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Updated Law Will Oblige Travelers Entering US to Declare Digital Currency Holdings

 

An update to US anti-money laundering (AML) legislation currently going through Congress would oblige travelers to declare digital currency at the border.

AML Rules Target Over $10,000 Crypto Holdings

S. 1241, a new bill sponsored by Senator Chuck Grassley, proposes adding the terms ‘digital currency’ and ‘prepaid access devices’ to existing list of financial items subject so such AML procedures.

It would also include reference to “any digital exchanger or tumbler of digital currency.”

Ostensibly designed to prevent trafficking of funds over $10,000 in value, the resulting powers given to border authorities could be nonetheless considerably more sweeping than at present.

While it is unclear how those arriving in the US would be screened for digital currency holdings, the Bill makes provision for a report to be commissioned ironing out the finer points.

The text states:

Not later than 18 months after the date of enactment of this Act, the Secretary of Homeland Security, in consultation with the Commissioner of U.S. Customs and Border Protection, shall submit to Congress a report—

(1) detailing a strategy to interdict and detect prepaid access devices, digital currencies, or other similar instruments, at border crossings and other ports of entry for the United States; and

(2) that includes an assessment of infrastructure needed to carry out the strategy detailed in paragraph […]

 

Coin Center ‘Reaching Out’ for Debate

The Bitcoin community is already reacting with caution to the legislation as it stands, with multiple questions being raised as to how lawmakers could enforce it in practice.

“We’re reaching out to the relevant offices,” Coin Center CEO Jerry Brito said in a Twitter response.

 

EU Focuses on Dark Web, ID Linking

The move is reminiscent of similar plans across the pond in the European Union regarding declaration of digital currency funds, this time at the point of spend.

While border controls are not currently on the table, legislators are keen to enforce similar AML controls on anyone holding any form of virtual funds.

Formally revealed in January, users could soon face obligatory linking of their personal identity to their wallet.

More recently, a joint “consortium” by the European Commission, INTERPOL and others will research ways in which illicit use of the dark web can be curbed. Participants promise that:

“The consortium will analyze legal and ethical requirements and define guidelines for storing and processing data, information, and knowledge involved in criminal investigations without compromising citizen privacy,” participants promise.

 

What do you think about the Bill being considered by Congress? Let us know in the comments below!

 

 

Source: Bitcoinist

5 Comments
  1. There is literally NOTHING the government can do to enforce this. This bill itself betrays how little the government knows about cryptocurrency.

  2. More laws and taxes will mean more criminals and tax evaders. Lao Tzu said something like that.

  3. BTC Trader

    author forgets these same knuckle dragging goons routinely mistake Gold coins for “poker chips” – you got that right – these mental midgets are incapable of tying their own shoes let alone understanding bitcoin and digital currency. The only way they could possibly have a chance to obtain information re btc holdings is to force you to disclose all your passwords along with your shoes…. remotely scan your phone for all apps – virtually impossible – the lines are already intolerable so yet another example of how bitcoin is going to make the entire concept of “mind control” aka MENT = mind Gov = control, obsolete. Keep digging you gubment goons and legislators = whores for the banks who own you – the faster you dig the faster we revolt and throw your entire charade into the ash heap – where it belongs….

  4. Paul

    So, if I understand this right it also applies to Paypal. That should make for a fun border crossing for everyone!

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