The head of the Coin Center announced that the provision that would allow blocking international cryptocurrency transactions for an unlimited time will be excluded from the bill expanding the powers of the US Treasury.
Coin Center CEO Jerry Brito informed on Twitter that during the hearings in the US House of Representatives, he managed to reach an agreement with Connecticut Congressman Jim Himes (Jim Himes). Thus, the provision that allows blocking international cryptocurrency transactions for an unlimited time will be excluded from the bill expanding the powers of the US Department of the Treasury. Himes, who pushed for the introduction of this provision into the bill and opposed Brito, confirmed cancellation of the position.
Now, under current law, the US Secretary of the Treasury, after consultation with the Chairman of the Federal Reserve System (FRS), the Secretary of State, federal regulators and other agencies, has the authority to impose such restrictions on international transactions. However, a public notice of rulemaking must be issued along with the restriction. At the same time, the restriction is lifted after 120 days, unless the Ministry of Finance uses a rule that extends the blocking after the discussion period.
It’s about a provision in the Americas Competition Act of 2022, a bill that was tabled in the US House of Representatives last week. The introduction of this provision would allow the Treasury Secretary to block or “set conditions” on transactions if the department determines that the transaction or the accounts involved are involved in money laundering. Brito argued that if the provision were passed in its original form, it would deal a serious blow not only to the cryptocurrency industry, but also to “privacy and due process in general.”
Recently, Reuters conducted a large-scale study of the work of the largest cryptocurrency exchange Binance. According to the agency, the anti-money laundering procedures at the site are much weaker than stated. Late last year, Binance’s subsidiary in Turkey was fined ₺8 million by the Financial Crimes Investigation Board (MASAK) for failing to comply with anti-money laundering regulations. Considering how things are with the prevention of money laundering on the largest centralized exchange, it can be assumed that any transaction in cryptocurrency can fall under the blocking of the US Department of the Treasury. And the mitigation of the bill will protect the rights of many owners of cryptocurrencies.
Source: Bits
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