Square protests against FinCEN decision
Tech company Square joins FinCEN protesters
It's about the deanonymization of cryptocurrency wallets. Exchanges and other financial institutions will have to collect information on transactions over $3,000, and over $10,000 will have to pass data to regulators.
According to Square, this will discourage the adoption of cryptocurrencies and lead to "unnecessary friction" in the cryptosphere. Current clients of regulated exchanges will look for other sources of service.
2 weeks ago, FinCEN (a bureau of the U.S. Treasury Department) proposed a cryptocurrency rule that creates unnecessary hurdles for transacting in cryptocurrency. We have submitted a formal comment letter in response, which can be found here: https://t.co/qgxAyjpoCb.— Square (@Square) January 4, 2021
Less secure and reliable wallets, or foreign ones that do not work in accordance with US law, will come to the fore. There will be an outflow of users to exchanges outside the United States to conduct transactions. It is also likely to go into the shadows and commit illegal transactions.
All this is stated in an open letter, which was published on the company's website. Square points out that the regulator's decision will not lead to anything good.
FinCEN will have less control in the cryptosphere than it does now. And companies like Square will simply lose customers. This will ruin business and hinder the development of the cryptosphere.