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Following the United States The Treasury Department has expanded the consultation period for anybody to voice their views on a new crypto regulation, and the non-profit crypto policy advocate organisation Coin Center has made another — and hopefully last — argument to regulators.
Coin Center filed a comment with the Financial Crimes Enforcement Network, or FinCEN, in response to new regulations that would mandate licenced crypto exchanges in the United States to check the identity of individuals using “an unhosted or otherwise shielded wallet” with a transaction of more than $3,000 and report on all crypto transactions of more than $10,000. The plan, according to the activist organisation, is “a grave danger to personal privacy, Fourth Amendment protections against warrantless surveillance, and a major threat to continued conscientious innovation.”
Coin Center specifically stated that crypto transfers should not be subject to the same conditions as bank customers transferring $10,000 or more in cash. According to the community, forcing institutions to produce a currency transaction report, or CTR, for crypto transactions amounts to “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, claiming that comments would be approved before January 4. This date was further prolonged by the regulatory agency on Jan. 15 for a further 14 days until the most recent — and probably last — extension to March 29.
After the new regulations were filed last year, Coin Center has encouraged people in the cryptocurrency room to file comments with regulators, and has opposed the initial short window of opportunity. Feedback from organisations such as Coin Center and the Blockchain Association may have been responsible for one or more of the extensions, which shifted the proposed wallet law from the previous administration’s jurisdiction to that of newly appointed Treasury Secretary Janet Yellen.