New US law proposal will make all crypto illegal

[Spoetnik]

Banning crypto coins would be impractical and unrealistic.
What we're really talking about is regulations etc.

As in they are allowed to exist.. but !

The "but" is that you will have to pay taxes for example on your exchange profits.
And.. that exchanges themselves will collect your picture ID etc to keep tabs on you.
This is already happening.

You guys fail to see WHY exchanges have a "getting verified" system in place.
They do it for one single reason.. LAW.

AML/KYC laws exist and are enforced and are utilized heavily by US govt 3 letter agencies.
How do you think US govt got the owner of KickAssTorrents info from Coinbase ? (to arrest Artem)
Which is funny because BigVern laundered millions there an got away with it.

I've gone through all this for years.
You all say the same stupid shit..

The same type of stupidity where users play dumb about Paypal's TOS with crypto.
Crypto has known it is against their rules all long since min 2012.
yet look at the market sections.. see 1,000's doing it ?
I seen some of them say they get caught and simply make a new account.
Well what happens when your account is seized and you can't pay the guy who bought BTC via PP ?
The anon forum guy vanishes.. that's what.

Yes that is one of countless forms of regulations employed ALREADY in crypto.
With much more on the way guaranteed.

Bottom Line:
Crypto is an island.
Ties to FIAT keep the life blood flowing.
If noobs can't show up here like they did en mass and chant "How do i send my money here?" on the Cryptsy chat box then we have a rather large problem.
Back then they all chanted no.. we don't need ties to FIAT.
Bullshit !

A currency can not be marooned on an island.
If value can not be moved from one currency to another we got problems.

And funny enough it's me who has been advocating breaking that barrier all along too.
I support faucets and mining etc.
It's how i got into crypto.. i never showed and spent my real money on this crap.
..like all of you Investards.

What kind of idiot buys crypto shitcoins with real money ?  

And if you do ?
There is a trail and a link etc to be guarded and regulated.

PS:

https://www.ag.gov.au/CrimeAndCorruption/AntiLaunderingCounterTerrorismFinancing/Pages/default.aspx

Anti-money laundering and counter terrorism financing. Australia has a strong regime to fight money laundering and terrorism financing. ... The Australian Transaction Reports and Analysis Centre (AUSTRAC) is Australia's AML/CTF regulator and specialist financial intelligence unit.

in comparison..

http://www.finra.org/industry/aml

Firms must comply with the Bank Secrecy Act and its implementing regulations ("Anti-Money Laundering rules"). The purpose of the AML rules is to help detect and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.

You were sayin' ?

[Fatoshi]

All crypto? Speak for yourself yankie boy.

[Red_Sanford]

This is the reason for bitcoin in the first place. Remove control from the controlling government.

The more that the government goes after bitcoin (and alt's) the more the price will rise. Think of drugs, more rules and regulations and the bigger the war, the more profit !

What are they going to do ? Ban the internet ? Ban VPN's ?

They can try but they will not succeed. Shut down polo, I will go to bitshares dex !

Ban coinbase ? I will use wallofcoins and localtbitcoins

The problem is the noobs with weak hands that don't understand the whole backstory of crypto

[ohlawdy]

And this is why decentralisation and anonymity are so important. Hoping for the right decisions in the coming months.

[Spoetnik]

And this is why decentralisation and anonymity are so important. Hoping for the right decisions in the coming months.

decentralization  ?

I take it you seen ETH ranked as no. 2 ?
It is centrally controlled.
It's an ICO which is the antithesis of decentralization.
It has ICO's on it which makes it even worse.
It's traded for profits on mostly govt controlled centralized exchanges.

Anon ?

No thanks.
That will make what we're talking about here worse.
Compliance is the key to adoption.
Either you support regulations or crypto is going no where.
Unless you see a bright dark market niche coin future 

[BitcoinPC]

There is an expansion of the search and seizure there from the last mention, but, guess what, if the government is looking for a reason to seize your wallets, then that is because you have done something pretty damn wrong to get there.  These regulations are not created so that the police can ride up and down the street and randomly ask for a person's crypto wallet for a quick look.

[taxmanmt5]

Do you put that title up there to get more thread traffic or can you honestly not read the words in the law that YOU linked to?  I see this here all the time, a thread will say "the sky is red" and then post pics of the blue sky.  I know that the drama addict in your guys just needs a deep conspiracy, but that set of regs is pretty clear and would not affect a normal crypto user in the US at all.

[Spoetnik]

Do you put that title up there to get more thread traffic or can you honestly not read the words in the law that YOU linked to?  I see this here all the time, a thread will say "the sky is red" and then post pics of the blue sky.  I know that the drama addict in your guys just needs a deep conspiracy, but that set of regs is pretty clear and would not affect a normal crypto user in the US at all.

"normal" ?

And i love your avatar.. you are advertising Ethereum Gambling.
Both of which are on highly shaking ground legally.

You are missing the point..
Take for example the wide sweeping AML/KYC regulations implemented in crypto.
Those were put into place because of a minority.
Yet affected all 100% of the users on the given exchange.

Get it yet ?

PS:
I am sure the fed's are eye-balling crypto related GAMBLING regulations as well.
Just because you are doing something and did not get caught yet doesn't mean it's ok.
Law is coming and we are just getting started. 

And it's the schemes like your ICO avatar gambling advertisement that is bringing it on to us all.
Affecting even REAL currencies like Litecoin that have to suffer because of scammy crap like ETH.

[asepsetiawan1990]

Well it's very good news for bitcoin holders as it will affect on bitcoin's popularity and value on the future.
Everything will be more anonymous and faster than using fiat but of course there will be disadvantage for example , terorist able to use bitcoin in more ways and variuous coin

I hope by allowing bitcoin in the US. Gives great advantage to bitcoin's reputation and reinforces bitcoin in the eyes of the world.
For the negative side that will arise from the regulation, hopefully can be overcome and does not affect the state of bitcoin in this world.

[Razick]

Trying to ban cryptocurrencies is like trying to fight the war on drugs. It'll only expedite the creation and adoption of more anonymous crypto's

[Farstdury]

Trying to ban cryptocurrencies is like trying to fight the war on drugs. It'll only expedite the creation and adoption of more anonymous crypto's

I agree with that. The bitcoin and other currencies will be used more if they are banned.

[yg10]

The Bill proposes to add  “prepaid access devices, digital currency,” to list in Section 5312(a) of title 31, United States Code.

And this list already contains "(K) an issuer, redeemer, or cashier of travelers’ checks, checks, money orders, or similar instruments".
https://www.law.cornell.edu/uscode/text/31/5312

Do you guys really believe that cashiers checks, money orders, etc will be banned?

[ArticMine]

My take is that the proposed law in the United States does not change much when it comes to the legality of crypto currencies. To understand why I would review the following guidance that was issued over 4 years ago. https://www.fincen.gov/sites/default/files/shared/FIN-2013-G001.pdf The critical question is which crypto currencies meet the definition of de-centralized virtual currency and which are centralized virtual currencies. The latter likely have serious legal and regulatory problems if they do not have an MSB registration.

Can someone explain to me how a premine or an ICO can work without a central depository and a single administrator?

Edit: Ripple was the subject of a civil enforcement action. https://www.fincen.gov/news/news-releases/fincen-fines-ripple-labs-inc-first-civil-enforcement-action-against-virtual but Bitcoin has not. What is the difference? See the guidance above for the answer.

[EXtremeAEX]

Ouch, where is the 'freedom' in US? Even so, I don't get how they will track down the Bitcoins of every user. I know its easily to track large companies, and does it mean they will block all exchange sites?

This is looking quite bad for Bitcoin, if its users decrease. If this is true, rich people would have risks of all assets being 'controlled' by the government, so yes, indeed this is encouraging people to store gold/cash overseas instead.

I don't think this will tackle the main issue of criminals using Bitcoin, and I don't know what will.

[ArticMine]

Ouch, where is the 'freedom' in US? Even so, I don't get how they will track down the Bitcoins of every user. I know its easily to track large companies, and does it mean they will block all exchange sites?

This is looking quite bad for Bitcoin, if its users decrease. If this is true, rich people would have risks of all assets being 'controlled' by the government, so yes, indeed this is encouraging people to store gold/cash overseas instead.

I don't think this will tackle the main issue of criminals using Bitcoin, and I don't know what will.

What makes you think this is about Bitcoin and not Ethereum or some other ICO / pre-mine?

[stupid_seb]

Okay, but what if you are crossing the border with your assets in an online wallet and not a physical device?

Since it's untraceable and can be accessed anywhere, this law applies to owning. It doesn't say what happens if you have it in a cold wallet inaccessible.

It is about control where the funds have been gained and where they are stored.
They will apply the same "safe harbor" kind of rules as for personal data, but for cryptos: servers in the USA under USA regulation and needing to comply with banking transparency laws (ie: taxes on exchanges companies profits, and taxes when you btd2usd your gains).

The idea is to avoid capital evasion thst is not traceable (Towards china especially), and to make sure everybody will pay taxes on their capital gains.
It means that the government feels like the crypto world is going to yield massive revenues soon to early investors like us (only 3M ppl in the world deal with cryptos according to a report... jfgi)

Imho, not a bad thing for 3 reasons:
1- it will give a legal frame to the cryptos, helping it to spread more (maybe one day my Chase account will act as a BTC wallet too!!).
2- if the gvt thinks about such law, it means they believe the btc will re-explode soon.
3- all the panicking f-tards will sell and the price of BTC will drop... giving another reason to buy more at good price before it raises again.

[Spoetnik]

I said years ago and a few times since on this matter that..
Govt's like the USA's will not try and "ban" crypto.
Why ?
The very first thing that jumped out at me thinking it over was..
The actual logistics of doing it.

Take for example if this forum wanted to regulate scam coins and stop them from being posted.
So now we need an army of people who will work 24/7 to go through code and back ground checks on people etc scanning coins and their teams.

That is simply not happening.
And trying to put BTC etc back in the bottle isn't going to work now.
So they will continue to do what they are doing now..

BUT !

Like i also said they will be waiting where ever there is a link to FIAT.
That bridge is crossed regularly as the entry point to get into crypto.
Not too many start like i did by showing up with 0 cents invested ..mining or faucets etc.

And they do not need as much effort or resources to regulate that angle of things.
Hell they are already doing it with AML/KYC client type stuff with crypto exchanges.

So no .. there will be no "ban"
But i do expect tighter & tighter regulations over time

[HanSchultz]

Trying to ban cryptocurrencies is like trying to fight the war on drugs. It'll only expedite the creation and adoption of more anonymous crypto's

If they are planning to ban crypto currency even if you are planning to start anonymous currencies the fine and jail time for using that will deter more people from using it,they could book you for laundering money and you might end up in jail for a long time,so the fact is you really cannot challenge any government with these sort of things.

[doedz]

I am not an american citizen, does this policy have any effect on the limitations of Bitcoin ?.
As long as this policy has no impact on the use of Bitcoin in my country, it is not a big deal.
I think it's a wise move.

[2bfree]

There is an expansion of the search and seizure there from the last mention, but, guess what, if the government is looking for a reason to seize your wallets, then that is because you have done something pretty damn wrong to get there.  These regulations are not created so that the police can ride up and down the street and randomly ask for a person's crypto wallet for a quick look.

I guess your America is way better then my country, in my country they put you on the list for no reason sometimes at random or sometimes because you critisized the governement (in my country they consider that you did something wrong) and then when they search you they can alsways find something to put you in jail that is why they make 1000s of regulations. . Our ex president said once i can put any anomy away because i can always find what he did wrong!

But again your America is fair not like my country where everybody has "done something wrong"