Treasury Secretary Mnuchin says FinCEN is preparing significant new cryptocurrency requirements
Treasury Secretary Steven Mnuchin confirms upcoming cryptocurrency regulations aimed at addressing illicit finance, sparking community debate.
On February 12, 2020, Treasury Secretary Mnuchin says FinCEN is preparing significant new cryptocurrency requirements. Treasury Secretary Steven Mnuchin confirms upcoming cryptocurrency regulations aimed at addressing illicit finance, sparking community debate.
The announcement created significant anxiety within the Bitcoin community, as the specific nature of the proposed regulations remained unclear and past regulatory actions had sometimes been heavy-handed or poorly informed about how cryptocurrency technology actually worked. The Bitcoin community found itself in a difficult position regarding financial crime regulations.
Most participants agreed that Bitcoin shouldn't facilitate terrorism, drug trafficking, or other serious crimes, but they also recognized that financial privacy was legitimate and important, and that overly broad surveillance could undermine Bitcoin's value proposition. There was particular concern that regulations might target self-custody—the ability of individuals to hold their own private keys—or impose reporting requirements that would be technically impractical or privacy-invasive.