Do Treasury Secretary Janet Yellen and Securities and Exchange Commission Chairman Gary Gensler know what you did with cryptocurrencies last summer? Remember the last horror movie you watched before US regulators shout to the industry not to start major crypto enforcement measures right now. In the neighborhood.
Yesterday, U.S. Deputy Secretary of Finance Wally Ademo at Consensus 2022, one of the world’s largest crypto conferences, gave his speech. Russian darknet marketplace Hydra And virtual currency exchange Galantex Authorized for enabling ransomware. According to Adeyemo, Russia “… as a hub for cyber criminals who use cryptocurrencies to promote crime,” even though cryptocurrencies are not used in a critical way to circumvent sanctions against Russia. Well known.
Adeyemo argues that the industry will turn a blind eye to the illegal financial activity of the digital asset industry, while suggesting that the Treasury wants to partner with crypto companies at a conference in Austin, Texas. I clearly hinted at the pattern. “What stands out in these organizations is that their role in funding and promoting criminal activity is well known, even before they are subject to sanctions. Too often, like Russia. Some investors and businesses in the crypto ecosystem are willing to take a different view when the jurisdiction provides shelter for criminals who abuse digital assets, “Adeemo said.
Next, Adeyemo explained his interest in promoting partnerships between the Treasury and the crypto industry. He also suggested that self-regulation could improve. As a sincere gesture, Adeyemo mentioned two key areas of cryptographic regulation announced by the Treasury over the next few months. First, the Treasury strives to strike a cautious balance regarding the enforcement of travel rules. This is a rule that both senders and recipients of digital assets with amounts above a certain threshold must share personally identifiable information with all intermediaries involved in the transfer.
Second, the Treasury focuses on the inherent risks associated with unhosted wallets. In his statement, Adeyemo said, “Unhosted wallets are effectively just addresses on the blockchain, so it can be difficult to determine who actually owns and manages them. It creates an opportunity to exploit the increased anonymity. ”Adeyemo, financial institutions, criminals, just as the Ministry of Finance needs to enforce the Bank Secrets Act (BSA) through the requirements of travel rules. He argued that he needed to know who he was dealing with and who he was dealing with in order to avoid making payments to him. A sanctioned entity with a high level of anonymity as an unhosted wallet.
Of course, the opposite of an unhosted wallet that can store Bitcoin
Crypto horror picture show?
Returning to the possibility of regulatory crackdowns this summer, Adeyemo confirmed its efforts to promote self-hosted wallet rules by Janet Yellen, who first appeared in January. Treasury Semi-Agenda and Regulatory Plan In fact, it has jumped to the top of the cryptocurrency priority list. Indeed, this concern about how cryptocurrencies are used to circumvent sanctions from the war between Russia and the U.S. is a cryptocurrency that is used in some way to help Russia circumvent sanctions. The US dollar has certainly accelerated the Treasury’s desire to make sure that all US citizens are aware that is the same as normal use.
But yesterday’s speech is not the first sign of a major US financial regulator to inform the industry that enforcement regulations can come to cryptocurrencies very quickly. Gensler, who was recently called the “number one criminal” by the head of DC’s Cryptocurrency Association for hindering the evolution of blockchain technology, said that crypto exchange should be among him. An agency that registers as an exchange because at least one of the digital assets that are traded on a regular basis is likely to be a cryptocurrency in fact.
The industry has repeatedly argued that the regulatory environment is due to the technological nature of cryptocurrencies and blockchain networks, but Gensler has appeared in many media outlets, and in fact digital assets are in security. Yes, it’s actually obvious. Gensler has accused the overwhelming number of blockchain tokens in the ecosystem in the past as not comparable to the level of staff at the SEC to provide effective regulation by enforcement. This was one of the reasons he asked the crypto exchange to visit him. register.
But on May 3, the SEC announced that it would double his size. Cryptocurrency assets and cyber units.. “By nearly doubling the size of this key unit, the SEC will have better equipment to crack down on fraud in the crypto market …” the press release said. By adding another 20 staff to the crypto-focused executive team, the summer “spring training” will begin in earnest and how these new hires can identify cryptocurrency malicious individuals. It was clear that it would be understandable for US investors. This release defines the scope of focus for this enforcement unit and states: Cryptocurrency provision; Cryptocurrency exchange; Cryptocurrency lending and staking products. Decentralized finance (“DeFi”) platform. Non-fungible token (“NFT”). And Stablecoins. ”
Of course, Terra Luna’s Stablecoin blunder, which plunged the crypto market just a few weeks ago and renewed screams for potential legislation, put US regulators in a very difficult position. At this time, there are no US regulatory agencies assigned to Stablecoin, highlighting legal gaps that Congress needs to amend. However, Stablecoin, an algorithm that has fallen out of grace, and its founder, Do Kwon, have highlighted potential risks to consumers that could result in financial harm. Regulatory crackdowns often result from regulatory agency awareness of the need for action. There are laws that tell the industry what they can and cannot do, whether they are clear or not, but they are not until they reach a strong level. The coercion that the actual behavior in the market changes.
As another hint that stricter regulatory crackdowns are expected to come, Coin Center, a non-profit organization focused on DC cryptocurrencies, announced at Consensus 2022 that they had. Was sued The US Treasury said, “… a so-called 6050I amendment, individuals and businesses that receive $ 10,000 or more in cryptography must report to the government, not just the name of the person who sent the funds. The same is true for the date of birth and social security number. ”This amendment was part of the Cryptographic Reporting Act, which became the Infrastructure Investment and Employment Act (HR 3684) passed last summer. It is no exaggeration to say that the fierce battle at Capitol Hill last summer took stakes on crypto lobbying in DC to a new level.
Coyne Center describes this fix as follows: “… Individuals and businesses that receive more than $ 10,000 in cryptocurrency must report to the government not only the name of the person who sent the money, but also the person’s date of birth and social security number.” The Coin Center said that it is unconstitutional under Article 4 of the Constitutional Amendment to force the general public to collect very annoying information about other ordinary people and report it to the government without a warrant. It claims to be unconstitutional because of that.
Whether Coyne Center’s suit against providing personal information to the U.S. government, whether by coincidence or not, was related to the reinstatement of the Treasury’s “unhosted wallet” regulation. Regardless, it seems that the first skirmish about what rights individuals holding digital have started yesterday. The currency has. At least it certainly seems to help the beginning of a great summer movie.