| |
- A proposed amendment will require businesses to divulge foreign transactions valued over $250
- Part of a broader push by the government to combat crypto’s use in money laundering
US regulators have created an amendment to existing legislation in the ongoing war with financial fraud. The proposed amendment will force businesses to gather and share data on any foreign transactions over $250. Currently, the law only applies to transactions worth over $3,000. The Federal Reserve is now looking to change this in light of a recent report. The Reserve’s report – made in conjunction with the Financial Crimes Enforcement Network (FinCEN) – reveals that illicit cash transfers tend to happen in much smaller amounts.
The report goes on to explain that this amendment will include cryptocurrency transactions. This means any businesses involved with cryptocurrency will need to disclose data on any transactions over the threshold to regulators. In their official press release, the Reserve had this to say:
“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,”
A change in attitude
FinCEN came to this conclusion after a careful analysis of 1.29 million transactions. 71% of which were found to be under $500. The report goes on to recommend further amendments to current legislation US regulators could implement. The suggested amendments aim to help combat the micropayments often associated with money laundering and similar financial fraud. This report comes amid the Reserve’s decision to assess cryptocurrencies’ benefits and the DOJ’s push for greater crypto regulation.
All three of these decisions indicate a positive change in attitude towards cryptocurrencies by the US government. No longer dismissed out of hand, US regulators are now looking into ways in which the country can benefit from crypto. Regulations such as these can only be a sign of good things to come for cryptocurrency investors.
