Coinbase Challenges Treasury’s Crypto Rules: Calls for Clarity and Efficiency
Coinbase has expressed concerns regarding the U.S. Treasury's proposed regulations on cryptocurrency mixing, emphasizing that the suggested rules create an unnecessary burden for crypto platforms.
In a submitted comment to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), Coinbase argued that regulated crypto platforms are already subject to recordkeeping and reporting requirements for suspicious activities, including illicit crypto mixing.
The company criticized the proposed mandate for crypto platforms to report all crypto mixing activities, even those with legitimate purposes, deeming it an inefficient allocation of resources.
Coinbase’s response was prompted by FinCEN’s October proposal aimed at enhancing transparency around crypto mixing activities. FinCEN Director Andrea Gacki highlighted the agency’s use of Section 311 authority to target transactions of primary money laundering concern, expressing a commitment to addressing illicit activities within the crypto ecosystem.
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To address the issues raised, Coinbase proposed the addition of a threshold to prevent bulk reporting of small transactions. Furthermore, the company recommended emphasizing recordkeeping over reporting to mitigate privacy and security risks, suggesting that specific guidance would be more effective than mandatory bulk reporting rules.
Coinbase urged Treasury to assist exchanges in fulfilling their existing obligations to report suspicious activities related to mixing, emphasizing the importance of targeted guidance rather than broad reporting requirements.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
