EVERYBODY needs to submit comments on the Fincen regulation that's being forced through. The comment period was only 15 days, over Christmas and New Year's. It's a transparent ploy.
When this regulation goes into effect you won't be able to withdraw crypto from exchanges the way you used to. It's going to be KYC up the @$$. You will have to lube up and bend over. For any and all crypto withdrawals of any kind, you have to provide name and address of the receiver.
The comment period ends January 4.
The rule will
require banks and money service businesses (“MSBs”) to submit reports, keep records, and verify the identity of customers in relation to transactions involving convertible virtual currency (“CVC”) or digital assets with legal tender status (“legal tender digital assets” or “LTDA”) held in unhosted wallets (as defined below)https://www.regulations.gov/document?D=FINCEN_FRDOC_0001-0121Comment here:
https://beta.regulations.gov/commenton/FINCEN-2020-0020-0001Absolutely it is.
Comment here:
https://beta.regulations.gov/commenton/FINCEN-2020-0020-0001Example comment:
"The proposed new rules impose unprecedented financial surveillance on many people like me who are participating in the crypto economy for legitimate purposes. The new requirements also mean that more personal financial information belonging to me and those I transact with will now be collected and retained by the government."
Here's a more extensive model comment based on a twitter thread by Jake Chervinsky
https://twitter.com/jchervinsky/status/1340135041746300932*First, The proposed rule does nothing to accomplish its stated goals. Even if illicit activity was a major problem (it isn't), this won't stop the flow of funds to bad actors or help law enforcement do its job. The proposed rule doesn't stop VASP customers from transacting with bad guys. It just forces them to pay an extra fee to withdraw to their own wallet first.
*The proposed rule doesn't give investigators any new information. VASPs already KYC their customers & keep records of transactions. Today, law enforcement has to subpoena VASPs to get information about customers. VASPs can, should, & often do challenge these. This rule would force VASPs to hand over that information automatically, every time.
*Considering the FinCEN Files leak & recent hacks, government hasn't shown that it's using our information effectively or storing it safely. Now isn't the time to expand government's warrantless mass surveillance & data collection operations.
*How exactly can a VASP obtain the name & physical address of the owner of a non-custodial wallet? How does someone prove that they "own" a private key? What about non-custodial smart contracts -- who owns them?
The rule doesn't say.
*Without a clear path to compliance, it'll be left to the discretion of regulators & prosecutors to decide if a VASP's efforts are "good enough."
When institutions don't know how to comply, so they "de-risk" by prohibiting the uncertain activity completely.
*The rule would impose huge burdens on VASPs, their customers, & society at large, perhaps infringing constitutional rights, without conveying any benefit to government in general or law enforcement in particular.