FinCEN Extends Time Frame For Public Comments on Controversial Proposal

FinCEN extends time frame for public comments on controversial proposal.

TL;DR Breakdown

  • FinCEN extends request for public comments on its proposed regulation by 60 days.
  • The regulation had generated negative reviews from crypto enthusiasts.

Top financial regulator in the United States, Financial Crimes Enforcement Network (FinCEN), has announced its decision to extend the period for public comments based on its newly proposed crypto regulations that have drawn the ire of the crypto community. According to details of this extension, comments would now be received up to March this year.

The extension is expected to take effect for the next 60 days, and it is starting today. As of the beginning of this month, the agency had earlier extended the period by 15 days because of the massive level of criticism they had faced from different crypto enthusiasts. These new regulations were designed to help regulate those “self-hosted” wallets. 

FinCEN proposal draws negative reviews 

FinCEN had initially published the contentious proposal on December 18, where they had given a brief period for the public comments. Part of the measures proposed by the new regulation was the implementation of strict KYC measures. It also mandated exchanges to report one-off transactions greater than $3000 to it. And at the same time, it asked the exchanges to report transactions that were over $10,000 within 24 hours.

Major market players had reacted negatively to this new proposal, with Brian Armstrong, the CEO of Coinbase, saying the new regulation would stifle innovations in the crypto industry. Members of the US congress had also written a letter to the agency requesting that the authorities extend the public comment period for this proposal.

Members of the Monero community also showed their discontent with this proposal. The community provided instruction on how crypto enthusiasts could beat this new proposal.

With the recent development, it shows that the demands of the public have been heard. However, Peter Van Valkenburgh of CoinCenter, firmly believes that the battle is not over yet. According to him, the new FinCEN team could still be harboring the intention of implementing the proposal.

 

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