U.S. Financial Crimes Enforcement Agency proposes new KYC rules for crypto wallets


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On Friday, the Financial Crimes Enforcement Agency, an agency under the Ministry of the Treasury, put forward a new proposed rule on Friday that hopes to transfer assets from exchanges to self-custodial wallets that US crypto users may need to comply with.

If passed, the proposed rule called “relevant transaction requirements involving convertible virtual currencies or digital assets” will require self-custodial wallets to comply with higher anti-money laundering standards, which means that anonymous transactions may become a thing of the past.

According to the advance notice of the proposed rulemaking (ANPR), if users want to transfer their cryptocurrency from a centralized exchange to their private wallet, they need to provide personal information to the exchange. Exchanges also need to submit and store records of cryptocurrency transactions.

The rules specifically include: KYC should be strengthened for withdrawals greater than US$3,000; exchanges should report transactions greater than US$10,000 to FinCEN; banks and money service companies must submit and archive transaction information related to customers and counterparties, such as names and addresses To verify the identity of both parties.

The proposal is scheduled to be announced on December 23, and the public will have 15 days to submit comments or feedback.

The rumor that this rule was brewing first came out last month, when Coinbase CEO Brian Armstrong said on Twitter that the Trump administration, especially Treasury Secretary Steven Mnuchin, was preparing a hasty rule. , Requiring the exchange to verify and understand the customer’s information on the receiver of the self-operated wallet.

The rules will be consistent with the guidance proposed by the Financial Action Task Force (FATF) last year, which requires countries to implement KYC rules for virtual asset service providers.

In order to ensure that no one conducts anonymous transactions, FinCEN has also proposed a “structured” rule, which requires that large transactions be broken down into smaller transactions.