The Electronic Frontier Foundation (EFF) raised concerns about the strengthening financial surveillance through the proposed crypto regulations announced by the U.S. Treasuryâ€™s Financial Crimes Enforcement Network (FinCEN).
The Nonprofit Organization Is Concerned About New Rules on Self-Hosted Crypto Wallets Proposed by FinCEN
According to the nonprofit organization based in the United States, the FinCEN is trying to undermine â€œone of the most important aspects of cryptocurrencies from a civil liberties perspective,â€ which can provide privacy protections for their users.
The traditional banking systemâ€™s financial surveillance could be just imported to cryptocurrencies through a heavy overseeing in crypto transactions on exchanges, said the EFF.
On December 18, 2020, the U.S. Treasuryâ€™s bureau proposed new rules â€œaimed at closing anti-money laundering regulatory gaps for certain convertible virtual currency [CVC] and digital asset transactions,â€ amid rumors of Treasury Secretary Steven Mnuchin rushing out regulations for self-hosted crypto wallets before Biden took office as president of the United States.
The nonprofit organization clarifies that although theyâ€™re still in the process of reviewing the full FinCENâ€™s proposal, they commented:
The EFF also believes that new rules could â€œhamper broader adoptionâ€ of self-hosted crypto wallets at technologies that rely on them, as it could make it â€œsignificantly more difficultâ€ for users to seamlessly interact â€œwith other users who have wallets provided by a service subject to the regulations.â€
Adopting FinCENâ€™s Proposed Rules Is Premature: Bitcoin-Friendly Senator
Moreover, there are concerns from the nonprofit organization on the obligation of hosted wallet services to collect certain information about self-hosted wallet users â€œwho transact with their customers in some circumstances.â€ The EFF adds:
Cynthia Lummis, a Republican lawmaker and bitcoin-friendly senator-elect for Wyoming, also expressed its concerns on the Treasury Departmentâ€™s new game rules for self-hosted digital asset wallets:
What do you think about the opinion of the nonprofit organization? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.