The U.S. Treasury Department's new KYC rules for U.S. crypto holders transferring funds from centralized exchanges to personal wallets could go into effect today. U.S. cryptocurrency users and exchanges supporting private wallets must comply with substantial new requirements under the rule.
Know Your Customer:
- The U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) issued the notice of proposed rulemaking on Dec. 18, which would become a part of the federal register on Dec. 23 (today).
- If approved, the proposed rule would require banks and exchanges to verify customer identity and submit records of transactions valued above $3,000 related to convertible virtual assets belonging to unhosted (personal) wallets.
- To execute the proposed advancement of the Bank Secrecy Act, FinCEN aims to regulate convertible virtual currencies and legalized digital assets as "monetary instruments," without further modifying their status (as commodities, currencies, securities, or otherwise).
- The proposal could be delayed in anticipation of the public comments remaining open through Jan. 4, 2021, and to allow exchanges enough time to take the steps needed to implement the new KYC and Travel Rule requirements.
- FinCEN shortened the traditional 30-to-60-day public comment period to just 15 days.