Coinbase Concerns About the Proposed Regulation for Non-custodial Crypto Wallets

Coinbase CEO Brian Armstrong tweeted today about the rumors that he heard that the U.S. Treasury and Secretary Mnuchin were planning to rush out some new regulation regarding self-hosted crypto wallets before the end of his term. He wrote to the Ministry of Finance to clarify this point last week, along with a number of cryptocurrency companies and investors. Brian Armstrong said that the proposed regulations require financial institutions like Coinbase to verify the recipient or owner and collect relevant identity information before the owner of a non-custodial wallet receives assets. It seems reasonable, but actually it is not. In fact, this may reduce the number of transactions from crypto financial institutions to non-custodial wallets, and further hinders the development and innovation of crypto. In the long run, it will threaten the status of the United States as a financial center. Non-custodial crypto wallets have the potential to promote financial innovation, reduce the cost of financial services and improve financial inclusiveness.

By Amy Liu

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