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Non-profit litigation against the obligation to report cryptocurrencies

  • In the United States, the Trade Union Monetary Center has filed a lawsuit against the U.S. Treasury Department.
  • The details of the obligation to report transactions through cryptocurrencies state the reason for the complaint.
  • Data of persons concerned such as date of birth and social security number should be collected.

In the United States, the Coin Center, a trade union, is suing over parts of a crypto amendment introduced last year by the Biden administration’s infrastructure package. In particular, if a transaction with cryptocurrencies exceeds US $ 10,000, the data of all parties involved must be recorded.

According to the plaintiff, certain sections of the law violate the Constitution. For example, human rights organizations and politically active NGOs will be required to compile and submit a list of their donors. Individuals must collect detailed data when receiving a transaction from other individuals and will only be compelled to disclose the data if there is a court order against them.

Petitioners declared Case If necessary, proceed up to the Supreme Court. In addition to the Coin Center, two other entrepreneurs and mining company, Quad Industries, are involved in the case.

Regulation often loses its purpose

The biggest problem with all approaches to better monitoring and recording cryptocurrency transactions is the idea that new technologies can be embedded in the old framework.

To a certain extent, this can be successful, and who can always be held accountable if a service provider is involved. In practice, it makes it much easier for them to identify their customers and reveal what kind of business they did with them.

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On the other hand, the idea that individuals may be obligated to disclose their crypto transactions and encroach on the privacy of other individuals seems to be a purely imaginary idea of ​​bureaucracy. Aside from constitutional concerns, there is a problem here from a technical point of view. This is because once digital assets are traded through decentralized markets using nickname addresses, the demand can no longer be met.