U.S. Treasury to impose stringent regulations on Bitcoin Self Custody wallets, Coinbase CEO tweets

U.S. Treasury on crypto

November 27, 2020

Reading Time: 2 minutes

Brian Armstrong, the CEO of Coinbase, tweeted on Wednesday responding to claims that the U.S. Treasury was preparing a new set of Bitcoin Self Custody regulations. The CEO, however, did not reveal his source of this rumor on the purported new bylaw.

In the previous week, Armstrong said that he heard talks of the U.S. Treasury, led by Secretary Mnuchin, preparing to rush out new bylaws to cover private coin wallets before going out of office. He further warned of the aftermath left by these rumors and made it clear that he was concerned.

Armstrong revealed that he heard the new bylaws would demand crypto trading platforms get confirmation of the trader’s personal information before completing a withdrawal request.

from the talks doing rounds. This would mean that controllers have to keep records of addresses and identifications of their clients.

If it happens as so, the executive warned that it would enable anybody to access this technology on regular financial errands the same way anybody can browse the internet just with a smartphone or a computer.

Armstrong added that if it is made the regulation goes through, cryptocurrency will lose its uniqueness as it would be as accessible as regular banks. He went on to say that in case the U.S. alone pushes through with the bylaw, there would be a “walled garden” between U.S. coins and other coins in the market.

The U.S. outgoing president, DJ Trump, whom secretary Mnuchin reports to, had at one time tweeted on his negative attitude towards all cryptos, including Bitcoin. He claimed they could have “unlawful behavior,” citing it being a loophole for drug trafficking.

We shall fight back

Coinbase, realizing the rumor’s potential, addressed the treasury via a letter sounding their worries of the trade being overregulated. Armstrong said that some exchanges also had a hand in writing the letter. However, these companies were not disclosed as the letter was not published.

Bitonic, a Dutch Bitcoin exchange, also retaliated as they went to court against Dutch Central Bank, demanding them to validate the user’s address, as reported by BTC Times.

There are, however, a group of big names that root for crypto, for instance, incoming U.S. senator Cynthia Lummis who, over national television, said that she would promote Bitcoin as a worthwhile store of wealth while in office.

If the alleged regulation goes through, there would be resistance from pro-Bitcoin posts.

 

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