June 24, 2021

Coinbase Pleads With FinCEN To Extend the Feedback Window For Proposed Crypto Rules

2 min read

Coinbase cryptocurrency exchange is trying to find an extension to the feedback window provided by the Financial Crimes Enforcement Network (FinCEN) for the incredibly rebuffed just recently proposed crypto wallet guidelines. Per the exchanges request which was communicated in a letter signed by Paul Grewal, and dealt with to Kenneth Blanco, the Director of FinCEN, there is a requirement for the company to rescind its 15-day window to enable public remarks and market feedback on the proposed policies.
Coinbase highlighted the insensitivity on the part of the FinCEN who released the policies days earlier and prepares for feedback within a time that is masked by the upcoming Christmas Eve, Christmas Day, New Years Eve, and New Years Day, in addition to the rising cases of the COVID-19 leaving simply a handful of days for the worried celebrations to send out in their feedback and remark.
The exchange kept in mind that the released Notice of Proposed Rulemaking (NPRM) is hurried and that the FinCEN has in fact stopped working to do the due diligence with regard to thinking of the broad impact and usefulness on the market participants that are expected to send out in their remarks.
An excerpt of the letter checks out,
” This most current NPRM is not how trustworthy policy is made. We therefore ask that FinCEN reevaluate its rush and use the common 60-day period for such substantial proposed rulemaking.”
Other Issues of Concern Raised By Coinbase
The proposed crypto wallet guidelines called the “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets,” as reported earlier “would need any virtual Asset Service Providers (VASPs) such as exchanges and custodians to tape the name and address of the owners of the wallet for any deals above $3,000 and a full-fledged currency deal report in cases where the offer amount goes beyond $10,000.”.
The standards will have an overbearing result on exchanges and other VASPs and as a result, Coinbase is asking the FinCEN to extend the feedback window so that an in-depth “technical analyses, extensive expenses evaluations, and complex balancing of individual privacy interests for the clients whose specific info would now be needed to be turned over quickly to a federal government business,” which the FinCEN is yet to do can be performed and reported, an exercise that can not be done effectively within the offered time frame.
It is unpredictable how the FinCEN will react to the request for extending the feedback window for the proposed guidelines, which a legal star has actually mentioned to avoid the core problems requiring guidelines in the location.
The post Coinbase Pleads With FinCEN To Extend the Feedback Window For Proposed Crypto Rules appeared initially on Coingape.