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Treasury is preparing to strike ...

Treasury Prepares to Hit Crypto Market – Coinbase CEO
CONTENT

  • Coinbase expects a worsening cryptocurrency climate in the US

  • In the Netherlands, such restrictions have already drew criticism in the cryptocurrency community.

  • Trump Administration May Aggravate Cryptocurrency Market Before End Of Term

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The cryptocurrency exchange expects “unforeseen side effects” from the upcoming actions to regulate the cryptocurrency market

Treasury is preparing to strike ...

The upcoming regulation of autonomous cryptocurrency wallets by the US Treasury may have “unintended side effects.” This opinion was expressed on his Twitter page by the head of the cryptocurrency exchange Coinbase Brian Armstrong.

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The exchange believes that the Trump administration may be in time before the end of its term of office to require financial institutions such as Coinbase to verify the owners of autonomous crypto wallets..

“At first glance, this seems reasonable, but in practice it is a bad idea because it is often impractical to collect identifying information about the recipient in cryptoeconomics,” Armstrong wrote..

Regulators, according to Armstrong, may also require financial companies to collect information about the owner of the wallet before allowing withdrawals..

Treasury is preparing to strike ...

Self-isolation

According to the head of Coinbase, most users of the cryptocurrency market send assets to smart contracts in order to use decentralized finance applications (DeFi) Decentralized finance (DeFi) is a financial services built on the basis of blockchain technology that offer users access to an open, efficient and … More). A smart contract does not have to be owned by any person or business that can be identified.

“This is a new type of recipient that has no direct equivalent in traditional financial services,” emphasizes Armstrong..

Also, identifying wallets does not make sense, since many in the cryptocurrency community send cryptocurrency to various sellers, emerging markets where it is difficult or impossible to collect meaningful information about the recipient, or use digital currencies in new applications, for example, for voting. Potential regulation of this segment, according to the head of the American crypto exchange, will simply “kill” many emerging options for the use of cryptocurrency.

“This will effectively create a walled garden for crypto-financial services in the US, cutting us off from innovation taking place in the rest of the world,” summed up Armstrong..

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According to the head of the exchange, Coinbase, along with other cryptocurrency giants, expressed their concern to the Treasury about the upcoming regulations. However, in some countries, such stringent regulatory requirements have already entered into force. So, for example, earlier the Dutch crypto-exchange bitonic announced a tightening of the withdrawal of funds, including the identification of crypto wallets, at the request of the local regulator. The exchange has already called the requirements of the regulator “ineffective and disproportionate”.

It is noteworthy that the idea of ​​the US Treasury to toughen the turnover of cryptocurrencies in the country sounds the next day after it became known that the US National Intelligence Service expressed concern to the US Securities and Exchange Commission (US) due to excessive regulations on the crypto market, which have already led to China’s dominance in the digital asset industry.

Treasury is preparing to strike ...

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