Fincen crypto rule may provide template for India

MUMBAI: A fresh set of rules proposed by the US Financial Crimes Enforcement Network (Fincen) call for US exchanges to report transfers of cryptocurrency such as bitcoin above $10,000 to non-custodial (unhosted) wallets to Fincen. This also applies to transfers to wallets in certain jurisdictions.

Non-custodial wallets are private wallets such as hardware or paper wallets which are maintained by users directly. These wallets are not hosted by exchanges and exchanges do not have the private keys of such wallets. Exchanges also have to complete Know your Customer (KYC) processes for transfers to non-custodial wallets above $3,000 and keep records of these.

The Fincen rules are open for public comments and the last date for providing feedback is 4 January, 2021.