US to Treat Crypto as Traditional Money, Expand Reporting Requirements
Veronika Rinecker is based in Germany, studied international journalism and media management. She specializes in politics and regulation, energy, blockchain, and fintech. Since 2017, she has been...
The United States (U.S.) financial regulators are moving to bring cryptocurrencies under the same reporting requirements as traditional fiat currency, signaling a major step towards integrating digital assets into the mainstream financial system.
The U.S. Department of the Treasury, in its latest semiannual regulatory agenda, outlined plans to redefine “money” under the Bank Secrecy Act (BSA) to encompass cryptocurrencies and other digital assets.
The Board of Governors of the Federal Reserve System and the Federal Reserve and Financial Crimes Enforcement Network (FinCEN) are set to propose new rules clarifying what constitutes “money” under the Bank Secrecy Act.
This move aims to bring both domestic and cross-border cryptocurrency transactions under stricter financial reporting requirements.
The updated regulations will encompass a broad definition of digital assets, including those backed by traditional currencies and potential future central bank digital currencies (CBDCs).
According to the agenda, FinCEN is also updating its rules to include stricter regulations for banks and money transfer businesses handling “convertible virtual currencies or digital assets with legal tender status”. These new rules require businesses to verify customer identities, maintain detailed records, and file specific reports for transactions involving these digital assets, especially those held in unhosted or foreign-hosted wallets.
The suggested updates to the BSA are likely to have far-reaching implications for the cryptocurrency industry.
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