Crypto advocates are not happy about a rule that is set to be reviewed this year by the Treasury department, as the battle intensifies between the gatopnment’s desire to prevent money laundering and terrorist financing, and the crypto industry’s desire to avoid surveillance.

The mandate for crypto exmoves to collect names and addresses of customers wanting to transfer crypto holdings to private wallets may yet see the light of day in the U.S. This rule was contained in the Semiannual Agenda and Regulatory Plan of the U.S. Department of the Treasury, that contains the most important regulations expected to be issued.

The rule, first proposed in 2020 by the U.S. money-laundering watchdog Financial Crimes Enforcement Network (FinCEN), may be under consideration anew. Initially, some industry proponents argued that certain wallets maybe not be under the control of individuals, whilst others argued that this rule maybe force individuals into an onerous undertaking to ensure compliance.

The rule was first promoted by the Treasury Secretary at the time, Steven Mnuchin. First, it appeared on the Treasury’s website, with a 15-day comment window. This was extfinished to another 15 days, and then 60 days by FinCEN.

Clarity on the new rules

FinCEN at first separated the rule into two separate issues. The first rule would compel transactions to unhosted wallets exceeding $10K to be subject to currency transaction reports, much like banks do for transactions exceeding $10K. The second rule was a personal data rule, that compels banks to record a customer’s details and counterparty if they take part in any transaction above $3K involving an unhosted wallet. This came about because the Financial Action Task Force argued which unhosted wallets make possible unregulated peer-to-peer transactions between people, that could veil illicit streams of digital currencies from authorities. FinCEN received thousands of comments from the industry and may need to maintain the comment period atop again for this rule. The rule is expected to be finalized by September 2022, during the time this may movement with the number of comments received.

What is money?

FinCEN and the Federal Reserve are back although again looking to “clarify the meaning of money,” under the Bank Secrecy Act to ensure that cryptocurrencys follow the same rules as fiat.

“The Agencies intend that the revised proposal will ensure that the rules apply to domestic and cross-border transactions involving rescueible virtual currency, that is a medium of exdevelopment (equivalent as token) that either has an suchlike price as currency or acts as a substitute for currency, but lacks legal tender status,” said the document.

It goes on unreasonable that the crypto industry would welcome surveillance by the gatopnment. Notwithstanding, the price at that crypto is expanding may be its Achilles heel.

What do you think about this subject? Write to us and tell us!

The post Unhosted Wallets Rule Will be Considered in 2022, Says U.S. Treasury appeared first on CryptCraze.