2020-28437: Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets

Summary

FinCEN is issuing this notice of proposed rulemaking to seek public comments on a proposal to require banks and money service businesses ("MSBs") to submit reports, keep records, and verify the identity of customers in relation to transactions involving convertible virtual currency ("CVC") or digital assets with legal tender status ("legal tender digital assets" or "LTDA") held in unhosted wallets (as defined below), or held in wallets hosted in a jurisdiction identified by FinCEN. FinCEN is proposing to adopt these requirements pursuant to the Bank Secrecy Act ("BSA"). To effectuate certain of these proposed requirements, FinCEN proposes to prescribe by regulation that CVC and LTDA are "monetary instruments" for purposes of the BSA. However, FinCEN is not proposing to modify the regulatory definition of "monetary instruments" or otherwise alter existing BSA regulatory requirements applicable to "monetary instruments" in FinCEN's regulations, including the existing currency transaction reporting ("CTR") requirement and the existing transportation of currency or monetary instruments reporting requirement.

The agency’s own summary, as published.

What this changes

Amends 3 parts of the Code of Federal Regulations — the standing rules this notice rewrites.

• 31 CFR 1010 General Provisions
• 31 CFR 1020 Rules for Banks
• 31 CFR 1022 Rules for Money Services Businesses