FinCEN has finally extended the period for public comment on its newly released AML regulations for virtual asset service providers after heavy backlash from people for technically prohibiting them from commenting on the proposed regulations. The press release by FinCEN notified that they are reopening the comments period by 15 days for its reporting requirements, and another 45 days for a requirement on recordkeeping and counterparty reporting requirements.
The official notification read,
The Financial Crimes Enforcement Network (FinCEN) announced today it is reopening the comment period for its recent proposed rulemaking regarding certain transactions involving convertible virtual currency (CVC) or digital assets with legal tender status (LTDA).
The Financial Crimes Enforcement Agency (FinCEN) released the much-awaited AML regulations for non-custodial wallets called “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets” on December 19, 2020. The new regulations required crypto custodian and exchanges to note down traders’ personal information for every transaction above $3,000 and a full record for transactions above $10,000.
The crypto community did not appreciate the regressive approach but more than that the small-time for public feedback miffed them the most. The extension comes post heavy criticism and nearly 7,000 comments from the crypto community calling out the agency for their regressive approach and how they tried to implement it without taking in the views of the stakeholders of the community.
Many believe the extension of the comment period for sure help in discussing the topic and concerns at hand, however, there is no guarantee that the laws would be stayed or changed post public comment.
Big win for the industry, with Treasury FINCEN extending the comment period on new rules on crypto wallets; this topic will now get the appropriate time that it deserves. Look forward to working with FINCEN to address these issues: https://t.co/Acld7JEPLT
— Jeremy Allaire (@jerallaire) January 14, 2021
Extension Not a Guarantee for a Change In FinCEN Crypto Regulations
The extension might not guarantee any change in the rule, however, many believe the extension would mean that it would go past the change in administration with Biden replacing Trump as the President.
The change in the administration has brought high hopes for the crypto industry. With the incoming SEC chief being pro-crypto as well as the new CFTC chief, crypto enthusiast hope for better regulation from the Biden administration.
???? BREAKING: FinCEN is extending the public comment period on its proposed rule by 45 days, citing "the robust responses" provided so far.
This doesn't guarantee the rule won't go through, but takes us well past January 20 & into the Biden administration. https://t.co/kfutcReDLe
— Jake Chervinsky (@jchervinsky) January 14, 2021