Financial Crimes Enforcement Network Proposes New Rules For Crypto Wallets

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Financial Crimes Enforcement Network Proposes New Rules For Crypto Wallets
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The US Treasury Department reveals that the Financial Crimes Enforcement Network (FinCEN) has proposed new rules for cryptocurrency wallets.

According to the US Department of Treasury’s announcement, the proposed rules require banks and other financial firms to keep records of verified customer’s identities and submit them.

The tasks should be carried out on transactions related to certain thresholds involving virtual currency or digital assets with legal tender status regardless of whether it is hosted or not hosted by financial institutions but has to be recognized by FinCEN.

The department’s secretary, Steven T. Mnuchin, further explained the concerns of the newly proposed rules.

“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,” he said.

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The proposed laws are targeted at the promotion of national security on finances as well as enhancing digital assets’ transparency. This would help fix loopholes on financial records that fraudulent manipulators seize for their personal benefits.

Mnuchin also elaborated on the purpose of the yet to be enforced rules, saying;

“The rule, which applies to financial institutions and is consistent with existing requirements, is intended to protect national security, assist law enforcement, and increase transparency while minimizing impact on responsible innovation.”

Per the proposed rule, banks and Money Services Businesses (MSBs) will be given a maximum period of 15 days from the date when a worthy and reportable transaction happens to file the required report with FinCEN.

FinCEN awaits approval from the Federal Register and comments from interested parties.

“Comments from all interested parties will help inform the scope of any future regulatory actions and should be submitted within 15 days of the NPRM’s publicly display by the Federal Register.” They concluded.