The crypto space is shaking. This is not only shown by the mood barometer of the Bitcoin rate suddenly skyrocketing to unimagined heights. Legislators also seem on the alert. In the US, the tax authorities want to take a closer look and tighten the reins of regulation.
Goodbye privacy – FinCEN is tightening thumbscrews when it comes to regulation
The start of the year does not promise much for the crypto industry: If the Financial Crimes Enforcement Network ( FinCEN ) of the US Treasury Department has its way, the regulations for industry companies could soon be significantly stricter.
The authority wants to tighten the thumbscrews with two initiatives. Specifically, it is initially about a tax reporting obligation for crypto values that are stored with foreign financial service providers or are provided by them. In addition, FinCEN wants to oblige crypto exchanges to store certain customer and transaction data. This is likely to entail considerable additional administrative effort for companies in the future. The scene is outraged.
Business and politics are massively criticizing the FinCEN’s proposal
Square CEO, among others, gave free rein to his displeasureand Twitter founder Jack Dorsey. In a letter to the US Treasury Department, he complains that FinCEN’s measures go far beyond what is required for cash transactions. The new guidelines, in turn, would expect data to be collected from people who are not customers at all.
The venture capital giant Andreesen Horowitz was equally critical. The Investment Goliath punished the US Treasury Department’s initiative as „a rule rushed under the guise of the holidays that violates the government’s own established rulemaking process.“ And there was also criticism outside the private sector. Nine congressmen have now issued a joint letter calling on Treasury Secretary Steven Mnuchin to stop the tough course.