Regulations

New York to involve retail cryptocurrency investors as it seeks to update regulations

Institutional and retail cryptocurrency investors are becoming increasingly important when developing cryptocurrency regulations. Recently Israel said it would involve all those involved in the cryptocurrency sector before enacting laws. New York is seen to also follow the same outline.

The U.S state of New York has put together a task force with the aim of having a deeper understanding of the distributed ledger technology.

The cryptocurrency task force will:

Provide the governor and the legislature with information on the potential effects of the widespread implementation of digital currencies on financial markets in the state.

As reported by Coindesk, the task force will draw its membership from a wide spectrum of individuals dealing with cryptocurrency. Most notably, retail cryptocurrency investors and academics will be part of the digital currency task force.

The task force will have until the end of next year, to submit their findings. While submitting the report, the group shall give a recommendation on how best to enact cryptocurrency regulations in the state of New York, what to include while defining virtual currencies, and possible use case of cryptos in the state.

Additionally, the group which includes retail cryptocurrency investors will be tasked with analyzing:

The energy cost of mining cryptocurrencies, how cryptocurrencies are being traded within the state, and how these trades may be affecting tax collection.

Presumably, the findings of the task force may force New York to change the specification of its BitLicense given that a lot has changed since it was put in place. The BitLicense is awarded to firms seeking to companies seeking to deal with cryptocurrencies in the New York but after passing a rigorous screening process.

In the recent past, lawmakers in the United States have been pushing for clear regulations around cryptocurrencies. The lawmakers have also called upon the IRS to provide clear guidelines regarding how cryptos are taxed and how to file this tax.

Do you think the involvement of retail cryptocurrency investors in the working group will yield a fair recommendation?

Let us know in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

Leave a Comment

Your email address will not be published. Required fields are marked *