As a seasoned crypto investor, I’ve closely followed the ongoing legal battle between the DOJ and Roman Storm over Tornado Cash and the interpretation of money transmission licensing. The recent letter from Senators Cynthia Lummis and Ron Wyden expressing their concerns adds another layer to this complex issue.
As a concerned crypto investor, I’ve been following the ongoing debate between Senators Cynthia Lummis and Ron Wyden and the Attorney General Merrick Garland regarding the DOJ’s interpretation of money transmission licensing. In simpler terms, they’re expressing their worries about how the DOJ defines certain activities in the crypto space as money transmission, which could lead to unnecessary regulatory burdens for some digital asset businesses. I’m keeping a close eye on this situation and hoping for a clearer and more accommodative stance from the DOJ towards cryptocurrencies.
The footnote from the bipartisan authors signals that this particular interpretation is being used in the ongoing legal proceedings against Roman Storm, a co-founder of Tornado Cash, who faces charges for running an unlicensed money transmitting business and other grave offenses.
The Bank Secrecy Act and FinCEN describe money transmission as the process of receiving and sending money, including currency and other value types. Non-custodial crypto service providers do not qualify as money transmitters since they don’t hold or store the funds during transactions. The senators believe the DOJ’s position goes against this definition, complicating policy enforcement efforts.
“Bitcoins have a clear unilateral owner at all times. At no point in the [transfer] transaction process is there uncertainty over where ownership resides. […] Custody and control are, therefore, the logical touchstone of where ‘acceptance and transmission’ occurs on Bitcoin and other crypto networks.”
FinCen holds the leading role in interpreting the regulations pertaining to money transmission registrations. The proposed guideline from the DOJ could potentially impact a vast array of services, including internet providers handling bank transfers and even the post office, according to the senators.
In April, crypto advocacy organizations collectively submitted an amicus brief to the Southern New York District Court, presenting a comparable argument.
In March, lawyers representing Tornado Cash’s alleged operator filed a motion to dismiss the charges against him. They argued that Tornado Cash doesn’t fit the definition of a money transmission business since it doesn’t have the ability to control or process transactions independently. Moreover, they claimed that I, as an ordinary user, couldn’t prevent sanctioned groups from using the service due to its “immutable” nature.
Prosecutors argued that Storm was responsible for managing the service and created software intended for criminal activities. They maintained that Tornado Cash facilitated the transfer and concealment of funds, which Storm allegedly knew were obtained illegally.
In August, Storm was taken into custody for allegedly breaking sanctions laws and aiding in money laundering schemes, as well as conducting unauthorized money transactions. The possible penalties include a prison sentence of up to 45 years. Despite the accusations, he has entered a plea of not guilty and is currently out on $2 million bail with travel restrictions imposed.
Read More
- HBAR PREDICTION. HBAR cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- STEEM PREDICTION. STEEM cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- JTO PREDICTION. JTO cryptocurrency
- POL PREDICTION. POL cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- COW PREDICTION. COW cryptocurrency
- TNSR PREDICTION. TNSR cryptocurrency
2024-05-13 22:33