After the US Treasury Department extended the deadline for commenting so that anyone could comment on the proposed cryptographic rule, the Coin Center’s nonprofit cryptocurrency policy group made another – and perhaps final – argument for regulators.
Coin center directing comment on the Financial Crimes Enforcement Network, or FinCEN, on proposed rules that would require registered U.S. crypto-exchanges to verify the identity of people who use an “unmarked or otherwise covered wallet” for a transaction of more than $ 3,000 and report all crypto transactions over $ 10,000. The advocacy group identified the proposal as “a serious threat to personal privacy, the rights of the Fourth Amendment against unauthorized search, as well as a significant threat to continued responsible innovation”.
Specifically, Coin Center stated that crypto transactions should not be subject to the same requirements as those faced by bank customers with cash cash of $ 10,000 or more. Group claims that the requirement for institutions to generate a currency transaction report or CTR, for cryptocurrencies, is “automated mass surveillance of innocent transactions”.
“Any transaction over $ 2,000 that is ‘relevant to a possible violation of the law or regulation’ will trigger a Suspicious Activity Report (SAR) request, which already applies to crypto transactions today,” the Coin Center said. “Any CTR report submitted without an accompanying SAR is, by definition, a report of the US resident’s completely innocent and otherwise private financial activities.”
The group added:
“If FinCEN insists on further expanding the scope of unjustified mass surveillance, then it should by no means do so in a way that anticipates new technologies and the companies and individuals who use them.”
FinCEN first proposed a crypto wallet rule in December and stated that his website is open for comments until January 4. Regulatory body later extended this deadline is 15 January for a further 14 days until its last – and possibly final – extension until 29 March.
Since the proposed rules were filed last year, the Coin Center invited people in the crypto space to comment on regulators and condemned the original short window of opportunity do it that way. Feedback from groups like Coin Center and Blockchain Association he could be responsible for one or more enlargements that pushed the proposed wallet rule out of the remit of the former administration to the recently confirmed Finance Minister Janet Yellen.