New US crypto laws mandates upon crypto owners and exchanges to furnish information. Any transaction over and above US$ 10 K would need to be recorded and then reported. Coinbaseinforms FinCENnot to panic as there is no need to implement a law in haste.
A new law was proposed in the US regarding cryptocurrency which required crypto exchanges to record information of transactions over US$ 10K. Through the law, ousting administration had asked crypto exchanges to furnish information of transactions if transactions were above US$ 10K.
However, Coinbase’s lawyer had recently addressed a letter to FinCEN of US Treasury – a financial crime wing of the Treasury. In the letter the lawyer had indicated to FinCEN that there is no rush in implementing a law in haste.
It was reported earlier that through the law the Government wanted to obtain personal information of crypto owners/users. The law seemed to be contrary to the exchange-customer relationship and was not welcome by most of the exchanges. Thereafter, many exchanges disagreed with the proposed law and Coinbase was one amongst them who was leading from the front.
The draft law was published on 18th December and it was stated by FinCEN that it would eliminate money laundering. FinCEN thereafter put a 15-day limit in which it was to receive public comments.
Again many of the crypto exchanges disagreed with the timeline of seeking comments. They argued that normally any new law required at least 30 days or 60 and even more, as the case may be. They said that they failed to understand why the rush and what the emergency is. However, on 21st December, Paul Grewal, who is the lead counsel at Coinbase wrote a letter to FinCEN. In this letter, Grewal indicated to FinCEN that there is no need to panic.
He also said that it looked as if the ousting administration had been trying to implement a law in haste. He said that may be the outgoing administration do not want to consult with the overtaking administration. Otherwise, there seems to be no justification in rushing, he added.
Grewal also stated in his letter that he failed to understand why crypto industry had been compared with traditional financial industry.
Meanwhile, US Treasury Secretary, Mnuchin stated that cryptocurrencies had been a major source of money laundering because there are loopholes. He said that in order cover these loopholes they had to introduce strict regulation so as to minimize money laundering.
When John McAfee, developer of antivirus, was found evading tax two months back, he was found laundering money through cryptocurrencies. When McAfee’s case was heard by the US Department of Justice, the court concluded that McAfee deliberately evaded tax. It was also concluded that he transferred his income in the name of his nominees by opening accounts with crypto exchanges.
Similarly, the new law is yet another effort from the ousting Trump regime to regulate US crypto industry.