After the submission of the new FinCEN ruling, the major cryptocurrency firms from the United States are now rallying up to oppose it. If the new FinCEN ruling is passed, it will enforce some very strict and unethical conditions over the cryptocurrency firms. The cryptocurrency firms will be forced to collect information around the personal identifications of the non-customer counterparts.
One of the personalities that have expressed their concerns against the new FinCEN through a letter on January 4, 2021 is Jack Dorsey. Jack Dorsey, who is the chief executive of Square (a financial services firm) has shared his concerns in the letter. He has stated that with the new ruling, the United States regulators aim to gather way more information than what is currently required to process cash transactions.
He stated that the new ruling even enforces their firm ‘Square’ to gather information in a very unethical manner. The firm will be required to collect information from users who have not even registered with them or have not even opted for sign up. Dorsey stated that it is extremely unethical and poses great risks for the FinCEN industry if something is not done about the issue.
Dorsey backed his argument by stating that the name and address of the customer counterparts must not be collected for transaction processing. He added that if that information is not required while processing cash transactions, then why must it be required for FinCEN transactions?
Dorsey argued that if the law is passed, it will turn out to be a huge disaster and mistake for the entire U.S. crypto-industry. He stated that if this happens, the users will resort to other platforms that do not require such information. As a result, people will end up moving to non-custodial and unregulated cryptocurrency service providers.
This will pose a great threat to the sanctity of the cryptocurrency industry in the United States. At the moment, the FinCEN industry is able to keep a close eye on millions of transactions taking place through the crypto-verse. However, this law will drive users away from the platform and they will resort to foreign crypto-service providers.
In the end, this will shrink the visibility the FinCEN industry has over the transactions that are currently flowing through the crypto-verse.
One of the most argued elements of the newly proposed FinCEN law is that the proposed law was not even given the usual 60-day commentary period. The FinCEN law proposed on December 18, 2020, was only allocated 15-days for the commentary period.
Even with such a short period of time allocated for commentary, there were more than 6,000 comments added against the FinCEN law. Even the oldest cryptocurrency exchange ‘Kraken’ has opposed the new regulation proposed by the Security of the U.S Treasury.