On November 6, FinCEN and the Federal Reserve withdrew a proposal to extend US recordkeeping and Travel Rule requirements to certain convertible virtual currencies and digital assets. The proposal would also have lowered the threshold for transfers beginning or ending outside the United States. Its withdrawal does not eliminate existing anti-money-laundering, customer-identification, reporting or information-sharing obligations applicable to financial institutions. Banks, crypto exchanges and payment providers must therefore maintain their compliance controls while assessing the impact of the abandoned proposal on planned systems changes. The decision came alongside a targeted financial restriction by FinCEN against MEXC Global, illustrating the distinction between withdrawing a proposed rule and using existing regulatory powers against a specific entity.
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