Sq.'s Jack Dorsey meets FinCEN's proposed "Burdensome" crypto pockets suggestion guidelines
Jack Dorsey, CEO of the payment company Square, has joined those who criticize the regulations proposed by the Financial Crimes Enforcement Network (FinCEN) to collect data on crypto wallet users.
In a January 4 letter to FinCEN, Dorsey said that if the rules are approved, cryptocurrency customers could be pressured to use unregulated services outside of the U.S.
"This creates unnecessary friction and perverse incentives for cryptocurrency customers to avoid regulated entities for cryptocurrency transactions, and prompts them to use non-custody wallets or services outside of the US to make their assets easier to transfer," he wrote.
Ultimately, this would mean that FinCEN "actually has less insight into the universe of cryptocurrency transactions than it does today," added Dorsey, while innovation in the US would be stifled.
"Technological constraints" could also make it difficult to identify and collect the counterparty information FinCEN needs, he said.
FinCEN proposed regulations in December that users may have to meet your client's knowledge requirements if they want to send cryptocurrency from an exchange to a private wallet.
The agency would request personal information from the owner of the private wallet if the amount sent is more than $ 10,000 in a 24-hour period. You would also need to keep a record of transactions worth over $ 3,000.
Blockchain analytics firm Elliptic also commented on the proposal, recently stating that the rules could "adversely affect" the effectiveness of the existing anti-money laundering and anti-terrorist financing policies. Crypto Exchange Coinbase said the 15-day comment period was insufficient to provide detailed feedback on the complex issue and suggested that the rules be worked through by the outbound administration.
Square has made notable investments in Bitcoin and offers cryptocurrency services through its Cash app. "The pesky information gathering and reporting requirements are depriving US companies like Square of the opportunity to compete on an equal footing to enable cryptocurrency as an economic empowerment tool," the letter said.
The deadline for FinCEN's public comment on the proposed rules for crypto wallets ended on January 4th.