Cryptocurrencies

US Treasury proposes law to monitor private crypto wallets – Cryptocurrencies

US crypto wallet law

Death or death: a big bonus for the one who manages to shift the weapon to the left to cryptocurrencies?

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While waiting to hand over to his successor, Steve Mnuchin and his acolytes draw another law to bleed the cryptos.

KYC for everyone

The US Treasury finally unveiled the bill to deter financial service providers from operating with self-hosted wallets.

In a press release dated December 18, 2020, the Financial crimes enforcement network (FinCEN) proposed a regulation requiring exchanges to verify the identity of their customers, whether they are using a non-hosted wallet or not, and whether the transaction is greater than $ 3,000.

The treasure gave stakeholders 15 days to provide feedback. Rumors had been circulating for several months about this regulation.

A last one for the road

The Secretary of the Treasury, Steve mnuchin, indicated that this proposal responds to concerns in terms of national security, in particular in order to fill the gaps that malicious actors seek to exploit in the keeping of records and declarations.

For many observers, this announcement of Steve mnuchin who is about to leave his post while the administration of Joe biden is going to make its entrance, is a wake-up call to the crypto sector.

A number of lawmakers have nevertheless spoken out against this law, which would considerably restrict peer-to-peer (P2P) transactions.

A congressman, Warren Davidson, mentioned that this law was more dangerous than the Stable Act which would apply to issuers of private stablecoins.

It seems, however, that the proposed law is not as radical as some suggested.

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Current transaction reporting requirements will apply to licensed entities that interact with self-hosted wallets.

A matter of national security? Rather a matter of security of the dollar and the actors privileged by the greenback. We live in a world where the real criminals who do not hesitate to play with the printing press, to inflate the public debt in an irrational way, are in the powers and put a price on the head of the cryptos freeing the people from the yoke of the fiats and especially the dollar. What does the Biden administration have in store for cryptocurrencies? Another Steve Mnuchin will most likely make life difficult for these. Was it harder with Donald Trump? Not sure, regrets only come later, so be patient !

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