Unchained BitGo on Why the Travel Rule Should Not Apply to Digital Assets - Ep.266
Aug 24, 2021
Mike Belshe, Co-founder and CEO of BitGo, and Jeff Horowitz, Chief Compliance Officer, explore the complex world of crypto regulation. They discuss why the travel rule could be problematic for digital assets, especially concerning customer data sharing. Jeff explains his transition from traditional finance to crypto and the unique compliance challenges that arise in the sector. They delve into the implications of recent legislation and why DeFi is not yet ready for strict rules. The conversation highlights BitGo's merger with Galaxy and the evolving interest from institutional investors.
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Estimating Crypto Tax Revenue
- Estimating potential tax revenue from crypto is challenging due to limited data.
- Factors like US taxpayer involvement, cost basis, and offshore activity remain unclear.
PII Risks in Crypto
- Sharing PII under the Travel Rule creates security risks in crypto.
- Unlike traditional finance, leaked data can expose entire financial histories due to blockchain transparency.
Regulating DeFi
- Allow DeFi to evolve further before imposing strict regulations.
- Industry self-regulation and reputational risk will partially address concerns.
