Every day, every minute, Blockchain technology is becoming more important, occupying more spaces within our daily lives. However, this advance of blockchains can become a double-edged sword. Above all, if there is no adequate regulation to promote the harmonious development of the sector. Something against what the United States Congress is fighting.
The regulation of Blockchain technology is one of the great pending issues for most of the world’s governments. Well, despite the increasingly important new technologies created by the Fourth Industrial Revolution. They have not been sufficiently regulated to promote the sector.
This has prevented the accelerated development of new technologies such as Blockchain. Leading to organizations, companies and individuals dedicated to working with them should not only devote themselves to experiment. But to fight against a state bureaucracy that is not prepared for the pace of the changes that are happening.
The reasons behind the difficulty of states to adapt to the new context, are mainly in two factors. The first of them, inflexibility in the processes of creating laws and regulations. Which require years for writing, debate, approval and implementation. Hoping that once created they will have decades of validity. An outdated vision in a world that changes radically every few months.
The second factor would be ignorance by legislators, bureaucrats and, in general, members of the government. On the operation of technologies such as Blockchain. What makes them ineffective when creating regulations that do not prevent progress in these sectors. But promote it.
The work of the US Congress
Therefore, the United States Congress would be working to gather more information about Blockchain technology. With the aim of creating a regulatory framework that can promote the development of blockchains. As well as its use by companies, organizations and the US government itself.
To this end the hearing was organized “Building blocks of change: the benefits of Blockchain technology for small businesses“. In which, one of the witnesses invited by Congress, Marvin Ammorin, described as “true nightmare”, the tax declaration of companies related to the Blockchain.
“If you wanted to spend Bitcoin on a coffee this morning, you would have to keep track of what you paid for Bitcoin. And how much was it worth at the time you spent it, and pay the capital gain or loss on each transaction. ” Ammorin commented, recommending to Congress some type of tax exemption for small transactions with cryptocurrencies.
This would have been the general tone of the comments made by all witnesses. Who claimed for greater clarity in the rules of the different regulatory agencies on Blockchain. And for favorable conditions to fulfill its obligations to the State. Without this meaning a “nightmare” for them. Something that seems to be trying to achieve the American Congress, making this our Data of the Day here in CriptoTendencia.