Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets, 7352 [2021-01918]

Agencies

• DEPARTMENT OF THE TREASURY
• Financial Crimes Enforcement Network

[Federal Register Volume 86, Number 17 (Thursday, January 28, 2021)]
[Proposed Rules]
[Page 7352]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01918]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 86, No. 17 / Thursday, January 28, 2021 / 
Proposed Rules

[[Page 7352]]



DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network

31 CFR Parts 1010, 1020, and 1022

RIN 1506-AB47


Requirements for Certain Transactions Involving Convertible 
Virtual Currency or Digital Assets

AGENCY: Financial Crimes Enforcement Network (``FinCEN''), Treasury.

ACTION: Notice of proposed rulemaking; extension of comment period.

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SUMMARY: On December 23, 2020, FinCEN published a notice of proposed 
rulemaking (the ``NPRM'') proposing requirements for banks and money 
services businesses (``MSBs'') related to certain transactions 
involving convertible virtual currency (``CVC'') or digital assets with 
legal tender status (``LTDA''). On January 15, 2021, FinCEN published a 
document reopening the comment period for the NPRM (the ``Reopening 
Notice''). In the Reopening Notice, FinCEN provided an additional 15 
days for comments on the NPRM's proposed reporting requirements 
regarding information on CVC or LTDA transactions greater than $10,000, 
or aggregating to greater than $10,000, that involve unhosted wallets 
or wallets hosted in a jurisdiction identified by FinCEN. FinCEN 
further provided in the Reopening Notice for an additional 45 days for 
comments on the NPRM's proposed requirements that banks and MSBs report 
certain information regarding counterparties to transactions by their 
hosted wallet customers, and on the NPRM's proposed recordkeeping 
requirements. This notice of extension of comment period (``Extension 
Notice'') extends the reopened comment period to allow additional time 
to respond to all aspects of the NPRM and sets one closing date for the 
comment period, instead of the two currently in effect. Accordingly, 
all comments to the proposed NPRM are now due 60 days from the date of 
publication of this Extension Notice.

DATES: The comment period for the proposed rule published on December 
23, 2020 (85 FR 83840), which was extended on January 15, 2021 (86 FR 
3897), is further extended. Comments must be received by March 29, 
2021.

ADDRESSES: Comments may be submitted by any of the following methods:
     Federal E-rulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments. Refer to Docket Number 
FINCEN-2020-0020 and the specific RIN number 1506-AB47 to which the 
comment applies.
     Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2020-0020 and the specific RIN number.

FOR FURTHER INFORMATION CONTACT: The FinCEN Regulatory Support Section 
at 1-800-767-2825 or electronically at [email protected].

SUPPLEMENTARY INFORMATION: The NPRM was published in the Federal 
Register on December 23, 2020.\1\ In the NPRM, FinCEN proposed to 
address the threat of illicit finance with respect to certain 
transactions involving CVC or LTDA by (i) establishing new reporting 
requirements for certain CVC or LTDA transactions analogous to existing 
currency transaction reports, and (ii) establishing new recordkeeping 
requirements for certain CVC or LTDA transactions that are similar to 
the recordkeeping and travel rule requirements pertaining to funds 
transfers and transmittals of funds. The original comment period 
formally closed on January 7, 2021, although FinCEN took steps to 
ensure comments could still be received after that date. In the 
Reopening Notice, published on January 15, 2021, FinCEN reopened the 
comment period.\2\ Specifically, FinCEN provided an additional 15 days 
for comments on the NPRM's proposed reporting requirements regarding 
information on CVC or LTDA transactions greater than $10,000, or 
aggregating to greater than $10,000, that involve unhosted wallets or 
wallets hosted in a jurisdiction identified by FinCEN. FinCEN further 
provided in the Reopening Notice for an additional 45 days for comments 
on the NPRM's proposed requirements that banks and MSBs report certain 
information regarding counterparties to transactions by their hosted 
wallet customers, and on the NPRM's proposed recordkeeping 
requirements.
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    \1\ Requirements for Certain Transactions Involving Convertible 
Virtual Currency or Digital Assets, 85 FR 83840 (Dec. 23, 2020).
    \2\ Requirements for Certain Transactions Involving Convertible 
Virtual Currency or Digital Assets, 86 FR 3897 (Jan. 15, 2021).
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    This Extension Notice extends the reopened comment period for all 
aspects of the NPRM's proposals to March 29, 2021, thereby further 
extending the time to respond and making the timing of the two periods 
consistent, with one deadline for all comments to the NPRM.

    By the Department of the Treasury.
Kenneth A. Blanco,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2021-01918 Filed 1-26-21; 8:45 am]
BILLING CODE 4810-02-P