- FinCEN has proposed a new crypto wallet rule called “ Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets.”
- As a result, FinCEN requests individuals comments within a period of about 15 days.
US regulating body FinCEN has released a new rule on crypto wallets called “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets.” FinCEN is requesting individuals’ comments on the proposed requirements which will not exceed 15 days.
The rule aims to act as a core anti-money laundering regulation on digital asset transactions. According to the proposed rule, banks and other money service businesses need to submit reports and keep records.
Going forward, banks and (MSBs) need to verify and identify customers in relation to CVC’s transactions with legal tender status.
US Department of the Treasury Secretary Steven T. Mnuchin said,
This rule addresses substantial national security concerns in the CVC market, and aims to close the gaps that malign actors seek to exploit in the recordkeeping and reporting regime.
The law intends to offer curated protection to national security, aid law enforcement, and increase transparency on blockchain-based innovations. The new rule will not report or record the amount of each transaction, be it $3,000 or $10,000. Rather, it will store the transaction hash and the users’ identity.
However, an article from Forbes says that 15 days is “a highly accelerated timeframe” for the public to comment on the new rules. Additionally, FinCEN said that commenting is unnecessary, even contrary, to public interest.
Specifically, FinCEN wrote in the document that,
FinCEN has noted that notice-and-comment rulemaking requirements are inapplicable because this proposal involves a foreign affairs function of the United States and because “notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.
Regardless, the public has 15 days to check the new rules and possibly voice out their suggestions.