Jul 15

US Could Bar Big Tech Firms From Creating and Issuing Cryptocurrencies

U.S. lawmakers are debating a proposal that seeks to avoid large-scale technology organizations from issuing cryptocurrencies.

According to Monday’s Reuters study and a record of the internet draft proposal, policymakers in the U.S. House of Representatives seeks to step up scrutiny over large tech companies involved in cryptocurrencies.

Under the section of “Prohibition related to cryptocurrencies,” the draft bill, called “Keep Big Tech Out Of Finance Act,” states:

“A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System.”

The bill specifically defines a digital asset as “an asset that is issued and transferred using distributed ledger or blockchain technology, including, so-called ‘virtual currencies,’ ‘coins,’ and ‘tokens.’”

It further clarifies any large tech firm with over $25 billion in global annual revenue could fall into this category and any violation of the proposed regulation should be subject to a fine of “not more than $1 million per each day of such violation.”

While the proposal is still in a draft debate form and not yet officially presented, news emerges just weeks after Facebook announced a scheme to introduce a blockchain Libra cryptocurrency. The firm’s 2018 worldwide income reached $55 billion.

Worldwide regulators have since voiced concerns about how Facebook’s plan can remain compliant with global central banking regulations.

Last week, U.S. President Donald Trump produced his first remarks on cryptocurrencies via a sequence of tweets criticizing Facebook’s Libra project had “little standing or dependability.” he further disparaged Bitcoin in later tweets, touting the excellence of the US Dollar.

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