Latest Regulations Have Harmed Loaded Physical Bitcoins and Their Once Growing Demand

As Bitcoin (BTC) has recently celebrated its tenth anniversary, enthusiasts and companies have been trying to open new businesses related to it.

Some of the most interesting projects were related to manufacturing loaded physical bitcoins. However, due to regulations in the space, the industry experienced some difficulties.

Manufacturing Loaded Bitcoins not Profitable Anymore

Bitcoin enthusiasts used to hold their Bitcoins in paper wallets. However, this changed and became more sophisticated. Users decided to create physical coins that represent a specific amount of Bitcoin.

One of the most popular collectors of physical BTC was Casascius, however, the sales of items containing digital bitcoins were suspended as of November 27, 2013.

Mike Caldwell, the creator of this website, faced different problems with the U.S. Financial Crimes Enforcement Network (FinCEN). The business was shut down by this agency after considering the project as illegal money transmission.

Between 2013 and 2016, physical digital assets such as Bitcoin became very popular. Some collectors were demanding these coins at all times. Some of these coins had a higher value than the one they’ve held inside. Some other companies operating in the market and that had to shut down their operations were Ravenbit, Alitin Mint, Cryptmint and Titan Bitcoin.

Back in April 2018, Satori Coin explained that it had to shut down its operations after anti-money laundering (AML) and know your customer (KYC) policies were introduced in the country. The Financial Services Agency (FSA) has been imposing strict regulations in the market to avoid fraudulent activities and scams in the market.

Bobby Lee, the co-founder of BTCC, a company that was also selling these physical digital currencies, said that sells in China reached a record before shutting down its operations in 2018. At the moment, users that want to purchase loaded coins have to do it through different e-commerce websites such as e-Bay.

One of the main reasons behind the fall of these firms is due to the fact that there are several regulations that do not allow them to grow. Using physical bitcoins loaded with BTC is something that some countries do not accept because these coins could eventually replace the local fiat currency or, at least, compete against it.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,486FansLike
2,795FollowersFollow
4,267FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

IRS to Revise Form 1040 to Make it Harder for Traders to Escape Crypto Tax Obligation

The Internal Revenue Service is planning to change the 2020 tax form and make sure all taxpayers report about their cryptocurrency transactions. The standard 1040...

China State-Owned Media Covers Crypto as 2020’s Best Performing Assets Driven by DeFi & Weak Dollar

In an unusual coordinated report on Friday, several Chinese state-owned media covered cryptocurrencies, calling them the best-performing assets of 2020. The country’s top broadcaster, China...

Crypto Exchange Gemini Makes an Aggressive Move, Adds 15 Hot DeFi Tokens

DeFi is all the rage in today's crypto world, and no one wants to be left behind, especially cryptocurrency exchanges. Over the past few months,...

Ethereum ‘Getting Ready for Spadina' Testnet Next Week

The Spadina testnet of ETH 2.0 has been scheduled for genesis before the month ends, on September 29 at 12 pm UTC, as per...

KuCoin Hack: Exchange’s Insurance Fund to Cover User Loss “Completely,” Tether Freezes 33M USDT

The Singapore-based cryptocurrency exchange KuCoin released a statement regarding detecting large withdrawals on September 26, 2020, at 03:05:37 (UTC+8). The exchange has reportedly lost $150...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today