Coinbase CEO Brian Armstrong shared his concerns about the US administration’s plans. It. President Donald Trump to tighten control over cryptocurrency users.
Last week we heard rumors that the US. It. Treasury and Secretary Mnuchin plan to rush some new regulation regarding self-hosted crypto wallets before the end of his term. I am concerned that this would have unintended side effects and I wanted to share those concerns.
– Brian Armstrong (@Brian_Amstrong) 25 November 2020
“Last week we heard rumors that the finance minister [Стивен] Mnuchin plans to accelerate the introduction of some new rules for local wallets of cryptocurrency before the end of his term, “wrote Armstrong.
In his view, the initiative will oblige Coinsbase and other financial companies to verify the owners of non-custodial wallets before withdrawing funds.
“At first glance, this seems like a reasonable idea, but in practice it is not,” said the head of Coinbase.
He pointed out the impracticality of collecting information about the recipient of a transaction in a number of cases: from transferring cryptocurrency to smart contract addresses for use in defective applications that are not linked to an individual or legal entity, to the unwillingness of recipients to transfer Additional personal data.
Therefore, users will refuse to withdraw money to their own wallets and start turning to unregulated platforms, Armstrong suggests. In his view, in the end, the situation threatens to lose the US. It. Financial center status.
This would be bad for America because it would force US. It. Consumers to use foreign unregulated crypto companies to gain access to the services. And in the long run, I believe this would put America’s status as a financial hub at risk.
– Brian Armstrong (@Brian_Armstrong) 25 November 2020
“If such regulatory measures for the cryptocurrency industry are approved, it will be a terrible legacy and will have a lasting negative impact on the United States,” the exchange’s CEO said.
Coinbase and other representatives of the crypto industry expressed their concerns about possible regulatory measures in a letter to the Department of Justice.
The community had released concerns about user identity checks before Armstrong’s message. On November 18, the Washington-based organization for the promotion and protection of the interests of the Bitcoin and Blackhaven Industry Coins Center published an article on the implications of restrictions on anonymous wallets.
In November, the Blockchain Association presented a guide for legislators on the subject.
Presumably, the position of the head of the US. It. Treasury in the new administration of Joe Biden will be taken over by former head of the US. It. Federal Reserve Janet Yellen.
Previously, Morgan Creek Digital co-founder Anthony Pompliano called the news good for Bitcoin.
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