HomeCoinsBitcoin (BTC)FinCEN Proposes KYC For Private Wallets – Bitcoin Magazine

FinCEN Proposes KYC For Private Wallets – Bitcoin Magazine

- Advertisement -

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has released a notice of proposed rulemaking that would require money services business to submit reports, keep records and verify the identity of customers as they relate to digital currencies “held in unhosted wallets … or held in wallets hosted in a jurisdiction identified by FinCEN.”

FinCEN defined “unhosted wallets” as a “software program or written record” through which users store the private keys needed to access and exchange cryptocurrencies like bitcoin. 

The proposed rule would, in effect, require bitcoin exchanges to collect, store and share personal information from users who transfer their bitcoin private keys from those exchanges to their own private wallets, as well as transaction information. 

The public has until January 4, 2021 to provide written comments to this rule, which can be submitted through the online federal rulemaking portal.

Such rulemaking has been rumored for some time. For instance, Brian Armstrong, the CEO of major cryptocurrency exchange Coinbase, tweeting about its potential in late November.

Some feared that the rulemaking would be more strict than what appears in the proposed rule. Though it violates a bastion of privacy that many within the Bitcoin community cherish, the fact that FinCEN feels the need to propose such regulation indicates a realization of the growing importance and adoption of cryptocurrency.

FinCEN Proposes KYC For Private Wallets – Bitcoin Magazine

Peter Chawaga

Peter Chawaga is a senior editor at Bitcoin Magazine. He HODLs BTC.



First published here

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
462FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,580FollowersFollow
2,230SubscribersSubscribe

Most Popular

bitcoin
Bitcoin (BTC) $ 24,355.53
ethereum
Ethereum (ETH) $ 1,943.84
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 139.95
litecoin
Litecoin (LTC) $ 63.49
eos
EOS (EOS) $ 1.31
okb
OKB (OKB) $ 21.72
tezos
Tezos (XTZ) $ 1.82
leo-token
LEO Token (LEO) $ 5.06
cardano
Cardano (ADA) $ 0.571523
monero
Monero (XMR) $ 164.56
stellar
Stellar (XLM) $ 0.125852
chainlink
Chainlink (LINK) $ 8.80
huobi-token
Huobi (HT) $ 5.33
tron
TRON (TRX) $ 0.07061
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 55.26
neo
NEO (NEO) $ 11.54
iota
IOTA (MIOTA) $ 0.349458
nem
NEM (XEM) $ 0.054718
zcash
Zcash (ZEC) $ 73.93
maker
Maker (MKR) $ 1,028.71
paxos-standard
Pax Dollar (USDP) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 41.66
vechain
VeChain (VET) $ 0.032349
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX (FTT) $ 30.95
kucoin-shares
KuCoin (KCS) $ 10.67
waves
Waves (WAVES) $ 6.12