Everything You Need to Know About the Looming Battle Over Privacy in Crypto - Ep.199

Jake Chervinsky, general counsel at Compound Labs, and Kristin Smith, executive director of The Blockchain Association, talk about the storm brewing in the cryptosphere involving self-custody and privacy. In this episode, they cover:
the differences between hosted and self-hosted wallets and how transactions between them differ
why the ability to transact from self-hosted wallets is so important
compliance and regulation in the traditional financial world and how it could affect self-custody
the “Swiss rule” and what it could mean for the rest of the world
the proposal by FinCEN to lower the threshold for collecting data on transactions from $3,000 to $250
how regulators might achieve their goals without “dragnet” surveillance
how the amount of crime and money laundering in the traditional financial system compares to that in the crypto world
why OTC brokers are considered the most significant money laundering risk in crypto, and how that risk might be mitigated
how different political environments can influence the value of peer to peer transactions
whether Americans should be willing to give up some of their financial privacy in favor of security
what the recent statement by the DOJ's cryptocurrency enforcement framework labeling anonymous transactions as "high-risk activity indicative of possible criminal conduct" could mean for privacy coins like Monero and Zcash
Gary Gensler's appointment as head of Biden's financial policy transition team and whether to view it as a positive or negative for crypto
whether they think the incoming Congress will be in favor of more surveillance or more privacy
whether there might eventually be regulations for developers who write code for self-hosted wallets
how potential rules regarding self-custody could affect non-monetary items like NFTs
and the next big developments they are watching out for regarding this issue
 
Thank you to our sponsor! 
Crypto.com: http://crypto.com
 
Episode links: 
Jake Chervinsky: https://twitter.com/jchervinsky
Compound Labs: https://compound.finance
 
Kristin Smith: https://twitter.com/kmsmithdc
The Blockchain Association: https://theblockchainassociation.org/
https://twitter.com/BlockchainAssn
 
FinCen NPRM: https://www.federalregister.gov/documents/2020/10/27/2020-23756/threshold-for-the-requirement-to-collect-retain-and-transmit-information-on-funds-transfers-and
 
Coin Center commentary on lowering FinCEN threshold: https://www.coincenter.org/app/uploads/2020/10/Coin-Center-Comment-FinCEN-FRB-250-threshold.pdf 
 
Unchained episode about the FATF travel rule: https://unchainedpodcast.com/why-the-travel-rule-is-one-of-the-most-significant-regulations-in-crypto/ 
 
The choice of Gary Gensler to lead the financial policy transition team: 
https://www.wsj.com/livecoverage/trump-biden-election-day-2020/card/peMRHGPJasECSPLezSFx
 
https://www.coindesk.com/biden-confirms-gary-gensler-will-lead-financial-policy-transition-team
 
Shapeshift delists Zcash: https://www.coindesk.com/shapeshift-delists-privacy-coin-zcash-over-regulatory-concerns
Jessie Liu interview on Unchained: https://unchainedpodcast.com/what-you-need-to-know-about-the-dojs-cryptocurrency-enforcement-framework/
Learn more about your ad choices. Visit megaphone.fm/adchoices

Jake Chervinsky, general counsel at Compound Labs, and Kristin Smith, executive director of The Blockchain Association, talk about the storm brewing in the cryptosphere involving self-custody and privacy. In this episode, they cover:

the differences between hosted and self-hosted wallets and how transactions between them differ why the ability to transact from self-hosted wallets is so important compliance and regulation in the traditional financial world and how it could affect self-custody the “Swiss rule” and what it could mean for the rest of the world the proposal by FinCEN to lower the threshold for collecting data on transactions from $3,000 to $250 how regulators might achieve their goals without “dragnet” surveillance how the amount of crime and money laundering in the traditional financial system compares to that in the crypto world why OTC brokers are considered the most significant money laundering risk in crypto, and how that risk might be mitigated how different political environments can influence the value of peer to peer transactions whether Americans should be willing to give up some of their financial privacy in favor of security what the recent statement by the DOJ's cryptocurrency enforcement framework labeling anonymous transactions as "high-risk activity indicative of possible criminal conduct" could mean for privacy coins like Monero and Zcash Gary Gensler's appointment as head of Biden's financial policy transition team and whether to view it as a positive or negative for crypto whether they think the incoming Congress will be in favor of more surveillance or more privacy whether there might eventually be regulations for developers who write code for self-hosted wallets how potential rules regarding self-custody could affect non-monetary items like NFTs and the next big developments they are watching out for regarding this issue

 

Thank you to our sponsor! 

Crypto.com: http://crypto.com

 

Episode links: 

Jake Chervinsky: https://twitter.com/jchervinsky

Compound Labs: https://compound.finance

 

Kristin Smith: https://twitter.com/kmsmithdc

The Blockchain Association: https://theblockchainassociation.org/

https://twitter.com/BlockchainAssn

 

FinCen NPRM: https://www.federalregister.gov/documents/2020/10/27/2020-23756/threshold-for-the-requirement-to-collect-retain-and-transmit-information-on-funds-transfers-and

 

Coin Center commentary on lowering FinCEN threshold: https://www.coincenter.org/app/uploads/2020/10/Coin-Center-Comment-FinCEN-FRB-250-threshold.pdf 

 

Unchained episode about the FATF travel rule: https://unchainedpodcast.com/why-the-travel-rule-is-one-of-the-most-significant-regulations-in-crypto/ 

 

The choice of Gary Gensler to lead the financial policy transition team: 

https://www.wsj.com/livecoverage/trump-biden-election-day-2020/card/peMRHGPJasECSPLezSFx

 

https://www.coindesk.com/biden-confirms-gary-gensler-will-lead-financial-policy-transition-team

 

Shapeshift delists Zcash: https://www.coindesk.com/shapeshift-delists-privacy-coin-zcash-over-regulatory-concerns

Jessie Liu interview on Unchained: https://unchainedpodcast.com/what-you-need-to-know-about-the-dojs-cryptocurrency-enforcement-framework/

Learn more about your ad choices. Visit megaphone.fm/adchoices