The Treasury has reportedly made its anticipated proposal for activities limitations for money services entities, applying to crypto exchanges operating in the US also, regarding associating with self-hosted wallets.

Specifically, on December 18th,  the Treasury’s Financial Crimes Enforcement Network (FinCEN) has reportedly disclosed details of rules as included in its proposal, detailing requirements for registered crypto exchanges platform, to finalize verification of their clients’ identity, should “a counterparty uses an unhosted or otherwise covered wallet and the transaction is greater than $3,000.”

Stakeholders are reportedly granted half a month (15 days) to provide any feedback regarding the rules, which at the moment is still just a proposal. 

There have been rumours regarding the proposed rules going around in the recent months. With the departure of Treasury Secretary Steven Mnuchin and a new administration will take his place, which is considered an action that can affect crypto. 

“This rule addresses substantial national security concerns in the CVC market, and aims to close the gaps that malign actors seek to exploit in the recordkeeping and reporting regime.”

Several leading legislators have reportedly already shared their opposing stance against the proposed rule, which is viewed as an attack on the nature of peer-to-peer transactions.

However, from the Treasury’s point of view, they are establishing regulation for a field that has been going on without official law for quite some time.