Cryptocurrency regulation US
Cryptocurrency regulation US

A new bill was introduced on the floor of the US Senate titled “Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017“.

Aimed at people with digital and cryptocurrency holdings entering the US, the most noteworthy part of the bill is SEC. 13. titled Prepaid access devices, digital currencies, or other similar instruments”

The bill declares “prepaid access devices and digital currencies” such as Bitcoin and ethereum, two of the best-known cryptocurrencies as financial institutions.  Popular Bitcoin mixers such as BitBlender, Bitcoin Fog, and Helix Light will be treated as financial institutions, and hence be applied similar regulations as those applied on commercial and private banks.

Similarly, prepaid access devices were declared as monetary instruments.

What the heck is a ‘prepaid access device’?

Well, pretty much anything you use to draw funds. It can be an electronic device or vehicle, such as a card, plate, code, number, electronic serial number, mobile identification number, personal identification number.

When Was The Bill Introduced In The Senate?

The bill was introduced in May 2017. Read twice and referred to the Committee on the Judiciary, three co-sponsors introduced it i.e. senators Dianne Feinstein and Sheldon Whitehouse of the Democratic party and John Cornyn of the Republican party.

The bill was introduced in May 2017. Read twice and referred to the Committee on the Judiciary, three co-sponsors introduced it i.e. senators Dianne Feinstein and Sheldon Whitehouse of the Democratic party and John Cornyn of the Republican party.

Who’s Business Will Be Impacted?

Companies and individuals providing services and running digital currency entities, cryptocurrency, and cryptocurrency tumblers.

Implications

This will impact anyone entering the US with cryptocurrency holdings in excess of $10,000.

The major implication of the bill, if passed, will be upon people entering the US. “You’ll have to report your cryptocurrency holdings totaling more than $10,000″, reports Silver Report Uncut. You’ll have to report your devices that have a cryptocurrency wallet on them. This may include mobile wallets, prepaid debit cards, and digital wallets on your computer. This will make your cryptocurrency warnings public and be available for scrutiny by the government.

So, it’s only a window of 18 months before the US will have fully set-up an infrastructure to control digital currencies entering the US.  This is a significant expansion of the powers that will regulate digital currencies. Legislators are going crazy trying to regulate cryptocurrencies. It’s understandable. A summary of ‘Section 13‘, posted on Sen. Grassley’s website observes that digital currencies and cards, plates, codes, numbers, electronic serial numbers are more easily concealable than cash and not covered by reporting requirements.

And, in a nutshell, “The Act will subject those devices to anti-money laundering reporting requirements under the Bank Secrecy Act, in cases where the value stored is above
$10,000“.

The US government’s efforts to bring bitcoins and other cryptocurrencies out of shadows started in Nov 2016 when IRS (Internal Revenue Service) requested “to trawl through the personal data of millions of users of the cryptocurrency exchange Coinbase“, reported Nicky Woolf of The Guardian.

Scary for the digital currency torchbearers, but it’s gonna get mainstream, and anything that goes mainstream eventually comes under regulation.

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