Pi Capital
Date of publication: 23 December 2020
US Treasury plans to regulate cryptocurrency wallets
The US Treasury is about to introduce new rules for money operators who conduct transactions involving offline cryptocurrency wallets.

An informed source said that the rules could be presented both in the form of a preliminary regulation and in the form of a temporary final regulation. In the second case, the rules will take effect immediately after their publication.

According to the rules, money services business (MSB) companies will be required to file a currency transaction report (CTR) if a customer conducts a cryptocurrency transaction using an offline wallet that exceeds an as yet unsettled threshold.

According to the Financial Crimes Enforcement Network (FinCEN), regulated financial institutions are required to report foreign exchange transactions “conducted by or on behalf of a person, as well as multiple exchange transactions, the aggregate amount of which exceeds $10 000 in one day.”

Rumors of regulation of individual cryptocurrencies by the US Treasury Department surfaced in November.

The introduction of new rules for the regulation of cryptocurrency wallets in the United States can cause volatility in the bitcoin rate, as it happened once in November.

However, the rules cannot have a lasting impact on the cryptocurrency market, as institutional investors, who are now driving the bull rally, do not use the services of money operators and can simply dismiss the news. On the contrary, these big players will be happy to buy back any drop in Bitcoin.

Alexey Shternshis
Pi Capital Union

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