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AML: US Rules Would Force Declaration Of Crypto At Borders

· June 10, 2017 · 11:00 am

An update to US anti-money laundering (AML) legislation currently going through Congress would oblige travelers to declare digital currency at the border.


AML Rules Target $10k+ Crypto Holdings

S. 1241, a new bill sponsored by Senator Chuck Grassley, proposes adding the terms ‘digital currency’ and ‘prepaid access devices’ to existing list of financial items subject so such AML procedures.

It would also include reference to “any digital exchanger or tumbler of digital currency.”

Ostensibly designed to prevent trafficking of funds over $10,000 in value, the resulting powers given to border authorities could be nonetheless considerably more sweeping than at present.

United States Congress

While it is unclear how those arriving in the US would be screened for digital currency holdings, the Bill makes provision for a report to be commissioned ironing out the finer points.

The text states:

Not later than 18 months after the date of enactment of this Act, the Secretary of Homeland Security, in consultation with the Commissioner of U.S. Customs and Border Protection, shall submit to Congress a report—

(1) detailing a strategy to interdict and detect prepaid access devices, digital currencies, or other similar instruments, at border crossings and other ports of entry for the United States; and

(2) that includes an assessment of infrastructure needed to carry out the strategy detailed in paragraph […]

Coin Center ‘Reaching Out’ For Debate

The Bitcoin community is already reacting with caution to the legislation as it stands, with multiple questions being raised as to how lawmakers could enforce it in practice.

“We’re reaching out to the relevant offices,” Coin Center CEO Jerry Brito said in a Twitter response.

EU Focuses On Dark Web, ID Linking

The move is reminiscent of similar plans across the pond in the European Union regarding declaration of digital currency funds, this time at the point of spend.

While border controls are not currently on the table, legislators are keen to enforce similar AML controls on anyone holding any form of virtual funds.

Formally revealed in March, users could soon face obligatory linking of their personal identity to their wallet.

AML could force linking users' ID to their digital wallets

More recently, a joint “consortium” by the European Commission, INTERPOL and others will research ways in which illicit use of the dark web can be curbed. Participants promise that:

“The consortium will analyze legal and ethical requirements and define guidelines for storing and processing data, information, and knowledge involved in criminal investigations without compromising citizen privacy,” participants promise.

What do you think about the Bill being considered by Congress? Let us know in the comments below!


Images courtesy of Wikimedia, Shutterstock

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Úno 21

New SEC Agreement Pushes Bitcoin Price Higher to $1,100

· February 21, 2017 · 5:00 am

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BTC price rose higher after positive news regarding the SEC and its new regulations that are expected to boost small Bitcoin businesses.


Building on ‘Productive Relationship’

A memorandum of understanding (MOU) between the US Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA), signed Friday, will see the two bodies share information related to ensure new crowdfunding regulations are effective for small businesses.

mou-sign-2

The new rules will make it easier for entry-level businesses to raise funds via exceptions to restrictions governing intrastate crowdfunding.

“The agreement not only builds on an already productive relationship between the SEC and state regulators, it also offers additional insights and protections as we help companies grow and create jobs while providing new opportunities to investors,” SEC Acting Chairman Michael S. Piwowar commented in an accompanying press release.

Bitcoin Reacts with Relief

The move is generally seen as a beneficial step for cryptocurrency and Blockchain startups, with hurdles being removed for the US ecosystem to become more innovative and competitive.

Enthusiasm was reflected in continued Bitcoin support, the digital currency’s price crossing the $1,100 barrier once again.

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“This agreement will strengthen collaboration among state and federal securities regulators to help expand small-business investment opportunities while also protecting investors,” continued Mike Rothman, Minnesota Commissioner of Commerce and President of NASAA.

Ongoing dialogue is essential to carry out our responsibilities going forward. With this MOU in place, we have an opportunity to share information that will bolster our efforts to support small business capital formation and prevent fraud.

All Eyes on March

The press release meanwhile outlines the new options available for the fintech startups themselves.

“Companies now can also raise up to $5 million per year through other amended rules, which could facilitate the development of regional offering exemptions at the state level to permit companies to raise from investors in a specific region,” it confirms, the limit having previously been $1 million.

Bitcoinist_Bitcoin Devleopment Funding

In addition, companies:

will have more flexibility to engage in intrastate offers through websites and social media without having to register their offering with the federal government.

The move comes at a crucial time for the SEC in particular as it prepares to deliver its final verdict on allowing the Winklevoss Bitcoin ETF. The hotly-awaited decision is expected March 11th, with many predicting highly favorable consequences for Bitcoin’s propagation and value in the event of a positive outcome.

What do you think about the SEC move? Let us know in the comments below!


Images courtesy of Shutterstock, coinmarketcap.com

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Čvn 10

US Banking Regulators Warn About Imminent Swift Attacks

Source: bitcoin

Bitcoinist_Swift Breaches

US Regulators are scrutinizing the Swift payment network in light of the recent heists which have taken place. That is not a complete surprise, as there is plenty of cause for concern. Things have gotten so dire; the US regulators have warned banks about more imminent threats to their cyber security.

Also read: Hacker Sells Twitter Data Dump On Deep Web For 10 Bitcoin

Ever since the various attacks made against banks connected to the Swift network became public knowledge, there has been a lot of concern among financial regulators. Albeit the hackers used smaller banks to gain access to the Swift network, regulators feel the interbank protocol is no longer safe.

Swift Is Not Adequately Protecting Its Partners

Moreover, they feel all connected banks should do their due diligence and fortify cyber security as they see fit. This is a lot easier said than done, though, considering how smaller banks do not have the budget nor staff to counter these cyber threats in an efficient manner.

Several vulnerabilities have been exposed during these breaches. Given the diversity of the Swift system, patching all of these critical flaws will take a lot of time and effort. Until these fixes are implemented, the protocol remains vulnerable to attack, and it is not unlikely new attacks will follow.

If it were up to Swift officials, however, they would rather cut off smaller banks with subpar security standards. Ever since the small bank breaches were announced, the interbank network has done everything they can to put the blame on their partners. This has caught the attention of regulators all over the world, and especially in the United States.

Note from the author: It remains unclear who is the “guilty party” in these incidents. The investigations are still ongoing as we speak. 

The US Federal Financial Examination Council issued a warning to all Swift-connected banks. This assortment of banking regulators strongly feels Swift cannot protect its partners in an adequate manner, and banks should take matters into their own hands.

But that is not all, as the FFIEC warned how unauthorized transactions will cause losses to the originating bank, as well as result in compliance breaches penalties. So far, the FBI has been investigating various security breaches. However, regulators and banks are on high alert ever since the attempted heist in April of 2016.

Do you think there will be more attacks against the Swift interbank network? Let us know in the comments below!

Source: Finance Magnates

Images courtesy of Shutterstock, FFIEC

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US Banking Regulators Warn About Imminent Swift Attacks

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