The Federal Reserve and the Financial Crimes Enforcement Network (FinCEN) have proposed lowering the threshold for registering money transfers outside the United States, including for cryptocurrency transactions.
According to the document, the US Federal Reserve and FinCEN propose to change the thresholds at which banks must collect and store information about money transfers. Regulators suggest reducing this value from $3,000 to $250 for any transfers outside the United States. The proposal would also expand the definition of” money ” to include cryptocurrencies.
The Fed will accept public comments within 30 days after the proposal is published in the Federal Register. Individuals can send feedback online or by email. Note that although cryptocurrencies do not have the status of legal tender, according to the proposal, they can still be used to transfer value:
“As a rule, cryptocurrencies can be exchanged instantly anywhere in the world through P2P payment systems that allow any two parties to make transactions directly with each other without the need for an intermediary financial institution. However, in practice, many people store and transfer cryptocurrencies using a financial intermediary, such as a” wallet “or”exchange”.
The document identifies illegal transactions using cryptocurrencies, including transfers by the North Korean hacker group Lazarus. Recall that in the spring, CipherTrace published a detailed analysis of how Lazarus hackers laundered stolen crypto assets of more than $100 million, bypassing KYC checks on cryptocurrency exchanges.
According to FinCEN documents released last month, BNY Mellon Bank processed $137 million worth of transactions for organizations associated with the OneCoin cryptocurrency pyramid scheme.