A number of players are encouraging individuals to speak out against FinCEN’s new crypto rules before the comments close next week.
Crypto exchange Coinbase and the foundation behind Monero are the latest companies to join calling on crypto users to voice their views on the new rules of the Financial Crimes Enforcement Network of the United States Treasury Department. In a blog post today, Coinbase CEO Brian Armstrong said the proposal would be an “overly invasive” of users’ privacy, stating that crypto exchanges should collect and share names and addresses for anyone who sends or receives more than $ 3,000 worth of crypto in a single transaction. The CEO called on users to submit their views to FinCEN before January 4, when the comments would be closed.
Monero Outreach issued a similar plea on Monday in seemingly more assertive language, calling on crypto users in particular to “express their opposition” to the “dangerous new rules”. The group claimed that once FinCEN had the necessary customer information, regulators would be able to track all user transactions without a warrant, data that could potentially be compromised.
“This [rule] was not required before, and it will not only threaten the privacy of every cryptocurrency user today, but it will also hinder creative future use of cryptocurrency, “said Monero Outreach.” This is in an area that can easily go very wrong. “
FinCEN suggested the new rule on December 18, giving individuals 15 days to express their views. When implemented, the rule requires registered crypto exchanges to verify the identity of their clients under certain conditions, including the use of “an unhosted or otherwise secured wallet” and if the transaction is more than $ 3,000.
Paul Grewal, Coinbase’s Chief Legal Officer replied that the deadline to provide feedback was insufficient given the holidays and the ongoing pandemic. He asked the regulator to allow 60 days to comment on the proposed rules. At the time of publication, the January 4 deadline is still set.
Meanwhile non-profit crypto advocacy group Coin Center encourages “everyone in the cryptocurrency ecosystem” to comment on the FinCEN proposal. More than 920 parties submitted their thoughts on FinCEN, including Blockchain.com CEO Peter Smith and Compound General Counsel Jake Chervinsky. In a Twitter thread, Chervinsky claimed the rule would “not stop the flow of money to bad actors or help law enforcement do its job”.
Smith, on the other hand, sent his comments directly to the Treasury Secretary Steve Mnuchin. In a blog post last week, the CEO of Blockchain.com said he did believes the rule needs additional consultation and revision before being considered given the potential impact:
“Crypto is an emerging and growing industry. We have talented teams and entrepreneurs in the United States who are innovating yet collapsing under the weight of this regulation. “