Authorities are counting on 60 additional days to review all regulatory proposals. FinCEN proposed a new regulation that requires exchanges to provide information about their users.
Joe Biden, the newly elected president of the United States, has made his first presidential order to stop all federal regulatory processes for a minimum of 60 days. The presidential term also includes the freezing of a controversial KYC (know your client) measure, proposed last year by the Treasury Department for the cryptocurrency market. This proposal will soon be under revision by the new cabinet.
In a memorandum from the White House, Biden ordered that both federal registry regulations and those still not active will suffer a delay for about two months.
Biden’s plan is that cabinet appointees have enough time to review and become familiar with pending rules in this additional period. In other words, some members of Joe Biden’s government will check these regulations, which open the opportunity for them to be rejected or modified.
The measure relates to the market for bitcoin and other cryptocurrencies mainly because there is a law proposal introduced by the Treasury secretary, Steve Mnuchin, which proposes even stricter use of KYC measures for businesses and users of digital assets.
The plan asks crypto exchanges the verification the identities of the owners of transactions that surpass $ 3,000. Likewise, it will be requested to send this data to the Financial Crimes Enforcement Network (FinCEN) if the transactions exceed the margin of $ 10,000.
The required data from cryptocurrency owners are the full name, the home address, and the purpose of such transactions. Similarly, those users who buy bitcoins or other assets to deposit them in their self-custodial wallets will also suffer the consequences of the new State measure.
Due to the Implications of this Proposal, the Regulation Faced Harsh Criticism from the Crypto Community
Coinbase thinks that this is a significant intrusion on the privacy of owners. Also, Kraken and BitGo rejected the regulation. The reason resides in the danger and risks of violation of human rights it represents. Jack Dorsey, CEO of Square, talked about some points to consider; one of them is that the proposal is unnecessary. These requirements are essential for the authorities when citizens move a similar amount of cash.
Joe Biden’s first term is a positive move for cryptocurrencies. It will bring opportunities to debate how good or bad these approaches are for the crypto-environment and its market.
A perfect example of how this new administration treats the cryptocurrency subject is Janet Yellen as Secretary of the Treasury Department. The former secretary showed an apparent antipathy for crypto assets.
Yellen’s opinion about cryptocurrencies tends to be ambiguous. She thinks that cryptocurrencies are commonly a target of illicit and criminal acts, and their use tends to fall into dark markets.
This declaration keeps the ecosystem in a veil since it is impossible to know which will be the next move of the United States’ new government about its current cryptocurrencies status.
By: Jenson Nuñez