The media keeps telling we are in the crypto winter and about how the regulators are going to spell doom for the cryptocurrency industry.

Now the regulatory FUD is being built from The US Treasury and the FinCEN once again considering strict KYC rules for cryptocurrency transactions with unhosted wallets.

The funds in an unhosted wallet are controlled by an individual, without the need for an intermediary, similar to the real cash in a physical wallet.

The FinCEN regulation will trigger some differences for businesses and related crypto-compliance operations.

CoinDesk expressed: “The USTreasury and FinCEN are once again considering strict know-your-customer rules for crypto transactions with unhosted wallets.”

The Unhosted Crypto Wallet Rule has made a comeback.  This rule was first proposed by the U.S. Money Laundering Watchdog FINCEN during the late 2020. Thus, the US Federal Government is considering the unhosted or self-hosted crypto wallets over again.

If this rule is enacted, crypto exchanges would be required to collect names and home addresses, among other personal details, from anyone who is looking to transfer cryptocurrencies to their own private wallets.

Wondering if there might be a 15-day public comment period for new comments.

Community Response:  Keep the Crypto regulations FUD going so I can keep buying cheaper.

“User-controlled wallets” brings out the distinction better.

To be clear, this was never a FinCEN-driven rule. It was Sec Mnuchin-driven using FinCEN authority + posted on the Treasury website not FinCEN website, until FinCEN was allowed to extend the comment period. FinCEN could have continued it long before, but didn’t.

Plus, for all we know, it could be a new rule for new comment. Can’t tell unless/until something comes out. This list just preserves ability to move it, doesn’t mean it’s coming. Rules get put on here multiple times without moving, due to shifting priorities + resource constraints.

There is two sides. Those who support the development of monetary alternatives so humans have choice. Those who support these Gulf of Tonkin, Iraq WMDs, USS Maine, “national security” invoking tyrants who want to use authoritarian action to remove choice from society.

Fully agree. Don’t read too much into this. It’s at the most a placeholder for something, but far from a reliable predictor for what’s coming down the pike.

“Non-custodial wallet” is the correct term, no? Why is the language being changed on that?

More like wallets. everything else is an account in a company’s database.

So, this proposal would fundamentally be equivalent to giving your Bank of choice right and access to the contents of your personal physical fiat wallet? Just THINK about that for a moment.

Coindesk has a short position on the market for sure. Articles like this and the last one claimed we are in “crypto winter” Go retire and love your family, we don’t need dinosaurs making rules, BTC is the meteor.

If only there were projects out there that knew this was coming and prepared accordingly.

Trapped coins vs freedom coins They’ll have a different price. Get your coins out ASAP.  That won’t stop Crypto. I’m on KYC on everything already

How is it these fossils are allowed to oversee technologies that they have ABSOLUTELY NO IDEA about and how they work or what the utility is.

Oh, they understand. They also fundamentally disagree, further understanding the threat these new technologies pose to their power base. They get it, and are taking the steps needed to protect what they see as theirs by right.

What about wallets owned by corporate subsidiaries of parent companies that also have deep layering? How would this work? Not every wallet is held by a human or single corporate entity.

We need to create a DAO that buys an island and starts a bank. We don’t need the FED.  BTC is recovering, quickly tweet some BS that may or may not happen.