FinCEN Extends Comment Deadline for CVC and Digital Asset Transactions Proposal

FinCEN extended comment periods on a proposal concerning transactions that involve certain convertible virtual currency ("CVC") and digital assets with legal tender status ("LTDA"). (See previous coverage). The proposal would impose reporting, recordkeeping and identity-verification requirements on banks and money service businesses ("MSBs") in connection with certain CVC and LTDA transactions.

In its Notice, FinCEN reopened the comment period which expired on January 4, 2021. FinCEN extended (i) by an additional 15 days, the comment period on proposed reporting requirements for CVC or LTDA transactions greater than $10,000, and (ii) by an additional 45 days, the comment period on a proposed requirement that banks and MSBs verify certain information regarding CVC or LTDA payment recipients.

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