The US Financial Crimes Enforcement Network (FinCEN) and Federal Reserve are reportedly drastically looking to obtain additional data for smaller transactions. 

Specifically, the governmental establishments are reportedly going to bring down the $3,000 benchmark determined 25 years ago, down to $250 for global transactions. 

This reportedly requires financial entities to collect client data together with every transaction cross the $250 threshold, which initiated or concluded out of the US soil. This would mean that the Travel Rule – as it is referred to – would become applicable for quite small amounts of money changing hands.

The proposed amendment reportedly mentioned “convertible virtual currencies”, claiming that they would also be included in the category of money for the purposes of the law. 

“(a) name and address of the originator or transmittor; (b) the amount of the payment or transmittal order; (c) the execution date of the payment or transmittal order; (d) any payment instructions received from the originator or transmittor with the payment or transmittal order; and (e) the identity of the beneficiary’s bank or recipient’s financial institution.” The data that financial entities are required to exchange under the travel rule. 

This would reportedly mean that a substantial amount of personal data would need to be stored by crypto exchange platforms, together with a user’s account, exposing a highly vulnerable, exploitable spot. 

At the moment, the change to the Travel Rule is yet to be finalized, with FinCEN and the Fed are welcoming public feedback throughout the following 30 days.