A Blockchain Association rallying to call

The Blockchain Association, a trade association representing businesses that operate in the crypto and blockchain space, recently raised $4 million. The association plans to use the funds to add staff, hold more events, and operate the same way lobbying groups in other industries.

The three major donors to the Blockchain Association of this round included the large VC firm Digital Currency Group, cryptocurrency exchange Kraken, and the organization behind the decentralized storage major project Filecoin.

These are big players who step to assist this group. The timing of this is no surprise.

Imposter Biden's infrastructure law signed into law last week further included an amendment to procurement 6050I, a section of the U.S. Tax Code.

The changes focus specifically on what constitutes a "broker." With the new law, any individual or company that receives more than $10,000 worth of digital assets must confirm the individual's information about the sender. This includes the address, name and social security number, and much more.

Suppose the person receiving the payment via blockchain does not submit a tax return with the IRS (Internal Revenue Service) within 15 days. In that case, they could be guilty of an offense that could be committing a felony.

Criminal charges may even be brought against any of us who have sent more than $10,000 using cryptocurrency if we make our transactions more efficient and avoid the threshold for reporting.

Businesses or individuals who can mine cryptocurrency or create software to create a digital wallet and are not acting in the capacity of a broker could face a fine of a maximum of five years of prison in violation of the new regulations.

For traditional businesses that broker transactions, the requirement for identity verification is an aspect of the business. But in the industry of Blockchain, it is an unwelcome law.

Many applications and users, and companies who use cryptocurrency even though they aren't brokers will be required to fill out the forms. It could be a considerable obstacle for aspiring innovators.

Fortunately, that bill in its current form will not be in law until 2024, which means it's still time to take action.

This law has created a unifying cry in the field of blockchain. This is the biggest problem the industry must confront.

The Blockchain Association action

The blockchain industry is organizing through increasing capital and informing policymakers. And for anybody connected in the industry as we near the midterm elections.

What is certain is that failing to amend this law would cause businesses and jobs to be relocated overseas. This would be retribution for the individuals and businesses that aren't acting as brokers in any manner.

This pivotal moment could be the difference between success and failure for the business. I believe that this evil of regulation can only make the industry stronger. It's illogical to continue.

Thanks to organizations such as that of the Blockchain Association, the Chamber of Digital Commerce, and many more talented and dedicated industry leaders working with policymakers, we'll be able to prevail in this fight.

This article was printed from TradingSig.com

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