Quote from Ndubuisi Ekekwe on February 4, 2018, 6:56 AM

The regulation of Bitcoin and the broad cryptocurrency has started. It is coming as I have noted in the past: provided no one can buy Bitcoin with sand and yam, if the banks cut off Bitcoin exchanges, the crpto industry would struggle. Yes, we would not even need government to sanitize Bitcoin trading because though the crusaders think they are in their own world, the fact remains that they need real money, not sand and yam, to get Bitcoin. In the early phases, major U.S. banks are cutting off funds into exchanges.

A growing number of big U.S. credit-card issuers are deciding they don’t want to finance a falling knife. JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. said they’re halting purchases of Bitcoin and other cryptocurrencies on their credit cards…Bank of America started declining credit card transactions with known crypto exchanges on Friday. The policy applies to all personal and business credit cards, according to a memo.

Yes, cut-off the exchanges and you would stop the flow of real money into the exchanges. With that, the only option is to use solid water or liquid ice, whichever the Bitcoin-players would invent to trade in the exchanges. If more banks take this up, the pipeline would dry and that would trigger avalanche in many exchanges.

Oh yes, we are out of government control, except that you need government blessed real money to buy that out-of-control. And when institutions under the supervision of government say No, you are done. Heaven bless the exchanges as they pray that banks do not close their accounts: that would be the ultimate regulation. Of course, exchanges do not hurt the banks since they are just deposits, but using credit cards to buy Bitcoin could trigger delinquency which would hurt banks. That is why banks are going after the buyers now: block them off before your loan default rates deteriorate.

Now, we can debate that regulating Bitcoin is impossible. I get it.