Former US President Donald Trump has signed a highly contentious executive order aimed at tightening regulations on the cryptocurrency market, a move that has sent shockwaves through financial and tech sectors.
Key Provisions of the Order
The order introduces stricter oversight on digital currencies, including Bitcoin and Ethereum, with measures designed to curb illegal transactions and enhance transparency. Among its key provisions:
- Enhanced KYC/AML checks: Cryptocurrency exchanges must now implement rigorous identity verification processes.
- Tax reporting: All transactions above $10,000 must be reported to the IRS.
- Ban on anonymous wallets: The use of privacy-focused wallets will be restricted.
Market Reactions
The announcement triggered immediate volatility in crypto markets, with Bitcoin dropping nearly 8% within hours. Analysts remain divided on the long-term impact, with some warning of stifled innovation while others praise the move for reducing fraud risks.
Political Backlash
Critics, including several Democratic lawmakers and crypto advocates, argue the order overreaches and could drive innovation overseas. Meanwhile, Trump’s supporters claim it’s a necessary step to protect consumers and national security.
The White House has yet to clarify how the order will be enforced, leaving many questions unanswered for investors and businesses alike.
