The proposed change would cut down FinCEN's longstanding $3,000 threshold.
The Financial Crimes Enforcement Network and Federal Reserve are looking to get more information on smaller transactions than ever before.
According to a notice of proposed rulemaking published on Friday, the agencies want to lower the $3,000 threshold established in 1995 to $250 for international transactions, meaning that financial institutions would need to exchange client information alongside all transactions greater than $250 that begin or end outside of the United States.
Which is to say, the Travel Rule, as it is known, would apply to quite small amounts of money changing hands.
The proposed change specifically calls out "Convertible virtual currencies," saying that they would also fall into the category of money for the purposes of this rule.
"(a) name and address of the originator or transmittor; the amount of the payment or transmittal order; the execution date of the payment or transmittal order; any payment instructions received from the originator or transmittor with the payment or transmittal order; and the identity of the beneficiary's bank or recipient's financial institution.
Which is to say, quite a lot of personal information that a crypto exchange would then need to store alongside a user's account, posing a major data security threat.
Implicit in this change is a mandate that financial institutions know the geographic origin of every transaction over the $250 threshold.
The Financial Action Task Force is working to apply a similar rule all around the globe, which has proven highly controversial within the crypto world.
The mandate to collect and exchange customer information seems diametrically opposed to the "Peer-to-peer electronic cash system" that the whitepaper for Bitcoin presented.
US AML watchdog wants info on all international crypto transactions over $250
pubblicato su Oct 23, 2020
by Cointele | pubblicato su Coinage
Coinage
Notizie recenti
Vedi tutti
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.