The US Treasury Department reveals that the Financial Crimes Enforcement Network (FinCEN) has proposed new rules for cryptocurrency wallets.
According to a US Treasury Department announcement, the proposed rules require banks and other financial companies to keep verified and submitted records of customer identities.
Tasks should be performed on transactions relating to specific thresholds involving virtual currencies or digital assets that have legal tender status regardless of whether or not it is conducted by financial institutions but must FinCEN was recognized.
Department secretary Steven T. Mnuchin further explained the concerns of the newly proposed rules.
“This rule addresses significant national security concerns in the CVC market, and aims to close the gaps that malignant actors seek to exploit in the record keeping and reporting regime,” he said.
The proposed laws are targeted at promoting national security on finance as well as improving the transparency of digital assets. This would help repair gaps in financial records that fraudulent manipulators capture for their personal benefit.
Mnuchin also elaborated on the purpose of the yet to be enforced rules, saying;
“The rule, which applies to financial institutions and is consistent with current requirements, is intended to protect national security, assist law enforcement, and increase transparency while minimizing the impact on responsible innovation.”
In accordance with the proposed rule, banks and Money Services Businesses (MSBs) will be given a maximum of 15 days from the date when a worthy and reportable transaction occurs to file the required report with FinCEN.
FinCEN is awaiting approval from the Federal Register and comments from interested parties.
“Comments from all interested parties will help inform the scope of any future regulatory action and should be submitted within 15 days of the NPRM being publicly displayed by the Federal Register.” They concluded.