The Banking Policy Institute (BPI) calls on FinCEN to expand customer identification program (CIP) requirements from the primary market of stablecoin issuers to cover secondary-market platforms such as exchanges.
Behind this are key developments in the recent regulatory tug-of-war over stablecoins:
· Focus of the dispute: FinCEN’s proposed rule currently requires issuers to perform identity verification on their direct customers (primary market), arguing that forcibly extending CIP to anonymous on-chain transactions is “impractical and could hinder industry development.” But the BPI, represented by institutions such as JPMorgan Chase and Bank of America, argues that since most illicit activity occurs in secondary-market trading, exchanges and platforms that establish account relationships directly with retail customers must also be required to conduct CIP.
· Direct impact: If the BPI proposal is adopted, both centralized and decentralized exchanges (DEX) could be brought under the regulatory framework of the Bank Secrecy Act, with compliance costs and operational hurdles likely to rise substantially.
· Milestone: The proposal was submitted by the BPI in a formal comment letter to regulators regarding the CIP rule, and its public comment period ended on August 21. Regulators will determine the final direction of the rule based on feedback from all parties.
#BPI吁FinCEN扩大稳定币身份识别至二级市场
Behind this are key developments in the recent regulatory tug-of-war over stablecoins:
· Focus of the dispute: FinCEN’s proposed rule currently requires issuers to perform identity verification on their direct customers (primary market), arguing that forcibly extending CIP to anonymous on-chain transactions is “impractical and could hinder industry development.” But the BPI, represented by institutions such as JPMorgan Chase and Bank of America, argues that since most illicit activity occurs in secondary-market trading, exchanges and platforms that establish account relationships directly with retail customers must also be required to conduct CIP.
· Direct impact: If the BPI proposal is adopted, both centralized and decentralized exchanges (DEX) could be brought under the regulatory framework of the Bank Secrecy Act, with compliance costs and operational hurdles likely to rise substantially.
· Milestone: The proposal was submitted by the BPI in a formal comment letter to regulators regarding the CIP rule, and its public comment period ended on August 21. Regulators will determine the final direction of the rule based on feedback from all parties.
#BPI吁FinCEN扩大稳定币身份识别至二级市场