Jack Dorsey, CEO of financial services firm Square, has said the regulations proposed by the Financial Crimes Enforcement Network (FinCEN) will negatively affect the US crypto industry.
The Square CEO has said in a letter that was shared yesterday the new anti-money laundering regulations proposed by FinCEN could cause users to stop using the country's regulated platforms and opt for other services instead.
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According to the proposal presented by the institution, cryptocurrency companies will be required to gather information on the identities of non-customer counterparties. Dorsey claims these obligations go "far beyond what is required for cash transactions," and that Square would be expected to collect "unreliable data about people who have not opted into our service or signed up as our customers."
Dorsey believes that if the FinCEN's proposal is eventually approved, this will result in users seeking the services of other platforms. This would negatively affect the crypto industry in the country, which would have serious problems competing with other jurisdictions.