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Only 15 days, including holidays, have been allotted to discuss the new rules that reduce the anonymity of cryptocurrency transactions to zero.
The Financial Crimes Enforcement Network (FinCEN) has proposed new rules that will make it easier for authorities to track cryptocurrency transactions. And although there are 15 days to discuss the initiative, cryptocurrency exchange Coinbase and the Electronic Frontier Foundation are sounding the alarm, as the discussion period falls on the winter holidays, and taking into account weekends, it is significantly reduced.
The new rules were proposed on December 18, 2020 and apply to private cryptocurrency wallets. According to these rules, when transferring amounts exceeding $ 3 thousand to private cryptocurrency wallets, the wallet owners must verify their identity. In addition, wallet owners wishing to do business with other wallet owners must provide their personal information to the cryptocurrency exchange. In turn, exchanges are obliged to store this information and provide it at the request of the authorities. If the owner of the wallet has transferred more than $ 10 thousand in cryptocurrency per day, the exchange is obliged to inform the authorities of his personal information.
Experts from the Electronic Frontier Foundation have already described the possible consequences of the adoption of the new rules. First, it will be more difficult for owners of private cryptocurrency wallets to remain anonymous when transferring funds to cryptocurrency exchange wallets. Second, the new rules make private cryptocurrency wallets less attractive to potential users.
However, there is another, more serious problem. Some cryptocurrencies, including Bitcoin, record all transactions publicly. That is, if a user exchanges his bitcoins through a cryptocurrency exchange, he must send a large amount of identifying information about this wallet, which will become available to the US government. Knowing who owns the wallet, the authorities will be able to see absolutely all transactions that have ever been carried out by its owner. This means that the government will be able to access much more data than the rules proposed by FinCEN provide.
FinCEN is a financial crime agency. It is a bureau within the United States Department of the Treasury. He is engaged in the fight against money laundering, as well as the financing of terrorism and financial crime.
The Electronic Frontier Foundation is a not-for-profit human rights organization founded in the United States in July 1990 with the aim of protecting constitutional and Declaration of Independence rights in response to the emergence of new communication technologies.
The Financial Crimes Enforcement Network (FinCEN) has proposed new rules that will make it easier for authorities to track cryptocurrency transactions. And although there are 15 days to discuss the initiative, cryptocurrency exchange Coinbase and the Electronic Frontier Foundation are sounding the alarm, as the discussion period falls on the winter holidays, and taking into account weekends, it is significantly reduced.
The new rules were proposed on December 18, 2020 and apply to private cryptocurrency wallets. According to these rules, when transferring amounts exceeding $ 3 thousand to private cryptocurrency wallets, the wallet owners must verify their identity. In addition, wallet owners wishing to do business with other wallet owners must provide their personal information to the cryptocurrency exchange. In turn, exchanges are obliged to store this information and provide it at the request of the authorities. If the owner of the wallet has transferred more than $ 10 thousand in cryptocurrency per day, the exchange is obliged to inform the authorities of his personal information.
Experts from the Electronic Frontier Foundation have already described the possible consequences of the adoption of the new rules. First, it will be more difficult for owners of private cryptocurrency wallets to remain anonymous when transferring funds to cryptocurrency exchange wallets. Second, the new rules make private cryptocurrency wallets less attractive to potential users.
However, there is another, more serious problem. Some cryptocurrencies, including Bitcoin, record all transactions publicly. That is, if a user exchanges his bitcoins through a cryptocurrency exchange, he must send a large amount of identifying information about this wallet, which will become available to the US government. Knowing who owns the wallet, the authorities will be able to see absolutely all transactions that have ever been carried out by its owner. This means that the government will be able to access much more data than the rules proposed by FinCEN provide.
FinCEN is a financial crime agency. It is a bureau within the United States Department of the Treasury. He is engaged in the fight against money laundering, as well as the financing of terrorism and financial crime.
The Electronic Frontier Foundation is a not-for-profit human rights organization founded in the United States in July 1990 with the aim of protecting constitutional and Declaration of Independence rights in response to the emergence of new communication technologies.
