ErisX Submits Response to FinCEN proposed NPRM

ErisX submitted a letter in response to the Department of the Treasury, Financial Crimes Enforcement Network’s (“FinCEN”) Notice of Proposed Rulemaking regarding “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets” (the “NPRM”). We also support the comment letter submitted by the Chamber of Digital Commerce.

In summary, ErisX supports the important goals of FinCEN in combating money laundering, terrorist financing, and other illicit acts. As evidenced by our voluntary and early adoption of the Commodity Futures Trading Commission’s (CFTC) Core Principles to our spot market (including market and trade practice surveillance) in addition to full implementation of the CFTC Core Principles to our futures market and clearing infrastructure — as required by law. We believe that detecting and preventing bad actors from utilizing blockchain and distributed ledger technology is both the right thing to do and essential to the long-term growth and success of the industry.

While ErisX is a hosted wallet provider, we believe unhosted wallets are an important innovation and part of the value proposition for digital assets. We have several concerns with the NPRM’s proposal to create a bifurcation in the digital currency industry and treat unhosted wallets as hostile:

In conclusion, blockchain technology, on which all hosted and unhosted wallets operate, already provide surveillance, tracking, and transaction reconstruction tools that are well-beyond tools available for fiat currencies. We therefore encourage development of a more tailored and risk-based solution.

Improving the digital asset trading and investing experience.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store