FinCEN drops ‘midnight rule’ regulating private crypto wallets

FinCEN drops ‘midnight rule’ regulating private crypto wallets
HeadlinesNewsFinCEN drops ‘midnight rule’ regulating private crypto wallets

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FinCEN drops ‘midnight rule’ regulating private crypto wallets

Modern Consensus.2 months ago
Published on December 19, 2020 03:18 GMT+0edited on December 19, 2020 03:28 GMT+0

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The U.S. Treasury Department’s Financial Crimes Enforcement Network finally proposed a long-awaited, and feared, rule that would require exchanges to report many transactions involving private cryptocurrency wallets.

Essentially, what FinCEN wants is to require banks, cryptocurrency exchanges, and other money services businesses (MSB) to collect identifying data about anyone who wants to transfer $3,000 or more to or from an “unhosted” wallet.

“This rule addresses substantial national security concerns in the CVC market,” said Treasury Secretary Steven Mnuchin, referring to convertible virtual currencies—a term for digital assets.

The rule, he said in a Dec. 18 press release, “aims to close the gaps that malign actors seek to exploit in the recordkeeping and...