Cross-Border Payments from US Have Increased by 47%, According to CipherTrace
Creating a faster and more efficient process for cross-border payments has been a major goal for the crypto industry as they have worked to solve various concerns that the traditional finance world deals with.
As the speeds have improved through protocols like the Lightning Network and Ripple’s payment system, it looks like investors in the United States have continued to utilize this function. Based on information from CipherTrace, the number of payments that are sent across borders has increased by 47% since the beginning of 2017.
CipherTrace, which published this analysis on April 29th, stated that the number of Bitcoin transactions in the United States in cross-border transactions went from 45% to 66%. The report notes that this could be a difficult time for the regulators in the US, considering that the transactions may end up requiring domestic oversight since the transactions are hidden from the US authorities once they go across.
Right now, CipherTrace comments that there is no clarity on whether these payments end up causing the same FinCEN requirement that MSBs have to maintain a five-year record for certain amounts.
Even with the lack of certainty in the regulatory space, the money-service businesses are still expected to maintain the social security numbers or tax IDs for transactions like these. The report also added details about other issues that are faced in the crypto world, which shows about $296 million worth of crypto lost in 2019, primarily due to thefts and hacks on exchanges. CipherTrace expects this number to reach $1 billion at the end of the year.
The rest of the world is still working on a variety of necessary regulations. In the US, Canada, the UK, and Japan, there are plans for anti-money laundering and counter-terror financing regulations to be implemented.
As new drama arises around the Tether stablecoin, other exchanges and countries have begun to release stablecoins associated with other fiat currencies. In the US, investors are now able to use the Gemini Dollar from the Winklevoss brothers and the Paxos Standard by Paxos.
These two stablecoins have already secured a BitLicense from the New York State Department of Financial Services and have licensed under the US Bank Secrecy Act.