FinCEN withdraws non-custodial crypto wallet transaction reporting rule, no longer moves forward with original proposal

Wu said he learned that the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) withdrew the non-custodial crypto wallet transaction reporting rule proposed in 2020 and said it would not move forward with the proposal. The original proposal requires banks and money service providers (MSBs) to report relevant information to FinCEN and verify customer identities when customers conduct crypto-asset transactions exceeding $10,000 with non-custodial wallets; transactions exceeding $3,000 are required to keep relevant records. FinCEN said the withdrawal was part of the Trump administration’s push to make digital asset regulation more fit-for-purpose.