Coinbase, one of the largest crypto exchanges in the US has filed a comment in response to the Financial Crimes Enforcement Network (FinCEN)’s proposed rulemaking on crypto. The government bureau issued a statement in October, stating that the government body would label crypto mixers as a money laundering concern and combat bad actors that engage in terrorist financing and sanction evasion.
The exchange clapped back at the US Treasury’s FinCEN and argued that there is a regulatory gap that is unlikely to be filled by asking crypto firms for unnecessary amounts of data.
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The FinCEN is taking efforts to combat terrorist financing related to Hamas, Palestinian, Islamic Jihad and the Democratic People’s Republic of Korea. Coinbase commented on the government bureau’s statement and stated that the US Treasury’s proposed rulemaking on crypto mixing does not address a regulatory gap.
While the FinCEN demands large amounts of data and resources from crypto firms, it is inadequate to address terrorist financing concerns, and there is a regulatory gap that needs to be filled, according to Coinbase’s statement from January 22.
The exchange has urged the US Treasury to reconsider bulk data reporting in the upcoming crypto mixing rules. Regulated platforms are already obligated to recordkeeping on suspicious activities, burdening them with additional data requirement does not directly contribute to tackling terrorist financing concerns.