At least, he is attempting to.
On May 25th, a new bill was introduced by Senator Chuck Grassley regarding border security. If passed, the bill would require travelers to declare their Bitcoin holdings at the border.
Uh, what?
Yes you read that right. A few weeks ago U.S. Bill S.1241 was proposed by Grassley and if it passes, it would require anyone owning Bitcoins (worth over $10k USD) to declare their ownership stake anytime they cross the border.
Although, it doesn't just stop there.
The bill would like for anyone owning ANY cryptocurrency that is worth more than $10k USD to declare their holdings anytime they cross the border.
What's the reasoning?
According to reports the main reason for the bill is to prevent visitors to the United States from bringing in undeclared assets in the form of cryptocurrencies.
Basically it's a way to prevent money laundering and better beef up border security.
Actually, the rule goes along with a finance law that already is in place that states:
Any currency that accompanies an individual must be declared every time that he or she enters the country.
Digital currencies are technically under the control of their owner at all times, which is why the proposers of the bill claim that they would qualify for this law as well.
But wait, wouldn't cash or stocks also qualify?
Not exactly.
Unless they are held on your person, they don't qualify for one glaring and simple reason.
They are stored at a REGULATED financial institution.
So, there you have it, if Bitcoin and other virtual currencies were held at regulated financial institutions, this rule would not be needed. This is just another way that authorities are trying to figure out round about ways to track and regulate digital currencies.
How would they be able to do this?
This is where things get a little bit tricky.
Currently there is no way for authorities to track whether a person owns Bitcoins or any other virtual currencies, much less the exact amount.
However there are some options...
Regulating the foreign exchange markets of virtual currencies is one option. Another option is to create a global monitoring system that watches over all blockchain or virtual currency ledgers.
They could impose harsh penalties if it is ever revealed that holdings were not disclosed upon crossing the border.
They could also resort to extreme vetting procedures if anyone is suspected.
Either way, whatever system they come up with likely means much more regulation for virtual currencies is coming down the pipeline.
My thoughts...
No one likes the sound of regulation when it comes to virtual currencies since that has been one of the driving forces that has gotten people involved with this these things in the first place.
However, regulation also means acceptance.
The more they are regulated the less likely these things are going away and the more likely they are to replace the current financial system as we know it.
I know the Bitcoin enthusiasts would rather they not be regulated in any way, shape, or form. However, for Bitcoin (or any virtual currency) to gain world wide adoption and be accepted as a global currency capable of purchasing any good or service, there will likely need to be at least some regulation of it.
Now, once the speed and scaling issues are solved, it's game over for the status quo.
Stay informed my friends!
Sources:
Image Sources:
https://kplex-project.com/2017/04/20/tinfoil-hats-dataveillance-and-panopticons/
https://www.cbp.gov/about/in-memoriam/memoriam-those-who-died-line-duty
http://www.pipcpatients.org/part-b-demonstration.html
http://revelating.nl/3dprinting-and-mass-adoption-like-eating-a-salami/
Follow me: @jrcornel
I will never comply, neither should anyone else. These guys are criminals and nothing more.
governments and banks won't be able to move fast enough to gain control of cryptos. most of their "wealth" is based on debt, and powerful govts seem to have serious issues going on that are dividing and waking citizens up to the corruption. this kind of regulation is going to cause an even larger loss of faith in these controlling institutions, and spur global adoption of cryptos. while Russia and Asia seem to be integrating cryptos in many ways, the domination of the USD petrodollar is going to suffer hugely if America cannot do the same. i have a lot of faith that cryptos are here to stay and will play a major role in our liberation from these crooks.
Stealing physical currency is /so easy to do/, governments have no idea what they are getting into trying to steal cryptos.
You have to pay, just like our transaction fees, for every manhour involved in moving paper currency. And one piece of paper is always 100% centralized in the hands of one person at any given time.
Imagine a cryptocurrency with any of those qualities. There are simply not enough opportunities for governments to steal a proportional amount from you. Steal they will, but they will actually have to /try/ now, which is going to cost more than it is worth in a market so heavily invested in subverting this kind of behavior.
Edit: And I agree with the OP that this will only drive adoption. Call it theft, but call it interest as well. Governments aren't going to steal something that has no value to them.
Since when does government care what anything costs? It's not "their" money in the first place - it's OURS. A government on the downside of its lifespan is desperate to survive and will do anything to survive. Laws authorizing seizures of any kind are a sure sign of desperation. They can't conjure up many more QE dollars to save their sorry asses.
I wish I had as much faith as you do?
I agree.
If we make it to the point of liberation away from the banks, blockchain will assuredly be a major player.
@bunabit could not agree more! I think that the more people become aware of the on going problem and corruption, the more they will defect from the fiat currency
Now why on Earth would I tell you that I have cryptocurrency, when you will never know if I don't tell?? Good luck guessing my keys and passwords
Watch out for the supercomputers.
This "U.S. Bill S.1241 " just goes to show how little the government understands Bitcoin & cryptocurrency... With a little caution (i.e. proper cold storage), you don't need to comply.
Thats what I am wondering. A bitcoin and its key are different things if you are trying to regulate the movement of a bitcoin across a physical barrier like the JFK airport. The bitcoin isn't moving across that border, its still sitting in a wallet hosted in romania or whatever. Its the KEY to the bitcoin you asshats want to regulate.
yep, it's disgusting
My Favorite 1984 Movie Is The One Made In 1984
Based In George Orwell's 1984
Same. There is no reason to comply and to do so is acceptance of such tyranny.
If the mass of humanity would realize their inherent sovereignty, they would never agree to all the insane and egregious intrusions on their innate liberty. If this awareness grew on a mass level, it would cause a huge paradigm shift. The old "quick & dirty" methods of control only work on an ignorant populace.
Exactly. "Bitcoin? Isn't that that scam cash that crashed like 5 years ago? Is that still a thing?" Their system is dieing around them. Let them die with it.
I like your stand on this issues. I like people who say things they way it is. Get me informed when you post any articule so that i can read and upvote equally.
I understand the sentiment. But to call someone a criminal is to assume that they knowingly and with malice attempt to do harm to others. This is most likely true of some bureaucrats, but not all.
Most people (bureaucrats and non-government actors as well) don't understand the world they live in or they way things in the world work. I don't know how things work, everyday I am amazing to find out how it works and i've been in America for 50 years. Just for starters google any of the following:
fractional reserve banking
fiat money
when did the federal income tax get started in America
Why is America off the gold standard
What is money by Andreas Antonopoulos
and much more.
I just feel that the "us vs. them" mentality causes more problems than it solves. WE the people must take our lives in our own hands, AND we must work with the authorities in America, to succeed personally and help as many other people in our inner circle do the same is progress enough.... we do that, we will change America for the better, this is my goal.
They killed 500,000 innocent people in Iraq (knowingly) yet failed to stop. So to say that they do not know what they are doing is an understatement. They are obsessed with control.
That's right, preach it!!! Just 'cause they got a government seal of approval doesn't mean anything.
One more reason to stay out of the 'land of the free' ...
Yup but this does not make any sense and will only create extra paper work. Criminals or terrorists will not declare their holdings and the US can not check their statement. The only ones who will comply are the good guys not being any threat. So what is the point except that it will create extra paper work and longer queues?
Taxation. That's the whole point of this bill. The good guys will declare their holdings and then the government will have a reference point to calculate how much taxes they need to pay when they cash in or spend them.
Not me and probably most other foreigners. I only need to pay my taxes to the Dutch government and any property tax only needs to be paid once in most countries of the world to prevent double taxation. So I guess the Trump Administration is again doing a good job in drafting laws that will not work :-) (and I am counting the days for new US elections)
This is not Trump, this is a c*ck-sucking fascist repubic a$$hole.
Your first comment was GOOD :-D
Edit: (not a fan of Demonic-Rats either, FYI)
If he signs the legislation it is TRUMP.
Replace government with smart contracts. Citizens use stateless IDs to carry out economic activity. Taxes levied at the transaction level, automatically. Smart contracts compete with each other to attract citizens. Done.
I can't believe the governments are going to regulate the thing that was created for just the opposite reason - non banksters and governmental regulation. Lol, Big Brother getting mad, it seems.
Haha I wish I could say that I can't believe it either...
Yes big brother is getting crazy because of not being able to collect bitcoin ad other altcoins taxes...Lol. We will fight for our freedom in this cases...Go Blockchain technology...success
Yeah I have a hard time seeing it ever being mainstream adopted without some regulation.
Convert to Monero before going through the border, switch back when you need your cash. Isn't this the entire point of using cryptocurrencies in the first place?
I have read about this in a few blogs on steemit and other news sources and I must say I align with you on the matter @jrcornel. Regulation is needed to gain mass adoption. This seems to be the smallest of regulations that may be placed. In what case could this be harmful? If you leave with 100BTC and come back with 50, (or the other way around) what issues does this cause for people conducting legal business, besides actually knowing how much coin you have? Any info is appreciated, not extensively educated on the subject.
"what issues does this cause for people conducting legal business, besides actually knowing how much coin you have?"
Knowing how much coin you have is exactly the issue though, for many concerned, law-abiding citizens and legal businesses.
Not wanting everyone all up in your business is a privacy issue, not necessarily because you have illegal activity to hide.
If the travel itself were directly related to the transferrence of funds in any way (such as moving it between people) I might feel slightly differently, but using this example - one could have just as easily completed a transaction electronically, at home in their underwear, that runs the risk of being equally nefarious activity.
Bureaucratic laziness is what causes this approach to be adopted here instead.
The only legitimate government interest with this method, that I can see, is being the quickest possible route for taxation, using legal rights to privacy that are decreased only when at the border (save for that of those in the industrial prison complex) as a means to obtaining this information, using existing legislation as opposed to significantly more difficult changes to tax law.
That raises a great point of bureaucratic laziness being the cause of this method of trying to track crypto. I personally have no issue with paying taxes on my crypto as I know that is a price that must be paid, however, there should be better tax laws set in place to do so rather than through this method. Thank you for the information and opinion!
Yeah, I have no issues at all with paying my fair share of taxes on any of my earnings either, because I have no intention of personally paving my own roads to get everywhere I need to go :) , which is what separates me from being a full-on libertarian, I guess.
But this kind of legislation, as a suggestion, still disturbs me. If they want to go into their respective tax codes and make the changes required to obtain this type of information, so be it, but this isn't that...
Thanks for the information
It has been really helpfully
Although its going to a lot harder for this law to take accurate effect but i still support it in the sense that some people might definitely use this whole cryto- system to launder money abd a whole lot
Plus the needs to know what cryptocurrencies are all about.
Yeah, this just seems like an ill-considered, and subsequently ineffective attempt at applying policies for fiat currency to something whose features are entirely different.
As commented on already - the current swings in the value of cryptocurrency couldn't reasonably be able to be accounted for, by a layperson, offhand anymore than they could quote their stock portfolio's value at any given time. And if the idea here is to thwart efforts at funding terrorism by monitoring the international movement of funds, how on earth is knowing people's current cryptocurrency balance each time they cross the border going to stop any of that from happening (it's not like I'd have a carry-on bag of Ether that I'd buy a plane ticket to smuggle to somebody overseas).
This initiative is nothing more than security theatre, and those lawmakers suggesting it most likely: don't really understand crypto, don't want to be seen doing nothing about its potential threats, can't see the full spectrum of its benefits, but want to be able to say they "have a handle on things".
When they start losing there greedy control on people things like this will start happening more and more but it won't win in the end.
Support your decentralized exchange. Now.
I believe that there could be peace talks with the crypto community and the government.
Good post
When we talk about money in our life can't say no to need it:(
A large part of what makes these currencies attractive is that they are decentralized and relatively unregulated. However, I do think cryptocurrencies would more readily be accepted in the mainstream if there was some regulation.
There have been numerous instances where some unregulated technology have been brought into mainstream use by regulation. For instance, digital audio files such as MP3s were originally shared using peer to peer file sharing services. Eventually, through regulation, purchasing digital audio became commonly accepted by people.
I do not like regulation and I do nto go to iTunes and I go to bit torrents like the Pirate Bay and I like Linux and I do not want to and I do nto buy DVDs or CDs or music or movies and I just download them
I definitely understand your viewpoint @joeyarnoldvn. Certain regulations can pose great difficulties in the development of new industries. Though, it might be unavoidable as cryptocurrency gains more attention.
Oh, good info. Thanks for sharing!
I am heavy into the finance and crypto scene. And your post is spot on.. It really aggravates me what the U.S. government is doing.. @jrcornel Do you think they are doing this,just to try to get step closer to regulating crypto currency ?
I think they will eventually yes, but how much they are able to regulate it will be the question. I would not be surprised if digital currencies are the start of a one world currency, one that crosses borders with ease. There will likely have to be some sort of regulations for that to happen. However, keep in mind that those regulations are also signalling that the currency is being adopted... which is what will really send the price through the rough in my opinion.
I agree with you 100%. I have, since around 2012, thought of BTC as becoming a "One world currency" or possibly another crypto. The good thing about can help prevent some regulations, is the decentralization (nodes,miners). And yes, that could be the start of a very large swell in the price, in my humble opinion.
Big Brother is trying to step in but so far there is not much traction and Nevada has officially made Bitcoin - Well, Blockchain a safe haven industry in the state and many people do not know why.
It has to do with hacking and computer casino operations. Gaming industries have spent a ton making specialized coins for casino operations and use them in their day to day operations to prevent untraceable theft.
This criminals just realizing that their fucking system is about to fail and that they will not have any power anymore..
This right here! It's all about power and keeping control over the herd. They realize that they are about to lose that control ,and are scurrying like the roaches they are to cob together some legislation to maintain it. Truth be known, these rats have zero balls once you pull back the curtain. Right on brother!
This is upsetting, the gov is so dumb, for real.
Grrrrr. You're probably right about having to make some compromises to not only get widespread popularity, but some more stability. Once it's more stable, it'll be adopted on a much quicker clip. Still not sure how they'd know if you were lying or not. Seems like a lot of work. Thanks for the post!
no, we vote against those bills and we vote out people who vote for these bad laws and we vote in people who are for smaller governments in the USA in 2018 as in next year
Would this be just for US citizens or visitors as well? I don't see how they can police this? and given recent volatility, you could argue at the time you crossed the border you had no idea if your holdings were worth more than $10k!
Hahahaha, yeah you're right! It could be $9k now and $11k in five hours. It seems like a flawed proposal to me.
It looks like it would be for all of the above...
just wondering if there is something new in this post as opposed to the past 10 on the same topic?
raising awareness is great, but im starting to not care reading the same thing over and over again.
a mod to consolidate posts like this might be necessary
Fucking bastards.
"Greetings World!"
The brainwashing of people is amazing. People actually believe they are free and that voting will actually make a difference. If voting changed anything it would be outlawed.
Voting is just a show, a spectacle for sheep-minded people! Voting will be rigged (as markets are, as FIAT is) as long as it's not managed by Blockchain!
Brilliant article how the voting was rigged in France to let the "Rothschild's toyboy win!" Cheers!
Congratulations @jrcornel!
Your post was mentioned in my hit parade in the following categories:
jesus, what is it with these governments? must they perpetually have their foot on our necks. they are going to go to far with this and the push back will not be good, that is if we make it another week with whats going on in korea and syria.
Says who? What is the whole idea of decentralization?
SDG
Perhaps a silver lining to this would be raising the profile of crypto currency.
Depending on how the question is asked when entering the US this could be a new free form of advertising.
Hopefully this will raise its profile more as inquiring minds with smartphones will google what a bitcoin is and research while on the plane. WIFI will become standard in most airlines and I believe YouTube is already on some.
Senator Chuck Grassley (R - Iowa) ... once was someone to look up to... but now (and perhaps for some time even before U.S. Bill S.1241... he's just like the other 541 (that's including the 6 non-voting members)..
Regulation is gonna happen.wait for average folks loose millions in cypto currency when it crashes then inthink sec or similar organization will start regulating it and icos especially .. even though its against the spirit of decentralization but may be it would be for the greater good
This Bill is an Act. The word Act gives it away. It has nothing to do with law, its legal and you have to give consent. If you look closley at this Act you will not see one mention of a human being. But you will see words like person and individual and lots of other legalese deceptions. Its not We the persons, its We the people. No one has the right to tell anyone what to do with their hard earned money. I did not make this shit up, its in their law books. We are not persons (legal fictions) we are human beings. well, most of us. Peace.
Great article! It's great to be kept abreast of political and legal developments regarding cryptocurrencies. You make a good point regarding the idea that legal recognition is a de facto recognition of efficacy and popularity: 'I don't care what you say about me, just spell my name right' :)
However, I think that it would be fairly easy to simply deny ownership of crypto's and get away with it, especially with keys and wallets being so private. However it is quite irritating to be put in a position to have to lie. But given the great variety and adaptability of the crypto-space, one way to get around having to lie would be to simply play with, and bend definitions in order to slip around the lumbering, slow-moving definitions that will be produced by mainstream politicians.... hmmm
Very interesting post. I see it as a feeble attempt by the "Big Money Guys" to protect fiat currency. Take control of the enemy by regulation?
I agree. Besides, the only link the authorities have with cryptocurrency is when it's traded for fiat currency. It's fiat currency that's being threatened. Cryptocurrency is fine on its own.
Agree 100%!
The gouvernament is a shit..
I don't agree with this statement: "for Bitcoin (or any virtual currency) to gain world wide adoption and be accepted as a global currency capable of purchasing any good or service, there will likely need to be at least some regulation of it. " These crypto-currencies were created in order to get away from corrupt governmental control of the money supply. Why in the world would anyone comply. The 1914 dollar is now worth 2 cents. Will the 2013 crypto-currency be worth 2 cents 100 years from now if only a limited supply exists? Another assault on the liberties of freedom loving peoples.
The government is always trying to enslave the people. smh smh
These politicians want to continue controlling our lives...we say no to it!!! they wont be able to know unless bitcoin wallet companies send them the infos...Howeve better pay tax than being in trouble
Ah big surprise here, the US Gov't is trying to get their claws around something that they see as threatening. Never comply. That's the whole idea behind a DECENTRALIZED currency
I simply do ot travel. problem solved. This hurts the travel, airline and hotel industry.
I would be careful with seeing regulations as a good thing. Most people in positions of power do not want cryptos or blockchains to succeed. They undermine the current infrastructures those power systems invested so much in and it means an opportunity that they have allready been missing out on is cashed in on a new group of people claiming wealth and power. If the regulate it, chances are they will regulate it into the ground to never be able to compete with fiat currency. That would be power's goal... not regulate to accept. regulate to out compete for sure. States are already doing this for dirty power companies vs renewable s.
As soon as they start controlling one cryptocurrency, for example bitcoin, everybody is going to jump on the other digital coins, creating fear and confusion, but they won't be able to pull any certain data, accomplishing nothing, like always.
Do not see how they can control Bitcoin, other cryptos yes but not Bitcoin. Any crypto coin that has an office, CEO and a server that can be seized of course can and will be controlled but Bitcoin will be difficult.
I mean, i might be a proud american....but if you have anything, we are gonna try to find it and tax the crap out of it!
This is very sad to see, and read
Just like everything else, I guess it is what it is!
A great post!.. i'm following you!
One does not "carry" cryptocurrency. We only have access to it. For example, if someone entering US has a bank account in another country, they are not carrying that bank account, therefore they don't have to declare it.
Obvsiously they don't know how it all works, and until they do, they really cannot impose any regulation on crypto.
This is already stated in the proposal.
https://www.congress.gov/bill/115th-congress/senate-bill/1241/text#toc-idea0e9489fc8f46379f95bb56c8bbbda5
This really infuriates me.
Why should they be allowed to regulate and monitor everything!
Do you mean "anything"?
what can we do to stop this?
vote no on this bill and on those that support it
That's just disappointing of having to declare the BTC's that I own. Always fell in love with this decentralised currency but Oh well, there it goes!
Dreadful proposal. The point of cryptocurrencies, incl. Steemit, is to create independent wealth through a grassroots, tax free, banker free, debt free, economy.
God have mercy on Grassley and his ilk.
Good grief!
I still don't understand how they plan on implementing this. Maybe it's because I'm still new to cryptocurrency, but isn't it going to be extremely difficult to track how much cryptocurrency one owns? Apart from transactions that include conversion to fiat money (which is under their control and linked to a person's identity), how else would they know for sure?
I live in Iowa. Chuck Grassley is MY senator. Would anyone like to help me draft a letter?