Wallet of Satoshi has announced that they would stop serving US customers while they redesign the app in an attempt to rebrand to appease FinCEN. There will be two major changes in the rebrand. The first one is the rename, in order to honor and attempt to appease Janet Yellen's Treasury department, which FinCEN is an arm of. The relaunch of the American version of the wallet will be called "Wallet of Janet." The second part of the relaunch is requiring KYC for every single transaction, as this is becoming a strict requirement in the freest country on Earth.
Whether or not the move will actually appease the Treasury Department is unknown, but Yellen is likely to be amiable to the wallet rename as she is a narcissist who is easily swayed by flattery. The major contributor to gaining approval by the regulators is the KYC function. KYC stands for "Know Your Customer" and is a set of rules that allows the Treasury Department to coerce companies into making Bitcoin unusable, as well as putting their customers at major risk of identity theft.
KYC laws are being weaponized against Bitcoin related products and companies, in order to try and protect the banks monopoly on money laundering and terrorist financing. Facilitating money laundering is a major source of income for the banking industry, which has been plagued recently by record losses and bank runs. Yellen has advocated for looser regulations for bankers, but stricter regulations for companies utilizing Bitcoin. The fear of the Treasury Department is that if Bitcoin continues to get adopted at a rapid rate, it could threaten the US government's ability to fund global wars.
"Our ability to fund wars should come before the welfare of US citizens. Inflation is transitory because you eventually die and won't experience it anymore," Yellen said in response to criticism of the Treasury's recent enforcement. KYC laws will likely be getting an overhaul, specifically for Bitcoin related products. FinCEN has not been happy with only having users KYC at the time of purchasing Bitcoin, and wants to require KYC for every transaction. Their proposed regulation would require users to submit a DNA sample before each transaction via a blood tester similar to what diabetics use to test their blood sugar. The blood tester will be able to connect to any phone via blue tooth and will cost $200.
Many Bitcoiners have commented on the new proposed KYC standards. Some have decried the proposal as Orwellian. Others have thanked FinCEN for providing regulatory clarity to the industry, and believe that having standards like this will allow for the next bull market. All in all, adding restrictions to Bitcoin ownership and usage will incentivize people to buy BlackRock's paper Bitcoin product that will likely get approved in the near future.