Between holidays and the new year, the Tax Authority used the last traffic days for the Biden administration to finish the touches on its long fear Mediator: A regulation that requires all encrypted currency exchanges – guard and Change the trustee, Fiat to encryption and encryption to encryption-to effectively remove its users to your knowledge measures (KYC).
Al-Qaeda proves that the custody of the money is not necessary to be considered a mediator by the Tax Authority, which requires the “Defi Front-Eend services” to report the trading activity via the proxy 1099 tax form. This includes any developer “screens, buttons, models and other visual elements included in web sites, mobile applications and browser accessories – which users can use in trading digital assets in their unparalleled wallets.”
Through its broker base, the Tax Authority said that developers have a certain amount of “control” on the services provided, although the metal currencies are not cashed and the inability to influence the obligations.
Similar to FATF, the broker base is known as “” capacity To amend, update or substantially affect the conditions according to which services are provided, “as well as” as well capacity To collect the fees imposed on these services from the flow of transactions (…) whether the person is already collecting the fees in this way, “and/or if this person has capacity “In addition to the request, a series of guidelines to inquire about the book of the coded distributor's book to determine whether the processed request, in fact, is implemented or used another way to confirm based on the information known to this person as a result of providing commercial front services.”
In light of this tremendous transgression – fund control was widely understood as a pre -regulating condition as a financial service according to the Fincen directives – the industry quickly moved. A day after the Al Qaeda was published, Blockchain Association litigate Against the Tax Authority and the Treasury, they ask federal judges to drop the ruling before it comes into effect, claiming that the rule is unconstitutional and unlike the current federal laws.
In addition to the lawsuit, Senator Ted Cruz entered a joint decision of the Rejectionist of the Ruling on the Tax Authority through the Congress Authority, sponsored by Senator Cinemia Lomes, Senator Bill Hajri, Senator Mike Lee, and Senator Tim Scott, among others.
Cruz said in a press release With regard to the decision. Actor Corrie, who made the decision with Cruz, described the rule as a “clear violation.”
The decision was voted on yesterday in the Senate, with the support of 70 to 27 in favor, and it will now move to vote in the House of Representatives.
The broker base is another effort for the Biden administration to expand control of the non -guardian services. In both the criminal prosecution of Samurai developers, as well as the criminal prosecution of hurricane monetary developers, the US Department of Justice claims that controlling money is not necessary to be responsible for a money service under American law, on the pretext that the development of users' facades and other advantages indicates adequate control of the service to undergo sanctions, and the disturbance of equal wrath and face instructions.
While the possibility of the coup of the broker will be undoubtedly successful, the judgment on the developers of Samourai and Tornado Cash will lead to similar results regarding the requirements of reporting the non -will service providers.
To clarify that non -guardians are exempt from their classification as money service companies, it was the law of the organizational certainty of actor Tom Emer foot To Congress, provide widespread protection for developers.
This is a guest post by L0la L33tz. The opinions that are expressed are completely property and do not necessarily reflect the views of BTC Inc or Magazine Bitcoin.
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