The Financial Crimes Enforcement Network and the Federal Reserve withdrew their 2022 proposal to lower from $3,000 to $250 the threshold for recordkeeping and information-transmission requirements on cross-border transfers. The proposal would also have brought convertible cryptocurrencies and certain digital assets into the definition of “money” for the Travel Rule. The agencies acted after receiving nearly 3,000 comments, many of which opposed the $250 threshold and warned that it could burden smaller institutions and push consumers toward less regulated channels. The existing $3,000 threshold and Travel Rule therefore remain unchanged, with no repeal or amendment, and neither agency announced a replacement proposal or timetable. The withdrawal does not signal reduced enforcement, as demonstrated separately by FinCEN’s action against MEXC over alleged sanctions evasion.
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