Coinbase urges U.S. Treasury Department to reconsider bulk data reporting requirements in proposed cryptocurrency mixing rules

Coinbase said the U.S. Treasury Department’s proposed rulemaking on cryptocurrency mixing fails to adequately address regulatory gaps while requiring crypto platforms to provide unnecessary data and resources. Coinbase noted in a comment submitted to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) on Monday that regulated crypto platforms already have rules that obligate them to log and report suspicious activity and illegal crypto mixing. Coinbase said requiring crypto platforms to report all cryptocurrency mixing activities, including those with legitimate purposes, is not an efficient use of company resources. The paper also questions the lack of monetary thresholds for record keeping and reporting. Coinbase chief legal officer Paul Grewal wrote in an (The Block)