U.S Policymakers Discuss Blockchain Utility, Crypto Scams, and New Regulations
Summary:
The U.S House Financial Services Subcommittee recently held a hearing on the use of blockchain technology. Committee Chair, Representative French Hill, defended cryptocurrency, insisting it should not be blamed for terrorist financing. Meanwhile, U.S Senator Elizabeth Warren highlighted the risks of crypto scams at another hearing. The NYDFS has introduced stricter rules for crypto companies, and Republican Presidential candidate, Vivek Ramaswamy, unveiled a crypto policy framework. The Australian Taxation Office clarified its intent to tax decentralized finance and crypto tokens. Also, the Democratic Party of Korea now requires prospective candidates to disclose their digital asset holdings before the 2024 general election.
During a hearing led by the U.S House Financial Services Subcommittee focusing on Digital Assets, Financial Technology, and Inclusion, the utility of blockchain technology was widely deliberated. The conversation commenced with the exploration of Hamas's cryptocurrency fundraising activities. The chair of the committee, Representative French Hill, asserted that just as phones and the internet cannot be held accountable for financing terrorists, cryptocurrencies shouldn't be as well. Various representatives, including those from Consensys and Chainalysis, emphasized the importance of global cooperation - both public and private - to prevent the exploitation of digital assets. They also discussed the urgency of precise legislation and the complexities of blockchain investigation.
At a separate hearing, U.S Senator Elizabeth Warren alerted the public about the looming threat of cryptocurrency frauds. Steve Weisman, a renowned scholar of scams and cybersecurity, attested that cryptocurrency scams are more complex and harder to stop and trace compared to credit card fraud. He applauded Warren’s initiative to introduce the Digital Asset Anti-Money Laundering Act, which aspires to subject digital currencies to the same Anti-Money Laundering regulations as traditional currencies.
The New York State Department of Financial Services (NYDFS) introduced stricter protocols, forcing cryptocurrency firms to have their coin listings and delisting policies reviewed and sanctioned by NYDFS. These policies will be gauged against tougher risk evaluation standards laid down by the NYDFS, aiming at protecting investors. The anticipated changes will be applicable to all licensed digital currency firms under the New York Codes, Rules, and Regulation or limited-purpose trust businesses per the state banking laws.
Vivek Ramaswamy, a Republican Presidential candidate, revealed his crypto policy blueprint dubbed “The Three Freedoms of Crypto”. In a dedicated speech, Ramaswamy pledged to command federal prosecutors to penalize wrongdoers and not the coders if he were elected as President.
The Australian Taxation Office (ATO) clarified its intention to apply a capital gains tax (CGT) on decentralized finance and wrapping crypto tokens. The ATO confirmed in a statement that the transferal of crypto assets to an address not under sender's control or one already having a balance would be viewed as a taxable CGT event.
The Democratic Party of Korea imposed a new requirement on its potential candidates to reveal their digital asset possessions ahead of the 2024 general elections. This move aims to uphold the party’s candidates' "high moral standards," with falsification being a grounds for candidacy withdrawal. However, possession of cryptocurrency will not bear consequences. The candidates’ information will be publicly accessible on an individual online platform, spotlighting details about their career trajectory, educational qualifications, and legislative activity plans.
Published At
11/20/2023 9:00:00 PM
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