Partnered With:

FinCEN Proposes Amendments to the Bank Secrecy Act: Americans Must Report Foreign Accounts Holding Cryptocurrencies

Read this article in 2 Minutes

Any company claiming to block US citizens (as BitMEX claims) will have a tough time when the bulk of the FBAR rules are released.

Rhythm BlockBeats News, Jan. 1, U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) wants Americans to report to foreign financial or virtual asset service providers if they own more than $10,000 in cryptocurrencies . FinCEN is responsible for monitoring potential violations of domestic financial laws.

FinCEN issued a notice at the end of last year (2020) stating that it intends to amend the Bank Secrecy Act “FinCEN intends to propose amendments to the Bank Secrecy Act (BSA) regulations regarding foreign financial account (FBAR) reporting to include virtual currency as a reportable account.”< /p>

Jake Chervinsky, General Counsel of Compound, tweeted: FinCEN’s move seems to be aimed at users of non-US exchanges, Should not be applied to self-hosted assets. We'll have to wait and see. Moreover, he speculates that it is mostly related to tax evasion and keeping non-US crypto companies in compliance with bank secrecy laws. Any company that claims to block US citizens (as BitMEX claims) will have a tough time when the bulk of the FBAR rules are released.