Thread by @BryceWeiner

The FATF travel rule is stupid because I can create a valid address by hand and it never has to exist in a digital form until the moment the TX is sent.

Vast portions of BTC would become sequestered like PayPal’s implementation.

Even more would live “outside”.

People who currently tolerate the intrusiveness of some compliance regimes would absolutely walk away if asked to become a narc.

That’s the last straw, I’d think.

No wonder Armstrong is up in arms.

It would kill Coinbase.

The thing about the FATF is that the US is about as beholden to it as you are likely to see UN peacekeepers on US streets to quell civil unrest.

Compliance is almost optional if the govt won’t enforce it...which they aren’t thus far.

https://twitter.com/finhstamsterdam/status/1331764400936587264

There's a good argument that the rules themselves are intended to kill cryptocurrency adoption as they are just plain silly.

If the sender is identified at a point of fiat transfer the entire transaction chain is revealed and parties can be identified via standard investigation.

It is *infinitely* easier to identify one or both parties in a transaction in cryptocurrency than fiat because the whole stinkin' ledger is available for analysis.

I mean... cmon now.

I have always thought the FATF travel rule for crypto would be shut down by Congress as soon as it was implemented and I still stand by that opinion.

Some regulation makes sense to keep the playing field fair. Some regulation is just stupid in order to protect fiat.