According to the new bill, developed by New York state authorities, “unowned” bitcoins can be confiscated in the country`s favor – BitcoinDoubler2x has got to know.
The bill has been presented at the New York State Assembly and it will allow the government to give to the treasury all unclaimed cryptocurrency assets, that before have been property of state`s residents. Although, it`s still unknown how the authority will implement this process technically.
The law of the process of transferring unclaimed property to the state was passed back in feudal time. It involves the arrest of property, if nobody owns or needs it. For example, if a person suddenly died and didn`t leave a will, and he also didn`t have legitimate heirs.
In modern times property liquidation laws need some amendments. Anyway, their proper usage may be profitable for the government, because in this case cryptocurrency will become additional source of income.
Other states, like Illinois, Colorado and Utah, have already began taking certain steps towards cryptocurrency accepting as property.
The current bill can be considered as reaction from existing laws on the transfer of property rights to the state, nevertheless, it contains increased risks. For instance, if the government purchases assigned cryptocurrency for fiat money, and then an owner will appear. How will the state pay off? Should they buy digital currencies back at the rate of sale in fiat currency or at the current rate? But main question – in what way do officials plan to determine cryptocurrency affiliation to state citizens, if assets locate on an unregulated service? It opens a wide field for extended interpretations of the law, if it is adopted.
In addition, there is high probability that other states will do the same step, taking into account existing inconsistencies in the bill.