Cryptocurrency Firms Call on US Treasury to Review Proposed Reporting Requirement for Crypto Mixers
Cryptocurrency firms Coinbase, Consensys, and Paradigm are urging the US Treasury to reconsider its proposed guidelines for reporting transactions involving crypto mixers. These firms argue that the requirements are ineffective, lack specificity, and drain resources from crypto platforms.
Coinbase and Others Oppose Proposed Rules for Crypto Mixers
Coinbase, Consensys, and Paradigm have called on the US Treasury to stop wasting time with crypto mixers. Coinbase submitted a letter outlining its objections to the proposed rules, stating that they are burdensome, ineffective, and overly broad. The exchange argues that there is no regulatory gap in this area and that the proposed regulations would invade privacy and pose a security risk.
FinCEN Warns of Crypto Used for Terrorist Financing
In a cautionary alert in October 2023, FinCEN highlighted the use of virtual currency for financing terrorist organizations. Coinbase took issue with FinCEN’s proposed reporting requirements and stated that they would result in bulk reporting, contrary to the intentions of Congress.
Consensys and Paradigm Support Coinbase’s Objections
Consensys and Paradigm have expressed their support for Coinbase’s objections to the proposed rules. Consensys submitted a letter emphasizing the need for a security solution that preserves privacy. Paradigm filed a separate response, stating that the proposed rule is not the appropriate tool to address the concerns raised by FinCEN.
Hot Take: Crypto Firms Advocate for Privacy and Regulatory Clarity
Cryptocurrency firms Coinbase, Consensys, and Paradigm are pushing for the US Treasury to reconsider its proposed rules for crypto mixers. They argue that the requirements are burdensome, ineffective, and overly broad. These firms highlight the lack of a regulatory gap and express concerns about privacy invasion and security risks posed by the proposed regulations. With support from Consensys and Paradigm, Coinbase is advocating for a regulatory landscape that fosters compliant companies while holding them accountable. This call for privacy and regulatory clarity aligns with the need to address terrorist financing concerns but also ensure that innovation in the digital asset industry can thrive.
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