The US Financial Crimes Enforcement Network (FinCEN) is taking one step closer to towards tightening the cryptocurrency market. The new proposal published by FinCEN includes not only tracking transactions, but also identifying unhosted digital wallets. FinCEN is proposing to adopt these requirements pursuant to the Bank Secrecy Act.
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The published rules, if and when they are accepted, will require all centralized cryptocurrency exchanges and banks to impose additional layers of know-your-customer (KYC) and anti-money laundering (AML) policies for its clients. The proposed new rules will also require financial institutions and crypto exchanges to track all transactions with a value of more than $3,000
"Furthermore, under the proposed rule, for transactions that are greater than $3,000, or that aggregate to more than $10,000, the name and physical address of each counterparty must be collected and, in the case of reportable transactions, reported," the proposed rules say.
FinCEN also wants to fight with those who divide large transactions into smaller ones in a manner to avoid reporting requirement by "structuring." The deadline for the public consultations is set for January 4, 2021.
As iHodl reported in November, the Dutch Central Bank (DNB) imposed new limitations on cryptocurrency exchanges with an additional verification measure regarding bitcoin (EXANTE: Bitcoin) addresses. According to the local cryptocurrency exchange Bitonic, the DNB "effectively forced" it to enhance the verification process in reference to the Sanction Act.
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