The Financial Crimes Enforcement Network (FinCEN) has released a notice extending the comment deadline for its proposal for a crypto wallet. The extension came shortly after the US Senate confirmed Janet Yellen as the new US Treasury Secretary.
FinCEN extends the comment period for the creation of crypto wallet rules
FinCEN, an office of the U.S. Treasury Department, announced Tuesday that it had filed an extension notice for publication on the Federal Register, affecting crypto regulation. The announcement came shortly after the US Senate confirmed Janet Yellen as the new Treasury Secretary.
Tuesday’s Notice “will extend the reopened comment period and set a deadline for all comments relating to the Proposed Rule-Making Notice (NPRM) in relation to certain transactions in convertible virtual currency (CVC) or legal tender digital assets (LTDA), “FinCEN explained, adding:
Today’s Renewal Notice provides additional time to respond to all aspects of the proposed rule and sets a closing date for the comment period. All comments on the NPRM are now due 60 days from the date this extension notice was published in the Federal Register.
The bureau stated that under the proposal, banks and money service providers (MSBs) would be “required to file reports, keep records and verify the identity of customers in relation to transactions above certain thresholds” involving non-hosted cryptocurrency wallets or crypto -Wallets are hosted by a financial institution in certain jurisdictions identified by FinCEN. “
Earlier this month FinCEN published a notice reopening the comment period for the rule creation proposed above. An additional 15 days have been allowed for comments on the proposed reporting requirements for crypto transactions that are “greater than US $ 10,000 or greater than US $ 10,000 and affect non-hosted wallets or wallets hosted in a jurisdiction specified by FinCEN”.
In addition, FinCEN allowed “an additional 45 days for comments on the proposed requirements for banks and MSBs to report certain counterparty information on transactions of their hosted wallet customers, as well as the record-keeping requirements proposed by the NPRM.”
The crypto community welcomes the announcement of the expansion. The Chamber for Digital Commerce wrote: “FinCEN is expanding and consolidating its NPRM for CVC and LTDA transactions, which is now due on March 29, 2021. This is a big win for [the] Industry. “Jerry Brito, Executive Director of the Coin Center, commented,” FinCEN has extended the comment deadline for creating crypto rules for another 60 days. I’m glad that a normal process is taking shape. “He said:
I am extremely optimistic that there will be none of the problematic counterparty identification requirements that were the real problem.
During a Senate hearing last week, Yellen made some controversial statements about cryptocurrency, stating that it is mainly used for illegal funding. However, it subsequently clarified its position and vowed to work with other federal regulators to implement an “effective” regulatory framework for cryptocurrencies.
Monday’s 84-15 Senate vote made Yellen, a former Federal Reserve chairwoman, the first woman to head the Treasury Department. Yellen is expected to play a key role in gaining Congressional approval for President Joe Biden’s $ 1.9 trillion coronavirus relief package. The stimulus proposal came just months after the federal government closed fiscal 2020 in a deficit of more than $ 3 trillion.
Do you think FinCEN and Yellen will develop positive crypto regulation? Let us know in the comments below.
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