Crypto's $250 Rule Was Withdrawn. But the $3,000 Rule Still Matters.
A lot of attention is going to the $250 figure in the latest US crypto regulation news. But there's another number worth understanding: $3,000.
On November 6, FinCEN and the Federal Reserve announced they were withdrawing a proposal introduced back in 2020.
The proposal would have lowered the threshold for certain cross-border transfer recordkeeping and information-sharing requirements from $3,000 to just $250.
That's a significant difference. More smaller transactions would have fallen under the requirements, potentially increasing compliance costs and raising privacy concerns.
But here's what matters: withdrawing the proposal doesn't mean the existing Travel Rule has disappeared.
Covered financial institutions, including certain crypto money transmitters, can still have information-sharing obligations for qualifying transfers of $3,000 or more.
The withdrawal is scheduled to take effect when the notice is published in the Federal Register on November 9.
So this isn't a story about crypto suddenly becoming free from reporting requirements. It's about regulators stepping away from a proposed expansion of existing rules.
And it raises a fair question:
Would collecting more information on smaller transfers actually help fight financial crime, or would it create more costs and privacy concerns than benefits?
What's your view?
#CryptoRegulation #Crypto #FinCEN
A lot of attention is going to the $250 figure in the latest US crypto regulation news. But there's another number worth understanding: $3,000.
On November 6, FinCEN and the Federal Reserve announced they were withdrawing a proposal introduced back in 2020.
The proposal would have lowered the threshold for certain cross-border transfer recordkeeping and information-sharing requirements from $3,000 to just $250.
That's a significant difference. More smaller transactions would have fallen under the requirements, potentially increasing compliance costs and raising privacy concerns.
But here's what matters: withdrawing the proposal doesn't mean the existing Travel Rule has disappeared.
Covered financial institutions, including certain crypto money transmitters, can still have information-sharing obligations for qualifying transfers of $3,000 or more.
The withdrawal is scheduled to take effect when the notice is published in the Federal Register on November 9.
So this isn't a story about crypto suddenly becoming free from reporting requirements. It's about regulators stepping away from a proposed expansion of existing rules.
And it raises a fair question:
Would collecting more information on smaller transfers actually help fight financial crime, or would it create more costs and privacy concerns than benefits?
What's your view?
#CryptoRegulation #Crypto #FinCEN