U.S. Treasury Withdraws Proposed Reporting Rule for Crypto Transfers
- The U.S. Treasury Department has scrapped a proposal requiring banks to report crypto transactions over $10,000 to unhosted wallets.
- The rule, proposed in December 2020, aimed to enhance reporting on large crypto transfers and remained unresolved for nearly six years.
- FinCEN also withdrew another proposal related to transactions involving crypto mixers, which had not taken effect.
- Public comments on the wallet proposal numbered in the thousands, reflecting significant concern from stakeholders.
- An unhosted wallet is defined as one where users control their own private keys instead of relying on exchanges or banks.
The withdrawal of this reporting requirement highlights a shift in regulatory approach towards crypto transactions and user privacy concerning unhosted wallets.
This decision means that banks will no longer need to file reports for transactions exceeding $10,000 involving private wallets, which could impact compliance strategies within the financial sector.
