Jack Dorsey warns that FinCEN regulations will drive crypto users offshore
Significant U.S crypto firms are rallying versus FinCENs proposed guidelines that would require companies operating with crypto to gather info on the identities of non-customer counterparties.A Jan. 4 letter from Jack Dorsey, CEO of financial services firm Square takes aim at the proposal for looking for to enforce reporting commitments that go “far beyond what is needed for money transactions,” which Sqaure would be anticipated to collect “unreliable information about people who have not opted into our service or registered as our consumers.”” Counterparty name and address collection/reporting should not be required for [virtual currency] CTRs or recordkeeping, as its not required for cash today.” Square anticipates that if passed, the law would drive cryptocurrency users toward uncontrolled and non-custodial crypto services based outside of the U.S.– impacting the nations international competitiveness and developing further difficulties for regulators:” By adding obstacles that press more deals away from managed entities like Square into non-custodial wallets and foreign jurisdictions, FinCEN will actually have less exposure into the universe of cryptocurrency transactions than it has today.” FinCEN has actually received extensive criticism for its proposed rule modification, with the regulator using just 15 days instead of the typical 60 days for public remark after publishing the proposition on Dec. 18. Despite such, almost 6,000 comments have been submitted to FinCEN on the matter.Major U.S.-based crypto exchange Kraken was among those criticizing the proposed regulations, knocking FinCEN for failing to supply price quotes for the expense of carrying out the rule. Like Square it alerted that the law will drive users away from managed platforms.” It essentially ensures that the evidence readily available to law enforcement today will be put outside their reach tomorrow,” Kraken concluded, adding: “It is quite plainly a politically-motivated piece of midnight rulemaking, the publication of which diminishes the trust we have positioned in FinCEN.” Coinbase released a submission taking exemption to FinCENs proposition, explaining the rule as “impermissibly unclear,” suggesting that it enforced “extensive personal privacy intrusions on the public,” and adding that it stopped working to offer a public benefit.Title: Jack Dorsey cautions that FinCEN regulations will drive crypto users offshoreSourced From: cointelegraph.com/news/jack-dorsey-warns-that-fincen-regulations-will-drive-crypto-users-offshorePublished Date: Tue, 05 Jan 2021 03:26:33 +0000
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