Canada Adopts International Crypto Tax Reporting Standard
Canada is aimed at having the OECD standard for crypto asset tax reporting in place by 2027, as agreed with 46 countries.
llinois Senator Robert Peters has introduced a Senate Bill to the state legislature dubbed the “Digital Property Protection and Law Enforcement Act”. Since its introduction, the Bill has received criticism from and been mocked by the crypto community for its “unworkable” plans.
The bill, which was received without attention at the time, gives the courts the power to order that blockchain transactions, like sending Bitcoin ($BTC), be rescinded or altered if a valid request is made by the attorney general or a state’s attorney pursuant to the laws of Illinois. According to the proposed bill, the act would apply to any “blockchain network that processes a blockchain transaction originating in the State”. It would also mandate “any person using a smart contract to deliver goods and services” to include code in the smart contract that can be used to comply with court orders.
It was noticed and made public knowledge after a lawyer in Florida, Drew Hinkes, tweeted about it.
as a preface, This is a stunning reverse course for a state that was previously pro -innovation. Instead we now get possibly the most unworkable state law related to #crypto and #blockchain I’ve ever seen. A shocking turn of events for the #tech community in #illinois /2
— Drew Hinkes (@propelforward) February 19, 2023
The bill would impose fines of up to $10,000 per day on blockchain miners and validators daily if they don’t comply with court orders related to their blockchain operations.
Despite noting the fact that blockchain is immutable and unchangeable in nature, as a key characteristics of the technology, the bill still would require networks to have a mechanism that would allow the network to be altered:
“As a result, the cost to enforce legal rights in digital property is often prohibitive such that the property rights cannot be vindicated and the vast majority of blockchain crimes go unpunished.”
The bill was introduced earlier in February, and would still need to be voted in by three different committee hearings. Only them, the bill would be passed on to Jay Pritzker, the Illinois Governor, who would be able to reject or officially sign the bill into law. If the bill is passed, the contents of the bill will take effect 30 days after becoming law.
To this bill, the cryptocurrency community has taken to mocking the proposed bill as a result of its impossible suggestion. Acknowledging that there is a need to regulate the space more and introduce bills that will improve and enhance consumer protection, it would be impossible for users in the cryptocurrency space – including miners and validators in the process of creating new Bitcoin – to work around with the bill proposed by Senator Peters, and compliance would not work.
this is hilarious, Illinois is proposing a bill that would make miners & validators “respond to a court order by including transactions on the blockchain without needing the private key”
why are you refusing to comply, transfer satoshi’s bitcoin to governor pritzker! off to jail https://t.co/7JcpktWMgH pic.twitter.com/FPKLsFNE3e
— foobar (@0xfoobar) February 19, 2023