The Bitcoin flag is firmly setting deep roots around the world, with authorities making swift moves to regulate the burgeoning digital assets sector. In a development on May 30, 2018, the New York State Assembly proposed launching a digital currency task force to evaluate the cryptocurrency and blockchain sector.
Integrate Cryptocurrencies into Existing Financial Frameworks
As per a proposed bill, the banks’ committee of New York state legislature voted for a “digital currency task force,” with the intention of studying the effects of cryptocurrencies and how best to integrate them with existing frameworks of New York’s financial market.
In case the bill is passed, a nine-member group will be formed to submit an official report to New York’s governor on the matter, with a copy handed out to both the state senate and assembly speaker. In addition, the task force will consult with “any organization, government entity or person” while creating the report.
New York may soon see a digital currency task force
As it stands, the report contains a detailed study on the benefits of using cryptocurrencies within New York. Information related to tax receipts, legal transparency, and the impact of setting up dedicated cryptocurrency and blockchain industries.
Exchanges and Investors to be Scrutinized
Additionally, the team shall scrutinize cryptocurrency exchanges operating in the jurisdiction, containing information on their operations, determining investors in the sector, and finding out the total energy consumed by miners. As stated:
“The task force would provide a review of laws and regulations on digital currency used by other states, the federal government, foreign countries, and foreign political and economic unions to regulate the marketplace.”
The creation of a task force will precede the seamless integration of cryptocurrencies and related industries within existing legal, financial, and economic systems. Regulators fully expect the industry to rise in the coming years, as suggested by this development. Apart from the questions mentioned above, the task force will work on the following:
- Determining the trading volume of all cryptocurrencies with their relevant market share.
- Transparency of regulations and operations in the cryptocurrency sector and checking the level of price manipulation on traded digital assets.
- Evaluating regulations currently in place by other states, the federal government, and foreign countries.
- Enhancing market transparency and boosting consumer protection.
Proposal on the Back of Exchange Inquiry
In April 2018, an inquiry was launched by the New York State Attorney General’s Office into the operations of 13 cryptocurrency exchanges, including Coinbase, Gemini, and Binance.
The Attorney General’s office maintained that it was checking the “high-profile hacks” resulting in millions of dollars of investor funds stolen. The move was applauded by Gemini Exchange founders Tyler and Cameron Winklevoss:
“These technologies can’t flourish and grow without thoughtful regulation that connects them to finance. As long as jurisdictions strike the right balance, we think it’s going to be a huge boon and win for cryptocurrencies.”