Proposed on Dec. 18, the regulation would require exchanges to collect personal know-your-customer data from private or “unhosted” cold wallets on the sending or receiving end of transactions of more than $3,000. The Financial Crimes Enforcement Network (FinCEN) originally gave the proposal a very unusual 15-day comment period, which included the Christmas and New Year’s holidays.
Crypto gets breather from FinCEN’s last-minute unhosted wallet regulation
President Joe Biden’s regulation freeze stops FinCEN from rushing through a ‘midnight rule’ collecting personal data from private wallets
Outgoing Treasury Secretary Steve Mnuchin caused an outcry on Dec. 18, when the department’s Financial Crimes Enforcement Network announced the new rule requiring banks, cryptocurrency exchanges, and other money services businesses to collect know-your-customer (KYC) data about anyone who wants to transfer $3,000 or more to or from an “unhosted” wallet.
Opposition to FinCEN crypto rule grows after a16z promises court challenge
The industry plans to fight a proposed regulation requiring U.S. exchanges to collect personal data from private wallet-holders
Major United States-based crypto exchanges Coinbase and Kraken, Twitter founder Jack Dorsey’s fintech Square, and financial services giant Fidelity are among the firms that recently filed comments with the Treasury Department's Financial Crimes Enforcement Network strongly opposing the proposed new rules.
FinCEN drops ‘midnight rule’ regulating private crypto wallets
U.S. Treasury Department’s Financial Crimes Enforcement Network issued a proposal requiring exchanges to collect personal data from self-hosted wallets
Essentially, what FinCEN wants is to require banks, cryptocurrency exchanges, and other money services businesses (MSB) to collect identifying data about anyone who wants to transfer $3,000 or more to or from an “unhosted” wallet.