US Presidential Advisory Group Insists on Regulation of Stablecoins
Dec 24 2020 · 12:18 UTC by James Lovett · 3 min read
Photo: Depositphotos
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On Wednesday, President Trump’s Working Group on Financial Markets published a report regarding stablecoins retail payments perception amongst the public.
A certain leading US financial regulators group has recently issued a new statement regarding stablecoins. The group recommended that the same regulation used in other financial systems ought to be applicable to stablecoins. This decision was based on the fact that traders usually rely on stablecoins to purchase cryptocurrencies like Bitcoin used for quick transactions execution, due to their low volatility.
Coinbase Requests that FinCEN Apply Traditional 60-Day Notice-and-Comment Period for its Proposed Rulemaking for Crypto Transactions
On December 19, 2020, the
Financial Crimes Enforcement Network (FinCEN)published a 72-page notice of proposed or suggested rulemaking, titled
“Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets,” which could impose new and “onerous” reporting and recordkeeping requirements for virtual currency transactions,
Paul Grewal, the Chief Legal Officer at
Coinbase, confirmed in a blog post on December 22, 2020.
FinCEN has requested that the public provide comments in only 15 days, a time period that will be spanning Christmas Eve, Christmas Day, New Year’s Eve, and New Year’s Day, in the middle of the COVID-19 pandemic. Grewal pointed out that this will leave only a handful of actual business or working days to obtain comments.
US Treasury plans to regulate cryptocurrency wallets
The US Treasury is about to introduce new rules for money operators who conduct transactions involving offline cryptocurrency wallets.
An informed source said that the rules could be presented both in the form of a preliminary regulation and in the form of a temporary final regulation. In the second case, the rules will take effect immediately after their publication.
According to the rules, money services business (MSB) companies will be required to file a currency transaction report (CTR) if a customer conducts a cryptocurrency transaction using an offline wallet that exceeds an as yet unsettled threshold.
Wednesday, December 23, 2020
On December 9, 2020, the Financial Crimes Enforcement Network (“FinCEN”) issued Notice 2020-1, extending the filing deadline for the Report of Foreign Bank and Financial Accounts, FinCEN Form 114 (FBAR), for certain individuals with signature or other authority over (but no financial interest in) employer-owned foreign financial accounts to April 15, 2022. FinCEN has provided similar extensions over the previous nine years.
[1] This new extension applies to reporters with signatory authority during the 2020 calendar year and to those individuals whose reporting deadline was extended under prior notices.
[2] All other filers must still file by April 15, 2021, although FinCEN will grant an automatic extension until October 15, 2021.
(Source: USAID)
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