Published on January 23, 2024 02:32 GMT+00:00edited on January 23, 2024 02:34 GMT+00:00

Coinbase said the U.S. Treasury’s proposed rulemaking on cryptocurrency mixing fails to adequately address a regulatory gap while demanding unnecessary amounts of data and resources from crypto platforms.

In a comment filed Monday to the Treasury Department's Financial Crimes Enforcement Network (FinCEN), Coinbase suggested that regulated crypto platforms are already obligated to recordkeeping and reporting rules on suspicious activities and illicit crypto mixing. 

Coinbase said that the proposed requirement for crypto platforms to report all crypto mixing activities, including those with legitimate purposes, is not an efficient use of companies’ resources. The filing also took issue with there being no monetary threshold for recordkeeping and reporting. 

Paul Grewal, chief …