The new law of Illinois in the United States intends to make unauthorized digital asset business activities a felony

On March 9, the Alliance DAO, a decentralized autonomous organization created by the Web3 entrepreneurship accelerator DeFi Alliance, tweeted that last night in Illinois, a bill (the Digital Assets Regulation Act DARA) proposed to criminalize unlicensed digital assets business activities (i.e., most blockchain activities). If the House of Representatives passes the bill, it may become law in a few weeks.

Interpretation of this information:

The Alliance DAO has reported a development that could heavily affect blockchain activities in Illinois. A bill called the Digital Assets Regulation Act (DARA) has been proposed, which aims to criminalize digital assets businesses that operate without proper licensing. The bill’s potential impact could cover most blockchain-related activities, which has raised concerns within the blockchain community.

This comes as the blockchain industry is making significant strides, with many mainstream companies adding blockchain to their operations. However, the implementation of laws like DARA could hinder these advancements and discourage further innovation in the field. Moreover, it could lead to the loss of future job opportunities in the industry.

The timing of this bill may be indicative of a larger shift in the United States towards more regulation in the crypto space. As the industry grows and gains more mainstream recognition, policymakers may feel the need to implement more significant regulation aimed at ensuring the fair operation of businesses in the crypto and blockchain sector.

The Illinois state, in particular, has been taking a bullish stance towards the blockchain industry, with the creation of the Blockchain Business Council in 2019 to oversee developments within the market. Therefore, the proposed bill may come as a surprise to many as the state aims to become a hub for blockchain.

However, should the bill pass, it could help ensure that businesses in the digital asset space meet certain standards and adhere to specific regulations. The introduction of a licensing system could promote more secure and responsible business practices, which could help build more trust and credibility for the blockchain industry.

In conclusion, the Digital Assets Regulation Act proposed in Illinois could have a significant impact on blockchain activities in the state; it could either impede growth and innovation within the sector or promote responsible business practices. The blockchain community must remain vigilant and engaged as this bill moves through the legislative process.