The U.S. Financial Crimes Enforcement Network (FinCEN) has released a proposed rule that would instill record keeping and reporting requirements for transactions by or to a bank or money service business involving an "unhosted or otherwise covered wallet."
The rule calls for enhanced know-your-customer (KYC) requirements for withdrawals to unhosted wallets greater than $3,000. For transactions larger than $10,000, firms would have to report to FinCEN. It would require banks and MSBs to file information pertaining to a customer's transaction and their counterparty, including names and physical addresses to verify both parties' identities.
To ensure no one is transacting anonymously, FinCEN is also proposing rules around "structuring," which entails breaking large transactions into smaller ones in order to get around reporting requirements.
The newly proposed rule is similar in spirit to the Financial Action Task Force's Travel Rule, which calls for trading venues to share exchange originator and beneficiary identity information for exchange-to-exchange transactions greater than $1,000. U.S. exchanges have been working to meet the challenges presented by the rule.
The Block reported Thursday night that Treasury was considering a new rule aimed at self-hosted wallets.
The proposal is slated to hit the register on Dec. 23. There will be a 15-day public comment period.
The Block Research was commissioned by Algorand to create Layer-1 Platforms: A Framework for comparison, which provides a “look under the hood” at seven platforms: Algorand, Avalanche, Binance Smart Chain, Cosmos, Ethereum/Ethereum 2.0, Polkadot, and Solana.
We assess their technical design, related ecosystem data, and qualitative factors such as key ecosystem members to get an understanding of how they differ. Having done this analysis, we draw some insights for what the future of the broader smart contract landscape could look like for years to come.