FinCEN Extends Comment Period for Controversial Crypto Wallet Rule by 15 Days

The Financial Crimes Enforcement Network (FinCEN) is extending its comment period for a controversial surveillance rule that had the crypto industry up in arms.

In a press release Thursday, FinCEN announced it would reopen its proposed rulemaking period for an additional 15 days for its proposed reporting requirements, and another 45 days for a requirement on recordkeeping and counterparty reporting requirements.

First submitted Dec. 18, the proposal would require exchanges to store name and address information for customers transferring over $3,000 in crypto per day to private crypto wallets, and file currency transaction reports for customers transacting in over $10,000 per day.

Critics of the rule also maintained that it would be technically impossible for some projects to comply with, as smart contracts and author decentralized tools do not have name or address information to provide.

Perhaps most importantly, the 15-day extension means that Treasury Secretary Steven Mnuchin, who is said to be spearheading this effort, will be out of office by the time comments close, perhaps allowing for FinCEN to better incorporate industry feedback.

The proposal received over 7,000 comments from the industry, with the majority of responders criticizing the rule or the speed by which it was being pushed through. 

The extension doesn’t mean the rule will not be implemented; it’s still entirely possible that FinCEN will choose to run with the rule after the final version is published.

The story is developing and will be updated.

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Source: Coindesk