The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Top Crypto Lawyer Warns Investors and Advocates, Says Regulatory Battle Over Self-Custody and Privacy Brewing

by Daily Hodl Staff
October 15, 2020
in Regulators

Prominent crypto lawyer Jake Chervinsky says a brewing international ideological battle on privacy has put crypto and self-custody in the regulatory crosshairs.

Chervinsky, the general counsel at crypto lending platform Compound, says there’s now a global shift in how regulators are approaching anti-money laundering (AML) policy.

“Crypto market infrastructure has improved dramatically in recent years. It’s now quite easy for most people to convert fiat into crypto, withdraw any amount to their own wallet, and then do as they wish without restriction or identification, subject only to the consensus rules.

There’s some regulation at the on-ramps and off-ramps, but so far, not enough to seriously infringe on the freedoms of self-custody and privacy. This is changing. Policymakers’ approach to AML regulation is shifting significantly toward harsher restrictions on a *global* scale.”

Chervinsky says regulators are enforcing AML regulations more aggressively, citing the recent BitMEX criminal charges.

“Most of us expected BitMEX to get tagged by the CFTC for unregistered derivatives trading, but it was a big deal to see DOJ turn the case criminal. That doesn’t happen often.

They’re also attacking privacy more aggressively. Last week’s DOJ Framework described anonymous transactions as ‘a high-risk activity… indicative of possible criminal conduct.’ And it had an ominous warning for exchanges about ‘anonymity enhanced cryptocurrencies’ (AEC).”

The framework, which pseudonymous and influential crypto whale Joe007 also warned about, notes that companies that offer “AEC” products like Monero (XMR), Dash (DASH) and Zcash (ZEC) should “consider the increased risks of money laundering and financing of criminal activity, and should evaluate whether it is possible to adopt appropriate AML/CFT measures to address such risks.”

Says Chervinsky,

“The phrase ‘…whether it is possible…’ is heavily loaded. Translated into DC speak, this means ‘we definitely don’t think it’s possible, so you better not, or else.’ Keep in mind, this is a DOJ that disapproved of end-to-end encryption yesterday…

Perhaps most importantly, policymakers *worldwide* are signaling a desire to expand existing laws to restrict access to crypto. Consider the ‘Swiss Rule,’ which practically prohibits self-custody in the guise of verifying the owner of a private key.

This June, the Financial Action Task Force (FATF), an international standard-setting body for AML regulation, said that the ‘lack of explicit coverage of peer-to-peer transactions… was a source of concern.’ Next June, they might adopt the Swiss Rule as a global standard.”

The lawyer says he’s worried the regulations could restrict self-custody and create two separate crypto markets, one with “clean” custodial digital assets and the other with “dirty” self-sovereign ones.

Still, he says, the battle for privacy isn’t over yet.

“This is a worst-case scenario, to be sure, and all hope isn’t lost. Many of us are working to convince policymakers why it’s a terrible idea, and I’ll have a lot more to say on that soon. But you should know that it’s a live issue, and our main challenge for years to come.”

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/f11photo

Submit a Press Release

Industry Announcements

  • Ottochain Homage to EVMOS and Ethereum Layer Two
    September 21, 2023
  • Algorand Foundation Announces Build-a-Bull Hackathon in Collaboration With AWS
    September 20, 2023
  • OKX Achieves SOC 2 Type II Certification, Demonstrating Its Industry-Leading User Safety, Security and Compliance Standards
    September 20, 2023
  • Meme Fans Eye El Hippo (HIPP) As Floki Inu (FLOKI) Price Dips
    September 19, 2023
  • Dexalot Unveils SimpleSwap and SimpleView Features for Enhanced User Experience
    September 19, 2023
  • Xsolla Launches Mall, an Online Destination for Video Games
    September 18, 2023
  • BlockchainSpace Debuts Polygon-Based Community Rewards Platform, YEY, With Philippine Telco Giant at FIBA 2023
    September 14, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$26,600.13
$26,600.13
0.04%
Ethereum
$1,593.68
$1,593.68
0.08%
Cardano
$0.245667
$0.245667
0.16%
XRP
$0.510219
$0.510219
0.3%
Dogecoin
$0.061512
$0.061512
0.28%

Spotlight

  • Unexpected Explosive Bitcoin Rally in the Cards As BTC Rides Hot Inflation Data: Glassnode Founders
    September 17, 2023
  • Ethereum Layer-2s Witnessing Surge in Specialization as Key Protocols Carve Out Unique Paths: IntoTheBlock
    September 17, 2023
  • Bitcoin Gearing Up for Much Larger Move to the Upside, According to Crypto Analyst – Here’s His Outlook
    September 17, 2023
  • Billionaire Mark Cuban Suffers $870,000 in Losses to a Crypto Hack: Report
    September 17, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Covering the future of finance, including macro, bitcoin, ethereum, crypto, and web 3.

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash • Financeflux •
Industry Announcements

 

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl