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

Godfrey Benjamin
December 23, 2020
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Coinbase cryptocurrency exchange is seeking an extension to the feedback window given by the Financial Crimes Enforcement Network (FinCEN) for the highly rebuffed newly proposed crypto wallet regulations. Per the exchange’s request which was conveyed in a letter signed by Paul Grewal, and addressed to Kenneth Blanco, the Director of FinCEN, there is a need for the agency to rescind its 15-day window to allow for public comments and industry feedback on the proposed regulations.

Coinbase highlighted the insensitivity on the part of the FinCEN who released the regulations days ago and expects feedback within a time that is masked by the upcoming Christmas Eve, Christmas Day, New Year’s Eve, and New Year’s Day, as well as the surging cases of the COVID-19 leaving just a handful of days for the concerned parties to send in their feedback and comment.

The exchange noted that the issued Notice of Proposed Rulemaking (NPRM) is rushed and that the FinCEN has failed to do the due diligence with respect to considering the broad impact and feasibility on the industry participants that are expected to send in their comments.

An excerpt of the letter reads,

“This latest NPRM is not how effective regulation is made. We therefore ask that FinCEN reconsider its haste and provide the typical 60-day period for such significant proposed rulemaking.”

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Other Issues of Concern Raised By Coinbase

The proposed crypto wallet rules dubbed the “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets,” as reported earlier “would require any virtual Asset Service Providers (VASPs) such as exchanges and custodians to record the name and address of the owners of the wallet for any transactions above $3,000 and a full-fledged currency transaction report in cases where the transaction amount exceeds $10,000.”

The rules will have an overbearing effect 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 costs assessments, and complex balancing of privacy interests for the customers whose personal information would now be required to be turned over automatically to a government agency,” which the FinCEN is yet to do can be carried out and reported, an exercise that cannot be done successfully within the given time frame.

It is unclear how the FinCEN will respond to the request for extending the feedback window for the proposed rules, which a legal luminary has pointed out to shy away from the core issues needing regulations in the space

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.