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FinCEN’s Proposed Rulemaking for Cryptocurrency – The Balance of National Security vs. Privacy

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Author: Jenny L. Colgate

Published: January 6th, 2021

Just before the Christmas holidays, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued proposed rulemaking entitled “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets.”  The proposed regulations seek 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 (“CVC”) or digital assets with legal tender status (“legal tender digital assets” or “LTDA”) held in unhosted wallets…”  The proposed rulemaking is set to be adopted under the Bank Secrecy Act (BSA).

EEF, unhosted wallets, square