The US Treasury Department has introduced new crypto KYC requirements. This is in a bid to help the nation to battle the likely inclusion of crypto assets in criminal operations. The crypto exchanges are needed to check the personality of the wallet owner if funds surpasses $3,000.
As indicated by the official public release by the US Treasury Department, the proposed rule requires digital currency trades to present the data of exchanges above $10,000 to the Financial Crimes Enforcement Network (FinCEN).
Commenting on the recent proposal, Steven Mnuchin, Secretary of the US Treasury Department, said: “This rule addresses substantial national security concerns in the convertible virtual currency (CVC) market. Adding that, it aims to close the gaps that malign actors seek to exploit in the recordkeeping and reporting regime. The rule applies to financial institutions and is consistent with existing requirements. It is intended to protect national security, assist law enforcement and increase transparency while minimizing the impact on this huge innovation.
Crypto Community Response
The Department raised concerns with respect to the possible utilization of digital currency in terrorist attack financing. They requested monetary firms to verify the identity of all clients. The US digital currency traders are needed to give subtleties including name, address and reason behind the exchange.
Despite the fact that the proposition is believed that it will help the crypto world. Numerous individuals have been remarking opposite on the issue.
The crypto community responded unequivocally against the new proposition and communicated worries about the potential guideline which can affect the development of cryptocurrency contrarily.
Jeremy Allaire, the CEO of Circle said that the proposition is an individual mission of Secretary Mnuchin.
He explained in a series of tweet that, Mnuchin’s view is definitely more forceful than the proposed rule set forward.
He said, “His original plan was to just drop this as a final rule with zero notice for public comment, as a ‘midnight rulemaking’ on his way out of office. This actually didn’t have broad support, in fact, very few people were even aware of this plan”
