Blockchain Technology in Congressional Discussion
The United States House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion recently held a hearing to discuss the uses of blockchain technology. The meeting, titled “Crypto Crime in Context: Breaking Down the Illicit Activity in Digital Assets,” centered on tackling the misuse of digital assets. Some of the highlights of the hearing included discussions on the use of crypto for fundraising by organizations like Hamas. The committee’s Chair, Representative French Hill, emphasized that crypto, like the phone and the internet, shouldn’t be blamed for illicit activities. Representatives from Consensys and Chainalysis stressed the importance of international collaboration, well-crafted legislation, and blockchain sleuthing to combat the misuse of digital assets.
Concerns Over Cryptocurrency Scams
There was another hearing held by the Senate Special Committee on Aging, where U.S. Senator Elizabeth Warren raised concerns about cryptocurrency scams. The witness, Steve Weisman, who is an expert on scams and cybersecurity, expressed that crypto poses greater challenges in transparency compared to credit card fraud. Weisman voiced support for Warren’s Digital Asset Anti-Money Laundering Act, which aims to subject digital assets to the same Anti-Money Laundering laws as traditional fiat currency.
New Guidelines for Crypto Companies in New York
The New York State Department of Financial Services (NYDFS) has announced new restrictions that require crypto companies to submit their coin listing and delisting policies for NYDFS approval. The incoming changes apply to all digital currency business entities licensed under the New York Codes, Rules and Regulation or limited purpose trust companies under the state’s banking law.
Vivek Ramaswamy’s Critique of Mixer Sanctions
Republican United States Presidential candidate Vivek Ramaswamy introduced a crypto policy framework called “The Three Freedoms of Crypto,” criticizing sanctions against crypto mixer Tornado Cash. He vows to prosecute bad actors, provide regulatory clarity, and prevent federal agencies from creating rules that limit the use of self-hosted wallets.
Australia to Tax Wrapped Tokens
The Australian Taxation Office (ATO) issued guidance on the capital gains tax (CGT) treatment of decentralized finance and wrapping crypto tokens for individuals. The ATO clarified its intent to continue taxing Australians on capital gains when wrapping and unwrapping tokens.
Mandatory Disclosure of Crypto Holdings in South Korea
The Democratic Party of South Korea has made it mandatory for prospective candidates to disclose their digital asset holdings before the 2024 general election. The move is part of the party’s efforts to display the “high moral standards” of its candidates.
Hot Take: Cryptocurrency Legislation and Global Scrutiny
These developments signal growing scrutiny and legislation around the use of cryptocurrencies at both the state and international levels. There is a push for collaboration, regulation, and transparency to address challenges and risks associated with digital assets.
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