The US Financial Crimes Enforcement Network has withdrawn two proposed rules that would have imposed regulatory requirements on financial institutions for certain convertible virtual currency transactions. One proposal covered transactions involving unhosted wallets, while the other targeted virtual currency mixing. The unhosted wallet proposal would have required recordkeeping, customer verification and reporting for covered transactions. The mixing proposal would have imposed a special measure on convertible virtual currency mixing as a class of transactions. FinCEN withdrew both proposals after considering public comments, citing the Trump administration’s deregulatory agenda and efforts to ensure digital asset regulation is fit for purpose.
US Financial Crimes Enforcement Network withdraws proposed rules on unhosted wallets and virtual currency mixing
The US Financial Crimes Enforcement Network has withdrawn proposed rules covering certain convertible virtual currency transactions involving unhosted wallets and virtual currency mixing. The proposals would have imposed recordkeeping, verification, reporting and special measure requirements on financial institutions.