Key dealers
- The New York State Assembly introduced a bill aimed at crypto messages with penalties up to $ 25 million.
- The bill criminalizes RUG features and unauthorized access to private keys with serious penalties.
New York legislators are taking a strong position against crypto messages. Assemblymember Clyde Vanel has introduced a new bill aimed at limiting misleading methods, including the carpet’s traits and private key theft.
The proposed legislation, Parish bill 6515Trying to change the state’s criminal law by establishing criminal sanctions for fraudulent activities related to virtual tokens. These include carpet features, private key drug and failure to reveal financial interests in digital assets.
According to the proposed law, developers who sell more than 10% of a virtual token can total supply within five years after the last sale will face charges for carpet features, with the exception of smaller NFT projects.
“A developer, whether naturally or otherwise, is guilty of illegal mat when such a developer develops a class of virtual tokens and sells more than ten percent of such symbols within five years of the day for the latest sale of such tokens,” according to the bill’s text.
“This section should not apply to non-sponge tokens where a developer has created less than a hundred non-fungal tokens which are considered part of the same series or class of non-fungal tokens or where such non-fungal tokens are considered part of the same series or class valued at less than twenty thousand at the time the due occur,” the count.
At the same time, unauthorized access or abuse of private keys would be criminalized unless explicit consent is given.
The bill also requires developers to publicly reveal their token holdings on their primary website to increase openness.
If assumed, the law would enter into force 30 days after the passage, with provisions for supervisory bodies to implement enforcement measures before the entry into force.
Through this bill, New York legislators hope to create a safer environment for investors while holding bad players responsible.
The bill aims to prevent widespread fraud that has plagued the crypto industry in recent years. Investors have lost millions due to misleading projects and sudden liquidity withdrawals.
In the case of approved, it would introduce serious penalties for individuals and companies that carry out misleading Cryptocurrency methods, including fines of up to $ 5 million and prison sentences of up to 20 years. Non-natural devices, such as companies, can be fined up to $ 25 million.
