US Regulators May Soon Collect Data on All Crypto Transactions Above $250

Key Takeaways

  • A proposed amendment in the Bank Secrecy Act will give US authorities information on cryptocurrency transactions above $250.
  • The current threshold for financial businesses to collect and share data with US regulators is $3,000. This may be reduced soon.

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American regulators are hoping to make it mandatory for financial institutions to record and share data with authorities on all transactions above $250, including cryptocurrencies.

American Regulators Clamp Down on Money Laundering

Since 1995, American businesses have been mandated to collect, retain, and share information on all funds transfers above $3,000. Now the regulators want to change this long-standing rule.

The two leading US agencies, Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve Board (FSB), have proposed new amendments under the Bank Secrecy Act  (BSA).  

The agencies have proposed dropping the threshold from $3,000 to $250, making all transfers below this threshold, including crypto, subject to AML compliance. 

“The proposed modification would reduce this threshold from $3,000 to $250 for funds transfers and transmittals of funds that begin or end outside the United States,” reads the official press release

The suggested rules would only apply to transfers made beyond American borders. Domestic transactions would be excluded from the proposal. 

SIMETRI gains of 484%

Under the BSA, there is a long list of businesses that are deemed as financial institutions. They include organizations involved in transmitting funds, including banks, insurance firms, security brokers, credit unions, currency exchanges, travel agencies, and many more. 

For the cryptocurrency industry, the proposed rule changes would be applicable to equivalent payment providers, exchanges, lending companies, and hedge firms dealing in digital assets.

Cryptocurrencies Are Also Included

The announcement specifically mentions that“convertible virtual currencies” are also included in…

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