The Financial Crimes Enforcement Network wants to oblige US citizens to report on offshore cryptocurrency holdings if the amount of funds is over $10,000, Decrypt first reported, citing the watchdog's notice.
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So far, the Report of Foreign Bank and Financial Accounts (FBAR) regulations do not define a foreign account holding cryptocurrency as a type of reportable account. However, it remains unknown what type of information users would be obliged to report or when this amendment might come into force.
Earlier in December, the FinCEN proposed to not only track transactions, but also identify digital wallets without hosting. FinCEN proposes to accept these requirements in accordance with the Bank Secrecy Act.
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.
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