The Coin Center, a nonprofit dedicated to promoting and defending the interests of the Bitcoin and blockchain industries, has asked for help in opposing the proposed FinCEN rules on verifying users of non-custodial wallets.
1/ Quick update on the FinCEN rulemaking: Coin Center is working with folks in Congress to get some letters sent to Secretary Mnuchin requesting an extension to the rushed comment period.
In the meantime, you can help.
— Jerry Brito (@jerrybrito) December 28, 2020
If the proposal is approved, users withdrawing cryptocurrency to their own wallets from a centralised exchange will be required to verify the recipient’s identity, and the exchange would have to retain those data.
Increased identification requirements that FinCEN proposes apply to outgoing transactions of $3,000 or more. For transactions over $10,000, companies would be required to notify the agency directly. The regulator intends to prevent circumvention of the rule by splitting transactions into several smaller parts.
Coin Center director Jerry Brito says the industry has a chance to influence the final outcome in the time left until January 4 to collect public comments.
“Coin Center is working with members of Congress to send letters requesting an extension of the discussion [FinCEN shortened the comment period from the standard 60 days to 15 days]. Each user should submit a request to FinCEN and point to potential adverse consequences for themselves. This could help,” Brito said.
The agency is unlikely to process all substantive requests before the term of the current Treasury Secretary Steven Mnuchin ends on January 20, if there are many, says the Coin Center director. The law requires FinCEN to consider each comment before finalising the proposal.
“There is a good chance the Biden administration will halt work on the proposal and move on to a careful, more scrupulous study,” Brito said, listing practical steps to influence the process.
4/ If we can avoid the rule becoming final before Jan 20, then there is a very good chance the next administration will halt work on it and engage in a new, less rushed process.
So how do you file a comment?
— Jerry Brito (@jerrybrito) December 28, 2020
A similar initiative was launched by the nonprofit organization Fight for the Future. Its supporters included representatives of Monero Outreach, an educational program associated with the privacy-focused cryptocurrency.
“Many don’t realise that depositing or withdrawing funds in a bank in a certain way can lead to asset seizures. We must end this unjust practice against cryptocurrency right now, before it takes root,” argued Leo Enomaus, founder of Monero Outreach.
Both organisations say the haste reflects FinCEN’s doubts about the legality of this “outrageous” proposal. The authors of the initiative provided sample letters with comments and listed contact details for sending them.
As a reminder, the Coinbase exchange submitted a request earlier to extend the comment period for this FinCEN proposal.
Follow ForkLog news on VK!