US federal government considers regulating uncustodial cryptocurrency wallets

The U.S. federal government may once again consider a controversial proposed rule that would impose KYC on uncustodial or self-custody cryptocurrency wallets. The document shows: FinCEN proposes to amend the implementing regulations of the Bank Secrecy Act (BSA) to require banks and money service businesses (MSBs) to file reports, keep records, and verify the identities of customers in transactions involving Convertible Virtual Currency (CVC) Or digital assets with legal tender status ('Fiat Digital Assets' or 'LTDA') held in uncustodial wallets or in wallets in jurisdictions identified by FinCEN. The Treasury Department, which is overseen by U.S. Treasury Secretary Janet Yellen, said the rule could be considered in this semi-annual regulatory agenda, which will be formally published in the Federal Register on Jan. 31. The agenda outlines Treasury's priorities, but it does not indicate that the rules will definitely be implemented, or that they will be implemented as-is.