Proposed Update to Law in the USA Targets Travelers Who Use Crypto Currencies.
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.
SEC. 13. PREPAID ACCESS DEVICES, DIGITAL CURRENCIES, OR OTHER SIMILAR INSTRUMENTS.
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.
The government will always find a way of leeching honest people ...
Spot-on.
https://steemit.com/steemit/@someguy123/anonsteem-prices-adjusted-get-a-steem-account-without-a-phone
Does this link have any relevance to the comments? If not it is spam.
Good read
Draconian...And thanks for the Flashcoin @hilarski I forgot to thank you :)
None of this matters because someone can just store their private keys on the cloud.
Your masters have spoken. NOW OBEY, SLAVES!!!
I've always held the belief that the government will start to hunt down Bitcoin holders sooner or later. For this reason, I refuse to use exchanges or make any cryptocurrency transactions using my real name. I'll be sure to keep my laptop and cellphone clear of any Bitcoin or Steem related stuff in case they want to give me a digital cavity search.
Great post my cryptobrother! Thanks for sharing!
Not really surprised that govts will come knocking soon, trying to get their greedy hands on our crypto-pie.
This doesnt bother me too much at the moment however, as I've got at least a 5 year hodling instinct on all my coins.
Im hoping in 5 years, payment by crypto (be that Bitcoin or alts) for all sorts of things will be much more popular, and there will be less and less need to convert to fiat. Fiat is, after all, a poor proposition when compared to cryptos.
I'm also confident it will be easy enough to conceal crypto hodlings from govts in time. Just look at the great work that anon coins , especially Monero, are doing in obfuscating your information and creating true digital cash.
We ain't just gonna sit and watch this stupid laws exist, even if they do will have to come up with tons of solutions. Engraving inside the cover of our watches, chains, forming a fund transfer network whereby we can schedule our transfers. With that we can come in with less than the targeted amount and get our money when we are settled.
Using escrow services to transfer to ourselves.
Custom pocket Wallet (writing paper Wallets and then insert it into the pocket Wallet before sewing.
Custom key chains.
The thing is if criminals are exploiting you then you will have to come up with a counter attack.
Cryptocurrencies are like a fence to the Central Bank so they will want to disturb it by any means likewise the banks are exploiting us so we've standup
Is the TSA the ones who will be torturing travellers to make sure they aren't hiding an undeclared brain wallet? Or are the full body scanners already capable to detect thought crime?
These guys...
Taxation is theft. Of course, preaching to the choir here.
How would any of this be enforced without first complying and basically becoming more of a slave/bitch to the state?
Ways will be found to flow like water around the obstacles.
Trusted third party, escrow/landing wallets?
People getting significantly better with brain wallets?
(Lol yikes for some. Deflation anyone 😝?)
Better stealth on devices and keys 🔑? 😏
What else???
Will be cool to see how things develop...
We got this!
Solid post @hilarski !!!
We all needs to be situationally aware with these proposed measures.
Encrypted paper wallets - make your own simple encryption and save the key in your phone/laptop/cloud with a random name and location. When they check your paper wallet and it doesn't work, you tell them it's not a wallet code.
OR
There are tiny cold wallets as well, I'm sure you can get creative with them when traveling.
The bill really shows how far behind these people are in figuring out what is going on. They obviously don't understand how private keys can be stored anywhere. Or how wallet seeds work.