Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Last week on November 28 a revision was made to the U.S. bill S.1241 called âModernizing AML Laws to Combat Money Laundering and Terrorist Financing.â During the U.S. Senate committee hearing, the billâs words and the representatives bolstering the proposed law amended a critical definition of what a âfinancial institutionâ is within the suggested statutes.
Also read:Â Two U.S. Senators Submit a Bill to Investigate Digital Currencies
Bill S.1241: Amending the Definition of a Financial Institution
U.S. bill S.1241 is sponsored by Senator Chuck Grassley of Iowa and Senator Diane Feinstein of California.
News.bitcoin.com has reported on bill S.1241 multiple times since the proposed law was introduced by U.S. bureaucrats back in June. According to The Satoshi Revolution author, Wendy McElroy, the bill is a âpit bull assault on bitcoin freedom.â Now, this week without causing much attention, the U.S. Committee of the Judiciary members gathered to discuss digital currency implications towards AML/KYC regulatory guidelines. However, during the meeting, it is clear from the recorded video that the words âfinancial institutionâ will be amended to cover a much broader definition. Â Â
Instead of utilizing the definition of a âfinancial institutionâ which includes business models like banks and credit unions, S.1241âs amendment in Section 5312(a) of title 31, United States Code states that the definition now includes, âan issuer, redeemer, or cashier of prepaid access devices, digital currency, or any digital exchanger or tumbler of digital currency.â
U.S. bill S.124, âModernizing AML Laws to Combat Money Laundering and Terrorist Financing.â
âCriminalizingâ the Concealment of Digital Currencies
Moreover, during the hearing Senator Feinstein explains the bill âcriminalizes intentionally concealing ownership or control of a bank account.â This includes concealing digital currencies or other similar âprepaid instrumentsâ as Section 5312 states; Â Â
A âprepaid access deviceâ means an electronic device or vehicle, such as a card, plate, code, number, electronic serial number, mobile identification number, personal identification number, or other instrument, that provides a portal to funds or the value of funds that have been paid in advance and can be retrievable and transferable at some point in the future.
U.S. Law Enforcement Is at a Crossroads
The Senator from Minnesota, Amy Klobuchar, asked the former U.S. Treasury special agent, John Cassara, what he thinks about the current âtransition from cash to digital cash.â Klobuchar is interested in his opinion on whether or not law enforcement can track money laundering cases tied to cryptocurrencies. Cassara who has spent most of his career investigating money laundering, trade fraud, and international smuggling cases says heâs pleased he didnât have to deal with digital currencies during his tenure. Â
âIâm just glad I had my career when I did because I donât know what Iâd do trying to follow the money when it comes to digital currencies, itâs extremely, extremely challenging,â Cassara explains. Â
I think if you look at the metrics, the metrics suggest today that digital currencies are a small fraction of the threat that we face â Thatâs not to say itâs gonna be the case in 5-10 years from now â Weâre right at a crossroads, and itâs going to be very, very interesting to see what goes forward.
Itâs safe to say bitcoin proponents will be watching this bill very closely with its revised definitions. The way the proposed law is being discussed by bureaucrats may concern bitcoiners who believe in privacy. Especially when a U.S. Senator suggests âcriminalizing the intent of concealed ownershipâ of digital currencies. Further, as the bill has progressed skeptics find it interesting definitions are being changed and snuck into the proposed legislation in a sneaky manner. However, U.S. Senators got a bill passed last night that also âquietly added $1 trillionâ to the countryâs deficit in the same fashion.Â
What do you think about the proposed bill S.1241 and Senator Feinsteinâs statements? Let us know in the comments below.
Images via the Washington Examiner, Wiki Commons, and U.S. bill S.1241.
At News.Bitcoin.com all comments containing links are automatically held up for moderation in the Disqus system. That means an editor has to take a look at the comment to approve it. This is due to the many, repetitive, spam and scam links people post under our articles. We do not censor any comment content based on politics or personal opinions. So, please be patient. Your comment will be published.
The post Proposed U.S. Legislation May Criminalize Those Who Conceal Bitcoin appeared first on Bitcoin News.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.