U.S. crypto users hoping to transfer their holdings from an exchange to their own self-hosted wallets may need to comply with new know-your-customer requirements as the Treasury Department proposed a new rule on Friday.
RT @NicTrades: This Ledger hack is weird. Why have the hackers not sold or used the info but dumped it on the internet free?
Ask yourself who wants to discourage crypto currency use, would be able to hack Ledger and has just announced new rules for privacy wallets?
If this proposed bill passes, your withdrawals to your non-KYC'd address will take two transactions instead of one.
Before: Exchange -> Wallet Address
After: Exchange -> KYC Wallet Address -> Wallet Address
2ndFortunePlatinum | QC: CC 159 | IOTA 204 weeks ago
Yeah good luck with that, assholes. If a lib exists for the ledger in any language I'm even half familiar with, I've got myself a basic CLI wallet in minutes. Couple of hours maybe if I want a nice GUI.
Nullius_123Platinum | QC: CC 76, BTC 49, ETH 47 | TraderSubs 4 weeks ago
Mnuchin / Trump might simply want to throw a spanner in the works while they can - neither will have to answer for any wreckage and it's just one more way to give Biden and his team a headache.
Or, it might be no more than the kind of rule that already exists with the reporting of larger withdrawals. We'll see. In either case, the market has probably priced it in already. Needless to say, this rule would only apply to US persons.
Add: This will be a plus to those institutions that are required to observe tighter rules - they will now be able to buy BTC. In other words, I think tighter regulation has the effect of normalizing Bitcoin as an asset class (it is no different from other assets) and thus makes it more attractive. The libertarians will hate it, but it will push the price up...
users who want to send cryptocurrencies from centralized exchanges to a private wallet would need to provide personal information about the owner of that wallet to the exchanges, if the amount sent is greater than $10,000 in one day
This is a problem for people sending from exchange to merchant, or to some random other person
It is not a problem for people withdrawing from exchange to their own wallet, because the exchange already has their full identity details
The mantra in this sub and other forums is: not your keys, not your coins. The advice which goes with this is to buy on an exchange, withdraw immediately to your own wallet, and only spend from your own wallet
The proposed regulation is going to force this practice (not your keys, spend only from your own wallet) on people who have been avoiding setting up their own wallets, people who have been ignoring the "not your keys" advice for years
Not your keys, not your coins has been loud advice in this sub for years, but whenever people ask for advice about specific usage problems with specific wallets, most of the responses are guesses written by people who don't have a wallet
Not your keys, not your coins! This just got real. Don't just shout it. Now you all have to actually do it
Unless you're spending less than $10k per day
Also, CoinJoin the coin after withdrawing from an exchange, before spending
Look folks, you can say screw them all you want. Regulating is giving up. The momentum is already here. The people in crypto are in it legally now and they will see this as a move about the little guys. The invisible whales will be forced into the black market where they are either already comfortable or will quickly go legit.
I wouldn't hide my crypto, it just makes it less likely you can spend it later.
The people who are inclined to will get around it, and 95% of the new money coming in is already conditioned to get KYC’d up the ass on every other investment asset. The markets haven’t even reacted to this because it’s largely meaningless
Not really, because it only applies to amounts over $10k per day, and does not apply to sending from exchange to exchange. So you can still send from your Coinbase account to your friend's Gemini account without asking your friend to send ID documents to Coinbase
Gemini will send your friend's ID to Coinbase. Coinbase will send your ID to Gemini. This is referred to as the "travel rule", heavily discussed in October 2019. Banks already do this ID sharing