One of the biggest cryptocurrency stories is the news that the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) division is tackling self-hosted crypto wallets.
A document outlining the proposed rule suggests that exchanges and other virtual asset service providers should verify the name and address of those attempting to make withdrawals over $ 3,000.
Proposed rule makes no sense
While this is done to prevent crypto crime, some think it makes no sense.
Kathryn Haun, a general partner at a16z focused on crypto assets, wrote on the matter:
“Late yesterday, instead of following that process, @ stevenmnuchin1 shortened the regular comment period to just 15 days, no less on a Friday before the holidays, for crypto regulations that don’t pay much for us @ a16z and others in the crypto space sense. “
Others have stressed that this is redundant and just a way to prevent users from having control over their own assets. As it is, most regulated exchanges must take the names, addresses, and other details of traders using fiat. This new rule doesn’t change much and goes even further than traditional cash transactions financial institutions have to do.
This rule has caused such a stir that members of the United States Congress have spoken out against the Treasury in a written letter.
Proposed Crypto Ruling By US Treasury Opposed By Congressmen
In a letter sent to the Treasury on December 31, 9 congressmen wrote that they were concerned about FinCEN’s proposed crypto ruling:
“We are writing to express our concerns about the process of responding to the Financial Crimes Enforcement Network (FinCEN) ‘s proposed regulatory (NPRM) notification regarding” Requirements for Certain Transactions involving Convertible Virtual Currency or Digital Assets. ” “We share your goals to protect national security and support law enforcement in their efforts to combat criminals engaged in money laundering, illegal financing and other criminal activities. However, we are concerned that the Department of State’s approach is Finance to enact complex new rules for tracking and reporting convertible virtual currencies and digital asset transactions using legal tender does not give the US public a reasonable opportunity to respond. ”
The group seems most opposed to the lack of time for the American people and others to respond to the proposed ruling.
The group that sent this letter includes Tom Emmer, Tom Cotton, Warren Davidson, Tulsi Gabbard, and a number of other members of Congress.
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