Charles Hoskinson of Cardano Criticizes FinCEN KYC Rules on Crypto Hodlers

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Last Updated on 10 March 2021 by CryptoTips.eu

Jeroen Kok

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Charles Hoskinson, founder of crypto coin Cardano (ADA) has never been a fan of big government, but in the last few days, it looks like he’s really had enough of financial controls as well. When a follower mentioned to him that the US government would soon be imposing KYC (Know Your Customer) rules on crypto wallets holders, Charles told them to go f*ck yourself.

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Building in Africa

Big government, or the notion that a government system should control all that it’s citizens do, is a Republican nightmare. President Ronald Reagan rallied against it in the 1980s already.

With Hoskinson firmly in the Republican corner during the last election, he is of course not a fan of any checks on the private transactions of citizens. It is however clear that the US would someday follow the European Union’s introduction of their KYC rules for crypto wallets as well, as it is obvious more and more people invest in cryptocurrencies.

The new KYC rule, to be published just before Christmas, shall require:

Banks and money service businesses (“MSBs”) to submit reports, keep records, and verify the identity of customers in relation to transactions involving convertible virtual currency (“CVC”) or digital assets with legal tender status (“legal tender digital assets” or “LTDA”) held in unhosted wallets.

Given that the EU recently asked all its crypto platforms to adhere to stronger identity checks, it was normal that the US would at a certain point follow suit. We can only guess that Charles didn’t expect it to come from the Trump administration’s treasury secretary, Steve Mnuchin.

Unelected

When a follower of his told Charles that he should get ready for inquiries from banks, the Cardano founder reacted quite harshly, saying:

Thanks government. I can’t say go f*ck yourself any stronger. You all ask why we build in Africa? Because the real corruption is right here in the United States. Soon every wallet in America will need an identity associated with it. Brought to you by an unelected, outgoing T-Sec

One of the first answers told him to simply change citizenship, which Charles clearly did not want to do. He answered:

That’s the cowards way out. I’m an American and will die an American.

I’m sure we haven’t heard the last of this just yet.