Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets

Title:
Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets
Subject: BSA/AML
Agency: FinCEN
Status: Proposed rule
Summary:

FinCEN is issuing this notice of proposed rulemaking to seek public comments on a proposal to require banks and money service businesses (“MSBs”) to submit reports, keep records, and verify the identity of customers in relation to transactions involving convertible virtual currency or digital assets with legal tender status (“legal tender digital assets” or “LTDA”) held in unhosted wallets (as defined below), or held in wallets hosted in a jurisdiction identified by FinCEN. FinCEN is proposing to adopt these requirements pursuant to the Bank Secrecy Act (“BSA”). To effectuate certain of these proposed requirements, FinCEN proposes to prescribe by regulation that CVC and LTDA are “monetary instruments” for purposes of the BSA. However, FinCEN is not proposing to modify the regulatory definition of “monetary instruments” or otherwise alter existing BSA regulatory requirements applicable to “monetary instruments” in FinCEN’s regulations, including the existing currency transaction reporting (“CTR”) requirement and the existing transportation of currency or monetary instruments reporting requirement.

FR Doc: 2020-28437; 2021-01016 (comment period extended); 2021-01918 (comment period extended again)
Date proposed: Dec. 18, 2020
Comments due date: March 29, 2021
Effective date:

Rule compliance date:
Agency release:

Related Reg Report item(s): Proposal would track virtual currency transactions as a tool in curbing money laundering

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