New US administration freezes FinCEN's proposed crypto wallet regulations

Friday 22 January 2021 09:41 CET | News

President Joe Biden has frozen all regulatory processes including proposed FinCEN rules detrimental to the crypto industry, according to Coin Telegraph.

President Joe Biden froze also the controversial self-hosted crypto wallet regulations proposed by former Treasury Secretary Steven Mnuchin, the online publication adds. The self-hosted wallet proposal was made by FinCEN on December 18, 2020 and if passed would require that banks and money service businesses submit reports, keep records, and verify the identity of customers who make transactions to and from private cryptocurrency wallets.

The proposal has been widely criticised by industry leaders, who said that counterparty name and address collection should not be required for cryptocurrency just as it’s not required for cash today. Critics also stated that it would be technically impossible for many projects to comply because smart contracts do not contain name or address information.

The edict does not specify the crypto wallet proposal but places a general freeze on all agency rulemaking pending review, effective for 60 days from the date of the memorandum.

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Keywords: Joe Biden, FinCEN, cryptocurrency, crypto wallet, Bitcoin, payments , anonymity, US
Categories: DeFi & Crypto & Web3
Countries: United States
This article is part of category

DeFi & Crypto & Web3