The Looming Crypto Battle Over Privacy
In this episode of Unchained Podcast with renowned crypto-journalist Laura Shin, 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. Read More
In this episode, they cover:
- The differences between hosted and self-hosted wallets.
- 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 USD 3,000 to USD 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.
The episode was published on November 17, 2020.
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