New regulations on non-custodial wallets coming?

Oops, wrong thread, my bad.

So this guy thinks it’s just about exchanges verifying who’s sending and receiving. Honestly, if that’s the case, no biggie. You basically verify your address in the T&Cs anyway, so it’s just tightening things up.

If this happens, it could end up being the US throwing away its lead in crypto. As Brian said, there are so many situations where what they want isn’t really feasible. Americans are already a headache for foreign companies, and they’re just making it worse.

If this law gets passed, every single person who downloads a wallet might need ID verification. That could seriously jeopardize financial privacy for loads of investors. Is that why Bitcoin just dipped?

True Bitcoiners could just stop using centralized exchanges and start a circular economy. That’s the only real way to fight this. Some don’t get it yet being a bitcoiner means being a rebel.

If they enforce this here, I have no idea what to do about it. Privacy is gonna take a hit, and I’m really curious how other Bitcoiners will react. I don’t want to lose my anonymity.

Nah, but if you give them a big amount, better live 7 years after that unless it's inheritance and taxed like any other valuable.

Decentralized Tokenized BTC links here... Also, decentralized trading protocols are on the rise. More cross-chain solutions coming in the Polkadot ecosystem.

This is just step one. If you declare holdings, they can seize them anytime. Don’t declare? You’re an outlaw.

This is pretty scary stuff. I really hope Coinbase and other lobbyists can stop the Treasury from going through with this. CoinCenter had a good piece about it recently definitely worth a read.

If the regulations only target exchanges, avoiding them might help. But it looks like they want stricter KYC/AML rules that would hit exchanges hard. Not good news at all.

I get the feeling they want to regulate non-custodial wallets through exchanges only, not require every wallet downloader to register. But it’s still super murky, either way it's bad.

It’s a bit unsettling that they keep pushing more aggressive regulations. The reasoning of fighting money laundering doesn’t justify invading privacy like that. It totally stresses people out.

Check out this thread about an ATM situation. When withdrawing cash, you don’t need to prove anything. But can the US government really do whatever they want?

Last time I withdrew, I had to use a KYC’d bank card. So yeah, you’re already proving who you are. KYC is definitely coming.

Exactly! Same with exchanges. You’re KYC’d when you withdraw. Just one more unnecessary hassle.

If this goes through, tax reporting will be a nightmare. Crypto taxes are already crazy.

Not sure how this bill works. If I move Bitcoin between my wallets, do I need to declare that? As long as legal rules are met, I should be fine, right?

It’s not a bill, really. Just some potential regulations from the treasury department, and rumors for now. But it could affect buying, using Bitcoin with third parties, or DeFi contracts.

What about using encrypted traffic as a solution? Or are you paranoid about VPNs? I get it though I avoid mobile wallets while traveling. When I do use them, it’s just a throwaway. I only carry factory reset devices to keep things safe.