New U.S. Regulations on Crypto Transparency Coming Soon

So, Treasury Secretary Steven Mnuchin dropped some news on Wednesday about upcoming regulations for cryptocurrency and digital payment systems in the U.S. He didn’t go into details, but it sounds like they’re focusing on tracking these currencies to prevent money laundering and to ensure taxes are collected. He mentioned that the government might be investing more to keep an eye on Bitcoin transactions. Check it out for more info > https://www.bloomberg.com/news/articles/2020-02-12/cryptoasset-rules-set-for-release-by-trump-administration Looks like the U.S. is getting serious about monitoring crypto.

Since it is an initiative by Fincen, we can safely assume that the regulation will give more power to legal authorities against the misuse of cryptos. It may also include the power to scrutinize crypto users and their transactions, especially when it talks about transparency! US is slowly becoming crypto unfriendly country with its stricter rules and regulations. It seems like they are ready to loose important business opportunities in the future for the sake of stupid regulations relate to transparency! Well, some other countries will reap the benefit then!

My suspicion is that they are talking about implementing the FATF travel rule with its $1,000 reporting thresholds. I was previously under the impression that Congressional legislation was required, but now I'm not so sure. I also don't think the US government will be the only one. The FATF expects member states to implement these standards by June.

It may be true because he indicated later that he wanted this technology to go ahead. I want to add this quote: It seems that the focus will be on exchanges which may be through platforms, individuals, entities and everyone who provides crypto services, and perhaps it will extend to platforms that operate in the exchange of cryptocurrencies "that are not related to cash. Read more and source ---> https://finance.yahoo.com/news/trump-administration-release-fincen-requirements-201536293.html

Blow To Bitcoin As ‘Significant’ U.S. Crypto Crackdown Suddenly Revealed Same news different headline, it sad to see that even a reputable website like Forbes are using misleading headlines on crypto related news. How can this be considered a "crackdown" when only the potential new regulations the US will have is all about preventing illicit activities from happening in the crypto industry? Are there trying to say that everyone of us involved in the industry is doing bad? Like we are all evading taxes and laundering our money? These types of news about new and updated kinds of regulation shouldn't be assumed to be bad in the first place since we still don't know what the content of the upcoming regulations are. What Forbes is doing can be technically considered as mind conditioning which is delivering a neutral news to be something bad for us.

I don't see any reason crypto to crypto transactions would be considered illegal without KYC? So can I not send you $1 in BTC without having to tell the government that I did? If that's the case, then bad days are coming. I know you're referring to exchanges, but fiat to crypto and vice-versa f2f transactions, theoretically, need to be declared. Hence, crypto to crypto would sit under the same rule. This is what scares me: Amazon's successful patent back from 2018. Guess there's a lot of work already ongoing for years about identifying us and honestly, with all the possibilities of analyzing transactions and how transparent they are, it's not hard to gather a ton of data and just sell it to the governments.

This might be the moment of Bitcoin users that they will realize that they are fudged-up. Although probably this might help a lot of people, it might these regulations will also affect a lot of people in a negative way. Transparency really is important so the authorities can avoid or lessen the miss-use of crypto-currency. However, the people stored their assets in Bitcoin before, hoping to keep their assets out of taxes. In this case, they might end up being very troubled. I just can't imagine myself in that situation. It might have a problem but still a head-ache worthy problem. The word anonymous will remain in crypto transactions and I think the only way they can regulate us the wallet we had to use just like a custodial wallet that required KYC and every transaction can be traceable when exchanging to fiat.

It's not about keeping assets out of taxes. Would've been amazing if there were no taxes imposed on crypto capital gains, of course, but the thing is, any attempt to gain more intimacy is being terminated by the state. Whenever we finally find a way to "hide" from the public without any bad intention such as tax evasion, we're just pulled back out in the public spotlight. There are enough ways to escape for those looking to do tax evasion. I just feel like these regulations don't have much of an impact against those with malicious intents. We're being requested and drained of more and more personal information while they're successfully making their moves to escape. And it's common sense: one who is going to commit any kind of crime will never be silly enough to provide KYC anyway - and it's just an example out of many.

I expect nothing new and nothing disruptive. It'll be reiterating the KYC stuff, giving the boot to exchanges that don't play full ball and giving Chainalysis more money. There's not exactly much more they can do.

we might be building up to another BTC-E event---possibly right down to the timing, considering the bull market. FINCEN's guidance last year rendered lots of altcoin exchanges non-compliant. when the FATF rules get implemented, that will become even more apparent. i have no doubt the DOJ+FINCEN (possibly in conjunction with the CFTC or SEC) will eventually make another example of a non-compliant exchange. i worry about platforms like kucoin---they allow unverified accounts (including from the USA), they offer derivatives to USA traders on kumex, and they've added fiat-to-crypto services that USA customers can use.

https://twitter.com/CACryptoLawyer/status/1227702311272603648 https://twitter.com/jchervinsky/status/1227709489786302470 Thread here from someone who asked people who actually work in this area. They haven't heard anything. Looks like Mr Mniminim has developed a Trump-esque fondness for spouting anything with zero to back it up.

All they need is to regulate the exchanges and strictly monitor their activities and if that happens all the exchanges will follow the KYC AML rules and regulations and then the transparency is lost forever and that is what is going to happen in a few years, if any exchange is not follow them they will push them out of business by taking over their domain and i am sure that is how they are planning to control the market.

thanks for the info! so it was just empty posturing by the trump administration!? music to my ears, tbh. the longer we can maintain the current AML/KYC status quo (vs submitting to the FATF overlords) the better.

I think this is not about being unfriendly but about trying to sanitize the system and to guarantee better security of invested fund. Most people will even like to invest where rules are strict for trustees of funds or exchanges so that they are safe with them. I would even like to invest in such environment.

They are really at it ever since, the silk road anomaly is one big example why they want to do this and of course the threat of terrorist using Cryptocurrency to fund their activities is also one of their concern, of all the President only Trump is very serious to spend funds to scrutinize Crypto transaction.

I want Trump to also start looking at scam in cryptocurrency especially ICO projects that scam and exit, if that is possible. It should be given serious attention and treated just like fiat as money laundry and embezzlement are not taken lightly. Crypto is financial business as we also clearly know, it can have some security too.

Careful what you wish for. Strict rules means you might not even get to invest anything or you may find yourself having to prove you're not a criminal while with your funds are frozen.

Anything as long as it is not some kind of BitLicense is something to look forward too as in this way the crypto industry is not some kind of exclusive service that only licensed people have the privilege to enter. But I do think that the US government needs to be more concerned in scams happening in the industry rather than focusing in money laundering regulations, for the past couple weeks I have frequently seen people both close to me and in the internet get victimized by one of these scams and still we haven't seen any kind of action from any government. I do hope they include laws in relation to our cyber protection.

Is it the laws lagging behind or is it more a matter of enforcement and/or the police forces being undereducated or not having enough resources? Most cryptocurrency scammers are already breaking preexisting laws.

Any licensing scheme will create new barriers to entry and new capital requirements for start-ups. The more restrictive the scheme, the less options consumers will have, and the more costly they will be. BitLicense is just the extreme example. They don't have the resources to fight crime, generally. The overwhelming majority of property crimes already go unsolved. When you add in the pseudonymity of cryptocurrency and the multi-country jurisdiction of the platforms we use, I become really skeptical that "cyber protection laws" are going to do much.