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Legislation

The FATF Is Loading The Gun

02/04/2021 by Idelto Editor

Continuously expanding surveillance on financial transactions has no place in Bitcoin.

On paper, the Financial Action Task Force (FATF) was created more than 30 years ago by G7 countries to fight organized criminal and narcotic financial flows. The intergovernmental organization describes itself as a “dynamic contributor to peace and security” and issues recommendations that most countries transpose into national laws.

In practice, it’s a totally different story than just laudable intentions with limited effects on society. The FATF can decide to arbitrarily place jurisdictions on gray and black lists, which has the effect of putting certain countries under immense financial pressures or even cutting them off from the global financial system almost entirely. The root of all existing bureaucracy in the finance industry these days is the fruit of dozens of standards and guidelines published by the FATF that are updated on a regular basis. The FATF even went as far as to publish recommendations for counter-terrorist financing rules that have been interpreted and implemented by national governments and banks in a way which has delayed aid and put NGO staff at greater security risk in some countries. The FATF will always talk about how drug dealers and cybercriminals are misusing the financial system to serve their ends, but never will you hear any serious questioning on loss of financial privacy, financial exclusion and the administrative costs their standards impose to all members of society.

Given its track record, it is a surprise to no one that the organization spent the last few years gathering ammunition and has started aiming at a new target of choice: bitcoin (or what they call “VAs, virtual assets”) and the ecosystem around it (e.g., what they refer to as “VASPs, virtual assets service providers”). Cash has always been given the worst reputation by the anti-money laundering experts; it is only logical that electronic cash without rulers was never going to get away with it and the most recent public consultation launched by the FATF is here to prove it.

Nonelected officials are becoming increasingly worried that money is becoming as frictionless as communication is and more importantly, that they have no ability to control and censor financial flaws at will. Instead of having local law enforcement agencies prosecuting bad actors when a crime has been committed, the FATF has been pushing for our society to become one of surveillance, control and censorship by having governments around the world weaponize the financial system, forcing institutions to spy on customers and scrutinize every transaction even without any legitimate concern.

“But if it helps catch criminals, the trillions spent every year by all actors of society subject to anti-money laundering laws have to be worth it, right?” one may ask.

Three simple questions should help in this context:

  1. Were know-your-customer (KYC) measures proven effective at detecting bad actors trying to utilize bank accounts?
  2. Are anti-money laundering laws stopping a significant percentage of illicit fiat money from entering the financial system?
  3. How efficacious are counter-terrorism financing measures when it comes to deterring terrorists from financing themselves?

The answers are obvious: it doesn’t take any special skill to open an account with a fake passport, to forge documents with software and to lie about the true purpose of one’s financial transactions. It must once and for all be acknowledged that criminal behavior is not prevented by hundreds of guidances and laws, but by incentive systems that are naturally provided in a sound money society with less government.

Recent analysis demonstrate the benefits versus costs ratio of anti-money laundering (AML) has been going in one direction only:

Image via https://www.ledgerinsights.com/anti-money-laundering-has-less-than-1-impact-on-crime-at-what-cost/

The evidence cannot be disputed, yet more AML requirements are popping up around the world every year. This trend is very similar to the way central banks handle quantitative easing (QE), pouring gasoline on the fire that is the problem.

Now pause and think; the introduction of central bank digital currencies is planned to be the final assault on cash. Are we to believe paper money will be eradicated from the streets while there would be no parallel attempts to restrict digital peer-to-peer transactions or at least make it as impractical as possible?

Let’s not be naive, the transfer of information between exchanges on the senders and beneficiaries of a transaction (aka “The Travel Rule”) is only the start of something much bigger. The ultimate goal of the FATF and various policy makers is an attempt at absolute control and it should be expected that they will defend their position with fierceness and stubbornness.

In recent years, bitcoiners have had to learn to deal with draconian KYC measures and chain surveillance. These are enabled by software developed by members of the private sector who are financially incentivized to push for more regulation.

The coming reality will be an even harder pill to swallow if the FATF is successful in making transactions from exchanges to private wallets impractical or even a thing of the past. AML experts are also calling for further steps saying things such as, “Regulators should require merchants to place transaction-volume limits on payments received from self-custodied wallets,” and, according to a Forbes article, “Users could still keep custody of their private keys, but would connect their crypto addresses to their real world identity that could be uncovered by a court ordered subpoena.”

Even if new significant regulations and restrictions are inevitably rolled out in the course of this decade, the only way to avoid being impacted is by making the choice to depend less on trusted third parties and actively participate in the Bitcoin circular economy today. There are trade-offs to not walking down the KYC path (mostly in terms of UX and liquidity), but the feeling of resilience that comes with trading directly with peers is liberating.

This decade will consist of decisive battles, and even if Bitcoin is bulletproof technology, the FATF knows the only way to undermine this movement is to try to overregulate the gatekeepers and disgust the users into eventually making them capitulate. We shall not let their acronyms define us nor influence the way we choose to hold our money or transact. Choosing Bitcoin should always be the equivalent of choosing freedom and no one organization should be given the possibility to change that. The time to start pushing back is now.

This is a guest post by UTXOxo. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Filed Under: Bitcoin Magazine, culture, English, fatf, Law Enforcement, Legislation

Kentucky Governor Signs Bitcoin Mining Incentive Bill Into Law

26/03/2021 by Idelto Editor

A new law in Kentucky will provide tax exemptions to cryptocurrency mining operations and attract them to the state.

The governor of Kentucky, Andy Beshear, has signed a bill meant to incentivize cryptocurrency miners to set up shop in the state into law.

The new law “provides sales and use tax exemptions on the tangible personal property directly used and the electricity used in commercial mining of cryptocurrency” and amends the state’s utility gross receipts license tax “to exempt electricity used or consumed in the commercial mining of cryptocurrency.”

A timeline of the bill shows that it was first introduced to the state’s House of Representatives on January 8, it was passed by the state’s Senate earlier this month and that it was signed into law on March 25. It was overwhelmingly approved by lawmakers in early March.

The law will go into effect on July 1 and it is perhaps the most significant indication that the state is looking to attract more Bitcoin miners and related companies into its jurisdiction. As bitcoin becomes increasingly derisked through institutional and retail adoption, more states will likely realize that they can benefit from attracting the industry. Kentucky sees its access to cheap power as a competitive advantage in this realm.

Filed Under: Bitcoin Magazine, bitcoin-mining, business, English, Kentucky, Legislation

Major South Korean Bank BNK Busan Plans to Offer Banking Services to Domestic Crypto Exchanges

26/03/2021 by Idelto Editor

Major South Korean Bank BNK Busan Plans to Offer Banking Services to Domestic Crypto Exchanges

The South Korean crypto frenzy among the banking industry remains on fire, as another major bank is treading waters to offer banking services for crypto exchanges. The BNK Busan Bank launched a program that consists of visiting competitors’ banks that already offer it.

BNK Busan Is Visting Its Competitors to Conduct the Research

According to the Busan.com news outlet, the bank researches how these financial institutions deal with the crypto exchanges amid the forthcoming regulation.

As the banks provide fiat services to the crypto businesses, the legislation set to promulgate on Friday will force them to use the Information Security Management System (ISMS) certification.

That’s the reason why the Digital Strategy Department and the Money Laundering Prevention Department of BNK Busan Bank are making an in-depth investigation on how such a system works and then offering it in the future.

Domestic crypto exchanges will be required to gather real names and social security numbers from their clients through the ISMS system already provided by the major South Korean banks.

Exchanges like Bithumb already have arrangements with the NH Nonghyup Bank for implementing such a system. Also, other domestic companies such as Coinone, Upbit, and Kobit already closed deals with South Korean banks to comply with the legislation.

The local media outlet added that the BNK Busan Bank is considering offering its crypto services, if plans go successfully, to small and medium-sized exchanges such as Copax and Gdac.

Struggles for Small and Mid-Sized Domestic Exchanges to Comply With the Legislation

However, there has been a broad discussion across the industry about the difficulties of implementing the ISMS system. As Bitcoin.com newsdesk reported on January 20, 2021, Heo Baek-young, Bithumb’s CEO, made an apocalyptic forecast for the local crypto firms.

He believes that smaller companies could “struggle” to meet the ISMS certification requirements. In fact, the executive believes there will only be between four and seven exchanges surviving the new regulation.

Heo’s words go in line with the complaints of the higher costs the ISMS certification compliance carries for the small and mid-sized exchanges.

What do you think about the plans announced by the BNK Busan Bank? Let us know in the comments section below.

Filed Under: Asia, Banks, crypto fiat, crypto services, English, Finance, Legislation, Money Laundering, News Bitcoin, South Korea, south korea cryptocurrency

Kentucky Lawmakers Approve Bitcoin Miner Incentive Bill

03/03/2021 by Idelto Editor

Kentucky legislators have approved a bill that would offer tax incentives to bitcoin miners that set up shop in the state.

An overwhelming majority of lawmakers in Kentucky has just approved a bill that seeks to make the state a very attractive option for bitcoin mining operations.

The primary bill to receive approval, House Bill 230, seeks to remove some tax obligations from bitcoin miners and is geared toward incentivizing job creation and spurring the growth of the industry. It was passed by a 19-to-two vote by a committee in the Kentucky house.

“The bill’s fiscal note estimated its cost to the General Fund to start at $1 million a year,” the Lexington Herald-Leader reported. “But the full cost after that cannot be determined, legislative staff wrote, because ‘it is unknown how many of the businesses might choose to locate here to avail themselves of this exemption.’”

The bill will now move to the state’s upper chamber for review. The bill’s sponsors noted in their submission that Kentucky could leverage its low energy rates, plus the abundance of the supply of such energies, to cement its position as a national leader in cryptocurrency mining in the United States.

The ratification of this bill would mean that commercial bitcoin miners in Kentucky would enjoy exemptions from paying a 6 percent sales tax and 6 percent excise tax on tangible personal property (such as mining rigs) that is directly used in the process as well as the electricity used. Though some lawmakers expressed their reservations about the amount of electricity needed to power these mining activities, the ability to lure more industrial operations, plus the recent growth cryptocurrencies like bitcoin recently, should make this bill a very attractive option.

Filed Under: Bitcoin Magazine, bitcoin-mining, business, English, Kentucky, Legislation

Lysander Spooner: Natural Law – The Science of Justice

30/08/2020 by Idelto Editor

Lysander Spooner: Natural Law - The Science of Justice

The science of mine and thine – the science of justice – is the science of all human rights; of all a man’s rights of person and property; of all his rights to life, liberty, and the pursuit of happiness.

The essay “Natural Law- The Science of Justice” or a “Treatise on Natural Law, Natural Justice, Natural Rights, Natural Liberty, and Natural Society; Showing That All Legislation Whatsoever Is an Absurdity, a Usurpation, and a Crime” was published in 1882. It has been published on various venues and is reprinted here on Bitcoin.com for historical preservation. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any opinions, content, accuracy or quality within the historical editorial.

Section I.

It is the science which alone can tell any man what he can, and cannot, do; what he can, and cannot, have; what he can, and cannot, say, without infringing the rights of any other person.

It is the science of peace; and the only science of peace; since it is the science which alone can tell us on what conditions mankind can live in peace, or ought to live in peace, with each other.

These conditions are simply these: viz., first, that each man shall do, towards every other, all that justice requires him to do; as, for example, that he shall pay his debts, that he shall return borrowed or stolen property to its owner, and that he shall make reparation for any injury he may have done to the person or property of another.

The second condition is, that each man shall abstain from doing to another, anything which justice forbids him to do; as, for example, that he shall abstain from committing theft, robbery, arson, murder, or any other crime against the person or property of another.

So long as these conditions are fulfilled, men are at peace, and ought to remain at peace, with each other. But when either of these conditions is violated, men are at war. And they must necessarily remain at war until justice is re-established.

Through all time, so far as history informs us, wherever mankind has attempted to live in peace with each other, both the natural instincts, and the collective wisdom of the human race, have acknowledged and prescribed, as an indispensable condition, obedience to this one only universal obligation: viz., that each should live honestly towards every other.

The ancient maxim makes the sum of a man’s legal duty to his fellow men to be simply this: “To live honestly, to hurt no one, to give to every one his due.”

This entire maxim is really expressed in the single words, to live honestly; since to live honestly is to hurt no one, and give to every one his due.

Section II.

Man, no doubt, owes many other moral duties to his fellow-men; such as to feed the hungry, clothe the naked, shelter the homeless, care for the sick, protect the defenceless, assist the weak, and enlighten the ignorant. But these are simply moral duties, of which each man must be his own judge, in each particular case, as to whether, and how, and how far, he can, or will, perform them. But of his legal duty – that is, of his duty to live honestly towards his fellow men – his fellow men not only may judge, but, for their own protection, must judge. And, if need be, they may rightfully compel him to perform it. They may do this, acting singly, or in concert. They may do it on the instant, as the necessity arises, or deliberately and systematically if they prefer to do so, and the exigency will admit of it.

Section III.

Although it is the right of anybody and everybody – of any one man, or set of men, no less than another – to repel injustice, and compel justice, for themselves, and for all who may be wronged, yet to avoid the errors that are liable to result from haste and passion, and that everybody, who desires it, may rest secure in the assurance of protection, without a resort to force, it is evidently desirable that men should associate, so far as they freely and voluntarily can do so, for the maintenance of justice among themselves, and for mutual protection against other wrong-doers. It is also in the highest degree desirable that they should agree upon some plan or system of judicial proceedings, which, in the trial of causes, should secure caution, deliberation, thorough investigation, and, as far as possible, freedom from every influence but the simple desire to do justice.

Yet such associations can be rightful and desirable only in so far as they are purely voluntary. No man can rightfully be coerced into joining one, or supporting one, against his will. His own interest, his own judgement, and his own conscience alone must determine whether he will join this association, or that; or whether he will join any.

If he chooses to depend, for the protection of his own rights, solely upon himself, and upon such voluntary assistance as other persons may freely offer to him when the necessity for it arises, he has a perfect right to do so. And this course would be a reasonably safe one for him to follow, so long as he himself should manifest the ordinary readiness of mankind, in like cases, to go to the assistance and defense of injured persons; and should also himself “live honestly, hurt no one, and give to every one his due.” For such a man is reasonably sure of always giving friends and defenders enough in case of need, whether he shall have joined any association, or not.

Certainly, no man can rightfully be required to join, or support, an association whose protection he does not desire. Nor can any man be reasonably or rightfully expected to join, or support, any association whose plans, or method of proceeding, he does not approve, as likely to accomplish its professed purpose of maintaining justice, and at the same time, itself avoid doing injustice. To join, or support, one that would, in his opinion, be inefficient, would be absurd. To join or support one that, in his opinion, would itself do injustice, would be criminal. He must, therefore, be left at the same liberty to join, or not to join, an association for this purpose, as for any other, according as his own interest, discretion, or conscience shall dictate.

An association for mutual protection against injustice is like an association for mutual protection against fire or shipwreck. And there is no more right or reason in compelling any man to join or support one of these associations, against his will, his judgment, or his conscience than there is in compelling him to join or support any other, whose benefits (if it offer any) he does not want, or whose purposes or methods he does not approve.

Section IV.

No objection can be made to these voluntary associations upon the ground that they would lack that knowledge of justice, as a science, which would be necessary to enable them to maintain justice, and themselves avoid doing injustice. Honesty, justice, natural law, is usually a very plain and simple matter, easily understood by common minds. Those who desire to know what it is, in any particular case, seldom have to go far to find it. It is true, it must be learned, like any other science. But it is also true that it is very easily learned.

Although as illimitable in its applications as the infinite relations and dealings of men with each other, it is, nevertheless, made up of a few simple elementary principles, of the truth and justice of which every ordinary mind has an almost intuitive perception. And almost all men have the same perceptions of what constitutes justice, or of what justice requires when they understand alike the facts from which their inferences are to be drawn.

Men living in contact with each other, and having intercourse together, cannot avoid learning natural law, to a very great extent, even if they would. The dealings of men with men, their separate possessions and their individual wants, and the disposition of every man to demand, and insist upon, whatever he believes to be his due, and to resent and resist all invasions of what he believes to be his rights, are continually forcing upon their minds the questions, Is this act just? or is it unjust? Is this thing mine? or is it his? And these are questions of natural law; questions which, in regard to the great mass of cases, are answered alike by the human mind everywhere.

Children learn the fundamental principles of natural law at a very early age. Thus, they very early understand that one child must not, without just cause, strike or otherwise hurt, another; that one child must not assume any arbitrary control or domination over another; that one child must not, either by force, deceit, or stealth, obtain possession of anything that belongs to another; that if one child commits any of these wrongs against another, it is not only the right of the injured child to resist, and, if need be, punish the wrongdoer, and compel him to make reparation, but that it is also the right, and the moral duty, of all other children, and all other persons, to assist the injured party in defending his rights, and redressing his wrongs.

These are fundamental principles of natural law, which govern the most important transactions of man with man. Yet children learn them earlier than they learn that three and three are six, or five and five [equals] ten. Their childish plays, even, could not be carried on without a constant regard to them; and it is equally impossible for persons of any age to live together in peace on any other conditions.

It would be no extravagance to say that, in most cases, if not in all, mankind at large, young and old, learn this natural law long before they have learned the meanings of the words by which we describe it. In truth, it would be impossible to make them understand the real meanings of the words, if they did not understand the nature of the thing itself.

To make them understand the meanings of the words justice and injustice before knowing the nature of the things themselves, would be as impossible as it would be to make them understand the meanings of the words heat and cold, wet and dry, light and darkness, white and black, one and two, before knowing the nature of the things themselves. Men necessarily must know sentiments and ideas, no less than material things, before they can know the meanings of the words by which we describe them.

What do you think about Natural Law? Let us know what you think about this subject in the comments below.

The post Lysander Spooner: Natural Law – The Science of Justice appeared first on Bitcoin News.

Filed Under: Anarchism, Anarcho-capitalism, English, Financial Sovereignty, free markets, freedom, Historical Reprint, Justice, Law, Legislation, Libertarianism, liberty, Lysander Spooner, Natural Law, natural rights, News Bitcoin, Op-ed, self-ownership, Voluntaryism

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