FATF ruins Thanksgiving

Crypto swoons on rumors about this tweet from Coinbase CEO Brain Armstrong:

The Financial Action Task Force may be imposing Travel Rule regulations sooner than later. This could mean a lot of things but the short version is in addition to KYC you may need to show proof of funds on HOW you acquired any crypto you already own. That will be a mess, but it’s not so different than traditional finance regulations. The catch is, imho, it’s easier to hoodwink fiat institutions than to fool anyone about how you acquired your coins on a publicly auditable global ledger. But that’s only an issue for those with something to hide.

For the technical folks, I imagine you may be required to register a KYC linked pubkey with your exchange. Then you will only be able to withdraw to addresses generated from the pubkey. You’ll be legally compliant but the tradeoff is you are fully visible to the exchange and likely the IRS.

Again, this isn’t so different from banks.

Worst case is laid out by Ian Grigg here:

The above scenario is much more draconian. The Travel Rule potentially forks Crypto and taints any coins that are not cleared by exchanges. Owning your own keys becomes criminal. This probably won’t happen but no one knows.

Many BSV wallets already include the ability to sign transactions and/or prove identities. Example:

This embedded KYC feature is simple but surprisingly novel in today’s crypto world because most Coin value propositions include avoiding banks, taxes and government oversight. Reality is often disappointing and I think a lot of crypto is about to be very disappointed.

About coinspeak

20 years as an IT consultant. Escaped the rat race in 2015. Addicted to travel and tacos.

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One comment

  1. Damnit. Damnit!!
    I’ve been following ibankcoin since14 , bitcoin since 16, ans I’ve been following your writing on BSV since you started. At times I’ve dismissed both the site and your writing as incredible, and the times like after reading this article, I have to ask myself am I just being a sheep and I don’t see it either, even as someone who thinks they’re the Slayer of sheep. Quite a humbling thought indeed.
    I have far more dollars in BTC than I do BSV, and regrettably just locked up 15 grand worth of eth for two years in the new contract staking. That being said I’ve got more than a dozen bsv for the sole purpose of believing the weird underlying feeling that Craig Wright is in fact Satoshi. Part of me believes it because no one else does and the facts are so obvious that everyone chooses to turn a blind eye. Nothing is certain but the case the Craig right and you make are sound arguments and the case for BTC is anarchy. The reason I think BTC has a wrong is because there’s way too many people to think they’re about to be 100% sure thing rich by holding BTC in fortune. The regulation just seems like it makes more sense and BTC is hopium without scalability. It doesn’t deliver the promise. But then I look at Saylor and all these others and I ask myself how could they all be missing the BSV case?
    I say damn because now I can’t sleep at night with btc bags any better than usd.
    Ive got enough skin in BSV to where if it does flip BTC I will not be broke, but I won’t be king. you sir, maybe. Please keep updated on the saga. I’m adding BSV to my recurring purchases. I hope you’re right. Maybe I don’t. I don’t fucking know , the world is a strange place and the fact that more people don’t consider CSW as Satoshi and kind of overlook a very important detail is odd. Very odd. Almost like they want you to. So now they can rob you of your gold. Hmm. Thank you for writing.

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