FinCEN Proposes Reporting, Recordkeeping and Verification Requirements for Digital Currency Transactions Involving Unhosted Wallets

31 December 2020
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Key takeaways:
  • FinCEN has issued a proposed rule that would require banks and money service businesses to report, maintain records, conduct counterparty identification and verify customers for digital currency transactions above specified value thresholds that involve unhosted wallets or wallets hosted by foreign financial institutions located in certain jurisdictions.
  • If adopted as proposed, the rule will have significant implications for banks and money service businesses involved in digital currency transactions, including cryptocurrency exchanges. Public comments on the proposed rule are due by January 4, 2021.