Recently, a new bill has been introduced by a US lawmaker to confirm that blockchain developers and non-custodial services are not regulated as money transmitters. The bill is called the “Blockchain Regulatory Certainty Act” and it aims to provide clarity and certainty for blockchain developers and non-custodial services.
The bill was introduced by Representative Tom Emmer, who is a member of the House Financial Services Committee. He believes that the current regulatory framework for blockchain technology is unclear and inconsistent, which can hinder innovation and growth in the industry. The bill seeks to address this issue by providing a clear definition of what constitutes a money transmitter and exempting blockchain developers and non-custodial services from this definition.
Money transmitters are currently regulated by the Financial Crimes Enforcement Network (FinCEN) under the Bank Secrecy Act (BSA). This means that they are required to register with FinCEN, implement anti-money laundering (AML) and know-your-customer (KYC) policies, and comply with other regulatory requirements. However, blockchain developers and non-custodial services do not necessarily fit this definition, as they do not have custody of their users’ funds and do not engage in money transmission activities.
The Blockchain Regulatory Certainty Act would provide a clear definition of what constitutes a money transmitter, which would exclude blockchain developers and non-custodial services. This would provide these entities with regulatory certainty and allow them to focus on innovation and growth, rather than compliance.
The bill has received support from the blockchain industry, with many stakeholders praising its efforts to provide clarity and certainty. The Blockchain Association, a trade association representing the blockchain industry, has stated that the bill “provides much-needed clarity for innovators in the blockchain space.”
However, some critics have raised concerns about the potential for money laundering and other illicit activities on blockchain platforms. They argue that exempting blockchain developers and non-custodial services from regulatory oversight could create a loophole for criminals to exploit. However, proponents of the bill argue that this is not the case, as blockchain technology is inherently transparent and can be used to track and trace transactions.
In conclusion, the Blockchain Regulatory Certainty Act represents an important step towards providing clarity and certainty for blockchain developers and non-custodial services. By exempting these entities from the definition of money transmitters, the bill would allow them to focus on innovation and growth, while still maintaining regulatory oversight to prevent illicit activities. As the blockchain industry continues to grow and evolve, it is important that policymakers provide a regulatory framework that supports innovation and protects consumers.
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