Andreessen Horowitz is a significant capital firm which is also known by the name of 16z. They are the most recent firm in the crypto industry that has opposed the latest suggested regulation by FinCEN in the United States of America.
Kathryn Haun, a general partner to 16z, has recently written about her issues against the FinCEN regulation in her blog. She stated that it is a hurried and unthoughtful rule just before the holidays which legally violates the rulemaking process under the established rules of the US government.
FinCEN Faces Major Backlash
FinCEN functions under the supervision of Steve Mnuchin, Treasury Secretary, and has introduced the new proposal regarding a regulation towards the end of the previous month. This proposed regulation intends to restrict the business of money services along with the cryptocurrency exchanges that are registered in the US from trading with the supposed ‘self-hosted’ wallets.
This new regulation will effectively need many of the crypto entities in order to gather and report in-depth private identifiable information on the counterparties of their customers. Haun has also noted that the level is implemented to none of the other sectors of the financial industry as of today.
Additionally, they have failed to resolve the problems that are violated in accordance with the 4th amendment in the US constitution while expanding the capabilities of the act of Bank Secrecy.
Moreover, an official of 16z has said that the counsel of FinCEN has observed that the regulation permits only 6 business days during the holidays for the purpose of feedback as well as comment on this suggestion instead of the usual 60 days.
