Following the success of Gemini’s Reddit Ask Me Anything (AMA), cryptocurrency firm, Circle, which acquired Poloniex last year, hosted an AMA recently.
In the AMA, a Reddit user asked “Has there been an increase in law enforcement requests to monitor crypto transactions? Do you think privacy coins like XMR will post a regulatory threat to your exchange (and others) that list them and face potential fines/sanctions?”
Robert Bench, who is the Chief Compliance Officer and Head Regulatory Counsel for Circle said, “Absolutely. The law enforcement community (both U.S. and globally) understands that crypto, like any means of value, can be used to facilitate or fund crime. As they get smarter every day in this space, they’ll request information from firms like Circle where they think such transactions may have occurred on the platform. There’s a great deal of valuable conversation around privacy coins, and what they mean from a regulatory & enforcement perspective. One of our jobs is to educate the use for these coins (and there is certainly legitimate use cases for privacy), and on the other side build robust tools to know our customers and what they’re doing on our platforms.”
Emphasizing on how important regulatory clarification is, Bench said, “Privacy coins get a great deal of regulatory and law enforcement attention, and rightfully so, as both Privacy and AML are two very hot topics at the moment. In short, no rules or laws have been drafted in the U.S. regarding the privacy coins, and there remains a great deal of education in the space with our partners in government on the use cases for these coins.”
Regulatory bodies in the United States of America such as the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have been working on introducing regulations for a while now. However, it is hoped and expected that some form of draft will be introduced this year.
Last month, Valerie A. Szczepanik, an official from SEC had stated that the regulations could be bypassed by having so called no-action letters. She had said, “I think that’s a way forward for a lot of people who want to implement some of these things that may not exactly fit in the format of the rules that we want.”
Liked what you read? Join us on Telegram