Posted 6 months ago | by @devadmin
The U.S. Federal Reserve Board and Fincen have proposed a proposal to lower the threshold at which financial institutions must collect and retain information on international funds transfers.
The two U.S. agencies want to change the threshold for international transactions to be set at $250 down from the current $3,000. However, they want to keep the domestic funds transfers rate at the same amount.
In a press statement, the two agencies jointly said they are seeking comments on their proposal and will include cryptocurrency-related transactions. Current rules only apply to funds transfer involving banks. The document explains:
The agencies are also proposing to clarify the meaning of money as used in these same rules to ensure that the rules apply to domestic and cross-border transactions involving convertible virtual currency (CVC).
The agencies also acknowledged that cryptocurrencies lack legal tender status, in the rule change proposal. Although, they want these digital currencies treated as money since the so-called CVCs already act as “a medium of exchange that either has an equivalent value as currency or acts as a substitute for currency.”
According to the agencies, the proposed rule “make(s) it explicitly clear that both payment orders and transmittal orders include any instruction by the sender to transmit CVC or any digital asset having the legal tender status to a recipient.”
This means, if passed, the proposed rule would “supersede the present definition of money for purposes of the Recordkeeping and Travel Rules.”
The two agencies expressed they came to this conclusion due to the fact that they observed an increase in lower volumes of illicit transactions stating these threaten U.S. national security.
“The Agencies have considered Suspicious Activity Reports (SARs) filed by money transmitters, which indicate that a substantial volume of potentially illicit funds transfers and transmittals of funds occur below the $3,000 threshold,” said the agencies.
The two agencies are asking for the public to submit comments which may be submitted on or before the 30th of October.
The chairman of the Federal Reserve, Jerome Powell has proclaimed the Fed is open to collaboration with private companies in creating a possible digital dollar, Bitboy Crypto reported.
Bitcoin is currently trading at [FIAT: $12,991] UP +0.3% according to Coingecko at the time of this report.