Saw this on Wu Blockchain: FinCEN and the Federal Reserve have withdrawn the 2020 proposal to revise the Travel Rule, lowering the threshold for cross-border transfers from $3,000 to $250.
The original proposal also planned to bring convertible virtual currencies and digital assets with legal-tender status under the rule—meaning identity information would have to be collected even for small cross-border crypto transfers. Nearly 3,000 public comments came in, most of them citing excessive compliance costs and privacy risks.
The official position: the industry and regulatory framework have changed, and feedback has been received, so the proposal is being withdrawn for now. Any future changes would require a new round of public comment. The current $3,000 threshold remains in place, and the Travel Rule itself has not been scrapped. The withdrawal is expected to take effect on November 9.
The threshold hasn’t been lowered, and exchanges can skip another round of heavy compliance prep.
#FinCEN #TravelRule #Regulation
The original proposal also planned to bring convertible virtual currencies and digital assets with legal-tender status under the rule—meaning identity information would have to be collected even for small cross-border crypto transfers. Nearly 3,000 public comments came in, most of them citing excessive compliance costs and privacy risks.
The official position: the industry and regulatory framework have changed, and feedback has been received, so the proposal is being withdrawn for now. Any future changes would require a new round of public comment. The current $3,000 threshold remains in place, and the Travel Rule itself has not been scrapped. The withdrawal is expected to take effect on November 9.
The threshold hasn’t been lowered, and exchanges can skip another round of heavy compliance prep.
#FinCEN #TravelRule #Regulation
