BitGo CEO Mike Belshe and COO Jeff Horowitz talk about one of the hottest topics facing the crypto industry today: regulation. They discuss...

  • what BitGo does
  • why Jeff left his successful TradFi career to go crypto
  • how crypto compliance and custody differs from the traditional finance world
  • the state of crypto education amongst regulators
  • why Jeff and Mike think the infrastructure bill is a win for the crypto industry
  • what FinCEN is doing to regulate crypto
  • why they think the infrastructure bill’s goal of raising billions in crypto taxes could only bring in millions
  • what FATF guidance regarding VASPs requires of crypto companies
  • why the travel rule could lead to US customer data being shared overseas
  • how digital assets change the implications of the travel rule
  • how regulators are attempting to deal with DeFi
  • what the FATF guidance means for FATF countries, like the US
  • why DeFi is not ready for strict regulations
  • Jeff’s views on Brian Brooks’s departure from BinanceUS
  • the Galaxy Digital acquisition of BitGo
  • what security issues a trillion-dollar wallet presents
  • why BitGo refused to put a “freeze” function in its WBTC contract
  • why Tesla and MicroStrategy purchased BTC and why other companies have been slow to follow suit
  • whether BitGo will offer NFT solutions going forward

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Episode links

Mike Belshe -- CEO BitGo

  • LinkedIn: https://www.linkedin.com/in/mikebelshe/
  • Twitter: https://twitter.com/mikebelshe
  • Previous Unchained appearance: https://unchainedpodcast.com/mike-belshe-on-what-bitgos-kingdom-trust-acquisition-means-for-crypto-and-how-security-will-develop-in-the-future/

Jeff Horowitz -- CCO BitGo

  • LinkedIn: https://www.linkedin.com/in/jeff-horowitz-3381977

BitGo

  • Website: https://www.bitgo.com/
  • Twitter: https://twitter.com/BitGo
  • Blog: https://blog.bitgo.com/

  • Galaxy Digital purchase: https://www.coindesk.com/galaxy-digital-to-buy-bitgo-for-about-1-2-billion-in-stock-cash

  • FATF solution: https://www.coindesk.com/us-crypto-giants-build-first-version-of-fatf-compliant-travel-rule-tool
  • New York Trust Charter: https://decrypt.co/60110/bitgo-new-york-trust-charter-crypto-wall-street

Infrastructure bill and its implications for crypto

  • https://twitter.com/mikebelshe/status/1424163820726009861
  • https://www.wsj.com/articles/bitcoin-fans-are-suddenly-a-political-force-11629115380
  • https://www.coindesk.com/infrastructure-bill-house-politics
  • https://www.cnbc.com/2021/08/16/tax-foundation-infrastructure-bill-crypto-tax-provision-is-unworkable.html
  • https://decrypt.co/78198/senate-passes-infrastructure-bill-crypto-tax-house
  • https://www.taxnotes.com/featured-analysis/proposal-regulate-digital-asset-transactions-should-be-struck/2021/08/13/775gf#.YRfX9GEX2GI.twitter
  • https://twitter.com/vtg2/status/1426264859071627266
  • https://twitter.com/BlockchainAssn/status/1427276559052910599
  • Unchained coverage:
    • https://unchainedpodcast.com/how-congress-might-pass-laws-bad-for-proof-of-stake-and-defi/
    • https://unchainedpodcast.com/crypto-got-screwed-what-happens-next-in-the-senate/
    • https://unchainedpodcast.com/this-bill-looks-very-bad-for-crypto/

FATF and the travel rule

  • https://sumsub.com/blog/what-is-the-fatf-travel-rule/
  • Unchained coverage:
    • https://unchainedpodcast.com/why-the-travel-rule-is-one-of-the-most-significant-regulations-in-crypto/
    • https://unchainedpodcast.com/why-proposed-fatf-rules-could-be-a-shock-for-defi/

FinCEN reporting

  • https://www.theblockcrypto.com/post/99898/what-comes-next-for-the-us-treasury-departments-plans-to-monitor-crypto-wallets
  • https://www.theblockcrypto.com/post/88347/treasury-crypto-wallets-reporting-rule
  • Unchained coverage:
    • https://unchainedpodcast.com/why-proposed-fatf-rules-could-be-a-shock-for-defi/

Miscellaneous links

  • Brian Brooks’s BinanceUS departure: https://www.coindesk.com/binance-us-ceo-brian-brooks-quits-cites-strategic-differences
  • Poly Network hack: https://www.elliptic.co/blog/the-poly-network-hack-600-million-in-crypto-stolen-and-returned-in-24-hours
  • WBTC: https://www.bitgo.com/newsroom/press-releases/wbtc-brings-bitcoin-to-ethereum/