Smriti Sharma
It will now become easier for the government to track your Bitcoin transactions. Financial Crimes Enforcement network proposed new regulations because of which the government can do so. Currently, there is a 15-day comment period but a lot of the Electronic Frontier Foundation and cryptocurrency exchange Coinbase has called this move foul because this period includes New Year’s Eve, Christmas Eve, Christmas, and New Year’s Day.
The proposed guidelines being referred to, which were recorded at 4:20 PM ET on December eighteenth, are about private wallets. In this new rule, if somebody is doing a transaction of more than $3000 then the person has to identify themselves as the wallet owner. This is when the person has their private wallet. if the transaction is being done with someone who has a private wallet then the transaction has to be very detailed.
Personal information of the person will also be reported under this law if the transaction is more than dollar 10,000. This proposes a lot of hindrance in the flow and a lot of Coinbase are against it because it is a hassle for them.
This step is also known as the most ironic development in the history of cryptocurrency. Coinbase believes that this law came from a government-run by anarchists, utopians, and libertarians. Bitcoin transaction was initially supposed to be a private transaction in a system that was trustless that this law is acting against.
Bitcoin, the world’s greatest digital money, emerged soon after the 2008 monetary emergency as an option in contrast to banks however these new guidelines will make digital currency trades act significantly more like banks. Taken working together with another standard change about global exchanges, it might flag that digital currency’s wild years are finished and secrecy will be more earnestly to discover.
The exchange of cryptocurrency makes it easier to move dollars or any other form of currency online in cryptocurrency. They also make cryptocurrency easily accessible to people. There are also some new cryptocurrency rules when Bitcoin crosses the border or is exchanged from people who are from different countries.
The most intense problem with this situation is how our data is out in the open for the US government because Bitcoin records all transactions publicly.
So basically Bitcoin that was created to maintain anonymity is going to do exactly the opposite under these new proposed laws and that is why Coinbase are highly and genuinely concerned.