As expected, the USG is trying to put the genie back in the bottle and trying to spy on your financial transaction conducted in crypto. As illustrated, Bitcoin has been slow to adopt privacy protections (and may never adopt them, given the number of Bitcoin holders who like the transparency), but there are several currencies (Monero, Tari, MobileCoin, Grin) which protect privacy much better than Bitcoin does.
"Under new proposed regulations from the Financial Crimes Enforcement Network, it may become much easier for the government to track bitcoin transactions. And while there’s currently a 15-day comment period open, cryptocurrency exchange Coinbase and the Electronic Frontier Foundation are calling foul because that period includes Christmas Eve, Christmas Day, New Year’s Eve, and New Year’s Day.
The proposed regulations in question, which were filed at 4:20PM ET on December 18th, are about private wallets. Let’s say I am a famous and fancy cryptocurrency investor, and I do some trading on Coinbase. If I have my own private wallet that I want to transfer my money to, I will have to identify myself as the wallet’s owner if I’m sending more than $3,000 in a transaction. And if I want to do business with someone else who has a private wallet, I need to tell the exchange some pretty detailed personal information. The exchanges are then required to store records of all this and turn them over on request.
Also under the proposed regulation, an exchange would be required to report my personal information if I make a total of more than $10,000 in transactions in one day. You can see why Coinbase — or any other exchange — would see this new know-your-customer requirement, at minimum, as a complete pain in the ass."
"Under new proposed regulations from the Financial Crimes Enforcement Network, it may become much easier for the government to track bitcoin transactions. And while there’s currently a 15-day comment period open, cryptocurrency exchange Coinbase and the Electronic Frontier Foundation are calling foul because that period includes Christmas Eve, Christmas Day, New Year’s Eve, and New Year’s Day.
The proposed regulations in question, which were filed at 4:20PM ET on December 18th, are about private wallets. Let’s say I am a famous and fancy cryptocurrency investor, and I do some trading on Coinbase. If I have my own private wallet that I want to transfer my money to, I will have to identify myself as the wallet’s owner if I’m sending more than $3,000 in a transaction. And if I want to do business with someone else who has a private wallet, I need to tell the exchange some pretty detailed personal information. The exchanges are then required to store records of all this and turn them over on request.
Also under the proposed regulation, an exchange would be required to report my personal information if I make a total of more than $10,000 in transactions in one day. You can see why Coinbase — or any other exchange — would see this new know-your-customer requirement, at minimum, as a complete pain in the ass."