Cryptocurrencies, due to their decentralization and anonymity, have been used by some unscrupulous individuals for money laundering and illegal activities. However, the transparency of blockchain technology also provides new means for anti-money laundering (AML), as all transactions are recorded in the public ledger, allowing law enforcement agencies to track fund flows.
Many governments and financial institutions around the world have also formulated anti-money laundering regulations for cryptocurrencies, such as KYC (Know Your Customer) requirements and suspicious transaction reporting. However, Brian Armstrong, CEO of the largest exchange Coinbase, posted on X this morning, stating that
Anti-money laundering (AML) regulations have been a policy failure.
According to the UN, they cost about $213 billion annually, harm legitimate consumers (as we've seen in these de-banking stories), and only manage to stop about 0.2% of illicit activity...
We know that exchanges are facing increasing costs for their KYC-related business to meet regulatory requirements, and Armstrong's comments seem to imply that the government should lower the relevant regulatory requirements.
On the other hand, he also mentioned the government efficiency department D.O.G.E that Musk will soon be in charge of, which is a hint that he hopes Musk will reduce the budget for anti-money laundering operations. (He had previously stated that DOGE is a rare opportunity to enhance economic freedom in the US and reduce the size of the government.)
Sounds like a job for @DOGE
Anti Money Laundering (AML) regulations have been a policy failure.
They cost ~$213B annually, harm legitimate consumers (as we've seen with these de-banking stories), and only manage to stop ~0.2% of illicit activity according to the UN.
Sounds like a job for @DOGE https://t.co/6RbBENudYc
— Brian Armstrong (@brian_armstrong) November 30, 2024
Trump met privately with Coinbase CEO last month
On the other hand, the Wall Street Journal reported last month, citing informed sources, that Trump secretly met privately with Coinbase CEO Brian Armstrong, and the two are expected to discuss the personnel arrangements for Trump's second term team.
The informed sources said this was the first meeting between Trump and Armstrong since the election, and it comes at a time when the Trump administration is filling vacancies in the cabinet and other senior positions. Previously, Trump had stated at the Bitcoin 2024 conference that he plans to establish a "Bitcoin and Cryptocurrency Presidential Advisory Council" after taking office, and promised to develop transparent regulatory guidelines favorable to the entire cryptocurrency industry within the first 100 days of his term.
This meeting may be an attempt by Trump to invite Armstrong to join his team, or to ask him to recommend suitable cryptocurrency experts to join the advisory council. It remains to be seen whether we will see familiar cryptocurrency figures enter the Trump administration in the future.
