The department is planning to “centralize” crypto transactions with new regulations, but crypto exchanges are ready to resist.
The U.S. Treasury Department proposed strict regulations for cryptocurrency exchanges earlier this month to identify digital asset holders. Coinbase described the Treasury’s decision as a serious violation of the privacy of cryptocurrency holders.
The Treasury Department stated that crypto exchanges currently operating in the US must verify the identity of their owners if the transaction exceeds $ 3,000. The Treasury also asked exchanges to send the crypto wallet holder’s information directly to the Ministry if a transaction exceeds $ 10,000.
The crypto community described the SEC’s latest action as an effort to gain full control of the cryptocurrency market.
Even Jay Clayton, the former chairman of the SEC, accepted Bitcoin and Ethereum as a decentralized payment method and stated that the world’s two largest cryptocurrencies are not securities. However, in his last days at the office, Clayton stepped up action against cryptocurrencies, most notably the lawsuit against Ripple.