United States – Will the transfer of cryptomoney to a personal wallet soon be monitored?

What if the transfer of cryptomoney transactions from a centralized platform to a personal wallet were soon to be monitored? This is what FinCEN, an office of the US Treasury Department, is considering imposing.

United States – Will the transfer of cryptomoney to a personal wallet soon be monitored?

The United States is attacking personal wallets
Nowadays, transferring cryptomoney from a centralised platform to a personal wallet is fairly innocuous. Not for much longer, at least in the United States. The Financial Crimes Enforcement Network (FinCEN), an organisation that fights financial crime in the United States, is proposing the introduction of strict new measures in this respect.

Under the proposed new provisions, banks and companies that allow the exchange of cryptography would be required to submit reports to supervisory bodies and to verify the identity of customers executing transactions to private portfolios.

Indeed, FinCEN suggests classifying crypto-actives as „monetary instruments“, which would result in them being subject to the Bank Secrecy Act of 1970 (BSA), a US law that aims to monitor monetary transactions.

This law stipulates that any transfer totaling Bitcoin Lifestyle more than $10,000 over a 24-hour period must be reported to FinCEN and the identity of the client must be verified. Exchanges would also have to report all individual transactions over $3,000 to the regulator.

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A threat to the cryptomoney industry?
FinCEN argues that these new requirements must address national security concerns. Yes, that’s all:

„The proposal seeks to establish appropriate controls to protect the national security of the United States against a range of threats from foreign nations and actors, including ransom software and cyber security attacks sponsored by other states, as well as the financing of global terrorism, among others. »

Even more worryingly, FinCEN may in the future change the threshold at which information collection is required. The organization plans to monitor any transfers exceeding a net value of $250 – instead of $3,000 – for any transfers outside the United States, whether or not they are encrypted.

The general public has until January 4, 2021 to comment on FinCEN’s proposal. Knowing that almost every withdrawal from a centralized platform such as Binance would be monitored, the views of those affected seem obvious.

The entry into force of such a law would not be without consequences. The private aspect of a personal portfolio would then lose all meaning, and the US Treasury would be able to approximately determine the value of the portfolio of each individual using a centralised platform.

Last November, Coinbase CEO Brian Armstrong was already warning of new regulations to come. As Brian Armstrong pointed out, if these new regulations come into effect, the impact on the cryptomoney industry and even the United States would be terrible :

„In the early days of the Internet, there were also people who wanted to regulate it just like the phone companies. And thank God that hasn’t happened,“ he added.

Dieser Beitrag wurde am 21. Dezember 2020 veröffentlicht, in Bitcoin. Setze ein Lesezeichen mit dem Permanentlink.