Task Force against Crypto Financing of Terrorists Proceeds to Senate

Task Force against Crypto Financing of Terrorists Proceeds to Senate

An amended version of House Resolution 5036, drafted by North Carolina Congressman Ted Budd, was passed by the US House of Representatives yesterday, September 26. It will now proceed to the Senate

The Independent Financial Technology Task Force (H.R. 5036) was created to fight against the potential use of cryptocurrency to finance terrorism and other illegal activities. The task force is given the role of researching the possible ways in which terrorists and criminals can be funded through the means of cryptocurrencies. This task force would then outline proposals on how to proactively suppress such activities.

A revision to the bill was made to include a new segment: Preventing Rogue and Foreign Actors from Evading Sanctions. This section obligates watchdogs to report the possible uses of cryptocurrencies and related technologies in criminal and terrorist acts, and also for evading sanctions. The regulators should report within one hundred and eighty days after the ratification of the bill.

The development of different programs and mechanisms to pinpoint illicit cryptocurrency activities are also supported by the bill.

H.R. 5036 includes a reward of not more than $450,000 is to be given to individuals who passes on information that leads to the conviction of perpetrators.

Some news sites are reporting this bill is suspended. But according to the office of Rep. Ted Budd the bill will proceed to the Senate.

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Will Switzerland Stand Before USA as a Libra Regulator?

Coinspeaker Will Switzerland Stand Before USA as a Libra Regulator?Switzerland is known as being crypto-friendly and a safe haven for a lot of blockchain and crypto companies for a long time now. With over 700 blockchain-related companies having a presence there, the town of 30,000 people has been dubbed “Crypto Valley.” No wonder Facebook decided to open their Libra Association in Geneva. David Marcus recently released a statement announcing that he expects the new coin to be governed by Swiss law:“Because the (Libra) Association is headquartered in Geneva, it will be supervised by the Swiss Financial Markets Supervisory Authority (FINMA). We have had preliminary discussions with FINMA and expect to engage with them on an appropriate regulatory framework for the Libra Association.”On his first day of hearing in front of U.S. Congress, there was however a constantly repeated question to which Marcus didn’t have an answer: How could he reconcile the Senate’s desire that all of this crypto stuff should be primarily regulated by the US, when the Libra Association is based in Switzerland and regulated by its authorities?The truth is, a lot of US companies as Mastercard and Visa have to comply with US laws and as such – the association is regulated by the US authorities.However, an interesting thing is that right after hearing, a spokesman for the Swiss Federal Data Protection and Information Commissioner (FDPIC), Hugo Wyler, said that Facebook hasn’t reached out. He said:“We have taken note of the statements made by David Marcus, Chief of Calibra, on our potential role as data protection supervisory authority in the Libra context. Until today we have not been contacted by the promoters of Libra.We expect Facebook or its promoters to provide us with concrete information when the time comes. Only then will we be able to examine the extent to which our legal advisory and supervisory competence is given. In any case, we are following the development of the project in the public debate.”On the other hand, it could be just a matter of time because Swiss Financial Markets Supervisory Authority (FINMA) who would be the main financial regulator of Libra, who confirmed that they were in contact with initiators of the Libra project.German Bundesbank Comes Out in Favor of LibraBut it isn’t only Switzerland that is keen on Libra. During the G7 meeting, Jens Weidmann, president of Germany’s central bank, the Deutsche Bundesbank, has come out in favor of Facebook’s cryptocurrency saying that there’s no reason to be alarmed but there’s a reason to be vigilant. He also added he can not understand the skepticism of his counterpart against digital currencies like Libra. He said:“If they deliver what they promise, they can be attractive to consumers.”Nevertheless, let’s remind you that recently, G7 finance ministers issued a warning that digital currencies such as Libra pose risks for the world’s financial system if they are not regulated tightly. During a news conference on July 18, French finance minister Bruno Le Maire reportedly said that G7 “cannot accept private companies issuing their own currencies without democratic control.”Will Switzerland Stand Before USA as a Libra Regulator?

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