Proposed FinCEN rule is a ‘grave threat to personal privacy,’ says Coin Center

Mar 15, 2021 | CoinTelegraph News | 0 comments

proposed-fincen-rule-is-a-‘grave-threat-to-personal-privacy,’-says-coin-center

In its latest comment, the advocacy group goes after the proposed requirement to create currency transaction reports for crypto transactions.

After the U.S. Treasury Department extended the comment period for anyone to express their thoughts on a proposed crypto rule, non-profit crypto policy advocate group Coin Center has made another — and possibly final — argument to regulators.

Coin Center directed its comment to the Financial Crimes Enforcement Network, or FinCEN, over proposed rules that would require registered crypto exchanges in the U.S. to verify the identity of people using “an unhosted or otherwise covered wallet” for a transaction of more than $3,000 and report on all crypto transactions of more than $10,000. The advocacy group referred to the proposal as “a grave threat to personal privacy, Fourth Amendment rights against warrantless search, as well as a substantial threat to continued responsible innovation.”

Specifically, Coin Center said crypto transactions should not be subject to the same requirements as those facing bank customers moving $10,000 or more in cash. The group claims that requiring institutions to create a currency transaction report, or CTR, for crypto transactions is “automated mass surveillance of innocent transactions.”

“Any transaction over $2,000 that is merely ‘relevant to a possible violation of law or regulation’ will trigger a suspicious activity report (SAR) requirement, which already applies to crypto transactions today,” said Coin Center. “Any CTR report filed without an accompanying SAR is, by definition, a report about an American resident’s entirely innocent and otherwise private financial activities.”

The group added:

“If FinCEN insists on further extending the gambit of warrantless mass surveillance, then it should by no account do so in a way that prejudices new technologies and the companies and individuals that use them.”

FinCEN first proposed the crypto wallet rule in December and said its website was open to comments until Jan. 4. The regulatory body later extended this deadline on Jan. 15 for an additional 14 days until its most recent — and possibly final — extension to March 29.

Since the proposed rules were filed last year, Coin Center has urged people in the crypto space to file comments to regulators, and decried the original short window of opportunity to do so. Feedback from groups like Coin Center and the Blockchain Association could have been responsible for one or more of the extensions, which pushed the proposed wallet rule out of the former administration’s purview to that of recently confirmed Treasury Secretary Janet Yellen.

News Source from CoinTelegraph.com

Related Articles

South African Crypto Platform Revix Raises $4.1 Million

South African Crypto Platform Revix Raises $4.1 Million

The South African cryptocurrency investment platform, Revix, has reportedly raised about $4.1 million from its latest capital raise round. According to the firm, part of the raised capital will be used “to launch Revix’s mobile application, a variety of Fourth...

PayPal’s Venmo now allows users to buy and sell crypto

PayPal’s Venmo now allows users to buy and sell crypto

PayPal's social payment arm Venmo has officially launched the service to let its users buy, hold and sell crypto assets within its mobile app. The company said in an announcement that the service, called "Crypto on Venmo," starts to roll out on Tuesday and will be...

Former currency comptroller to become CEO of Binance US crypto exchange

Former currency comptroller to become CEO of Binance US crypto exchange

Former top U.S. banking regulator Brian Brooks is joining the U.S. affiliate of the world’s largest cryptocurrency exchange as its new CEO. Brian Brooks, the former acting comptroller of the currency of the United States Office of the Comptroller of the Currency, is...

Pin It on Pinterest

Share This