5 ms·

Honestly, I think this is outside the spirit of the law. Say you take your money put it in a bank account, the bank lends that money out again. Are you respons

by fny 5y ago

Honestly, I think this is outside the spirit of the law. Say you take your money put it in a bank account, the bank lends that money out again. Are you responsible for knowing the recipient? No. I imagine the same will be extended to putting money into a swap pool or DEX. Now say you actually send money to someone over $10k and don't report it. This is just like a 1099. Honestly, all the fear over what this is going to do is total FUD. It's not that difficult of a rule to deal with for law abiding citizens, and anyone who wants to continue using crypto to launder money or evade taxes will keep using mixer wallets.

nickff 5y ago
>"Say you take your money put it in a bank account, the bank lends that money out again. Are you responsible for knowing the recipient? No. I imagine the same will be extended to putting money into a swap pool or DEX." My read of this law is that the bank or recipient of your money would be required to make the report (as they are the 'possessor'), which appears to already be the case (so-called KYC laws). I think you may be underestimating the amount of regulatory compliance that the government requires of many businesses.
- fny 5y ago
  Exactly, the banks don't report that YOU paid money to others on a loan, the bank has it's own reporting requirements, hence you are not liable. Interestingly, financial institutions (which includes exchanges) are currently exempt from the reporting requirements in this law "the only businesses that are exempt from section 6050I are banks and financial institutions." So my take is they haven't figured out how to regulate the institutional aspect, they're simply attempting to monitor person to person transfers as a first pass. And this makes sense given the wash sales and other tricks people are trying to pull via NFTs and the like.
pjc50 5y ago
> Say you take your money put it in a bank account, the bank lends that money out again The bank has a corporate identity which can be held liable.

by fny 5y ago

nickff 5y ago

>"Say you take your money put it in a bank account, the bank lends that money out again. Are you responsible for knowing the recipient? No. I imagine the same will be extended to putting money into a swap pool or DEX." My read of this law is that the bank or recipient of your money would be required to make the report (as they are the 'possessor'), which appears to already be the case (so-called KYC laws). I think you may be underestimating the amount of regulatory compliance that the government requires of many businesses.

fny 5y ago
Exactly, the banks don't report that YOU paid money to others on a loan, the bank has it's own reporting requirements, hence you are not liable. Interestingly, financial institutions (which includes exchanges) are currently exempt from the reporting requirements in this law "the only businesses that are exempt from section 6050I are banks and financial institutions." So my take is they haven't figured out how to regulate the institutional aspect, they're simply attempting to monitor person to person transfers as a first pass. And this makes sense given the wash sales and other tricks people are trying to pull via NFTs and the like.

pjc50 5y ago

> Say you take your money put it in a bank account, the bank lends that money out again The bank has a corporate identity which can be held liable.