Posted 5 months ago | by @devadmin
Brian Armstrong has warned about a rumored Trump Administration plan to crackdown on cryptocurrency.
The Coinbase CEO tweeted a thread criticizing the U.S. Treasury Department’s purported scheme to attempt to track owners of self-hosted non-custodial cryptocurrency wallets with data collection including know your customer laws.
Last week we heard rumors that the U.S. Treasury and Secretary Mnuchin were planning to rush out some new regulation regarding self-hosted crypto wallets before the end of his term. I'm concerned that this would have unintended side effects, and wanted to share those concerns.
— Brian Armstrong (@brian_armstrong) November 25, 2020
If the rumors which have been going on for months now turn out to be true, Arnstrong says that outgoing Treasury Secretary Steven Mnuchin is preparing to push game-changing regulations which will challenge the ability for users to create wallets without Know Your Customer or KYC laws before Trump’s term ends.
“This proposed regulation would, we think, require financial institutions like Coinbase to verify the recipient/owner of the self-hosted wallet, collecting identifying information on that party, before a withdrawal could be sent to that self-hosted wallet,” Armstrong tweeted.
If the cryptocurrency regulations do go into effect, as Bitboy Crypto warned from two insider sources in September, it would mean crypto businesses would be forced to know every person their users’ crypto transactions, keeping logs, and verifying identities (KYC) even before a transfer can go through for sending crypto.
It would also mean that decentralized finance (DEFI) would be dead in the water as it would be impossible for smart contracts to function in a decentralized manner with KYC required or integrated. What would be possible is a hybrid of DEFI and CEFI using crypto assets and blockchain technology as medium of exchange for lending and borrowing services. But that’s far too complex to get into in this article at this time.
Armstrong further stated that the regulation “would be a terrible legacy and have long-standing negative impacts for the U.S.”
“This additional friction would kill many of the emerging use cases for crypto. Crypto is not just money – it is digitizing every type of asset,” Armstrong added.
However, it remains unclear how the U.S. government would force developers of software wallets to implement code. Although, according to sources of Bitboy Crypto the way they intend to do this will be through fines and legal threats to those who refuse to comply, i.e. using violence as per the governments’ normal operations manual.
Bitboy Crypto has previously warned our audience that cryptocurrency regulation was coming in the U.S. where every wallet provider would be required to KYC, watch the video below!
Bitcoin is currently trading at [FIAT: $16,686.24] DOWN -12.4% in the last 24 hours according to Coingecko at the time of this report.