Square’s CEO, Jack Dorsey, tackles FinCEN’s proposed regulations on collecting data on crypto wallet users

The CEO of payments company Square, Jack, joined the league of the Financial Crimes Enforcement Network’s (FinCEN) proposed regulations critics. He expressed his concerns through a letter he addressed to the FinCEN, Jan 4. 

According to him, if the rules are approved, it may push cryptocurrency customers to use unregulated services outside of the U.S.

He added that; 

“This creates unnecessary friction and perverse incentives for cryptocurrency customers to avoid regulated entities for cryptocurrency transactions, driving them to use non-custodial wallets or services outside the U.S. to transfer their assets more easily,”.

He explained that the regulations would ultimately mean that FinCEN would “actually have less visibility into the universe of cryptocurrency transactions than it has today and that would stifle innovation in the U.S.” 

Explaining further, Jack maintained “Technological limitations” may also make it difficult to identify and collect the counterparty information FinCEN would require.

Recall in a previous article, FinCEN proposed the regulations in December, potentially requiring users to comply with know-your-customer requirements if they want to send cryptocurrency from an exchange to a private wallet. The agency’s public comment period on the proposed wallet rules ended Monday.