The United States scrutinizes concerns about the rise of cryptocurrency use in illegal activities in their new regulations. According to authorities, the growing developments in the Blockchain and cryptocurrency have started a global race of launching a new class of cryptocurrencies, stablecoins. Even Facebook has promised to introduce ‘Libra stablecoins’ which is going to be regulatorily compliant and can be utilized by over 2.5 subscribers of Facebook. Apart from this, the other corners of the world have initiated to contribute to stablecoins, including Russia with its leading first multinational stablecoin plan.
Lawmakers to lead America in Cryptocurrency.
According to Rep. Gosar, “As this technology spreads to emerging markets, the United States can continue to guide the development of cryptocurrency.” Noting that “America can’t afford to sit on the sidelines with this one,”. This time lawmakers are sure to make America a great contributor in the fastest growing cryptocurrency industry. The light of staying strong, the U.S has decided to continue to guide the development of cryptocurrency.
Also, the country has witnessed the involvement of Metal Pay CEO Marshall Hayner and crypto investor Erik Finman in the Cryptocurrency Act of 2020. The implementation of the act might ensure America to hold a central position in the prominent sectors of trade, banking, commerce and more.
U.S Law Enforcement Efforts
In between these developments, U.S traditional financial institutions are on their way to take help of federal laws and Anti-Money Laundering system to force transnational syndicates and foreign adversaries including Russia, China, Iran, North Korea or terrorist groups to shift their illicit proceeds outside of the U.S financial industry. However, these factors are trying to employ non-traditional practices through the movement of crypto funds via smartphones, crypto exchanges and darknet markets in & out of the U.S.
Now, U.S. law enforcement and regulatory agencies have taken steps to establish a crypto intelligence program and propose new regulations and tax reporting requirements to promote the adoption of blockchain technology.
About: Cryptocurrency Intelligence Program
ICE (The Immigration and Customs Enforcement) is a chief criminal investigative agency that is working to introduce a new technique to track unlicensed crypto activities. The department has revealed the existence of the Cryptocurrency Intelligence Program in the agency’s 2021 budget proposal. The CIP will help to identify, investigate and disrupt any non-legal or smuggling cryptocurrency activity happening around the world.
About: New crypto regulations
Steven Mnuchin, the U.S Treasury Secretary, announced and sent a guarantee to the Senate Finance Committee that the agency will soon launch its stricter regulations for digital currencies that will lead to exposing secret accounts and other illegal activities. The idea is to mitigate the chances of the utilization of blockchain technology just as the old Swiss secret number bank accounts were used. Now the network binds the law enforcement to trace each activity, like where the money is flowing to if not used for laundering purposes, etc.
About: New Tax Compliance
In a new tax compliance draft 2019, now each taxpayer has to report to pay tax through virtual currency use. In Form 1040, Schedule 1, individuals were asked a question relating to foreign financial accounts.
Whereas, the American Institute of Certified Public Accountants has published the non-binding guidance, where the individual’s payers will get to know about ‘how to account for cryptocurrencies’
Conclusion –
By issuing these regulations, the USA law enforcement players have granted a much-needed plan for cryptocurrency through which it will be easier for every business, institutions, banks or even for individuals to be a part of the growing industry without getting worried for risk or uncertainties.