A bill has been proposed by the US House of Representatives Financial Services Committee (FSC) to study the use of cryptocurrencies in sex trafficking.
If the bill is approved and signed into a law, the US comptroller general will need to find how the virtual currencies are used for buying, selling or facilitating the finance of services and goods for sex trafficking. The proposed study will also examine how the digital currencies will be used in the illicit drug trade.
Juan Vargas, the US House Representative, has prepared the FIND Trafficking Act or Fight Illicit Networks and Detect Trafficking and is likely to be introduced on June 12, 2018. The law is seeking the efforts of the Federal Agencies to prevent the use of digital currencies and other online marketplaces for drug and sex trafficking.
The Comptroller General is obligated to submit a report to the chair on housing, banking, and urban affairs as well as to the committee on financial services after one year of passing the bill. The study results will be used either for legislation or regulatory action.
Representatives of the US House Disapproves Digital Currencies
The congress members such as those in the FSC have disapproved the digital currencies in the past. A representative from California, Sherman has already disapproved the use of digital currencies saying those would help the criminals and terrorists to move the funds across the borders worldwide.
It also helps the startups to commit fraud and other illegitimate activities instead of actually using them for promoting the business.
Emanuel Cleaver, the US House representative, has expressed reservation about the digital currency and said Bitcoin (BTC) would instigate harassment, abuse and violence against the US citizens. Roger Williams, another representative, said the digital currencies worldwide are not compliant with the KYC or AML standards. Hence, there is no need to relax the standards for the cryptocurrencies.
However, other members of the Congress are not averse to exploring the cryptocurrencies. A Congressional Blockchain Caucus member, Tom Emmer said innovation should begin right here in the US. The regulators should frame stringent regulations for legitimate use of the digital currencies.
The US FSC Introduces a Bill To Curb the Use of Digital Currencies for Sex Trade
The US FSC is now introducing a bill to frame stringent rules and prevent the use of cryptocurrency for the sex trade and the illegitimate drug trade.
Companies such as Vice Industry Tokens are using their own cryptocurrency for attracting the porn stars and viewers. It is establishing alliances with HoloGirlsVR and Playboy to promote the trade.
The new bill will help to prevent such illegitimate use of the digital currencies.