New York State Aims to Create a Cryptocurrency Task Force

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The New York state legislature voted on a bill to create a cryptocurrency task force. The banks committee of the legislature met on Wednesday, May 30 to create a digital currency task force that will study the potential impact of crypto implementations in the financial market. The bill, if passed, will create a new team of nine members which will conduct the aforementioned study. The report will then be presented to the governor, the temporary president of the senate and the speaker of the assembly by December 2019.

The legislation suggests that the report will study how regulations could affect the development of digital currencies in the state, with equal focus on the change in blockchain technology as well. The task force will be free to consult any government entity, organization, or person it deems necessary in order to prepare their report.

The team will also focus on the effect of digital coins on local tax receipts as well as the marketplace for these currencies. It will also have to classify the total number of crypto exchanges operating in the state, all important information about large investors engaged in this field and more. Team will also be looking into the energy consumption that mining operations require.

The bill brings a lot to the table when it comes to the digital currency space. It will also have to 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 Canadian and US state and provincial securities regulators launched probes into fraudulent crypto investment programs. ICOs have become a major nuisance or regulatory authorities all across the world. Several companies are now launching their own cryptocurrencies and a small number of them are doing everything to con users into buying fake securities. The North American Securities Administrators Association (NASAA) is also launching a probe into these initial coin offerings. The agency had earlier issued a warning to investors about risks that are associated with investing in digital coin ventures.

Over 40 jurisdictions have started 70 separate investigations into ICOs and cryptocurrency projects and more are expected to be launched globally in the coming few weeks. The cryptocurrency segment is going through major upheavals this year. After reaching all-time highs in December 2017, the digital coins have shaved off more than 50 percent of the gains this year and have failed to achieve anything remarkable.

Some legitimate projects with unique technologies and practical use cases are making headlines for all the good reasons. However, of the 1500+ coins available in the market, most remain unknown or irrelevant. This gives scrupulous individuals a chance to dupe investors. If regulations are brought into the space and such trade is legitimized, it is likely that investors will get better protection of their funds. The global governmental attitude towards the use of cryptos as currencies is still negative but bulls are hopeful that they will be classified as securities and charges as usual financial assets only.

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