A very dubious law, that would impose KYC rules on self-hosted or unhosted crypto wallets, might be taken into action by the U.S. federal government. This rule was previously suggested in 2020 by the U.S. money-laundering watchdog, the Financial Crimes Enforcement Network (FinCEN).
If this law is implemented, then it would be a mandatory requirement by the crypto exchange to collect names and addresses along with some other personal details from the people who want to transfer crypto assets to their personal wallets.
Some industry advocates have shown their concerns regarding this rule, saying that this rule might not work for some specific wallets because they are not all administered by people. Hence not all of them are bound to share personal details. Also, it might cause a burden to some individuals.
This law was first proposed by Steven Mnuchin, Treasury Secretary at that time. It came out on the Treasury’s website with a commenting period of 15 days. This commenting period was later increased to another 15 days and later increased to 60 days by FinCEN.
Currently administered under Secretary Janet Yellen, The Treasury Department reveals that this plan might be discussed in the half-yearly plan of guidelines, which will be officially given out in the Federal Register on January 31, 2022. It was also said that the foundation would surely be attained or they will be carried out with no guarantee whatsoever. This new plan is somewhat of a device that alerts the things the Treasury will undermine all through the year.
