Unhosted Wallets Rule again in the discussion, more likely to introduce in 2022
An old proposal of 2020 to fight against illegal use of crypto assets is again coming into debate and discussion.
The numbers of crypto investors from the US are standing at 2nd rank and it is a big reason for the US government authorities to take new decisions so that the government can easily handle future challenges because of illicit use cases of Crypto assets.
In 2020, U.S. money-laundering watchdog Financial Crimes Enforcement Network (FinCEN) proposed a rule to impose on all the exchanges and crypto services to bring restrictions on their users before they transfer their crypto assets to third party non-custodial wallets.
Under the proposed rule of FinCEN, all the exchanges will go through a necessary rule to collect the details, name, and address of the user.
After lots of debates on this proposed rule of FinCEN, the US government shifted the plan to introduce this rule for 2021. Later this proposal faced more and more delays. But Reportedly US treasury is now picking this matter to introduce in 2022.
Problem with this new rule?
In the present time, the majority of the crypto users are using centralized crypto exchanges for their crypto-related trading and buy and sell activities.
The numbers of decentralized and non-custodial services are increasing by numbers and also people are moving toward such types of services.
The majority of the crypto advocates claimed that such rules will spoil the adoption of the crypto industry because under these rules users will be forced to follow very strict compliance which is not necessary.
Few experts claimed that many crypto services are Centralized but the crypto wallets are not in control of the crypto service providers, so how it will be possible to implement the rule on this crypto Industry.
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