The United States proposed to tighten the regulation of crypto wallets

The United States proposed to tighten the regulation of crypto wallets

  • In the US, nevertheless, they proposed to tighten supervision of crypto wallets

  • Operations in the amount of $ 3000 or more will be toughened

  • Public discussions on the proposed innovations will last until January 4, 2021

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US Treasury will require full verification of users of cryptocurrency wallets

The United States proposed to tighten the regulation of crypto wallets

In the United States, it was proposed to introduce mandatory verification of cryptocurrency wallets. According to the published proposal of the FinCEN agency, controlled by the US Treasury, data on the owners of crypto wallets will be stored in databases and tracked in case of suspicious transactions.

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If the proposal is approved, there will be tougher measures applied to offline wallets (hardware / cold storage of cryptocurrencies) when interacting with centralized exchanges. FinCEN proposes to classify standalone wallets as “wallets that are held by a financial institution that does not fall under the Bank Secrecy Act”.

Cryptocurrency curtain

In particular, it is proposed to apply advanced methods of the “know your customer” (KYC) policy in case of withdrawal of funds over $ 3000. Transactions over $ 10,000 must be reported to FinCEN. FinCEN also plans to take on pencil the breakdown of large transactions into small ones in order to avoid supervision..

Until January 4, 2021, the proposed innovations are undergoing public consultations.

The United States proposed to tighten the regulation of crypto wallets

Sarah Jamie Lewis, founder of the non-profit organization OpenPrivace, has already called the US Treasury proposals “censorship of all human ties.”.

BeInCrypto’s editors previously reported on possible regulatory tightening in the United States. Then the head of the cryptocurrency exchange Coinbase Brian Armstrong said that the regulation of offline crypto wallets could lead to “unforeseen side effects.”.

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Armstrong noted that the Trump administration may require financial institutions to verify mandatory autonomous crypto wallets before the end of their term. Coinbase will be hit in this case.

Recall that in some countries such measures are already actively functioning. So, for example, the Dutch crypto exchange bitonic announced a tightening of the withdrawal of funds, including the identification of crypto wallets, due to the requirement of the country’s central bank. Then the exchange called the new regulation measures “ineffective and disproportionate”.

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