The US crypto community faces a lot of tension with the strict FinCEN’s proposed crypto regulations that will restrict crypto use to a sizeable extent, which will only be convenient for retail users. The country’s anti-laundering law necessitated the body’s regulatory framework for the space. The anonymity of the platform makes it easy for criminals to slide through it without being pointed out.
Ransomware hackers also take advantage of the secrecy to hack and demand payment in crypto, while money launderers launder without being caught. The new law will check identities and limit the money that can be sent to reduce and discourage the platform’s use. This made a crypto forum, Coin Center, to encourage the crypto space to speak against the new laws within the two weeks timeframe given.
Commentary period could change FinCEN’s proposal
The body believes that if members of the space could maximize the use of the two weeks the United States Treasury gave to hear people’s opinion on the proposal, the department might change it to something that won’t discourage crypto use. The FinCEN’s new regulations are mainly on self-hosted wallets with maximum anonymity, which the agency demanded wallet creators to follow KYC requirements to remove secrecy.
The nonprofit body also explained that it is working with congress members to get letters sent to the treasury secretary to extend the commentary period. The treasury secretary recently spearheaded the need to have a regulatory framework for the crypto community in a virtual meeting with members of the G7.
Coin Center believes that within that period if a lot of people can file comments against the proposal by explaining its adverse effect on their lives and consequences, which would go a long way to either cancel the submission or reduce its limitations. The crypto space believes the commentary period is too short, as many people are oblivious of the current happenings.
Rumors concerning the treasury department’s passing into law a bill that doesn’t have opinions from the people it will affect might be right. Stephen Mnuchin, Trump Administration’s treasury secretary, and his team are working to ensure the regulatory framework’s passing. Us-based wallet operators will reinvent their previous way of operation if the bill is passed.
Rushed Commentary period
The short period is a sure red flag that the secretary is trying to pass the bill into law before leaving office. The regular commentary period is about three months. Still, in this aspect, the body only gave two weeks to get comments from people, according to the body’s executive director, Jerry Brito.
Still, FinCEN has to scrutinize every comment filed concerning their proposal and work towards having a reasonable solution, which is why widespread participation in the period will help the community push an appropriate regulation. The crypto community’s increased relevance made various governments control the platform for malign and illicit purposes. The crypto space will continue to face more hurdles as cryptocurrencies keep becoming a threat to the traditional banking system.