Payment giant Square responded in a long article: FinCEN's requirements "may increase unnecessary transaction friction"
Rhythm BlockBeats news, on January 4th, Square, the payment company founded by Twitter CEO Jack Dorsey, published a long article in response to the previous "FinCEN" issued by the US Department of the Treasury Notice of Proposed Rulemaking Concerning Certain Transaction Requirements Involving Convertible Virtual Currency or Digital Assets,” a lengthy response to requiring cryptocurrency service providers, including Square, to preserve and report certain cryptocurrency transaction information.
In the article, Square highlights the empowering benefits of cryptocurrencies for consumers around the world Opportunity, important to economic growth and global competitiveness, could create barriers to financial innovation in the United States if such rules were enacted.
As such, it considers it unacceptable to require financial service providers to keep records of users' identities and transactions, not only Preventing the adoption of cryptocurrencies also violates personal privacy. In addition, it is technically difficult to implement and may add unnecessary friction to the transaction.
Square also mentioned that while it is important to encourage innovation, it is equally important to assess the associated risks, and evidence shows that Cryptocurrencies do not pose a greater money laundering threat than fiat currency (cash). At the very least, more in-depth research is needed on this issue to identify and quantify risks, and to relate proposed rules to the specific risks identified. Therefore, the record-keeping requirement appears to be arbitrary and (at present) unfounded.
Finally, Square hopes that FinCEN will extend the comment period to provide additional industry input and allow more collaboration among all stakeholders, including Industry, regulators, and law enforcement should continue to collaborate through other avenues.
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