FinCEN Extends Comment Period for Certain Convertible Virtual Currency & Digital Asset Transactions

The Financial Crimes Enforcement Network (FinCEN) recently announced 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). In addition to extending the comment period, FinCEN’s notice identifies additional parts of the Anti-Money Laundering Act of 2020 that are applicable and provides more information on the reporting form. FinCEN is interested in for feedback on the proposed reporting requirements for CVC or LTDA transactions greater than $10,000, or aggregating to greater than $10,000, that involve un-hosted wallets or wallets hosted in certain jurisdictions identified by FinCEN. FinCEN is providing an additional time for comments on the proposed requirements that banks and money services businesses report certain information regarding counterparties to transactions by their hosted wallet customers, and on the proposed recordkeeping requirements.