Leading crypto service providers are kicking against FinCEN’s proposed regulations that would force businesses operating within the crypto-verse in America to gather more details about non-customer counterparties.
Such reports didn’t go well with many traders and investors, as Bitcoin lost about 8% in value, while Ethereum, Litecoin, Polkadot, Bitcoin Cash, Cardano, Chainlink dropped more than 9% in value at the time this report was drafted.
A January 4 letter from Jack Dorsey, CEO of financial services firm, Square warned against the proposal that imposed on such obligations “far beyond what is required for cash transactions,” and that Square would be expected to collect “unreliable data about people who have not opted into our service or signed up as our customers.”
- “Counterparty name and address collection/reporting should not be required for [virtual currency] CTRs or recordkeeping, as it’s not required for cash today,” Dorsey added.
Square also warned such a law would push crypto users toward unregulated and non-custodial crypto services outside America — thereby weakening America’s global competitiveness and creating further obstacles for regulators:
- “By adding hurdles that push more transactions away from regulated entities like Square into non-custodial wallets and foreign jurisdictions, FinCEN will actually have less visibility into the universe of cryptocurrency transactions than it has today.”
Another leading crypto exchange, Kraken warned of the deficiencies in a proposed U.S. government rulemaking. The press release said, in part,
- “Kraken believes the proposed rule would be bad for America and for the world. It would be a substantial departure from existing law. It would require the enormous ongoing expenditure of resources by exchanges.”