{"id":56827,"date":"2022-01-30T13:15:40","date_gmt":"2022-01-30T11:15:40","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=56827"},"modified":"2025-09-04T08:27:44","modified_gmt":"2025-09-04T05:27:44","slug":"us-treasury-to-revisit-proposal-for-verifying-users-of-non-custodial-cryptocurrency-wallets","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/us-treasury-to-revisit-proposal-for-verifying-users-of-non-custodial-cryptocurrency-wallets\/","title":{"rendered":"US Treasury to revisit proposal for verifying users of non-custodial cryptocurrency wallets"},"content":{"rendered":"<p>In 2022, the U.S. Department of the Treasury will revisit the controversial <span data-descr=\"Financial Crimes Enforcement Network\" class=\"old_tooltip\">FinCEN<\/span> proposal, which envisages mandatory verification of users of non-custodial cryptocurrency wallets. <a href=\"https:\/\/www.federalregister.gov\/documents\/2022\/01\/31\/2021-27949\/semiannual-agenda-and-regulatory-plan\">states<\/a> in the agency&#8217;s semiannual agenda.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abFinCEN proposes to amend the rules implementing the Bank Secrecy Act (BSA) to require banks and money services to file reports, maintain records, and verify customers&#8217; identities in transactions involving convertible virtual currency (CVC) or digital assets with the status of legal tender, stored in non-custodial wallets or wallets hosted in a FinCEN-determined jurisdiction\u00bb, states on the Federal Register site.<\/p>\n<\/blockquote>\n<p>The agency first <a href=\"https:\/\/www.federalregister.gov\/documents\/2020\/12\/23\/2020-28437\/requirements-for-certain-transactions-involving-convertible-virtual-currency-or-digital-assets\">proposed<\/a> the measure at the end of 2020. The document was prepared by Steven Mnuchin, who at the time was the U.S. Treasury Secretary.<\/p>\n<p>The community members criticized the initiative, arguing that a number of digital wallets technically cannot meet KYC requirements. Some also noted that the rule would be burdensome for individuals.<\/p>\n<p>According to the timetable, FinCEN plans to finish work on the rule by August, but publication does not guarantee that it will not undergo changes in the process.<\/p>\n<p>If the proposal is adopted in its initial form, cryptocurrency exchanges will be required to collect names, addresses and other personal data of users transferring digital assets to non-custodial wallets.<\/p>\n<p>ZenGo CEO Ouriel Ohayon again noted that FinCEN&#8217;s requirements are infeasible.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">If they understood how wallets work they would know the notion of user account doesn\u2019t exist and therefore KYC can\u2019t be done in a systemic way unless you re engineer completely wallets. <a href=\"https:\/\/t.co\/9kx6dQjl0b\">https:\/\/t.co\/9kx6dQjl0b<\/a><\/p>\n<p>\u2014 OOeb3 (@OurielOhayon) <a href=\"https:\/\/twitter.com\/OurielOhayon\/status\/1487651869321318400?ref_src=twsrc%5Etfw\">January 30, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abIf they understood how wallets work, they would know that the notion of a \u201cuser account\u201d does not exist, and therefore KYC cannot be performed in a systemic way\u00bb, \u2014 he wrote.<\/p>\n<\/blockquote>\n<p>FinCEN also plans to &#8220;clarify the term \u201cmoney\u201d&#8221; within the BSA as applied to digital assets. The agency argues that transactions with them should be regulated under the same rules as fiat currencies.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abAccording to the agency&#8217;s plan, the revised proposal would extend the application of the rules to domestic and cross-border transactions involving convertible virtual currency that serves as a medium of exchange (for example, cryptocurrency), has an equivalent value as currency, or acts as a substitute for currency, but does not have legal tender status\u00bb, the publication states.<\/p>\n<\/blockquote>\n<p>As noted in November 2021, U.S. Treasury Secretary Janet Yellen said that <a href=\"https:\/\/forklog.com\/en\/news\/us-treasury-fatf-rules-align-with-fincen-standards-on-cryptocurrency-regulation\">the FATF rules<\/a> are aligned with FinCEN\u2019s standards for cryptocurrency regulation.<\/p>\n<p>Follow ForkLog\u2019s news on <a href=\"https:\/\/vk.com\/forklogcom\" target=\"_blank\" rel=\"nofollow noopener\">VK<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 2022, the U.S. Department of the Treasury will revisit the controversial FinCEN proposal, which envisages mandatory verification of users of non-custodial cryptocurrency wallets.<\/p>\n","protected":false},"author":1,"featured_media":56828,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[269,36,1490],"class_list":["post-56827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-fincen","tag-regulation","tag-us-treasury"],"aioseo_notices":[],"amp_enabled":true,"views":"26","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/56827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=56827"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/56827\/revisions"}],"predecessor-version":[{"id":56829,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/56827\/revisions\/56829"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/56828"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=56827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=56827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=56827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}