Congress wants cryptocurrencies declared at the nation’s border. We’ve written about this law previously, The Combating Money Laundering, Terrorist Financing and Counterfeiting Act of 2017 demands that a host of cryptocurrencies be declared.
What has attracted the most attention is the cryptocurrency disclosure requirements themselves. A person with more than $10,000 worth of bitcoin must inform authorities.
Thus terrorism, a far-fetched rational to say the least, is driving the consideration.
Joe Ciccolo of Canada-based BitAML reportedly said that, “Earlier this decade, we saw a push to include ‘prepaid access’ such as gift cards. Law enforcement went so far as to pursue card readers to scan prepaid access devices for their balance. Now that digital currencies have gained traction, they’ve been included in the same conversation. As in the past, I suspect there will be strong opposition from across the financial services community.”
Others called the legislation unnecessary.
Civil asset forfeiture would be part of the bill, making cryptocurrencies subject to confiscation. In the past, innocent people have their funds removed and there is no reason to think things have changed.
Writer Simon Black said reportedly, “So, theoretically if you leave the US with more than $10,000 in bitcoin or ether, you’d have to confess this fact to the authorities or otherwise face the aforementioned penalties, ie prison time, civil asset forfeiture, etc.”
At least one person is forthrightly against the legislation: Theo Chino. Chino has reportedly been trying to educate congressmen.
“This ‘over-criminalization’ of bitcoin, based on common misunderstandings of the technology and its economic nature should be worrisome to the bitcoin and technology communities,” he said reportedly.
This particular bill may not go anywhere, but attacks on cryptocurrencies have just begun.