A new announcement has been made by the Financial Crimes Enforcement Network (FinCEN) regarding the implementation of the new law.FinCEN says it will soon adopt fresh regulation which will be implementable upon foreign crypto exchanges. Says that the proposed law is entirely different from the earlier one relating to digital wallets.
FinCEN, which is a criminal branch of the US Treasury Department, on Thursday, had issued a public notice. In the notice, the Authority had informed about the fresh filing conditions and requirements relating to digital currencies.
FinCEN told specifically that under the regulations of Foreign Bank & Financial Accounts, crypto-accounts hadn’t been required to be reported. It also told that in order to correct the defect, the regulations would be needed to be amended accordingly. It had proposed to amend provisions relating Bank Secrecy Act in an attempt to include crypto accounts to be reportable. FinCEN said that currently the banks (local and foreign) under the Bank Secrecy Act, had not been required to submit information regarding crypto accounts. It stated that once the amendment will be put in place, then the defect will be removed automatically.
Taxation Head at Cointracker, ShehanChandrasekera, told that the proposed law is in continuation with the earlier law. He stated that earlier, FinCEN had implemented a law regarding submission of crypto ownership status by taxpayers. He explained that crypto owners, whose value of assets exceeded US$ 10,000, were required to mention their crypto-holding in their annual filings. However, he clarified that no tax had been levied upon the taxpayers and they were only required to submit information.
Later on, Marc Boiron, who is an attorney working with Manatt, was found commenting that time is over for foreign exchanges in the US. He said that those who had failed to comply with the mandatory requirement would be required to pay the fine. He informed that non-compliant exchanges would be fined US$ 10,000 for one single violation. But if there had been multiple violations, then the fine would be at the discretion of authority and may entail legal action.
Meanwhile, Adam Cochran, strategist at Duckduckgo’s termed the action of FinCEN to be “overreach regulation”. He criticized the law for being bad in law and against the interests of foreign exchanges working in the US.