Square says its current methods of leveraging blockchain tracing with the wallet addresses has been effective thus far, working to track unlawful activity and resulting in convictions and arrests. But FinCEN's new requirements would instead make it so there's a static requirement for companies to collect names and physical addresses from users who aren't enrolled with the institution allowing the transfers. That, according to Square, will result in “unnecessary friction and perverse incentives” that will force crypto customers to go to unregulated sources to make transactions.