Congress plans to regulate cryptocurrencies

[smartbitcoininvestor]

The government would have to rewrite the code for Bitcoin or implement some kind of safeguard onto Blockchain. Otherwise, the government can't tell who has or is using Bitcoins because all the transactions are anonymous. Bitcoin was MADE to avoid government regulation.

Now, if you have your info in a crypto exchange like Coinbase, it is very possible that the government can track who you are when you make purchases. But for transactions between merchants and people, there really is no way for the government to do anything.

IMO this is just a media scare as most journalists will write for emotions, not necessarily for facts. So expect the price to go down if this news spreads.

[exstasie]

Can you copy and paste the quote from your link to the Congress site?

I glanced through it and I don't see where it says that.

It's right here, about half way down the page:

(B) by inserting before the semicolon at the end the following: ", or any digital exchanger or tumbler of digital currency";

Essentially, the bill defines digital currencies as "monetary instruments" and digital exchanges/tumblers as "financial institutions" for AML enforcement purposes.

Per bitcoin.com:

First, 5316 currently states: "(2) 'financial institution' means—…(B) a commercial bank or trust company." This would be amended to insert "or any digital exchange or tumbler of digital currency." The news site Coindesk observes, "the bill clarifies that any 'issuer, redeemer or cashier' of a 'digital currency' is also covered."

"Funds stored in a digital format" would be included "within the definition of monetary instruments" making them subject to anti-money laundering reporting requirements…where the value stored is above $10,000.

If I'm reading that correctly, it puts Bitcoin exchanges on the same level as banks (financial institutions) regarding the type of information required to transact. That means giving up SSN and other information that could be used to steal your identity.

It's also unclear how "tumbler" is defined.

[diguyo]

Haha, on what grounds? Don't see how they can possibly get this into force. Anything that makes them feel as though they're not in control/can make money from. Regulation I don't see as a bad thing, but I don't see this as that - this is extortion and goes in the face of everything that the technology stands for.

[yoseph]

'Congress submits bill making it illegal to hold cash, Bitcoin, or other assets outside of a bank without informing them in writing'

https://www.congress.gov/bill/115th-congress/senate-bill/1241/text#toc-idea0e9489fc8f46379f95bb56c8bbbda5

What is your thoughts on this ? Could this happen ?

First and foremost, the bill made no mention of cryptocurrencies but rather virtual currencies and i don't think Bitcoin can be catergorized as a virtual currency because in order to use it to purchase most things, you will need to cash it out first.And how are they going o know who has bitcoins.

[futile-resistance]

'Congress submits bill making it illegal to hold cash, Bitcoin, or other assets outside of a bank without informing them in writing'

https://www.congress.gov/bill/115th-congress/senate-bill/1241/text#toc-idea0e9489fc8f46379f95bb56c8bbbda5

What is your thoughts on this ? Could this happen ?

oh it could definitely happen, the actual problem is how enforceable the law would be. downloading movies and music through p2p means is considered illegal in the states, but its a pretty widely known fact that a large number of people do it anyways (and if you dont, you might actually be living under a very large rock). i dont doubt that a government with enough resources could potentially be able to set up an infrastructure solid enough to track bitcoin network related traffic, but the real matter lies in physically enforcing people to not use bitcoin. this would either mean mass sending of cease and desist letters, eventually culminating to physically sending law enforcement to a location. it's just not economically feasible, and there's too many existing ways to bypass detection.

Well, here in my country, I have not heard of anything like "it is illegal to download movies or such stuff from a p2p network" and now I have seen anyone being charged for it. If we can't download or upload anything there, then I think majority will not even use it.

[Yuhee]

'Congress submits bill making it illegal to hold cash, Bitcoin, or other assets outside of a bank without informing them in writing'

https://www.congress.gov/bill/115th-congress/senate-bill/1241/text#toc-idea0e9489fc8f46379f95bb56c8bbbda5

What is your thoughts on this ? Could this happen ?

First and foremost, the bill made no mention of cryptocurrencies but rather virtual currencies and i don't think Bitcoin can be catergorized as a virtual currency because in order to use it to purchase most things, you will need to cash it out first.And how are they going o know who has bitcoins.

It does belong to the category of vitual currency because it is unregulated and mostly controlled by developers and not a certain government. The congress made such bill because there are many unnamed and un designated wealth by btc. And the only way to know that is to convert it at least or buy something that has an identity on it. A lot of online stores now accept btc as payment. I would want to see if this could turn into a law.

[Kakmakr]

If this happens the voters will react and they will feel the ripple affect of this in the next election. You cannot simply restrict people with bills like this and not consider the consequences. We saw what happened with the BitLicence in NY, where people moved to other countries or states where Bitcoin was legal.

Things like this only shows us that liberty and freedom is under attack in the USA too. <Police State> 

[rickadone]

Why do I have to inform American Bank about what I store bitcoins on the Japanese stock exchange, or do not know where the electronic wallet. It's not real. But this is a bad signal. We see that no government is going to legalize bitcoin. Fighting with him will only increase.

It means that this topic containsfoulsstatements that the Americans are going to accept bitcoin. I think this is not true because the rest of the world will one day regularize bitcoin as the world digital currency, but USA will not do it. The reason is that they dominate the world with their dollar and if bitcoin overcome their dollar, their economy will down to its knees and they will never accept this. It will destroy their financial position in the world.

[avikz]

'Congress submits bill making it illegal to hold cash, Bitcoin, or other assets outside of a bank without informing them in writing'

https://www.congress.gov/bill/115th-congress/senate-bill/1241/text#toc-idea0e9489fc8f46379f95bb56c8bbbda5

What is your thoughts on this ? Could this happen ?

That's not good news for bitcoin holders worldwide. If it is implemented in USA, then the rest of the world will follow suit and in result we may loose a lot of bitcoin investors. Which can further bring down the bitcoin price. Government's intervention in things like bitcoin is not good. Government usually wants to control everything. They don't want to see that many people are living a decent life with out their assistance.

The moment governments step into anything like this, it will be ruined. Probably they are facing major pushes from the organized financial institutions who have funded the last election.

[SvenBomvolen]

another speculative news but these will damage bitcoin price and i guess some investors going out after this news

Definitely another news to make the price to fall deeper.
The Government can call bitcoin as money surrogate, but it stays a good source of money for many of us and I don't know how the Government is planning to find the person who use bitcoin and who don't? I know bitcoin is not so faceless as other coins with hidden identity, such us Monero and ZCash, but in any case there is no any private information in bitcoin use and bitcoin ATM play the biggest role here.

[futile-resistance]

Why do I have to inform American Bank about what I store bitcoins on the Japanese stock exchange, or do not know where the electronic wallet. It's not real. But this is a bad signal. We see that no government is going to legalize bitcoin. Fighting with him will only increase.

I do not agree with you. Japan legalized Bitcoin, Australia, too. This suggests that bitcoin is accepted only by those countries that are doing well with the national economy.
  Countries will develop and take crypto currency

I also do not agree with you that you where you have kept your bitcoin and you do not want the USA to know. As you have replied under that those countries have already regularized bitcoin and have started trading nationally and internationally as well.

So here you are not right that no government is going to accept bitcoin as their legal digital currency. As I know Vietnam also legalized bitcoin.

[Pleione527]

I think it's proper for the government to regulate holding of cash or bitcoin because there is a big risk that it can be use for illegal purposes and some corrupt official may keep their money using bitcoin. But the way I see it it will be difficult for the government to have proper control over crypto currencies, they need knowledge over cryptos and they need to consider the ability of it in becoming global currency.

[Casabrandy]

I think it's proper for the government to regulate holding of cash or bitcoin because there is a big risk that it can be use for illegal purposes and some corrupt official may keep their money using bitcoin. But the way I see it it will be difficult for the government to have proper control over crypto currencies, they need knowledge over cryptos and they need to consider the ability of it in becoming global currency.

If only government will not get involved in crypto it can be much better,  once Government tries to manipulate it,  even it seems possible for now,  more fees will be shouldered and banning might happen too if they didn't get what they wanted.

[exstasie]

I think it's proper for the government to regulate holding of cash or bitcoin because there is a big risk that it can be use for illegal purposes and some corrupt official may keep their money using bitcoin. But the way I see it it will be difficult for the government to have proper control over crypto currencies, they need knowledge over cryptos and they need to consider the ability of it in becoming global currency.

If only government will not get involved in crypto it can be much better,  once Government tries to manipulate it,  even it seems possible for now,  more fees will be shouldered and banning might happen too if they didn't get what they wanted.

You can't have it both ways. Either the crypto markets gain value -- and therefore the attention of governments -- or they remain a niche, but they don't rise significantly in value. The choice is not ours to make. It's up to the market. If there is sufficient demand, there's nothing we can do.

Regulators won't watch billions of dollars pump into the crypto/ICO markets without doing anything. Retail investors are getting scammed left and right, and I'm sure many people aren't paying their capital gains taxes. The situation is/was ripe for regulation.

[FacelessCrypto]

If at all US want to regulate . they should regulate  dirty money flowing to Mexico /Columbia  via NARCOs. Not the honest people investment in BITCOIN. my view.

In addition in some US states are legalized certain narcotics and available in shops. Then why not BITCOIN. Is Bitcoin danegurous? may be the feeling not central controlled irks some orthodox type government officials .. They will be outnumbered I hope incase of  voting

[bitbunnny]

Using term legalize the Bitcoin is wrong to my opinion, the term regulated should be used instead. And regulation doesn’t necessary have to mean something bad for Bitcoin. As far as I’m aware some UŠ states have already done thatand there rae some laws in place regulating Bitcoin. In the future Bitcoin and other cryptocurrencies will be under biger and biger attention of governments around the world but this should be turned in our advantage and advanatages of Bitcoin. Think it’s possible, we just have to monitor the regulations and try to influence and act there where it goes in wrong direction.

[AverageGlabella]

I doubt it would happen. There's too many ways for it to go unnoticed and I think regulating it completely is going to be very difficult.

[TheGodFather]

'Congress submits bill making it illegal to hold cash, Bitcoin, or other assets outside of a bank without informing them in writing'

https://www.congress.gov/bill/115th-congress/senate-bill/1241/text#toc-idea0e9489fc8f46379f95bb56c8bbbda5

What is your thoughts on this ? Could this happen ?

I think that would be close to impossible without a propet and extensive stidy on cryptocurrencies. THough I have actually thought that this would be made once the government caught a whiff of cryptocurrencies. Regulations and taxi g are very likely.