- Jack Dorsey labels the FinCEN proposed new rules as “nonsensical”
- The proposed rules will require payment agencies to collect personal information for transactions above $3,000
- The FinCEN proposed new rules could create more problems than they are trying to solve
American tech entrepreneur and founder of Square, a financial payments company, Jack Dorsey has pushed against the new regulations proposed by the Financial Crimes Enforcement Network (FinCEN). Jack is also the CEO and co-founder and CEO of Twitter.
FinCEN’s Proposed Regulations is Nonsensical
In an open letter, the founder and CEO of Square, Jack Dorsey has criticized the new proposed FinCEN regulations.
Dorsey calls the new proposed rules nonsensical. Dorsey writes that the proposed rules would make law enforcement harder as well as resulting in privacy violations.
The new rules proposed by the agency would require crypto exchanges to collect the names and addresses of people if they make cryptocurrency transactions over $3,000.
The FinCEN believes that this new rule will help law enforcement in tracking down any illicit transactions being conducted.
On the Flipside
- Jack Dorsey has always been verbal about his investments and believes in Bitcoin.
- Three months ago Jack Dorsey invested $50 million in Bitcoin for his financial payment company, Square.
- Has extended the Bitcoin emoji on Twitter until the year, 3000. Believing Bitcoin to be the next store of value for the world.
- In other news, a new Bitcoin fund, Skybridge has made its debut with $310 Million. Skybride’s chief investment officer, Ray Bolte, announced that he expects each BTC to be worth $535K in the future.
A Move Against Cryptos?
Jack Dorsey writes his open letter in his capacity as CEO of payment company Square. Dorsey states that the regulation unfairly targets cryptocurrency against traditional payment methods. Dorsey wrote:
The incongruity between the treatment of cash and cryptocurrency under FinCEN's proposal will inhibit adoption of cryptocurrency and invade the privacy of individuals.
He explained noting that if a girl individual receives a $4,000 gift from her mother through a bank, there would be no need to collect information on her mother.
However, the proposed rules mean that every company offering payment services would need to collect private information on their customers making transfers above $3,000.
FinCEN New Rules: Creating More Problems than Solving
Dorsey believes that the rules could create more problems than FinCEN is trying to solve. He argues that the regulation would end up hindering, rather than helping, law enforcement.
If the rules are enforced, users would turn to offshore companies and possibly unregulated channels to escape it, thus worsening the problem they are trying to solve.
The CEO of Square ends the letter by requesting more time from FinCEN allowing more industry experts to voice their opinion on the new rules. An opinion shared by CoinCenter.