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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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