OKCoin on Mnuchin’s Proposal: Crypto Industry Has No Tools for Compliance

If the law on crypto wallets is actually approved in the USA, this would mean a considerable amount of additional work for crypto exchanges.

US Treasury Secretary Steven Mnuchin recently proposed requiring exchanges and crypto platforms to verify the identities of customers transferring digital assets to self-hosted wallets.

OKCoin crypto exchange said the proposal would add extra work to exchanges

„After a preliminary examination of the FinCen proposal and the wallet verification requirements, I think that the proposal to extend the CTR requirement to crypto exchanges and to have to capture the physical address of the recipient would mean a large operational and administrative burden for exchanges“ , said the head of the conformity department at OKCoin Megan Monroe-Coleman to Cointelegraph.

For weeks, rumors of new crypto wallet laws went around in the crypto space. After all, Mnuchin made this proposal on December 18, before leaving office. The new regulation, which is so far only a proposal, provides that parties who send crypto amounts of more than $ 3,000 to an independent wallet will identify themselves . When you switch between exchanges, the limit goes up to $ 10,000.

After the announcement on Friday, the industry parties have 15 days to discuss the proposal

„FinCen specifically cited ’national security‘ as the reason for the proposal and the extremely short time allowed for comments,“ said Monroe-Coleman. He added:

„Therefore, OKCoin comments will focus on the challenges we foresee for our business and the industry as a whole. We would like to ask FinCs to issue practical and clear guidelines and allow a generous grace period in order for the industry to implement it successfully Because there is no clear solution or industry-wide tools that can help us with compliance. “

However, the proposal was less negative than initially expected. Before it was released, some US Congress members opposed revealing possible details about the law. There was talk of a whitelist of admissible addresses that was not included in the final version of the proposal.