Crypto wallet rule faces comment period extension by FinCEN. On Thursday, The Financial Crimes Enforcement Network (FinCEN) announced that it would reopen its proposed rulemaking period for an extra 15 days for reporting requirements, and another 45 days for a requirement on recordkeeping and counterparty reporting requirements.
The proposals will mandate exchanges for customers who move over $3,000 in crypto per day to private crypto wallets and file currency transaction reports (CTRs) for customers who transact more than $10,000 per day to store name and address details.
Critics of the rule have come out to share that certain projects will be technically difficult to comply with because there is no name or address information for smart contracts and author-decentralized tools to provide.
FinCEN wrote that the proposed CTR requirements “are essentially equivalent to the existing CTR reporting requirements that apply to transactions in currency,” and called the proposal “vital” to sealing loopholes that terrorists or other malicious actors might use. This is the part that will experience a 15-day extension for comments.
FinCEN was less efficient on details about the recordkeeping and counterparty details, only writing, “FinCEN is providing a longer period in light of the somewhat greater complexity of those aspects of the proposed rule and various issues identified in comments received during the original comment period.”
That was what raised the most controversy from the industry, receiving over 7,000 comments, with majority of responders criticizing the rule or the speed by which it was being pushed through.