According to Cointelegraph, Kenneth Blanco, director of the Financial Crimes Enforcement Network (FinCEN), insisted in an interview that regulators are not enemies. Blanco lamented, “We are allowing a potentially useful technology to be hijacked.” He explained FinCEN ’s role in protecting encryption, “This technology belongs to all of us. Do n’t let a few people use it for bad things, and do n’t let rogue countries use it for bad things.” But many in the encryption field doubt whether institutions like FinCEN operate in the best interests of the industry. Blanco denies the concept that cryptocurrencies operate outside normal financial rules. “If you do business in all or most of the United States, you must comply with our regulations and laws. By the way, at the end of the day, it also makes you safer.” The question of whether KYC improves security is controversial. Recent research by Chanalysis shows that only more than 1% of encrypted transactions were used for illegal purposes last year, and eliminating illegal transactions is a clear purpose required by KYC. Many people worry that the concentration of client information in the exchange database will bring greater risks.
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