This May, bill S.1241 was introduced to the US Senate. The purpose of this bill was to combat money laundering and the requirement of this bill arose from the increasing use of digital currencies such as Bitcoin, Ethereum and others in this field.
The digital currencies make it difficult to track the origin of payments. In the eyes of criminals, this may be a safe haven for their ill-gotten gains. The bill states that its purpose is to increase prohibitions on money laundering, terrorist funding, and other illegal activities. It proposes penalties and punishments for carrying out transactions with illegally gathered funds and is strictly focused on the money service business.
A money service business is defined as a business that operates on the behalf of the public or that is directly, or indirectly involved in foreign or interstate commerce in any capacity.
While the bill goes through other formalities related to illegal transactions, it unfortunately fails to clearly define the term 'digital currencies'. With this ambiguity, the regulations of money laundering may apply to anyone who deals in digital currencies.
The issuer, redeemer, or cashier of digital currencies may be liable to criminal penalties under this new bill, which may adversely affect the cryptocurrency industry in the US. In response, the Bitcoin foundation, after talks with the Senate Committee dealing with bill, have been given the opportunity propose changes to the bill and offer clarity on the terms.
The Bitcoin Foundation is carrying out a survey and asking all Bitcoin enthusiasts to take part in order to convey their voice to the Senate Committee. The survey is being conducted to help the Bitcoin Foundation in formulating a formal response to the Senate Committee. It is part of a greater research study and while the participants may attain no direct benefit from participating, their voice may help Bitcoin Foundation argue their point in a more sterner way.
The digital currencies make it difficult to track the origin of payments. In the eyes of criminals, this may be a safe haven for their ill-gotten gains. The bill states that its purpose is to increase prohibitions on money laundering, terrorist funding, and other illegal activities. It proposes penalties and punishments for carrying out transactions with illegally gathered funds and is strictly focused on the money service business.
A money service business is defined as a business that operates on the behalf of the public or that is directly, or indirectly involved in foreign or interstate commerce in any capacity.
While the bill goes through other formalities related to illegal transactions, it unfortunately fails to clearly define the term 'digital currencies'. With this ambiguity, the regulations of money laundering may apply to anyone who deals in digital currencies.
The issuer, redeemer, or cashier of digital currencies may be liable to criminal penalties under this new bill, which may adversely affect the cryptocurrency industry in the US. In response, the Bitcoin foundation, after talks with the Senate Committee dealing with bill, have been given the opportunity propose changes to the bill and offer clarity on the terms.
The Bitcoin Foundation is carrying out a survey and asking all Bitcoin enthusiasts to take part in order to convey their voice to the Senate Committee. The survey is being conducted to help the Bitcoin Foundation in formulating a formal response to the Senate Committee. It is part of a greater research study and while the participants may attain no direct benefit from participating, their voice may help Bitcoin Foundation argue their point in a more sterner way.