If you want to understand what will be done to DeFi, you must first understand what was done to Forex and offshore american bank accounts, as well as the indictment of Bitmex, Binance, Bybit, and Kucoin, and the implications of the indictment of Sterlingov -- background:
The Obama administration made significant strides in enforcing financial regulations globally, particularly in implementing Know Your Customer (KYC) rules and combating tax evasion through the use of the Organisation for Economic Co-operation and Development (OECD)
regulations and the Foreign Account Tax Compliance Act (FATCA). Here's how these initiatives unfolded: Implementation of KYC Rules through OECD and FATCA
OECD's Role: The OECD has been pivotal in setting international standards aimed at preventing money laundering and terrorist
OECD's Role: The OECD has been pivotal in setting international standards aimed at preventing money laundering and terrorist
During the Obama administration, the OECD worked to enhance the transparency of financial transactions globally. Although the OECD does not have direct regulatory authority like a national government, its guidelines and frameworks influence national policies,
particularly in areas like tax information exchange and financial due diligence.
FATCA Regulations: Enacted in 2010, FATCA specifically targeted tax non-compliance by U.S. taxpayers with foreign accounts. FATCA required foreign financial institutions (FFIs) to report to the
FATCA Regulations: Enacted in 2010, FATCA specifically targeted tax non-compliance by U.S. taxpayers with foreign accounts. FATCA required foreign financial institutions (FFIs) to report to the
Internal Revenue Service (IRS) information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers held a substantial ownership interest. This was a crucial move to implement KYC rules globally.
Global Reach: To enforce FATCA, the U.S. Treasury negotiated a series of Intergovernmental Agreements (IGAs) with other countries, which either allowed the FFIs to report the required information to their own governments,
which then relayed it to the IRS, or permitted direct reporting to the IRS. These agreements effectively made FATCA a global tool for enforcing KYC because compliance was necessary for institutions to avoid withholding taxes and remain competitive in global markets.
CFTC Enforcement in Non-American Countries
The Commodity Futures Trading Commission (CFTC) is an independent U.S. federal agency tasked with regulating the U.S. derivatives markets, including futures, options, and swaps. Between 2009 and 2020,
The Commodity Futures Trading Commission (CFTC) is an independent U.S. federal agency tasked with regulating the U.S. derivatives markets, including futures, options, and swaps. Between 2009 and 2020,
the CFTC's role expanded significantly in enforcing regulations on unlicensed offerings, even in non-American jurisdictions:
Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 expanded the CFTC’s jurisdiction to include swaps,
Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 expanded the CFTC’s jurisdiction to include swaps,
which significantly increased the scope of its regulatory authority. The Act imposed new registration, reporting, and disclosure requirements on operators globally, particularly if they dealt with U.S. persons or operated in U.S. markets.
Global Enforcement: The CFTC enforced rules against unlicensed offerings globally by leveraging international cooperation agreements and its authority to pursue bad actors that threaten U.S. markets or investors, even if those entities were based overseas.
This included actions against illegal offerings and fraud in the derivatives and commodities markets.
By using regulatory frameworks from both the OECD and FATCA, along with the expanded authority under Dodd-Frank, the Obama administration was able to implement and enforce KYC
By using regulatory frameworks from both the OECD and FATCA, along with the expanded authority under Dodd-Frank, the Obama administration was able to implement and enforce KYC
rules and other financial regulations worldwide, influencing global financial practices and enhancing transparency and compliance across international borders.
---So the truth is, the government has done this before, and the IRS and Treasury see permissionless finance and smart contracts as a Developing Market Forex Broker, something to be enforced with aml-kyc laws, and they fully intend to do this globally in all countries.
FATCA: Requires foreign financial institutions to report accounts held by U.S. taxpayers. Non-compliance can lead to criminal charges if these institutions are found to be knowingly aiding tax evasion.
Money Laundering Laws: The U.S. can charge individuals if their actions
Money Laundering Laws: The U.S. can charge individuals if their actions
involve U.S. financial systems or have significant effects on U.S. commerce, regardless of where these actions occur.
Sanctions Enforcement:
Sanctions Enforcement:
The Office of Foreign Assets Control (OFAC) can impose penalties on foreign entities that violate U.S. sanctions, which can lead to extradition and prosecution under U.S. law if bilateral treaties exist.
------Time for the best part, the extensive list of sources I'm bringing to prove that the US government intends to kill DeFi globally a full list of 2.5 years of twitter threads on the regulatory progress.
- Thread explaining the 82 page Treasury Proposal
https://twitter.com/CryptoTaxGuyETH/status/1695603888957641154
- The full 82 page Treasury Proposal for DeFi Broker KYC requirementsgovinfo.gov/content/pkg/FR…
- Long spree of misinformation from Elizabeth Warren concerning Nation Securitywarren.senate.gov/imo/media/doc/…
- Thread explaining the Patriot act and Fincen proposal on mixers which sweeps up DeFi
https://twitter.com/propelforward/status/1715072779723137061
- actual fincen release on today's Patriot act proposalsfincen.gov/news/news-rele…
- 2021 Infrastructure Broker amendment bill super thread
https://twitter.com/duganist/status/1456228685137260558
you can learn about the law if you want to
Fatca
Fatf
OECD
Panama Papers
Obama administration CFTC cases against international forex and poker
online poker ban Black Monday Poker ban
Sar Suspicious activity reports
Controlled Foreign Corporation reporting
Fatca
Fatf
OECD
Panama Papers
Obama administration CFTC cases against international forex and poker
online poker ban Black Monday Poker ban
Sar Suspicious activity reports
Controlled Foreign Corporation reporting
6045/6050 IRS statute
Bilateral extradition treaties
Corporate structure laws for Elligible Contract participants in the Dodd Frank Bill for the Commodities Exchange act law.cornell.edu/uscode/text/7/…
Bilateral extradition treaties
Corporate structure laws for Elligible Contract participants in the Dodd Frank Bill for the Commodities Exchange act law.cornell.edu/uscode/text/7/…
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