Jack Dorsey, CEO of Twitter and Square, said in a statement that the new Financial Crimes Network (FinCEN) proposed law would reduce regulatory oversight of the area and make it underground.
To Report Coin Telegraph, a major US digital currency company, has protested against a proposed new Financial Crimes Network Act. According to them, this will also provide information to people who are not customers of these businesses. Dorsey writes with reference to the same issue:
These requirements go far beyond what is required to carry out cash transactions.
He believes that this will gather unreliable information from those who have chosen our services but have not registered as our customer. Dorsey writes about this:
The addresses and names of affiliate businesses should not be required for CTRs and reporting. Because these things are not necessary for cash.
Square predicts that if the law is passed, it will expand the use of people by service providers operating outside the United States. According to Square, passing the law could also increase the use of insecure wallets. “Such a move could undermine the US role in the competition debate and create legislative challenges,” Square said.
By adding barriers to moving away from regulated institutions such as Square and closer to insecure wallets and other jurisdictions, the US Financial Crimes Network will have less control over digital currencies in the future.
The proposed US Financial Crimes Network Act is facing a barrage of criticism. One of these criticisms is the short 15-day deadline of this institution to consult and attract the public. This interval for other rules is usually 60 days. Despite this short time, about 6,000 comments have been registered on this proposed law.
Kraken Exchange is one of the critics of this law. According to the exchange, the Financial Crimes Network has not been able to make an accurate estimate of the executive costs of the law. Cracken, like Square, points to users moving away from regulated platforms and writes:
this problem [تصویب قانون] Potentially confirms that access to the documents available to law enforcement today will not be possible tomorrow.
This law is clearly a kind of hasty legislation influenced by political approaches and destroys the trust we have in the financial crime network.
Coin Bess had previously called the law “widespread ambiguities” and called for an exemption from the Financial Crimes Network. According to Coin Bass, the law is “aggressive” to the “privacy” of the people and has little advantage.