Prominent crypto lawyer Jake Chervinsky says a brewing international ideological battle on privacy has put crypto and self-custody in the regulatory crosshairs.
Chervinsky, the general counsel at crypto lending platform Compound, says there’s now a global shift in how regulators are approaching anti-money laundering (AML) policy.
“Crypto market infrastructure has improved dramatically in recent years. It’s now quite easy for most people to convert fiat into crypto, withdraw any amount to their own wallet, and then do as they wish without restriction or identification, subject only to the consensus rules.
There’s some regulation at the on-ramps and off-ramps, but so far, not enough to seriously infringe on the freedoms of self-custody and privacy. This is changing. Policymakers’ approach to AML regulation is shifting significantly toward harsher restrictions on a *global* scale.”
Chervinsky says regulators are enforcing AML regulations more aggressively, citing the recent BitMEX criminal charges.
“Most of us expected BitMEX to get