Know-Your-Customer Rules on Crypto Wallets is Back

February 1, 2022

A controversial rule by U.S. Financial Crimes Enforcement Network (FinCEN) that would enforce know-your-customer rules on self-hosted crypto wallets may again be under consideration by the U.S. federal government.

Here are some facts:

  • This was originally proposed by former Treasury Secretary Steven Mnuchin in 2020.
  • If this rule is to be introduced, crypto exchanges would be required to collect names and home addresses, among other personal details, from anyone hoping to transfer cryptocurrencies to their own private wallets.
  • The rule was rejected by the industry leaders earlier saying, it’s not possible for certain wallets to follow it as it’s not controlled by people and can be burdensome on individuals.
  • The Treasury Department, which is now overseen by Secretary Janet Yellen, revealed the rule might be considered in this semiannual agenda of regulations.
  • A timetable in the section suggests FinCEN aims to finalize the rule by the end of August, if it chooses to finalize it.

 


About the author

Priyanka Shetty is a full-time communication professional and a part-time crypto writer based in Bengaluru. She can write about crypto but not so much about herself. She says she is just a girl who wants to meet your dog

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