FinCEN extends consultation for digital currency wallet rule

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The Financial Crimes Enforcement Network (FinCEN) has reopened its consultation process on proposed new rules which would require enhanced Know-Your-Customer (KYC) measures for digital currency transactions in the United States.

The period for comments has been extended for a further 15 days—although it did not indicate a specific date—to allow submissions on a proposed $10,000 limit per transactions. An additional 45 days have been added for comment submissions on a rule that would require banks to report counterparty data for transactions to self-hosted wallets.

The draft rules, known as “Requirements for Certain Transactions Involving Convertible Virtual Currency of Digital Assets,” would introduce KYC requirements for all wallets, along with enhanced reporting requirements, for transactions above $3,000.

The proposed rules were first announced in December, allowing a period of just 15 days for comments, during a time when many stakeholders were out of office due to the holiday season. Some 7,500 comments were still submitted over the period, though it is hoped the extension will allow for a greater number of contributions to be collected.

The shorter comment period has already attracted criticism from members of the U.S. Congress, as well as from industry giants Coinbase. The period was earmarked to run 45 days shorter than the standard 60 day comment period.

There had also been reports of confusion over the deadline for comments to be submitted, with discrepancies between January 4 and January 7 as the final deadline for submission. Within the comments portal, both deadline dates were reflected, presenting an inconclusive timeline for submissions.

FinCEN has yet to publicize the date change, or explain the reasoning behind it—despite calls from commenters that have managed to submit their concerns.

It remains to be seen whether the extended commentary period will bring further criticism of the measures from additional industry stakeholders.

See also: CoinGeek Live panel on Regulation of Digital Assets & Digital Asset Businesses