In an era where governments worldwide, including the United States, are increasingly imposing regulations that stifle entrepreneurship and innovation, blockchain-based corporate and trust registration systems are emerging as a liberating alternative. The recent developments surrounding the Corporate Transparency Act (CTA) in the U.S. further highlight the need for solutions that empower businesses rather than suffocate them under layers of bureaucracy.
The Burden of Bureaucracy: The Corporate Transparency Act (CTA) Example
The CTA, which came into effect on January 1, 2024, is one such regulation that exemplifies the growing bureaucratic encroachment on businesses. As part of the Anti-Money Laundering Act of 2020, the CTA requires more than 32 million businesses in the U.S. to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN). Companies established or registered to conduct business in the U.S. before the CTA's enactment must submit a BOI report by January 1, 2025.
The law mandates extensive personal details of individuals who have significant ownership or control over a company, with severe penalties for non-compliance. Fines can reach up to $591 per day for each day of violation, along with potential criminal penalties of up to $10,000 and two years in prison. Despite reassurances from Treasury Secretary Janet Yellen that FinCEN does not seek "gotcha enforcement actions" against small businesses, the reality is that many small and medium-sized enterprises (SMEs) are simply not prepared to meet these onerous requirements.
A survey by Wolters Kluwer CT Corporation found that business and legal professionals are struggling to understand their obligations under the CTA. Identifying beneficial owners and determining which entities are subject to the rule have proven to be complex challenges for many companies. These difficulties are compounded by the fact that states like New York are beginning to implement their own BOI disclosure laws, with California and Maryland considering similar legislation.
Blockchain Registration: A Clear, Compliant Alternative
Against this backdrop of regulatory overreach, blockchain-based corporate and trust registration systems provide a compelling alternative. Unlike traditional registration methods, blockchain registrations are decentralized, efficient, and not subject to the unpredictable whims of government bureaucrats. With Blockchain International Corporate Registry Authority (BICRA), entrepreneurs can establish legally compliant corporations, trusts, and other entities on blockchain networks without the constant harassment and complexity imposed by traditional government systems.
The benefits of using blockchain for corporate and trust registration are significant:
Decentralized and Immutable: Registrations are stored on a decentralized blockchain network, ensuring tamper-proof records that are accessible globally. This immutability guarantees that once a registration is completed, it cannot be altered or manipulated by any third party.
Global Jurisdiction Compliance: BICRA registrations are compliant with international laws and conventions, such as the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958). This provides a clear legal framework that protects businesses from arbitrary local regulations and government interference, legally valid in 172 Nations.
Privacy and Confidentiality: Unlike the CTA, which demands extensive personal information on beneficial owners, blockchain-based registrations respect the privacy of entrepreneurs and stakeholders. Sensitive data is encrypted and secured, accessible only to authorized parties.
Speed and Efficiency: The registration process on blockchain can be completed in less than 30 minutes, without the delays and paperwork associated with government agencies. In contrast, the Delaware Secretary of State, for example, is known to take several weeks to process UCC-1 filings, creating unnecessary bottlenecks for businesses looking to operate efficiently.
Cost-Effective: Traditional registration methods often involve high fees and hidden costs. Blockchain corporate and trust registration significantly reduces these costs by eliminating intermediaries and automating the process, allowing entrepreneurs to focus their resources on growing their businesses rather than navigating bureaucratic red tape.
Case Study: The Coyote Dragon Trust - A Lesson in Simplicity and Efficiency
Consider the case of "THE COYOTE DRAGON METATRON HOLDINGS REVOCABLE LIVING BT," which highlights both the power and the pitfalls of the blockchain registration system. A client registered this trust using the BICRA platform, but due to a misunderstanding, they included the word "REVOCABLE" in the trust's name—an action that contradicted the platform's intention of creating irrevocable trusts.
While the mistake was entirely on the client's end, it underscores an important lesson: blockchain registration systems are highly efficient and straightforward, but they also require users to be precise and informed. Unlike traditional systems burdened by endless paperwork and confusing regulations, blockchain platforms provide clarity and simplicity—assuming the user understands the basics.
Despite the client’s error, the BICRA system functioned exactly as intended: it processed the registration quickly, ensured compliance with international laws, and maintained the integrity of the blockchain record. Had this registration been under a traditional system like the CTA, the complications and delays would have been even more pronounced, with potential fines or penalties for incorrect filings.
A Call for Entrepreneurial Freedom
The contrast between blockchain-based corporate and trust registration systems and traditional government bureaucracies like the CTA is stark. Entrepreneurs around the world are tired of dealing with ever-increasing regulatory burdens that stifle innovation and growth. They seek alternatives that allow them to operate freely, securely, and with confidence in their legal standing.
Blockchain registration offers precisely this: a liberating, efficient, and globally compliant system that empowers businesses to focus on what they do best—innovating, growing, and contributing to the global economy—without the constant fear of arbitrary penalties and government overreach.
Conclusion
As more governments introduce complex and invasive regulations, the case for blockchain-based corporate and trust registrations becomes even stronger. By offering a clear, decentralized, and efficient alternative, platforms like BICRA are at the forefront of a movement to restore entrepreneurial freedom and create a more dynamic, less constrained global business environment.
It's time for entrepreneurs worldwide to embrace the future of decentralized blockchain business and trust registrations and leave behind the shackles of outdated bureaucratic systems.
Take action today and register your decentralized and tax-exempt Blockchain Corporation or Trust in less than 30 minutes for only $299 including all these benefits.
For more information contact us:
Blockchain International Corporate Registry Authority
Tel: +1-587-430-2692
Bankers Hall 888 | 3rd Street
West Tower, 10th Floor, South West Calgary | Alberta T2P 5C5 | Canada