The authors of the bill explained that the new legal procedure is aimed at combating crime in the cryptocurrency sector and criminalizes such common forms of fraud as the theft of closed keys to cryptocurrencies and Rug Pull schemes.
In particular, the developers of digital assets who have sold over 10% of their tokens within five years after the first transaction may be brought to criminal liability. An exception can be NFT projects with less than 100 tokens or worth up to $ 20,000.
If the law is adopted, violators are facing fines up to $ 5 million and imprisonment for up to 20 years, and corporations – fines up to $ 25 million.
In addition, the bill introduces a mandatory requirement to disclose information for the participants of the industry, owning the shares in the virtual assets promoted by them. This will oblige digital currency developers to disclose data on the owners of the wallets and should help investors evaluate the likelihood of potential conflicts of interests and possible manipulations in advance.
Earlier, New York Senator James Sanders JR submitted a bill on the creation of a target group that will analyze the consequences of large-scale use of cryptocurrencies and blockchain.
Source: Bits
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