FinCEN’s Crypto Rules Aren’t as Unfair as Jack Dorsey Says

Coindesk ^ | January 12, 2021 | P.Koning

[Sons of Union Vets]

....What’s at stake? Up till now, exchanges like Coinbase haven’t bothered to de-anonymize the non-custodial wallet owners that either send cryptocurrency to exchanges or receive cryptocurrency from exchanges. In effect, if you had a few thousand dollars in bitcoins in a paper wallet, Coinbase wouldn’t ID you if you transferred those bitcoins to a Coinbase account.

FinCEN – a bureau of the US Department of the Treasury that defines rules for combating money laundering – has proposed changing this. U.S. cryptocurrency exchanges and other financial institutions dealing in cryptocurrency would be required to start collecting information about owners of non-custodial wallets. (FinCEN refers to these as unhosted wallets). This means less privacy and an end to seamless deposits or withdrawals.

But the 7,477 letter writers aren’t only upset about reduced usability and less privacy. They also claim the rule is unfair. Square’s Jack Dorsey says the rule “creates a double standard between them [cryptocurrency transactions] and legacy cash transactions that occur between financial institutions and individuals.” Kraken, a U.S.-based cryptocurrency exchange, claims the rule “shatters parity” among money service businesses.

I sympathize with many of the concerns aired in the 7,477 letters. The new rule forces owners of self-hosted cryptocurrency wallets to give up vital personal data. Financial institutions will have to build expensive systems to collect and store this information. And to boot, the rule proposal was issued with just 15 days for public comment, much of this over Christmas and New Year’s. (Proposed rulemakings usually come with at least 30 days to respond)........

[E. Pluribus Unum]

TRANSLATION: “I see you have some money there. Give it to me.”

[PGalt]

Jag0ff should partner up with Ossoff.