The US government has decided to reconsider the unhosted self-host crypto rules. The rule flacked a ton of controversy after the introduction. The Financial Crimes Enforcement Network (FinCEN) first brought this rule in 2020. The law requires complete personal authentication on every crypto transaction or trade. The trader will have to provide their name and other personal information of the wallets used for trading. Yahoo Finance reports that several wallets are not individual-controlled and don’t contain personal data; this is the major downside of the rule.
The Treasury Department Is The Driving Body
Yahoo Finance reports that the then-Treasury Secretary, Steve Mnuchin, played a significant role in the rule’s introduction. However, the present secretary will address this rule in 2022’s semiannual agenda of regulations which will be published on January 31. Yahoo Finance cited the document; it reads, “FinCEN is proposing to amend the regulations implementing the Bank Secretary Act (BSA) to require banks and money service businesses (MSBs) to submit reports, keep records, and verify the identity of customers about transactions involving convertible virtual currency (CVC) or digital assets with legal tender status (‘legal tender digital assets’) held in unhosted wallets, or held in wallets hosted in a jurisdiction identified by FinCEN.”
Huge Controversy Awaits The Rule
The report suggests that FinCEN will bring the rule by the end of August; it will come with a 15-day comment period; this has aggravated the debate among the legal authorities as the standard comment period lasts between 30-90 days. Yahoo Finance states that the financial bodies file CTRs for transactions exceeding $10,000 per day. The personal data rule is applicable on users involved in transactions worth more than $3,000 in a day.”
“The Agencies intend that the revised proposal will ensure that the rules apply to domestic and cross-border transactions involving convertible virtual currency, which is a medium of exchange (such as cryptocurrency) that either has an equivalent value as a currency or acts as a substitute for currency but lacks legal tender status,” the document adds. The BSA regulations will also apply to digital transactions with legal tender status.