US to criminalize concealment of crypto-ownership

The Judiciary Committee of the US Senate is working on the bill whose purpose is to criminalize the concealment of ownership of a financial account connected including digital currencies
04 December 2017   580

The Unites States Senate Judiciary Committee is maintaining bill S.1241 which will control ownership of a financial account and financial institution and criminalize its non-disclosure, now including ownership of cryptocurrency and maintaining cryptoexchanges.

Section 5312(a) of title 31, United States Code, is amended— in paragraph K by inserting “prepaid access devices, digital currency,” after “money orders,”; and by inserting before the semicolon at the end the following: “, or any digital exchanger or tumbler of digital currency”.

Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017

The amendments towards the definition of a 'financial institution' in the United States Code are also included.

Financial institution - an issuer, redeemer, or cashier of prepaid access devices, digital currency, or any digital exchanger or tumbler of digital currency.

United States Code

The abovementioned law may be enforced in order to make changes to existing Anti-Money Laundering laws, which are legal standards regulating the processes of preventing, detecting and reporting instances of money laundering by businesses and financial institutions.

If the bill will actually be imposed it might have a very unexpected and forceful effect on the users of cryptocurrency inside the US as well as the whole world crypto-community.

German Financial Regulator Clarifies Stance on ICOs

The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has clarified its position on ICOs
22 February 2018   52

German financial regulator admitted it was receiving many inquiries about the status of tokens and cryptocurrencies. According to an advisory letter, BaFin provides some basic definitions of ICOs and related terms. It is important because the results of a new survey showed that more than two-thirds of Germans know about bitcoin.

In this letter, BaFin educates the public and explains how tokens are typically generated, how blockchain works and that ICOs are used to raise funds for startup projects. The note states that for regulatory purposes, ICOs, tokens, coins, and cryptocurrencies are subject to the existing provisions in the field of securities supervision and other relevant national and EU laws.

The authority advises participants in ICOs to check and follow rules applicable to regulated financial instruments, such as securities. If businesses or individuals have any doubts about regulations, they should approach BaFin.

According to BaFin, companies should fulfill any obligations under the Banking Act and the Capital Investment Code, the Insurance Supervision Act and the Payment Services Supervision Act. The transactions may be prohibited if relevant regulatory requirements are not met.

The authority also states that legal classification of tokens requires precise examination. It will determine their status on a case-by-case basis after studying their features. The token should be transferable and tradable on cryptocurrency trading platforms in order to be classified as a security.