U.S. Planning Cryptocurrency Rules on Transparency

Tiews223

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Quote from: hugeblack on February 13, 2020, 09:58:09 AM

Treasury Secretary Steven Mnuchin said on Wednesday that the United States will soon announce new regulations related to crytocurrency and digital payment systems.
While he did not talk about these regulations, but it seems that they are aimed at tracking currencies and making sure they are not used for money laundering "or to make sure of imposing taxes on them," where he said:

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Financial Crimes Enforcement Network is preparing rules that will improve transparency and prevent cryptocurrencies from being used as “secret bank accounts.”

“We will be rolling out new regulations to be very clear on greater transparency so that law enforcement can see where the money is going and that this isn’t used for money laundering,” Mnuchin said.

Read more and source ---> https://www.bloomberg.com/news/articles/2020-02-12/cryptoasset-rules-set-for-release-by-trump-administration
It seems that the United States will spend more money to scrutinize Bitcoin transactions.

This is a good move by the US government in Crypto transparency. I think many will appreciate the efforts of the US government in enabling its country to be more transparent and ready with the crypto emerging at greater heights.

Meowth05

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I vote for the further execution of transparency of cryptocurrency because it will establish trust to people that cryptocurrency is safe and this also makes sure that there will be a reduction if not annihilation of transaction for illegal means.

Linkkoin

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Quote from: malevolent on March 02, 2020, 07:37:05 AM

Maybe it's time to do away with the whole concept of issuing broad sanctions against entire countries. If they work at all, they tend to hurt unrelated people the most.

In our opinion targetting innocent civilians with sanctions is often counterproductive as the real wrongdoers holding power in such state bypass sanctions anyway

malevolent

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Quote from: Linkkoin on March 02, 2020, 06:23:42 AM

There are some attempts, but the thing is the people in these law enforcement bodies have problems with understanding the nature of blockchain and cryptocurrencies - their main solution is to try to make them work in the same way as bank wire transfers and use already available tools.
But this is a true challenge - you can cut off eg. whole Iran from the international banking system due to the UN sanctions, but how to do the same in case of cryptocurrency wallets? Especially as you yourself can create a cold wallet?

Maybe it's time to do away with the whole concept of issuing broad sanctions against entire countries. If they work at all, they tend to hurt unrelated people the most.

Linkkoin

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Quote from: malevolent on February 28, 2020, 05:59:20 PM

So like in the rest of the world... And for some reason we're not seeing any concrete steps being taken to allow for better international cooperation between police forces and judiciaries of various countries to make it easier to catch scammers and fraudsters. The best EU and the USA can come up with are onerous regulations.

There are some attempts, but the thing is the people in these law enforcement bodies have problems with understanding the nature of blockchain and cryptocurrencies - their main solution is to try to make them work in the same way as bank wire transfers and use already available tools.
But this is a true challenge - you can cut off eg. whole Iran from the international banking system due to the UN sanctions, but how to do the same in case of cryptocurrency wallets? Especially as you yourself can create a cold wallet?

malevolent

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Quote from: squatter on February 27, 2020, 04:14:11 PM

They don't have the resources to fight crime, generally. The overwhelming majority of property crimes already go unsolved. When you add in the pseudonymity of cryptocurrency and the multi-country jurisdiction of the platforms we use, I become really skeptical that "cyber protection laws" are going to do much.

So like in the rest of the world... And for some reason we're not seeing any concrete steps being taken to allow for better international cooperation between police forces and judiciaries of various countries to make it easier to catch scammers and fraudsters. The best EU and the USA can come up with are onerous regulations.

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Quote from: Theb on February 27, 2020, 10:34:43 AM

Anything as long as it is not some kind of BitLicense is something to look forward too as in this way the crypto industry is not some kind of exclusive service that only licensed people have the privilege to enter.

Any licensing scheme will create new barriers to entry and new capital requirements for start-ups. The more restrictive the scheme, the less options consumers will have, and the more costly they will be. BitLicense is just the extreme example.

Quote from: malevolent on February 27, 2020, 01:20:59 PM

Quote from: Theb on February 27, 2020, 10:34:43 AM

But I do think that the US government needs to be more concerned in scams happening in the industry rather than focusing in money laundering regulations, for the past couple weeks I have frequently seen people both close to me and in the internet get victimized by one of these scams and still we haven't seen any kind of action from any government. I do hope they include laws in relation to our cyber protection.

Is it the laws lagging behind or is it more a matter of enforcement and/or the police forces being undereducated or not having enough resources? Most cryptocurrency scammers are already breaking preexisting laws.

They don't have the resources to fight crime, generally. The overwhelming majority of property crimes already go unsolved. When you add in the pseudonymity of cryptocurrency and the multi-country jurisdiction of the platforms we use, I become really skeptical that "cyber protection laws" are going to do much.

malevolent

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Quote from: Theb on February 27, 2020, 10:34:43 AM

Anything as long as it is not some kind of BitLicense is something to look forward too as in this way the crypto industry is not some kind of exclusive service that only licensed people have the privilege to enter. But I do think that the US government needs to be more concerned in scams happening in the industry rather than focusing in money laundering regulations, for the past couple weeks I have frequently seen people both close to me and in the internet get victimized by one of these scams and still we haven't seen any kind of action from any government. I do hope they include laws in relation to our cyber protection.

Is it the laws lagging behind or is it more a matter of enforcement and/or the police forces being undereducated or not having enough resources? Most cryptocurrency scammers are already breaking preexisting laws.

Theb

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Quote from: malevolent on February 25, 2020, 11:00:13 AM

Careful what you wish for. Strict rules means you might not even get to invest anything or you may find yourself having to prove you're not a criminal while with your funds are frozen.

Anything as long as it is not some kind of BitLicense is something to look forward too as in this way the crypto industry is not some kind of exclusive service that only licensed people have the privilege to enter. But I do think that the US government needs to be more concerned in scams happening in the industry rather than focusing in money laundering regulations, for the past couple weeks I have frequently seen people both close to me and in the internet get victimized by one of these scams and still we haven't seen any kind of action from any government. I do hope they include laws in relation to our cyber protection.

malevolent

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Quote from: gantez on February 19, 2020, 04:59:24 PM

I think this is not about being unfriendly but about trying to sanitize the system and to guarantee better security of invested fund. Most people will even like to invest where rules are strict for trustees of funds or exchanges so that they are safe with them. I would even like to invest in such environment.

Careful what you wish for. Strict rules means you might not even get to invest anything or you may find yourself having to prove you're not a criminal while with your funds are frozen.

palle11

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Quote from: fortunecrypto on February 21, 2020, 07:50:07 PM

Trump is very serious to spend funds to scrutinize Crypto transaction.

I want Trump to also start looking at scam in cryptocurrency especially ICO projects that scam and exit, if that is possible. It should be given serious attention and treated just like fiat as money laundry and embezzlement are not taken lightly. Crypto is financial business as we also clearly know, it can have some security too.

fortunecrypto

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They are really at it ever since, the silk road anomaly is one big example why they want to do this and of course the threat of terrorist using Cryptocurrency to fund their activities is also one of their concern, of all the President only Trump is very serious to spend funds to scrutinize Crypto transaction.

gantez

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Quote from: avikz on February 13, 2020, 11:27:14 AM

Since it is an initiative by Fincen, we can safely assume that the regulation will give more power to legal authorities against the misuse of cryptos. It may also include the power to scrutinize crypto users and their transactions, especially when it talks about transparency!

US is slowly becoming crypto unfriendly country with its stricter rules and regulations. It seems like they are ready to loose important business opportunities in the future for the sake of stupid regulations relate to transparency! Well, some other countries will reap the benefit then!

I think this is not about being unfriendly but about trying to sanitize the system and to guarantee better security of invested fund. Most people will even like to invest where rules are strict for trustees of funds or exchanges so that they are safe with them. I would even like to invest in such environment.

figmentofmyass

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Quote from: gentlemand on February 18, 2020, 08:30:49 AM

https://twitter.com/CACryptoLawyer/status/1227702311272603648

https://twitter.com/jchervinsky/status/1227709489786302470

Thread here from someone who asked people who actually work in this area. They haven't heard anything.

thanks for the info! Shocked

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I spoke with a rep from FinCEN today, and they knew nothing of these new "requirements" or Mnuchin's announcement.

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Your conversation with the FinCEN rep doesn't surprise me. I've asked around & nobody seems to know what Sec. Mnuchin is talking about.

so it was just empty posturing by the trump administration!? music to my ears, tbh. the longer we can maintain the current AML/KYC status quo (vs submitting to the FATF overlords) the better.

7788bitcoin

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Quote from: hugeblack on February 13, 2020, 09:58:09 AM

It seems that the United States will spend more money to scrutinize Bitcoin transactions.

All they need is to regulate the exchanges and strictly monitor their activities and if that happens all the exchanges will follow the KYC AML rules and regulations and then the transparency is lost forever and that is what is going to happen in a few years, if any exchange is not follow them they will push them out of business by taking over their domain and i am sure that is how they are planning to control the market.

gentlemand

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https://twitter.com/CACryptoLawyer/status/1227702311272603648

https://twitter.com/jchervinsky/status/1227709489786302470

Thread here from someone who asked people who actually work in this area. They haven't heard anything.

Looks like Mr Mniminim has developed a Trump-esque fondness for spouting anything with zero to back it up.

figmentofmyass

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Quote from: gentlemand on February 17, 2020, 01:27:38 PM

I expect nothing new and nothing disruptive. It'll be reiterating the KYC stuff, giving the boot to exchanges that don't play full ball and giving Chainalysis more money. There's not exactly much more they can do.

we might be building up to another BTC-E event---possibly right down to the timing, considering the bull market.

FINCEN's guidance last year rendered lots of altcoin exchanges non-compliant. when the FATF rules get implemented, that will become even more apparent. i have no doubt the DOJ+FINCEN (possibly in conjunction with the CFTC or SEC) will eventually make another example of a non-compliant exchange.

i worry about platforms like kucoin---they allow unverified accounts (including from the USA), they offer derivatives to USA traders on kumex, and they've added fiat-to-crypto services that USA customers can use.

gentlemand

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I expect nothing new and nothing disruptive. It'll be reiterating the KYC stuff, giving the boot to exchanges that don't play full ball and giving Chainalysis more money. There's not exactly much more they can do.

20kevin20

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Quote from: sheenshane on February 17, 2020, 02:21:54 AM

~
Transparency really is important so the authorities can avoid or lessen the miss-use of crypto-currency. However, the people stored their assets in Bitcoin before, hoping to keep their assets out of taxes.
~

It's not about keeping assets out of taxes. Would've been amazing if there were no taxes imposed on crypto capital gains, of course, but the thing is, any attempt to gain more intimacy is being terminated by the state. Whenever we finally find a way to "hide" from the public without any bad intention such as tax evasion, we're just pulled back out in the public spotlight.

There are enough ways to escape for those looking to do tax evasion. I just feel like these regulations don't have much of an impact against those with malicious intents. We're being requested and drained of more and more personal information while they're successfully making their moves to escape. And it's common sense: one who is going to commit any kind of crime will never be silly enough to provide KYC anyway - and it's just an example out of many.

sheenshane

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This might be the moment of Bitcoin users that they will realize that they are fudged-up. Although probably this might help a lot of people, it might these regulations will also affect a lot of people in a negative way. Transparency really is important so the authorities can avoid or lessen the miss-use of crypto-currency. However, the people stored their assets in Bitcoin before, hoping to keep their assets out of taxes.

In this case, they might end up being very troubled. I just can't imagine myself in that situation. It might have a problem but still a head-ache worthy problem.

Quote from: 20kevin20 on February 16, 2020, 08:31:10 PM

I don't see any reason crypto to crypto transactions would be considered illegal without KYC?

The word anonymous will remain in crypto transactions and I think the only way they can regulate us the wallet we had to use just like a custodial wallet that required KYC and every transaction can be traceable when exchanging to fiat.

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