FinCEN Intends to Amend the FBAR Rules Regarding Foreign Accounts Holding Cryptocurrencies
The Financial Crimes Enforcement Network (FinCEN), a bureau of the United States Department of the Treasury shared its intent to amend the FBAR for cryptocurrencies.
The official document “Report of Foreign Bank and Financial Accounts (FBAR) Filing Requirement for Virtual Currency” notes that currently, FBAR regulations do not define a foreign account holding virtual currency as a type of reportable account.
This means, at the time, a foreign account holding cryptocurrencies is not reportable on the FBAR.
But now, FinCEN is sharing its intention 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 under 31 CFR 1010.350, it states.
“This seems targeted at users of non-US exchanges & shouldn’t apply to assets in self-custody,” said Jake Chervinksy, General Counsel at Compound Finance.
According to him, it could be primarily about tax evasion and bringing non-US crypto companies into compliance with the BSA.
“Anyone claiming to have blocked US citizens (as BitMEX claimed) will have a tough time if/when hundreds of FBARs come flooding in.”
Jake Chervinksy General Counsel at Compound Finance