AML (anti-money laundering) Rules Target Over $10,000 Crypto Holdings
We all knew this was going to happen sooner or later but to actually see Senator Chuck Grassley sponsor a bill to update the old AML law is an eye opener.
In General.—Section 5312(a) of title 31, United States Code, is amended—
(1) in paragraph (2)(K)—
(A) by inserting “prepaid access devices, digital currency,” after “money orders,”; and
(B) by inserting before the semicolon at the end the following: “, or any digital exchanger or tumbler of digital currency”;
(2) in paragraph (3)(B), by inserting “prepaid access devices,” after “delivery,”; and
(3) by adding at the end the following:
“(7) ‘prepaid access device’ 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.”.
(b) GAO Report.—Not later than 18 months after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report on—
(1) the impact the amendments made by subsection (a) have had on law enforcement, the prepaid access industry, and consumers; and
(2) the implementation and enforcement of the final rule entitled “Bank Secrecy Act Regulations—Definitions and Other Regulations Relating to Prepaid Access” (76 Fed. Reg. 45403 (July 19, 2011)) by the Department of the Treasury.
(c) Customs And Border Protection Strategy For Prepaid Access Devices.—Not later than 18 months after the date of enactment of this Act, the Secretary of Homeland Security, in consultation with the Commissioner of U.S. Customs and Border Protection, shall submit to Congress a report—
(1) detailing a strategy to interdict and detect prepaid access devices, digital currencies, or other similar instruments, at border crossings and other ports of entry for the United States; and
(2) that includes an assessment of infrastructure needed to carry out the strategy detailed in paragraph (1).
Obama Talking About Encryption.
What Does This Rule Mean?
Well, I think it means that you need to report your Crypto Currency holdings when you enter the USA totalling more than $10k. It looks to me that you also need to report your devices that may have a Crypto Currency wallet on them. This includes pre-paid debit cards, mobile wallets, wallets on your computer, cold storage devices etc.
The update says that within 18 months they will give us a report that will outline the new rules. Right now everything that will be published will be opinions and best guesses.
Prepare Yourselves and Brace for Impact.
Don't Wait Until There is a Law, Start Preparing Now.
Steemit is a beast that cannot be tamed and I think we are going to the moon. This also means that we will have plenty of earnings on Steemit. I recommend you talk to a tax professional about how to handle the profits you earn on Steemit. Since the Steem blockchain is public and your holdings are available for the world to see it would be wise to declare them. This only applies to my fellow Americans. The rest of you need to contact a tax professional in your country.