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The Financial Crimes Enforcement Network (FinCEN) has announced that it will soon propose new regulation affecting <\/strong>cryptocurrency holdings at foreign exchanges. This proposal is separate from the one FinCEN recently proposed on cryptocurrency wallets.<\/strong><\/p>\n FinCEN, a bureau of the U.S. Department of the Treasury, issued a notice on Thursday regarding a new filing requirement for cryptocurrencies. FinCEN detailed:<\/p>\n Currently, the Report of Foreign Bank and Financial Accounts (FBAR) regulations do not define a foreign account holding virtual currency as a type of reportable account.<\/p>\n<\/blockquote>\n The notice adds that the bureaus \u201cintends to propose to amend the regulations implementing the Bank Secrecy Act (BSA) regarding reports of foreign financial accounts (FBAR) to include virtual currency as a type of reportable account.\u201d<\/p>\n Shehan Chandrasekera, Head of Tax Strategy at Cointracker, explained that \u201cFBAR is a form you file with your tax return if you have any foreign financial assets over 10K at any time of the year.\u201d He clarified, \u201cThere are no taxes to be paid with this form, just additional disclosure.\u201d<\/p>\n Marc Boiron, attorney at Manatt, commented: \u201cGoodbye non-US exchanges \u2026 FBARs will need to be filed for non-US virtual currency accounts.\u201d He emphasized:<\/p>\n Accidentally failing to file an FBAR can result in a civil penalty of $10,000 for each violation.<\/p>\n<\/blockquote>\n <\/ins> <\/ins> <\/p>\n \u201cAnother example of US regulatory overreach,\u201d Adam Cochran, Duckduckgo\u2019s strategist, opined. \u201cUtterly insane \u2013 but this rule will be something FinCEN would use to go after international exchanges more broadly.\u201d<\/p>\n Lawyer Jake Chervinsky described that this proposal \u201cseems targeted at users of non-US exchanges\u201d and he believes that it \u201cshouldn\u2019t apply to assets in self-custody.\u201d He suggested that the reason for the proposal might be either tax evasion or \u201cbringing non-US crypto companies into compliance with the Bank Secrecy Act.\u201d FinCEN is also currently trying to implement rules concerning crypto wallets<\/a> before the end of the Trump term.<\/p>\n What do you think about this new rule FinCEN will propose? Let us know in the comments section below.<\/strong><\/em><\/p>\n The post FinCEN to Impose New Regulation for Crypto Holdings at Foreign Exchanges<\/a> appeared first on Bitcoin News<\/a>.<\/p>\nFinCEN\u2019s New Crypto Rules<\/h2>\n
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