US drops plan to track crypto transfers abroad from $250
Why it matters
For banks and crypto firms, the old $3,000 line for passing on customer details stays put, so no costly rebuild of cross-border payment checks for now. Regulators say any future change will reflect how crypto has moved on.
Post to XThe short version
On 6 November two US regulators, FinCEN and the Federal Reserve, scrapped a 2020 plan that would have made banks and crypto firms record and pass on customer details for cross-border transfers from $250, down from $3,000. They said the crypto industry had changed a lot since it was first proposed.
Here's what happened. On Friday FinCEN, the US Treasury's financial crimes unit, and the Federal Reserve withdrew a proposal first floated in 2020.
It would have changed the "travel rule", which makes banks and payment firms collect customer details and send them along with a transfer. The plan would have cut the trigger for transfers that start or end outside the US to $250, from $3,000, according to The Block. It also spelled out how the rule applies to crypto.
Why drop it now? According to The Block, the regulators said more than five years had passed, the crypto industry had changed, and more public input would help. Any future changes should take these developments into account, FinCEN said.
Industry groups welcomed the move. The Crypto Council for Innovation called it the right call, saying a lower limit would have put an undue burden on institutions.
Put it in context. Last month FinCEN also dropped separate proposals on crypto mixing services and on wallets that people control themselves, The Block reported.
Where this comes from
Written with AI from the sources above and checked against them before publishing. Here's how we work. This is news, not financial advice. Spotted a mistake? Tell us.
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