Nuqin to give bitcoin a “farewell gift”?


Recently, market news said that U.S. Treasury Secretary nuqin tried to ask the Treasury to track the owner of the self trust cryptocurrency wallet, and was preparing to intervene in the private password holding behavior of cryptocurrency holders, and put forward a large number of data collection requirements. Brian Armstrong, chief executive of coinbase, a digital currency trading platform, attacked the move on social media on Wednesday night. Self hosting wallet is a kind of software that allows individuals to store and use their cryptocurrency without relying on third-party financial institutions.
Armstrong wrote:
Recently, we have heard that nuqin’s regulatory proposal will require financial institutions such as coinbase to verify the identity of the recipient or owner of the self escrow wallet and collect the identity information of the party before sending the withdrawal to the self custody wallet.
Bitcoin’s spirit bruised by regulatory sword
If true, it would be a sharp attack on the cryptocurrency industry in the United States, which the federal government has never dealt with so harshly. It will force companies to know each of their users’ counterparties, encrypt transactions, keep records, track actions, and even verify identities before transactions occur.
The Treasury did not comment. Although the relevant “regulatory rumors” have not been officially reported and recognized, the “regulatory sword” that has long been hanging over the virtual currency trade is still enough to induce some investors to choose to make profits. On Thursday, bitcoin fell below 17000 US dollars, the largest drop since August.
Any rapid rise in assets will not escape the demand for a correction. In a podcast on Wednesday, tone VAYS, a well-known bitcoin trader, predicted that the round could hit $14000. The “fear and greed” index of virtual currency trading has been at an all-time high throughout November, which intuitively shows that investors in such assets are in a state of “extreme greed”.
Last year, there were regulatory operations on the cryptocurrency industry. An intergovernmental body called the Financial Action Task Force (FATF) told its member states to apply the so-called “travel rules” to crypto businesses, a permanent rule that requires financial institutions to collect information about the sender and recipient of remittances.
Cryptocurrency lobby to do “ideological work”
Armstrong said on Wednesday that such a rule would have a long-term negative impact on the United States and stifle many new applications of encryption technology. He thinks that every digital currency asset is going to be encrypted.
Jacob Farber, a partner at Ouroboros LLP, a blockchain law and consulting firm, said that so far, regulation of decentralized cryptocurrency networks has been largely limited to the channel between the network and the traditional financial system. This kind of supervision is basically equivalent to no supervision, which makes cryptocurrency an alternative to traditional finance. However, if the regulation is imposed on users, the scope of supervision will be expanded exponentially. Farber said Armstrong’s concerns were justified and said the cryptocurrency industry should take these potential regulatory requirements seriously.
After seeing the emergence of regulatory signs, several cryptocurrency lobbies have done “ideological work” to the public and the government to create a positive image of the crypto wallet. For example, the blockchain Association said:
We understand that some regulators in the United States and overseas have concerns about self custody wallets, and we are actively educating officials in the executive and legislative branches to eliminate misunderstandings about self custody wallets.