The regulation is supposed to make it easier for law enforcement to track illicit transactions, but Dorsey says it will have the exact opposite effect.
He also argued the regulation would unfairly target cryptocurrency over traditional payment methods and violate people's privacy. Twitter founder Jack Dorsey has come out swinging against a recent attempt by the US government to regulate cryptocurrency. Dorsey, writing in his capacity as CEO at payments company Squaresaid the proposed rules would make law enforcement harder as well as resulting in privacy violations.
Advertisement "Were the proposal to be bitcoin jack as written, Square would be required to collect unreliable data about people who have not opted into our service, or signed up as our customers," Dorsey wrote.
Dorsey also said the regulation unfairly targets cryptocurrency compared to traditional payment methods.
He gave an example of how he bitcoin jack cryptocurrency would be unfairly targeted. Under the proposal, if this same transaction were completed in cryptocurrency, the bank would have to reach beyond its customer relationship and intrude upon the mother's private information in order for the daughter to successfully deposit and freely access her gift," Dorsey wrote.
Advertisement Dorsey finished the letter by asking FinCEN to extend its comment period, allowing more industry experts to voice their opinion.