In the crypto sector, regulations, even though they have been seen as instruments that would rob the sector of its originality, have welcomed development amongst traders and analysts. While some think that the sector can work without being regulated, others think that the regulations would be able to fish out malicious actors in the sector.
But while that is still left to be debated at another time, the latest issue rocking the United States crypto space is now the re-emergence of the crypto rule that was drafted by the FinCEN. According to the FinCEN rule that was rolled out some months ago, it would require the regulator to get its hands on particular users’ details who carry out specific transactions in an aforementioned amount.
The foundation says people details would be exposed
In a twist today, the Electronic Frontier Foundation has mentioned that with that rule in place, the regulator would be able to monitor all the transactions that the individual has ever carried out using the wallet. If a KYC is to be carried out on any crypto exchange, users need to submit various details, including their Bitcoin wallet address or any other wallet address.
The special counsel to the foundation, Marta Belcher, has pointed out that all the regulator needs to know about the customer is their name, and they would be able to access all his details. In the regulation that was drawn by FinCEN some years ago, the firm mandated all crypto exchanges to collect details of all users that use a wallet that is not attached to any crypto exchange. These wallets are known as private self-hosted wallets as the holders hold the private keys to their wallets themselves.
A majority still against the rule
If the rule is effective and in place, the crypto exchanges would gather details and data belonging to customers who make transactions worth $3,000 at once. Provided the transaction has a worth of $10,000, then the crypto exchange would be mandated to report the transaction to the FinCEN. In their statement, FinCEN mentioned that the law was put in place to check several illicit transactions such as terrorism financing and others.
This has been a big argument amongst the crypto elites across the country, with most people calling for the rule to be canceled. If the rule is put into place, then FinCEN would be able to monitor every wallet detail that they have since most of the data is located on the public blockchain. With the rule previously seeing a massive backlash, it is unknown what unfolds and if the FinCEN would adopt it officially or cancel it as the general public has requested.