Unchained Why Is the Proposed FinCEN Rule for Unhosted Wallets Being Pushed So Quickly? - Ep.204
Dec 22, 2020
In this insightful discussion, Jeremy Allaire, founder and CEO of Circle Pay, and Kristin Smith, executive director of the Blockchain Association, dissect the proposed FinCEN rule targeting unhosted wallets. They argue that the regulation, imposed with urgency, is politically motivated and risks stifling the crypto industry. The duo also explores implications for privacy, compliance challenges, and how the impending Biden administration may reshape the regulatory landscape. They advocate for community action to counter these sweeping changes.
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FinCEN Rule Impact
- The proposed FinCEN rule mandates KYC information for crypto transactions over $3,000 involving unhosted wallets.
- Transactions above $10,000 require reporting to FinCEN, potentially hindering DeFi and smart contract interactions.
Mnuchin's Bitcoin Disdain
- Jeremy Allaire recounts a Davos meeting where Secretary Mnuchin mocked Bitcoin, comparing it to bananas.
- Mnuchin expressed strong disapproval of self-custody and permissionless networks.
Business vs. Individual Impact
- The rule primarily affects businesses, not individuals transacting from personal wallets.
- Individuals can still use self-hosted wallets and DeFi, but transactions over certain thresholds will be reported.