Since the Federal Reserve and the US Financial Crimes Network opened the proposed rule for learning more about small international transactions, many cryptocurrency users have described this measure as a breach of privacy.
On October 23, regulators issued notice of a proposal to change a longstanding rule requiring US financial institutions to share customer information for all international transactions over $ 3,000. The proposal, which includes “transactions involving convertible virtual currencies and legal digital assets,” would lower this cash limit to $ 250. It is clear that cryptocurrencies will need to store a lot of personal information from users to keep up with the changes.
The Federal Reserve opened the proposal for public comment, and many cryptocurrency users were quick to voice their opposition. Some have raised concerns that the proposal would be against the nature of cryptography. An anonymous person commented, “The primary goal of Bitcoin is to remain decentralized and disorganized – by creating rules, laws and regulations, you are violating the purpose of its use.”
At least one legal group is calling for US citizens to oppose a rule change. Massachusetts-based digital rights group Fight for the Future said 3,000 people had sent comments to the Fed and FinCEN “to stop attacking the cryptocurrency and our privacy rights.”
Privacy was high on the public comment list for someone apparently concerned about how cryptocurrency exchanges would handle the burden of protecting personal data.
“This offer, if accepted, would be an invasion of privacy,” said Dallas-based Kyle Crippins. “When it comes to digital assets, cryptocurrency exchanges are not accounted for the same way as other financial institutions, and they have an overall view of low operational reliability when it comes to storing customer information securely.”
There is a certain feature in the claim. Earlier this year, a hacker was reported to have stolen data from thousands of customers from the hardware wallet maker Ledger. In May, cryptocurrency loan provider BlockFi reported a data breach that resulted in hacking the physical addresses of some wealthy clients.
“While many countries and organizations are pushing for a definitive end to the use of physical cash, it is entirely inappropriate to increase restrictions that make it difficult for Americans to transact and convert [virtual convertible currencies],” Grant Dever said. … regarding the proposed rule. “America needs to be a pioneer in these technologies, and increasing the burden on entrepreneurs from such restrictions is counter-productive and makes us vulnerable to technological advances from competing countries.”
Public comments are closed on FinCEN and the Federal Reserve this week.