The crypto industry was kept on its toes in the last few weeks of the Trump administration’s presence in office as the FinCEN rolled out a compulsory regulation. Despite being a fan of regulations and following it, the entire crypto space came together to show their displeasure towards the directive.
According to FinCEN, a crypto exchange would need to verify users’ identity of privately hosted wallets before digital assets can be sent into the wallets. Reacting to this regulation, the crypto market argued that the rule would rob the entire crypto market of the real reason why they signed up to use crypto, which is anonymity.
The organization is an umbrella for firms in the crypto space
In a bid to further stand together and show displeasure towards the rule and others in the future, the blockchain association has announced that it has welcomed new sets of members to the association. Going by the announcement that was made by the association, its members are now about 30, after five new firms signed up to be part of the association.
A recent tweet that the association made talked about how the latest FinCEN rule pushed crypto entities like Uniswap, Blockchain Capital, CMT Digital, and others to join. It noted that with the firms joining, they would be able to echo the entire crypto space’s decision to regulators whenever they plan to make an unfavorable rule like the one made recently.
In the statement, the outfit talked about how important it was to speak under one body and how far it would go to show that they are united against any regulations that would put the crypto space in jeopardy. Looking at the regulation that FinCEN wanted to enforce on the space at the time, the regulator wished to crypto exchanges to report all transactions worth $10,000 and above and wants crypto exchange to identify the receiving party in all payments of $3,000 and above provided the receiver is using a self-hosted wallet.
The association faults the recent FinCEN regulation
Arguing against the rule, the body stressed that it goes against what crypto and trading assets stand for in the first place. Even though the motion had been under wraps in the past few weeks due to Trump leaving and Joe Biden being sworn in, the motion has been awakened again in the last few weeks. According to the blockchain association, the outfit was created to unite entities in the crypto sector and put them under one organizational umbrella so they would be able to make decisions without countering each other.
Even though the organization houses most members, other firms also have their own in house groups, while smaller firms look to bigger organizations to represent it when it comes to events like this. Other crypto lobbying centers are now gaining from the attention that the regulator is giving to firms in the crypto market. This can be justified by Grayscale’s recent $1 million investment in Coin Center, a min profit organization.