central banks also have less influence on keeping the economy stable. In times of crisis, central banks can, through their influence on ordinary banks, ease credit conditions and encourage people to consume. The bank has no control over the bitcoin economy and an economic crisis can become deeper.

The investor has air in his hands when the bitcoin crashes, but also when the company turns out to produce baked air.

### France

Putting money in an empty type of asset is “very, very worrying,” Robert Ophele, chairman of France’s market regulator. Bitcoin has no link to the real economy, Ophele says in a panel discussion at the Paris Europlace Financial Forum, warning that cryptocurrencies are a way to commit cybercrimes, allowing access to illicit goods and services.

If bitcoin was a currency, "it would be a bad one," Ophel exclaimed, as it poses major challenge for central banks and regulators.

### UK

The Telegraph reported just around the time of the big drop, UK "ministers are launching a crackdown on the virtual currency Bitcoin amid growing concern it is being used to launder money and dodge tax."

Taking a page out of the Chinese playbook, the UK Treasury has announced plans to regulate the Bitcoin that will force traders in so-called crypto-currencies to disclose their identities and report suspicious activity.

According to the Telegraph, while "until now, anybody buying and selling Bitcoins and other digital currencies have been able to do so anonymously, making it attractive to criminals and tax avoiders. But the Treasury has now said it intends to begin regulating the virtual currency, which has a total value of £145 billion, to bring it in line with rules on anti-money laundering and counter-terrorism financial legislation."

> John Mann, a member of the Treasury select committee, said he expected to hold an inquiry into the need for better regulation of Bitcoin and other alternative currencies in the new year.

> He said: "These new forms of exchange are expanding rapidly and we've got to make sure we don't get left behind - that's particularly important in terms of money-laundering, terrorism or pure theft.

> "I'm not convinced that the regulatory authorities are keeping up to speed. I would be surprised if the committee doesn't have an inquiry next year. "It would be timely to have a proper look at what this means. It may be that we want speed up our use of these kinds of thing in this country, but that makes it all the more important that we don't have a regulatory lag."

The proposed changes come amid increasing fears that Bitcoin is being used by gangs to launder the proceeds of crime while also attracting currency speculators - with the value of the coin soaring in the past 12 months.

In other words, the same reason why the IRS is cracking down on Coinbase clients in the US is also why UK and European regulators are joining China in cracking down on capital flight.

### United States

The US Senate Judiciary Committee is currently tackling bill S.1241 that aims to criminalize the intentional concealment of ownership or control of a financial account. The bill also would amend the definition of ‘financial account’ and ‘financial institution’ to include digital currencies and digital exchanges, respectively. According to ranking committee member Senator Dianne Feinstein, the proposed bill is needed to modernize existing AML laws.

The bill would amend the definition of ‘financial institution,’ in Section 53412(a) of title 31, United States Code, to include:

> “An issuer, redeemer, or cashier of prepaid access devices, digital currency, or any digital exchanger or tumbler of digital currency.”

If passed, the bill would likely have far-reaching effects for users of digital currencies both in the US and abroad.

Earlier reports also indicate that the White House is actively monitoring cryptocurrencies which could only mean more attempts to regulate the world’s first successful decentralized monetary system. With the growing involvement of Wall Street and the ever escalating media attention, it is not surprising that governments are stepping up their attempts to regulate digital currency.

image courtesy of CoinTelegraph

Simply put, Bitcoin must be providing something of value to the 'people' if all these establishmentarian status-quo-defenders are paniccing.

- China
- White House
- KIM
- Credit Conditions
- Central Banks
- Turkey
- India
- France
- Bitcoin

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Soph Dec 5, 2017 8:55 AM

Wheeee!

Haus-Targaryen Soph Dec 5, 2017 8:58 AM

I'm a butthurt nocoin goldbug -- but I see BTC rallying and I can do nothing but cheer it on. Anything to burn the powers that be I am completely fine with.

I always thought it would be AG and AU getting away from them; looks like BTC is the Hydra that will burn this thing down.

Burn it down, burn the entire thing down.

tmosley Haus-Targaryen Dec 5, 2017 9:02 AM

IOTA outperforming bigly.

InjectTheVenom tmosley Dec 5, 2017 9:07 AM

H O D L

Chuck Norris InjectTheVenom Dec 5, 2017 9:12 AM

If they are panicking about bitcoin at these prices how much will they shit their pants when gold hits $10k?

Mementoil Haus-Targaryen Dec 5, 2017 9:06 AM

Bitcoin is not "burning the powers that be".
On the contrary, they are looking to adopt this technology and use it for their own advantage.
Now we are able to transact with dollar or euro bills anonymously, but in the age of government controlled crypto-currencies, no transaction will escape the great eye in the sky, and all our movements will be monitored.

tmosley Mementoil Dec 5, 2017 9:08 AM

When the rifle was invented, I suspect that many people thought that that would just make bandits more dangerous. Instead, they disappeared.

Crypto is like that with banks. Maybe governments too.

Mementoil tmosley Dec 5, 2017 9:13 AM

When the rifle was invented, the governments of the world were the first to adopt this technology and point those rifles at their own citizens.
I fail to see how this time it will be any different...

J S Bach Haus-Targaryen Dec 5, 2017 9:07 AM

I feel your excitement, Haus. But, remember, our (((bankster overlords))) are both sinister and cunning. The cynic in me expects some kind of underhanded ruse where these cryptos crash and (((they))) end up profiting off of everyone else's intense Bitcoin greed. I hope I'm wrong.

HisNameIsRP Soph Dec 5, 2017 9:00 AM

Cryptokitty

marysimmons HisNameIsRP Dec 5, 2017 9:09 AM

Got yours yet?

https://mobile.twitter.com/hashtag/CryptoKitties?src=hashtag_click

https://mobile.twitter.com/Atomrigs/status/937149413444726784/photo/1

tmosley marysimmons Dec 5, 2017 9:12 AM

Wish they had done this on the IOTA network. More transactions makes the network stronger rather than clogging it. Looking to hit critical mass in the coming months.

ZH Snob Soph Dec 5, 2017 9:10 AM

next phase is a solid 12K flirting with 13K, then smashed down to around the present price of 11.85 and back up again.

it is so predictable. it's amazing to me that ZH'ers wouldn't want to at least trade on these patterns if not hodl.

HRClinton Soph Dec 5, 2017 9:14 AM

AU + CC* = Money of the Parallel/Free** Economy

* Crypto Currencies

** Decentralized, untracked, private

CCs represent a FoC (Flight of Capital). As for "funding criminal activities", fiat currencies are by FAR the most used currency for drugs.

(I have and will continue to trade CC for AU and Diamonds -- all of which are Assets and represent an "Exchange in Kind".)

GlassHouse101 Dec 5, 2017 8:57 AM

Bye bye Cryptos, nice knowin ya

marysimmons GlassHouse101 Dec 5, 2017 9:14 AM

Top 10 merchants accepting BTC -

https://mobile.twitter.com/Blockchainlife/status/937381600014290944

Theta_Burn Dec 5, 2017 8:57 AM

BTFDYFI

H/t H-H & broccoli man....

koaj Dec 5, 2017 9:01 AM

If every single central banker in the world is coming out against BTC, then it is on the right path...regardless of your thoughts on cryptos v gold/silver

spastic_colon Dec 5, 2017 9:02 AM

sorta like todays equity futures............

BigWillyStyle887 Dec 5, 2017 9:07 AM

These people are fucking monsters. They wish to lock people in cages because they dont like their medium of exchange?

divingengineer BigWillyStyle887 Dec 5, 2017 9:10 AM

They’ll send someone over to your house in a black car with white doors to kill you if you remain disagreeable.
Your best bet is to bullshit them and keep your head down.

Don Pancho Dec 5, 2017 9:05 AM

Bitcoin is a ticking time bomb and the goverment is waiting to light the fuse to get the most casultes. And others are hoping into the game way to late like these guys. https://www.silverdoctors.com/headlines/world-news/meet-petro-venezuelas...

InjectTheVenom Don Pancho Dec 5, 2017 9:09 AM

people might pay more attention to your posts if you could spell better than a 3rd grader .... just sayin'

divingengineer Don Pancho Dec 5, 2017 9:13 AM

Zimbabwe adopts as well. India adopted during their govts financial attack on its people.
Hey, is probably a lot better than going hungry.

Panic Mode Dec 5, 2017 9:11 AM

Lets see who blinks first.

divingengineer Panic Mode Dec 5, 2017 9:15 AM

It doesn’t matter if they like it or not. It’s decentralized, with tens, maybe hundreds of millions of users.

DC Beastie Boy Dec 5, 2017 9:14 AM

Hell yes! Just bought more TX (Transfercoin) get on the bandwagon!

https://coinmarketcap.com/currencies/transfercoin/

Dark Send

Instant X

Masternodes

Stealth Address

In wallet trading (OSX)

6M coins 9% apr

Memedada Dec 5, 2017 9:14 AM

Why should bankers panic? What’s from keeping them from being the prime-benefactors of this new speculative asset/thing? They’re can buy BTC ad infinitum with their phony-money/fiat.

Look into who’s spending the billions of dollars bidding BTC up – it is not the multitudes of “Millennials” but very few big actors (i.e. banks and/or banking-empowered entities/fiat-rich actors).

Brazen Heist Dec 5, 2017 9:14 AM

Mosley, you might want to keep a low profile with all the Bitfinex'ed pumping....

Bitfinex is hiring lawyers to counter Bitfinex'ed tether claims!

https://www.coindesk.com/bitfinex-vs-bitfinexed-exchange-hires-law-firm-...

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