Coinbase to US: Embrace blockchain if you want to fight crime on it

Coinbase, through its chief legal officer Paul Grewal, submitted a letter to the US Treasury Department advocating for the adoption of modern technologies like blockchain analytics and Artificial Intelligence (AI) to counter increasingly sophisticated money laundering schemes. Coinbase argues that embracing these innovations supports the modernization goals of the Anti-Money Laundering Act of 2020. Specifically, Coinbase seeks a regulatory exception under the Bank Secrecy Act for firms using AI and API-driven monitoring tools, provided governance and outcomes are prioritized over a rigid model. They also requested guidance clarifying the use of decentralized IDs and zero-knowledge proofs for customer verification and AML compliance. Separately, Jim Harper of the American Enterprise Institute proposed establishing a direct communication system for law enforcement to query crypto firms, aiming to strengthen capabilities while reducing broad financial surveillance.

(Source：Cointelegraph)