The US Treasury and Secretary Mnuchin are planning to impose new regulations on self-hosted digital wallets that would have "unintended side effects," for the crypto market, Coinbase's CEO Brian Armstrong wrote on Twitter.
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According to Armstrong, the Trump administration plans to require companies like Coinbase to verify the proof of digital wallet before a withdrawal could be sent. The new limitations might come into force before the end of Mnuchin's term.
The Coinbase head says it is a bad idea since it is "impractical" to store private information on a recipient in the cryptocurrency space.
Given these barriers, we're likely to see fewer transactions from crypto financial institutions to self-hosted wallets. This would effectively create a walled garden for crypto financial services in the U.S., cutting us off from innovation happening in the rest of the world.
— Brian Armstrong (@brian_armstrong) November 25, 2020
Armstrong claims Coinbase has already sent a letter to the Treasury, along with a number of other crypto companies and investors, articulating these concerns and others.
As iHodl earlier reported, Coinbase suddenly disabled its margin trading service due to the recommendations of the US Commodity Futures Trading Commission (CFTC).
According to Coinbase, the margin trading service will be completely removed from the platform in December, along with the expiration of all existing positions. As of November 25, clients will no longer be able to open new margin positions, while active limit orders will also be closed.
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