U.S. financial regulators have withdrawn a 2020 proposal that would have lowered the recordkeeping and information-sharing threshold for cross-border funds transfers from $3,000 to $250.
The Financial Crimes Enforcement Network (FinCEN) under the U.S. Department of the Treasury and the Federal Reserve jointly announced on the 6th that they would take no further action on the proposal. As a result, the current $3,000 threshold will remain in place.
The 2020 proposal called for lowering the threshold for collecting and retaining information on funds transfers sent from the United States overseas or received in the United States from overseas to $250. It also clarified that the relevant rules would apply to convertible virtual currency (CVC), including cryptocurrency.
The agencies explained that more than five years had passed since the proposal and that the virtual asset market and related legal environment had undergone significant changes. They said that any similar regulatory changes in the future would require a new notice-and-comment process.