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Crypto Enthusiast Faults New FinCEN Regulation

For over a long time, regulators across the globe have been working on various means to crack down on illegalities that are perpetrated using digital assets. With this in mind, it has driven them to make laws that would put the real traders and investors of digital assets in jeopardy.

Such is the rule of the United States FinCEN decision to crack down on self-hosted wallet. With this rule in place, people with wallets that are not registered on exchanges would need to be verified before digital assets above $3,000 are sent into their wallets.

FinCEN to begin enforcing rule by 2021

Some analysts and experts have noted that this new rule may apply to people that trade in the decentralized finance sector but they are still at a loss on how authorities will go about it. In their statement, the FinCEN noted that people are now using digital assets to make malicious transactions, finance terrorism, buying of weapons, laundering money, and evading sanctions amongst other things.

While the argument that digital assets are being used to carry out illegal transactions, the authority has failed to look at the potential that the assets possess. As it stands now, the body is waiting for general comments on the ruling before the regulation finally kicks in around January.

With the regulation expected to begin around January, major players in the industry have begun to show their displeasure at the speed that the FinCEN is working to make sure the regulation takes effect. Others are hoping that this law would be abolished before the stipulated time of enforcement because they are taking away the core aspect of using digital assets.

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Haun faults the public opinion period

Bashing the decision of the FinCEN, a general partner at a16z, Kathryn Haun has noted that the decision of the body is not a good one and they did not consider people that was why they made the time for public opinion very short. Reactions on Twitter via series of tweets, Kathryn Haun noted that chief of FinCEN, Steven Mnuchin did refuse to acknowledge the normal time period that is slated for a public opinion after he slashed it by 15 days.

She also noted that the regulation came during the holidays and them at a16z and the entire crypto space sees no importance of the regulation. She also noted that the FinCEN should have followed the usual 30 to 60 days that are normally used for public feedback after every regulation is announced.

Also, Haun mentioned that assuming they followed the normal timeline, they would be able to know the full effect of the regulation that they just made. Even with a short time frame for public response, various people in the crypto market have noted that the ruling has so many flaws and will be an obstacle to innovations in the crypto space.

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Furthermore, she spoke about the recent comments made by a senator where she said that the laws that are being used to check illegalities via crypto are not credible enough. Notably, Cynthia Lummins said on Friday that this new law will pull America one step back from becoming the leading fintech country across the globe.


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Adebayo Owotunse (Nigeria)

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

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