A brand new bill within the United States goals to require cryptocurrency service suppliers to report all blockchain transactions to a authorities repository.
On Sept. 28, U.S. Representative Don Beyer introduced the “Off-Chain Digital Commodity Transaction Reporting Act,” requiring buying and selling platforms to report all transactions to a repository registered with the Commodity Futures Trading Commission.
The new laws aims to defend cryptocurrency traders from disputes, manipulation or fraud probably stemming from transactions occurring off-chain or transactions that happen past the blockchain community. Unlike on-chain transactions, off-chain crypto transactions are not instantly logged on a blockchain however are processed by way of secondary layers, thus creating some difficulties in being tracked.
With the emergence of buying and selling platforms and a want to improve transaction occasions and decrease prices, 1000’s of transactions happen “off-chain” and are unrecorded on the publicly viewable blockchain, the announcement notes.
“Unfortunately, internal record keeping among these private entities can vary wildly, and this can leave investors and consumers vulnerable to fraud and manipulation,” Beyer wrote, including:
“This bill is a common-sense measure to restore some transparency and confidence to the digital asset market.”
According to the bill, crypto service suppliers shall be required to report all off-chain transactions inside 24 hours to a CFTC-registered commerce repository. The announcement notes that the necessities are related to the foundations for “virtually all securities and swaps transactions.”
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U.S. lawmakers have been intently targeted on cryptocurrency laws lately. In mid-September, nine U.S. senators added their support to Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act. Reintroduced in July 2023, the laws in its present kind intends to crack down on noncustodial digital wallets and prolong Bank Secrecy Act tasks, amongst different authorized measures, to combat the illicit use of digital cash.
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