More time to comment on proposed new requirements aimed at curbing the use of virtual currencies to move illicit funds is provided in a Financial Crimes Enforcement Network (FinCEN) notice slated for publication Thursday in the Federal Register.
The proposal, released in December, applies to certain transactions involving convertible virtual currency (CVD) or digital assets with legal tender (LTDA) status.
The proposed rule would affect transactions involving assets that are held in both “hosted” wallets (those held at a bank) in a jurisdiction identified by FinCEN as well as “unhosted” wallets (those that are not hosted by a third-party financial institution). It would require banks to file a report to the agency with certain information related to a CVD or LTDA transaction and counterparty, and to verify the identity of their customer, if a counterparty to the transaction is using an unhosted or otherwise covered wallet and the transaction is greater than $10,000. The proposal would also set recordkeeping and identity verification requirements for certain transactions involving more than $3,000.
The agency originally set an early January comment deadline and later extended it for a portion of the proposal. FinCEN said the extension provided now will provide a 60-day comment period beginning the date of the Register notice, applied to all portions of the proposed rule.