New York State Senator Kevin Thomas has proposed a bill to criminalize the “ rug sweaters ” and other fraudulent activities in the cryptocurrency ecosystem. The bill entitled Senate Bill S8839 seeks to define, penalize and criminalize fraud and target developers and projects created to dupe cryptocurrency investors.
Protecting the cryptocurrency investor from scammers
The bill will provide prosecutors with more clarity on the prosecution of crimes committed in connection with the offers related to cryptocurrencies and to blockchain technology. Part of the bill defines the rug sweater as being a situation in which the developers “ sell more than 10% of these tokens within five years from the date of the last sale of said tokens. »
The bill also defines private key fraud as the misuse or disclosure of another person’s private keys without their consent. Developers who also fail to publicly disclose their personal cryptocurrency holdings on the main page of a project’s website could be held liable for the fraudulent omission of the obligation to disclose an interest in virtual tokens.
The bill has been forwarded to the Senate Committee for consideration.
Other bills on cryptoassets
A supplementary bill was submitted to the lower house by Clyde Vanel. Entitled Assembly Bill A8820, it has in turn just been sent to the Codes Committee of the lower house.
With this bill in the New York Legislature, the state is once again showing its pioneering position in the implementation of a regulatory framework for cryptocurrencies. At the moment, there is no specific date for consideration of the bill. But if it is approved and adopted, it will come into force 30 days after adoption.
Another bill aims to protect the United States from El Salvador’s decision regarding bitcoins. At the federal level, two members of the House of Representatives, Norma Torres (California) and Rick Crawford (Arkansas), have introduced a bill aimed at mitigating the risks associated with the adoption of bitcoin by El Salvador.
The bill will analyze how the adoption of bitcoin could affect cybersecurity, democratic governance and economic stability in El Salvador and how it could affect the United States.
Representative Norma Torres criticized El Salvador’s decision to adopt bitcoin, stating that it “ this is not a thoughtful adoption, but a reckless gamble that destabilizes the country ».
« El Salvador is an independent democracy, and we respect its right to self-governance, but the United States must have a plan in place to protect our financial systems from the risks of this decision ”, she added.
The President of El Salvador, Nayib Bukele, criticized this bill, saying that the US government has no right to poke its nose into the affairs of its country.
Returning to the draft law against crimes committed in the cryptocurrency sector, we can only congratulate the initiative. At a time when fraudulent projects are flourishing in the cryptocurrency industry, a law of this nature can only be positive for the entire industry, if only within the geographical competence of this law.
Source : BeInCrypto
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Far from having cooled my ardor, an unsuccessful investment in 2017 on a cryptocurrency only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay information related to this ecosystem with my pen.
