Coinbase CEO Brian Armstrong has voiced concern about the proposed new Bitcoin and crypto regulation as the BTC price climbs to a new record high
The digital asset nearly stroked a high of $30,000, settling at $29,300 – a new all-time high. The crypto has had a terrific run this month and appears that it will end the year on a high note. Elsewhere, the chief executive of one of the leading crypto exchanges, Coinbase, has asserted that the proposed Bitcoin regulations are worrying at the very least.
The new Bitcoin and crypto regulations were proposed a fortnight ago by the US Treasury Department. Some crypto community members have described the regulations as onerous saying they disrupt the Bitcoin blockchain. Armstrong argued that they present an invalidated intrusion of privacy to Bitcoin users without a justified rationale.
The chief executive entreated the Bitcoin and larger crypto community to stand against the regulations by directing its concerns towards the Treasury Department.
In a blog post, Armstrong set forth, “The bottom line is that exchanges will need to collect the name and address for anyone that you send crypto or receive crypto from for any transaction worth over $3,000. That is a substantial intrusion into your privacy without good reason—and a significantly more onerous regulation than traditional financial institutions are held to.”
The apple of discord in the regulations proffered by the Financial Crimes Enforcement Network (FinCEN) is privacy. The government will be able to easily keep tabs on crypto transactions if the new regulations are implemented. The regulations mandate all exchanges to store user’s data and relinquish it if and when the government makes a requisition.
“This is a big change and the Treasury is not considering the impact it will have on you, our customers. That worries us.”
Usually, proposed regulations feature a 60-day comment period but this time, the window has considerably been shortened to 15-days. The comment window couldn’t have a worse timing as it set to end on Monday.
The chief executive wrote, “Even worse, as the comment period began on the Friday before Christmas, we really have fewer than nine days to weigh in on this important regulation that could have long-lasting consequences for anyone that interacts with crypto.”