FinCEN regulatory proposal extends public comment period, Coinbase CEO: Hope regulators reconsider more for the industry

The anti-money laundering regulatory proposal that has alarmed major cryptocurrency service providers in the United States due to its unusually short 15-day public comment period, which deviates from the normal procedure, has sparked widespread criticism. Yesterday, the Financial Crimes Enforcement Network (FinCEN) announced an extension of the public comment period. Coinbase CEO Brian Armstrong once again voiced his opinion on this matter.

What are the rules exactly?

According to previous reports, the Federal Reserve and the Financial Crimes Enforcement Network (FinCEN) proposed on October 23 to apply the anti-money laundering travel rule to cryptocurrencies. Virtual Asset Service Providers (VASPs), such as exchanges, would be required to obtain and share information about both the sender and receiver.

If the proposal is passed, cryptocurrency exchanges would need to verify the names and addresses of owners for transactions exceeding $3,000 to non-custodial wallets. Additionally, any deposits or withdrawals over $10,000 would require reporting to FinCEN, the financial crime enforcement agency.

FinCEN Receives 7,500 Comments in 15 Days

After the 15-day comment period ended, FinCEN announced an additional 15-day comment period and a 45-day consultation with banks and financial service providers. FinCEN stated that the public provided many strong feedback, submitting 7,500 comments during the initial comment period. They aim to continue active collaboration with the cryptocurrency industry in the upcoming comment period to ensure innovation, anti-money laundering, and national security.

Coinbase CEO: Satisfied with Extension, Hopes for Government Rethink

Coinbase CEO Brian Armstrong stated, "I hope the next administration will take a fresh look and think more about our industry. At least this is a good step for now."

Armstrong had early knowledge of the FinCEN proposal and has voiced opposition to rushing the proposal through, urging industry players to unite and voice concerns to prevent harmful regulations for the industry. The outcome will depend on the conclusion of the public comment period and the official transition of power to the Biden administration on January 20.