U.S. Treasury Department Says Considering Regulating Uncustodial Cryptocurrency Wallets

The U.S. federal government may once again consider a controversial proposed rule that would impose know-your-customer (KYC) on uncustodial or self-custody cryptocurrency wallets, CoinDesk reported on January 30. The rule was first proposed in late 2020 by the U.S. money-laundering watchdog, the Financial Crimes Enforcement Network (FinCEN). If enacted, cryptocurrency exchanges will be required to collect the names and home addresses and other personal details of any users who wish to transfer cryptocurrency to their own private wallets. The Treasury Department, which is overseen by U.S. Treasury Secretary Janet Yellen, revealed that the rule may be considered in the semi-annual regulatory agenda to be formally published in the Federal Register on Jan. 31. The agenda outlines Treasury's priorities, but that doesn't mean the rules will necessarily be implemented, or that they will be implemented as-is. Rather, the agenda is a tool that indicates what the Treasury will do over the next six months.