US Treasury Proposes Strict Cryptocurrency KYC Requirements
- The FinCEN proposes new KYC requirements for the US cryptocurrency users to fight international terrorist financing.

The US Treasury Department presented new KYC requirements for cryptocurrency users in the country to combat the potential involvement of digital assets in illegal activities. The crypto exchanges are required to verify the identity of the wallet owner if the transaction exceeds $3,000.
According to the official press release by the US Treasury Department, the proposed rule requires cryptocurrency exchanges to submit the information of transactions above $10,000 to the Financial Crimes Enforcement Network (FinCEN).
The Department raised concerns regarding the potential use of digital currencies in terrorist financing and asked financial firms to verify the identity of customers. The US cryptocurrency users trading with an Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term are required to provide details including name, address and purpose of the transaction.
Commenting on the recent proposal, Steven Mnuchin, Secretary of the US Treasury Department, said: “This rule addresses substantial national security concerns in the convertible virtual currency (CVC) market, and aims to close the gaps that malign actors seek to exploit in the recordkeeping and reporting regime. The rule, which applies to financial institutions and is consistent with existing requirements, is intended to protect national security, assist law enforcement and increase transparency while minimizing the impact on responsible innovation.”
Cryptocurrency Surveillance
The crypto community reacted strongly against the recent proposal and expressed concerns about the potential regulation which can impact the growth of digital currencies negatively. Jeremy Allaire, the CEO of Circle said that the proposal is a personal mission of Secretary Mnuchin.
“His own view is far more aggressive than the proposed rule put forward. His original plan was to just drop this as a final rule with zero notice for public comment, as a 'midnight rulemaking' on his way out of office. This actually didn't have broad support, in fact, very few people were even aware of this plan,” Allaire added.
The US Treasury Department presented new KYC requirements for cryptocurrency users in the country to combat the potential involvement of digital assets in illegal activities. The crypto exchanges are required to verify the identity of the wallet owner if the transaction exceeds $3,000.
According to the official press release by the US Treasury Department, the proposed rule requires cryptocurrency exchanges to submit the information of transactions above $10,000 to the Financial Crimes Enforcement Network (FinCEN).
The Department raised concerns regarding the potential use of digital currencies in terrorist financing and asked financial firms to verify the identity of customers. The US cryptocurrency users trading with an Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term are required to provide details including name, address and purpose of the transaction.
Commenting on the recent proposal, Steven Mnuchin, Secretary of the US Treasury Department, said: “This rule addresses substantial national security concerns in the convertible virtual currency (CVC) market, and aims to close the gaps that malign actors seek to exploit in the recordkeeping and reporting regime. The rule, which applies to financial institutions and is consistent with existing requirements, is intended to protect national security, assist law enforcement and increase transparency while minimizing the impact on responsible innovation.”
Cryptocurrency Surveillance
The crypto community reacted strongly against the recent proposal and expressed concerns about the potential regulation which can impact the growth of digital currencies negatively. Jeremy Allaire, the CEO of Circle said that the proposal is a personal mission of Secretary Mnuchin.
“His own view is far more aggressive than the proposed rule put forward. His original plan was to just drop this as a final rule with zero notice for public comment, as a 'midnight rulemaking' on his way out of office. This actually didn't have broad support, in fact, very few people were even aware of this plan,” Allaire added.