Overview
- FinCEN placed withdrawal notices for its 2020 unhosted‑wallet NPRM and its 2023 convertible‑virtual‑currency (CVC) mixing NPRM on public inspection, with Federal Register publication scheduled to make the withdrawals effective.
- The 2020 wallet proposal would have forced banks, exchanges and MSBs to collect counterparty information for transfers above $3,000 and file government reports for transfers above $10,000, a requirement industry said was technically impractical.
- The 2023 mixing proposal would have required covered institutions to report transactions they knew, suspected or reasonably suspected involved CVC mixing, especially when a foreign connection was involved.
- The withdrawals remove those specific new reporting frameworks but do not change existing Bank Secrecy Act, anti‑money‑laundering or sanctions duties; platforms can still monitor transfers, request information and file suspicious‑activity reports.
- Industry and users gain immediate relief from the proposed verification and reporting burdens, but any return to similar rules would need a new NPRM and public comment, and some coverage reports conflict on the formal withdrawal date so the Federal Register and agency notices are the authoritative source.