The Bitcoin community is cringing as the Federal Reserve and the Financial Crimes Enforcement Network, a branch of the U.S. Treasury, looking to decrease the reporting requirements imposed on financial institutions.
Bitcoin Community Doesn’t Like the Recent “Travel Rule” Moves
These two entities are specifically targeting the so-called “Travel Rule,” which requires institutions to collect, retain, and share information about their clients. Those that have to abide by the Travel Rule include crypto exchanges. Integration of the Travel Rule into exchanges and other Bitcoin service providers is expected to take place next year.
The Fed and FinCEN are looking to reduce the threshold of the Travel Rule from $3,000 to $250. This means that if you bought $250 worth of Bitcoin from exchanges under this new rule, the exchange would be required to collect information regarding you.
A statement from the two authorities reads:
Bitcoin investors and the crypto community believe that this is clearly an unneeded encroachment of privacy.
Matt Odell, an early Bitcoin adopter, commented:
Preston Byrne, a crypto-focused lawyer, echoed this. He said that “it should be $25,000,” not $250.
Part of a Wider Crackdown
This appears to be part of a wider crackdown against financial crimes, especially those enabled by crypto assets.
Jake Chervinsky, the general counsel for the developers of the DeFi app Compound Finance, said that a war is being waged against Bitcoin self-custody and privacy:
This has been made clear by a number of recent enforcement efforts. Spain is looking to require all those that own Bitcoin or altcoins to report their holdings, while the U.S. DOJ and other agencies are releasing reports highlighting cryptocurrencies as a threat.
Photo by Jeffrey Keenan on Unsplash Price tags: Charts from TradingView.com Bitcoin Community Cringes as Federal Reserve & Treasury Look to Crack Down
Originally from Bitcoinist.com https://ift.tt/34sKiGh
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