Summary
Coinbase has criticized the US Treasury’s proposed rulemaking on cryptocurrency mixing, stating that it fails to address regulatory gaps and demands excessive amounts of data and resources from crypto platforms. Coinbase argued that regulated platforms already adhere to recordkeeping and reporting rules on suspicious activities and illicit crypto mixing. The company also expressed concerns about the lack of a monetary threshold for reporting, stating that it would result in bulk reporting of non-suspicious transactions. Coinbase recommended adding a threshold to eliminate bulk reporting of small transactions and suggested focusing on helping exchanges meet their existing obligations to report suspicious activity involving mixing.
Key Points
1. Coinbase argues that the U.S. Treasury’s proposed rulemaking on cryptocurrency mixing fails to address a regulatory gap and demands excessive amounts of data and resources from crypto platforms.
2. The company suggests that regulated crypto platforms are already obligated to recordkeeping and reporting rules on suspicious activities and illicit crypto mixing.
3. Coinbase criticizes the proposed requirement for crypto platforms to report all crypto mixing activities, including those with legitimate purposes, as inefficient and argues for the inclusion of a monetary threshold to eliminate bulk reporting of small transactions.