Extended Comment Period on Cryptocurrency Self-Custody Regulations

Cryptocurrencies have a distinct quality that makes them different from other currencies and assets. They also do not use the conventional banking system for their transactions. The buyers have complete authority over their assets, and there is no third party that has the capability to freeze their funds or stop their transfer. In the banking system people can be asked about their transactions. Their transactions can even be stopped or delayed under some conditions and security concerns, but that is not the case with cryptocurrency. No one can tell you about when you can use your currency and when you cannot because you have all the control, and you can use your cryptocurrency assets whenever you feel right.

When you purchase your cryptocurrency or Bitcoin, you get your part of the asset instead of just receiving manipulative data on the screen. In contrast, your original asset lies in the bank lockers. 

You can provide the company with the level of privacy that you require and the security that you want to set to make your transactions more secure. You can also provide a trusted third party that can gain access to your assets. It is just like assigning power of attorney to someone for your property. You have a complete choice to keep your cryptocurrency in your own wallet. You can run or open a particular source code that will not require any identification or selling message.

The recent change in the regulations by the United States government is likely to take away this ability of the cryptocurrency of providing people with complete authority over their assets. The government is concerned about the ability of people to choose different ways of transactions and dealing with their Bitcoins. This is because they can be used for terrorist funding and other such illegal acts like money laundering. The government wants the cryptocurrency holders to go through traditional banking so that cryptocurrencies can be monetized.

The Financial Crimes Enforcement Network is a department that enforces transparency requirements for financial transactions. They want the government to impose regulations. It will be crucial to keep the record and identities of people transacting cryptocurrencies. This is especially important for people making a larger transaction than $3,000 from their cryptocurrency wallet to someone who has not gone through a complete registration process. The cryptocurrency exchanges and the traditional banks who wish to be the major parties in dealing with cryptocurrencies required technical abilities to verify identity using cryptocurrency wallets. This may raise privacy concerns among users.

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