Aug 05, 2021 09:00:00

``Draft that may require virtual currency trading brokers to submit personal information of all users'' will be submitted in the United States

A draft infrastructure proposal submitted by President Joe Biden includes a description of virtual currencies, and depending on the interpretation, it could be read as ``Even software developers involved in virtual currency transactions are obligated to report personal information to the government.'' It is reported that.

The Cryptocurrency Surveillance Provision Buried in the Infrastructure Bill is a Disaster for Digital Privacy | Electronic Frontier Foundation

https://www.eff.org/deeplinks/2021/08/cryptocurrency-surveillance-provision-buried-infrastructure-bill-disaster-digital

President Biden's draft bill expands the definition of 'broker,' as written in part of the Internal Revenue Code of 1986, to 'someone who responsibly and periodically services the transfer of digital assets on behalf of another.' The description also includes 'persons engaged in Brokers must file tax returns with the Internal Revenue Service that include the names and addresses of all users.

However, organizations such as

EFF , which protects digital privacy, have warned that this definition of 'broker' is broad and could apply to anyone involved in the virtual currency system. This includes not only people who operate services that trade virtual currencies on behalf of users, but also developers of software related to services. EEF says, ``This is like all companies involved in virtual currencies suddenly being forced to monitor their users.''

According to the EEF, if the draft law is applied to cryptocurrency transactions, it could force software developers and others to implement cumbersome monitoring systems or shut down their services, as well as draw the attention of malicious actors. It is said that there is a possibility that problems will arise, such as new bait in the form of personal information being distributed to virtual currency platforms, and domestic companies leaking overseas due to complicated laws.

EEF says, ``The Biden administration is trying to control taxes by more closely monitoring the virtual currency community and collect tax revenue from virtual currency transactions, which is said to be $28 billion (approximately 3 trillion yen).Basically, This draft is based on the premise that users who conduct a huge number of virtual currency transactions are engaging in tax avoidance.' He also pointed out that uncertainty could arise in virtual currency transactions, which are based on anonymous transactions.

'The law should not apply to people who simply write and publish code, and should protect the privacy of users involved in cryptocurrency transactions,' the EEF said. Don't pour water on it.'