NO WALLET REGULATION : SQUARE AND KRAKEN OPPOSE FINCEN’S NEW REGULATION

FinCEN also referred to as the US Treasury Department’s Financial Crimes Enforcement Network has implemented a regulation that describes, all the transactions taking place in the form of digital assets are from now on regulated by introducing limits in transactions.

Some of the restrictions imposed by the FinCEN includ that the KYC is required for transactions involving a withdrawal of $3000. Identity of the users must be confirmed and the financial sectors have the right of reporting the FinCEN for transactions involving $10,000.

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But some of the trading companies have expressed their disapproval by saying that this regulation wouldn’t benefit much of the trade market.

US SQUARE

The trading company square which operated the app CashApp says that with the implementation of such regulations, people will be attracted towards  non-regulated and non-registered wallets that would alter the present scenario of transparency in banking of digital assets. It also says that this leads to an imbalance and leads to the benefit of only a particular sector of trade. Due to these regulations non-users information is also to be registered which makes things complicated for the company’s data base.

KRAKEN

Kraken mentioned that the poor would be deprived of any bank accounts and various invalid transactions would be carried out, hence bankrupting them. It also pointed out that these regulations would lead to a lot of technical errors and discrepancies.

The ministry was also questioned about the policy and was advised to regulate the law in such a way that the people wouldn’t be affected much.

At the end of December, FinCEN has also proposed to regulate transactions outside United States also. With this a lot of money holders having an excess than prescribed have to report to the FinCEN for further proceedings.

The FinCEN therefore supports its statements saying that these regulations would help detect crimes and eradicate them from the roots.

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Ritika Sharmahttp://www.thecoinrepublic.com
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

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