The network added 15 days for comments about the withdrawals that surpasses the sum of $ 10,000. FinCen is granting another 45 days for the proposal that involves the banks.
The United States Department of the Treasury, through the Network for the Suppression of Financial Crimes (FinCEN), extended the deadline for receiving comments on its proposal to regulate self-custodial bitcoin and cryptocurrency wallets.
The resolution comes to light after the entity received a hard pack of critics regarding the short deadline it imposed (15 days) to receive the comments and other suggestions.
The institution reported this Thursday, January 14, that there are two new lapses for two of its proposals: The first, of 15 days, on which the department will receive opinions about cryptocurrency withdrawals that surpasses an equivalent of $ 10,000 towards personal wallets. The second extension is 45 days, and this lapse’s goal is to receive comments about new requirements that could cause an effect on banks or other financial services. In this case, financial institutions would have to provide data on transactions that involve cryptocurrencies and their current operators.
The Requirement of the potential regulation Is for Users to Provide Identification and Personal Information
According to FinCEN, more than 7,500 comments landed on its platform from different entities, users, and organizations that play a significant role in the bitcoin ecosystem.
Adequate control is what FinCen is aiming to, considering all the points and opinions from the community will give the knowledge that the organism needs to achieve its goals. FinCEN received harsh critics for granting the small amount of15 days to receive opinions about this subject. Usually, the periods for observations and comments regarding the regulation proposals are 60 days. The criticism reached a peak when users saw that the 15 days included holidays.
FinCEN’s Proposals to Regulate Self-custodial Bitcoin and Cryptocurrency Wallets could transgress the United States Constitution
FinCEN’s proposals to regulate self-custodial bitcoin and cryptocurrency wallets may harm the United States Constitution. That is a consideration of Marta Belcher, a lawyer, and defender of civil rights to crypto-assets.
If the regulation goes into effect, this would give the government an allowance to reach and to obtain financial data that does not guard any relationship with FinCEN’s requirements for non-crypto currency transactions.
The fourth amendment, which guarantees the right to privacy and the right to be free from arbitrary invasion, would be an obstacle to a provision like this. The proposed regulation would give the government the identities and addresses of cryptocurrency wallets.
Due to the nature of public blockchains, this means that the government would know the identity of the actors behind every transaction as well as the addresses, even if the amount is below the required.
FinCEN’s new proposal intends to minimize the risks of money laundering as well as other crypto-crimes. Many users are skeptical regarding this proposal, mainly because it represents a potential risk of data leaking and misuse.
By: Jenson Nuñez