Senate Bill S.1241 to prohibit the hiding of Cryptocurrency Ownership

[iamTom123]

For those who don't know, about news about Senate Bill S.1241 is going around. You can read the bill on here: https://www.congress.gov/bill/115th-congress/senate-bill/1241/text, basically (if passed) it would become illegal to hide (or attempt to hide) ownership of digital currencies. What exactly "attempting to hide" a cryptocurrency would be interpreted as I do not know, just thought I'd get the news out.

I am hoping the Congress will not really pass that way as it can be an intrusion into the person's privacy. Do we have the law also that requires all people to declare whatever cash they might have in their lockers somewhere? Now, in case lawmakers can be lead or swayed to vote yes for such a myopic law then it can easily be questioned in the court as to its legality and constitutionality. I am not so familiar with the constitution of USA but I am sure that a lawyer can find a provision to counteract this proposal. In addition, it would be so hard to implement such a law and if am a US citizen I would be using foreign-based wallet or exchange services for my Bitcoin transactions. There are many creative ways to stop the government from intruding our privacy though of course the government can get so creative sometimes.

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[illinest]

Assuming this doesn't mean agencies like the FBI and whatnot, and only means the IRS, isn't it usually a crime to hide assets?   I have not read the legislation referenced in the link bit might do so later.  This is not the same thing as having to report crypto ownership to the government, right?  That would have a grave impact on bitcoin, I'm afraid.  And it goes against the spirit of what bitcoin stands for, and the mindset of many bitcoiners, including me.

I've read over the bill and I also reached out to an attorney friend for his opinion. The "hiding of cryptocurrency ownership" seems to be a misnomer. There's nothing requiring citizens to declare their control of e.g. Bitcoin private keys. And if there were, it would be unenforceable. Logically, it would be hard to justify such a requirement for cryptocurrency but not for any other commodities, securities, or cash.

The clause in question refers to "ownership or control of an account or assets held in an account with a financial institution." Further, its worded such that the issue at hand seems to be concealing/misrepresenting the ownership of financial accounts. This would cover the multitude of people that presumably trade on exchanges using fake names/personal details.

The main problem with the bill is the expansion of the definition of "financial institution." It seems like any redeemer (broker?) of digital currency, exchange or tumbler would now be classified as a financial institution. It looks to me like they are trying to target fiat gateways, brokers and mixers -- "financial institutions" under the proposed bill. And they want to make it unlawful for anyone to then conceal their identity from these financial institutions, who regulators can then shake down anytime they want.

[marcbitcoins]

For those who don't know, about news about Senate Bill S.1241 is going around. You can read the bill on here: https://www.congress.gov/bill/115th-congress/senate-bill/1241/text, basically (if passed) it would become illegal to hide (or attempt to hide) ownership of digital currencies.

What exactly "attempting to hide" a cryptocurrency would be interpreted as I do not know, just thought I'd get the news out.

Well this is part of digital currencies regulation in which this is good to ensure the safety of US citizens from scams and other illegal activities such money laundering, drugs and guns  smuggling. There is nothing to worry or scary to reveal our bitcoin ownership as long as we are not doing things illegally but i think some holders want to hide their coins because they do not want to pay income taxes from bitcoin earnings. 

[Kingofbitcoin12345]

If this bill can only imposed to an exchanges that’s hold the client information then this is particularly relevant.. But if it is individually be mandatory for one to allow the authorities to harass a bitcoin holders is something we must be vigilant of.. If this will be passed the same in the country I’m residing now then it’s time to pack my things and stay to a more neutral environment for bitcoin users a country like japan..

It's worrisome, but I felt a bit better when I saw that Jerry Brito tweeted skepticism that it could be passed. He's executive director of Coin Center, and they've done a lot of advocacy and legal work on Bitcoin issues. As written, it's pretty worrisome indeed. It's pretty vague with regard to individual disclosure, and the case that one must declare bitcoin holdings but not gold is dubious at best.

It seems like the most troublesome aspect is the expansion of the definition of "financial institution" to include "redeemers of digital currency" and "digital exchanger or tumbler of digital currency." The word "redeemer" is super vague. And the next phrase definitely refers to exchanges, mixers and probably CFD brokers as well.

Yup to be worried on some point is normal as we are an individual who seriously wanted our privacy and security to be protected.. The gold vs bitcoin holders has to be address in the definition of the proposed law which is likely to be unfairly used.. In due time the people on that country especially the bitcoin investors and users needs to speak and be heard by the government officials that will handle this for transparency..

[ehrz22]

For those who don't know, about news about Senate Bill S.1241 is going around. You can read the bill on here: https://www.congress.gov/bill/115th-congress/senate-bill/1241/text, basically (if passed) it would become illegal to hide (or attempt to hide) ownership of digital currencies.

What exactly "attempting to hide" a cryptocurrency would be interpreted as I do not know, just thought I'd get the news out.

Well this is part of digital currencies regulation in which this is good to ensure the safety of US citizens from scams and other illegal activities such money laundering, drugs and guns  smuggling. There is nothing to worry or scary to reveal our bitcoin ownership as long as we are not doing things illegally but i think some holders want to hide their coins because they do not want to pay income taxes from bitcoin earnings. 

I agree, I'm sure even if it's illegal a lot of people will still hide it because of the taxes they will gonna pay. For me, it's not a protection for the people, it's the government profit that is why they are doing this. Another tax that will shouldered by the community.