The Financial Crimes Enforcement Agency (FinCEN) issued a notice of proposed rule making today called, “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets”. Secondly, FinCEN cites outreach events the agency held including a ‘FinCEN Exchange Event’ back in 2019 up to a more recent ‘FinCEN Exchange Event on Cryptocurrency and Ransomware’ in November 2020. In addition, FinCEN points to the numerous trade associations and crypto companies that weighed in publicly on this ‘proposed’ rule making before it was announced. The New Rules For Crypto ReportingThe proposed rule describes the nature of how blockchain-based CVCs pose risks to the financial system, where there are two kinds of digital wallets. Secondly, there are what are described as ‘unhosted wallets’ or digital cash, similar to the cash you may have in your wallet in your pocket.

Source: Forbes December 19, 2020 03:00 UTC