Unhosted wallet NPRM: reopening of comment period (86 FR 3897)
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Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.
Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Proposed Rules 3897
Persons wishing the FAA to CFR) part 71 to establish Class E Authority: 49 U.S.C. 106(f), 106(g); 40103,
acknowledge receipt of their comments airspace extending upward from 700 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR,
on this action must submit with those feet above the surface at Tobey Hospital 1959–1963 Comp., p. 389.
comments a self-addressed stamped Heliport, Wareham, MA, providing the § 71.1 [Amended]
postcard on which the following controlled airspace required to support
■ 2. The incorporation by reference in
statement is made: ‘‘Comments to FAA the new RNAV (GPS) standard
14 CFR 71.1 of Federal Aviation
Docket No. FAA–2020–1187; Airspace instrument approach procedures for IFR
operations at Tobey Hospital Heliport. Administration Order 7400.11E,
Docket No. 20–ANE–9.’’ The postcard
Class E airspace designations are Airspace Designations and Reporting
will be date/time stamped and returned
published in Paragraph 6005, of FAA Points, dated July 21, 2020, and
to the commenter.
All communications received before Order 7400.11E, dated July 21, 2020, effective September 15, 2020, is
the specified closing date for comments and effective September 15, 2020, which amended as follows:
will be considered before taking action is incorporated by reference in 14 CFR Paragraph 6005 Class E Airspace Areas
on the proposed rule. The proposal 71.1. The Class E airspace designations Extending Upward From 700 Feet or More
contained in this document may be listed in this document will be Above the Surface of the Earth.
changed in light of the comments published subsequently in the Order. * * * * *
received. All comments submitted will FAA Order 7400.11, Airspace
ANE MA E5 Wareham, MA [New]
be available for examination in the Designations and Reporting Points, is
public docket both before and after the published yearly and effective on Tobey Hospital Heliport, MA
September 15. (Lat. 41°58′49.18.14″ N, long. 70°42′52.10″
comment closing date. A report W)
summarizing each substantive public Regulatory Notices and Analyses That airspace extending upward from 700
contact with FAA personnel concerned feet above the surface within a 6-mile radius
with this rulemaking will be filed in the The FAA has determined that this
proposed regulation only involves an of Tobey Hospital Heliport.
docket.
established body of technical Issued in College Park, Georgia, on January
Availability of NPRMs regulations for which frequent and 7, 2021.
An electronic copy of this document routine amendments are necessary to Andreese C. Davis,
may be downloaded through the keep them operationally current. It, Manager, Airspace & Procedures Team South,
internet at https://www.regulations.gov. therefore: (1) Is not a ‘‘significant Eastern Service Center, Air Traffic
Recently published rulemaking regulatory action’’ under Executive Organization.
documents can also be accessed through Order 12866; (2) is not a ‘‘significant [FR Doc. 2021–00444 Filed 1–14–21; 8:45 am]
the FAA’s web page at https:// rule’’ under DOT Regulatory Policies BILLING CODE 4910–13–P
www.faa.gov/air_traffic/publications/ and Procedures (44 FR 11034; February
airspace_amendments/. 26, 1979); and (3) does not warrant
You may review the public docket preparation of a Regulatory Evaluation DEPARTMENT OF THE TREASURY
containing the proposal, any comments as the anticipated impact is so minimal.
received and any final disposition in Since this is a routine matter that will Financial Crimes Enforcement Network
person in the Dockets Office (see the only affect air traffic procedures and air
ADDRESSES section for address and navigation, it is certified that this 31 CFR Parts 1010, 1020, and 1022
phone number) between 9:00 a.m. and proposed rule, when promulgated, will
not have a significant economic impact RIN 1506–AB47
5:00 p.m., Monday through Friday,
except federal holidays. An informal on a substantial number of small entities Requirements for Certain Transactions
docket may also be examined between under the criteria of the Regulatory Involving Convertible Virtual Currency
8:00 a.m. and 4:30 p.m., Monday Flexibility Act. or Digital Assets
through Friday, except federal holidays Environmental Review
at the office of the Eastern Service AGENCY: Financial Crimes Enforcement
This proposal will be subject to an Network (‘‘FinCEN’’), Treasury.
Center, Federal Aviation
environmental analysis in accordance ACTION: Notice of proposed rulemaking;
Administration, Room 350, 1701
with FAA Order 1050.1F, reopening of comment period.
Columbia Avenue, College Park, GA
‘‘Environmental Impacts: Policies and
30337.
Procedures’’, prior to any FAA final SUMMARY: On December 23, 2020,
Availability and Summary of regulatory action. FinCEN published a notice of proposed
Documents for Incorporation by rulemaking proposing requirements for
Lists of Subjects in 14 CFR Part 71
Reference banks and money services businesses
Airspace, Incorporation by reference, (‘‘MSBs’’) related to certain transactions
This document proposes to amend
Navigation (air). involving convertible virtual currency
FAA Order 7400.11E, Airspace
Designations and Reporting Points, The Proposed Amendment (‘‘CVC’’) or digital assets with legal
dated July 21, 2020, and effective tender status (‘‘legal tender digital
In consideration of the foregoing, the
September 15, 2020. FAA Order assets’’ or ‘‘LTDA’’). As set forth below,
Federal Aviation Administration
7400.11E is publicly available as listed FinCEN is identifying additional
proposes to amend 14 CFR part 71 as
in the ADDRESSES section of this statutory authority for the proposed rule
follows:
document. FAA Order 7400.11E lists under the Anti-Money Laundering Act
Class A, B, C, D, and E airspace areas, PART 71—DESIGNATION OF CLASS A, of 2020, providing additional
air traffic service routes, and reporting B, C, D, AND E AIRSPACE AREAS; AIR information regarding the reporting
points. TRAFFIC SERVICE ROUTES; AND form, and reopening the comment
REPORTING POINTS period for the proposal. Specifically,
The Proposal FinCEN is providing an additional 15
The FAA proposes an amendment to ■ 1. The authority citation for part 71 days for comments on the proposed
Title 14 Code of Federal Regulations (14 continues to read as follows: reporting requirements regarding
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3898 Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Proposed Rules
information on CVC or LTDA transactions that is similar to the instruments’’ pursuant to paragraph (D)
transactions greater than $10,000, or recordkeeping and travel rule of 31 U.S.C. 5312(a)(3), as amended.
aggregating to greater than $10,000, that regulations pertaining to funds transfers Specifically, pursuant to 31 U.S.C.
involve unhosted wallets or wallets and transmittals of funds. The original 5312(a)(3)(D), CVC and LTDA are both
hosted in a jurisdiction identified by comment period formally closed on value that substitute for currency and
FinCEN. FinCEN is providing an January 7, 2021, although FinCEN took are therefore ‘‘monetary instruments’’
additional 45 days for comments on the steps to ensure comments could still be under the BSA.
proposed requirements that banks and received after that date.2 As FinCEN specified in the December
MSBs report certain information On January 1, 2021, the Anti-Money Notice, the determination at 31 CFR
regarding counterparties to transactions Laundering Act of 2020 (Division F of 1010.316(a) is not intended to affect the
by their hosted wallet customers, and on Pub. L. 116–283) (‘‘AML Act of 2020’’) regulatory definition of ‘‘monetary
the proposed recordkeeping became law. The AML Act of 2020 instruments’’ at 31 CFR 1010.100(dd), or
requirements. amended 31 U.S.C. 5312(a)(3), the the use of that regulatory definition
DATES: The comment period for the definition of ‘‘monetary instruments’’ in elsewhere in FinCEN’s regulations,
proposed rule published on December the Bank Secrecy Act (‘‘BSA’’), on including in relation to the currency
23, 2020 (85 FR 83840) is reopened for which Treasury proposed to rely to transaction reporting requirements at 31
15 days for comments on the proposed determine that CVC and LTDA are CFR 1010.311 and the transportation of
reporting requirements and for 45 days monetary instruments. As amended by currency or monetary instruments
for comments on the proposed the AML Act of 2020, the BSA now reporting requirements at 31 CFR
requirement to report counterparty defines the term monetary instruments 1010.340.4
information and the proposed as United States coins and currency; as The AML Act of 2020 also amended
recordkeeping requirements. Written the Secretary may prescribe by 31 U.S.C. 5318(a)(2), granting the
comments are now therefore due with regulation, coins and currency of a Secretary additional authority to
respect to the proposed reporting foreign country, travelers’ checks, bearer implement reporting requirements.
requirements (except with respect to negotiable instruments, bearer Specifically, the Secretary may require a
reporting of counterparty information) investment securities, bearer securities, class of domestic financial institutions
on February 1, 2021, and with respect stock on which title is passed on to ‘‘maintain appropriate procedures,
to all other aspects of the proposed rule delivery, and similar material; as the including the collection and reporting of
on March 1, 2021. Secretary of the Treasury shall provide certain information as the Secretary of
by regulation for purposes of sections the Treasury may prescribe by
ADDRESSES: Comments may be
5316 and 5331, checks, drafts, notes, regulation, to ensure compliance with
submitted by any of the following
money orders, and other similar [subchapter 53 of title 31 of the U.S.
methods:
• Federal E-rulemaking Portal: http:// instruments which are drawn on or by Code] and regulations prescribed under
www.regulations.gov. Follow the a foreign financial institution and are [such] subchapter or to guard against
instructions for submitting comments. not in bearer form; and, as the Secretary money laundering, the financing of
Refer to Docket Number FINCEN–2020– shall provide by regulation, value that terrorism, or other forms of illicit
0020 and the specific RIN number substitutes for any monetary instrument finance.’’ Thus, in addition to the
1506–AB47 to which the comment described in the other categories.3 authority cited in the December Notice,
applies. In the December Notice, FinCEN the proposed rule relies on authority
• Mail: Policy Division, Financial proposed prescribing by regulation that under 31 U.S.C. 5318(a)(2) to extend
Crimes Enforcement Network, P.O. Box CVC and LTDA are monetary transaction reporting requirements to
39, Vienna, VA 22183. Refer to Docket instruments because they constitute CVC/LTDA transactions.5
Number FINCEN–2020–0020 and the ‘‘similar material’’ to instruments Reports required by the proposed rule
specific RIN number. described in 31 U.S.C. 5312(a)(3)(B) would be submitted on a Value
(‘‘coins and currency of a foreign Transaction Report form similar to the
FOR FURTHER INFORMATION CONTACT: The
country, travelers’ checks, bearer existing FinCEN Currency Transaction
FinCEN Regulatory Support Section at
negotiable instruments, bearer Report (‘‘CTR’’) Form 112. The form
1–800–767–2825 or electronically at
investment securities, bearer securities, would be submitted through the existing
[email protected].
[and] stock on which title is passed on BSA E-filling system and would be able
SUPPLEMENTARY INFORMATION: On delivery. . . .’’). As the December to be batch reported.6 Filers would be
December 18, 2020, FinCEN filed with Notice explained, CVC and LTDA are able submit information commonly
the Federal Register a notice of ‘‘similar material’’ to ‘‘coins and associated with CVC and LTDA
proposed rulemaking (the ‘‘December currency of a foreign country, travelers’ transactions, such as:
Notice’’). The December Notice was checks, bearer negotiable instruments,
published in the Federal Register on bearer investment securities, bearer 4 Nor is this regulatory determination intended to
December 23, 2020.1 In the December securities, [and] stock on which title is have any impact on the definition of ‘‘currency’’ in
Notice, FinCEN proposed to address the passed on delivery. . . .’’ FinCEN now 31 CFR 1010.100(m). Furthermore, nothing in the
threat of illicit finance with respect to intends to prescribe by regulation that proposal is intended to constitute a determination
certain transactions involving CVC or that any CVC or LTDA that is within the regulatory
CVC and LTDA are ‘‘monetary definition of ‘‘monetary instruments’’ prescribed
LTDA by (i) establishing new reporting pursuant to 31 U.S.C. 5312(a)(3) is currency for the
requirements for certain CVC or LTDA 2 Members of the public have continued to be able purposes of the federal securities laws, 15 U.S.C.
transactions analogous to existing to, and have in fact continued to, submit comments 78c(47), or the federal derivatives laws, 7 U.S.C. 1–
currency transaction reports, and (ii) since January 7, 2021. FinCEN will continue to 26, and the regulations promulgated thereunder.
review comments submitted after the filing of the Finally, this determination is intended to have no
establishing new recordkeeping original notice of proposed rulemaking, including impact on the taxability of CVC or LTDA.
requirements for certain CVC or LTDA comments received between January 7, 2021 and 5 31 U.S.C. 5318(a)(2), as amended by section
January 15, 2021. 6101(b) of the AML Act of 2020.
1 Requirements for Certain Transactions Involving 3 31 U.S.C. 5312(a)(3), as amended by section 6 The user guide for the existing CTR form is
Convertible Virtual Currency or Digital Assets, 85 6102(d) of the AML Act of 2020, which added available at: https://bsaefiling.fincen.treas.gov/docs/
FR 83840 (Dec. 23, 2020). paragraph (D). XMLUserGuide_FinCENCTR.pdf.
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Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Proposed Rules 3899
(a) The CVC or LTDA type used in the proposed reporting requirements, DEPARTMENT OF HOMELAND
transaction; FinCEN notes that these proposed SECURITY
(b) The transaction amount; requirements are essentially equivalent
(c) The assessed transaction value (in to the existing CTR reporting Coast Guard
U.S. dollars); requirements that apply to transactions
(d) The date and time of the in currency. The proposed rule is a vital 33 CFR Part 96
transaction;
loophole-closing measure to prevent
(e) The transaction hash; 46 CFR Parts 71, 115, and 176
(f) CVC or LTDA addresses involved illicit transactions using CVC and
in the transaction, and if they are hosted LTDA, including the financing of
terrorism, in light of the fact that such [Docket No. USCG–2020–0123]
or unhosted;
(g) The name and physical address of transactions would otherwise be subject
each counterparty to the transaction of to familiar and long-established RIN 1625–AC65
the financial institution’s customer; and reporting requirements if they were in
Safety Management Systems for
(h) Other information readily cash. The proposal is also consistent
Domestic Passenger Vessels
available to the bank or MSB, which with Congress’s recent expansion of the
aids in identifying the specific reported definition of ‘‘monetary instrument’’ in AGENCY: Coast Guard, DHS.
transaction(s), the means by which it the BSA, which reflects the expectation ACTION: Advance notice of proposed
was conducted, and the parties that FinCEN would bring CVC and rulemaking.
involved. LTDA within monetary instrument
A final rule implementing these reporting requirements. FinCEN notes SUMMARY: The Coast Guard is evaluating
proposed reporting requirements would that a large number of commenters the potential use of Safety Management
be effective 30 days after its publication, agreed it is fully appropriate for FinCEN Systems (SMSs) to improve safety and
except that the requirement to report reduce marine casualties on board U.S.-
to finalize a rule providing similar
counterparty information (if adopted) flagged passenger vessels. In this
regulatory treatment to similar activity.
would not take effect for 60 days given document, the Coast Guard is seeking
the additional complexity it may FinCEN welcomes comments during
public input and responses to specific
present. this reopened comment period on
questions on the feasibility,
FinCEN also continues to invite FinCEN’s application of new statutory
applicability, and nature of SMSs for
comment on the portion of the authority pursuant to the BSA potential use on U.S.-flagged passenger
December Notice related to proposed amendments made by the AML Act of vessels. The Coast Guard may use this
independent recordkeeping obligations 2020. In addition, several commenters information to develop a proposed rule
for transactions greater than $3,000. Any noted the need for additional regarding SMSs; if so, notification of
final rule implementing the information on the nature of the reports that proposed rule would appear in the
recordkeeping requirements would be required by the proposal in order to Federal Register under this docket
effective 60 days after its publication. provide an assessment of potential costs number.
Comments on the December Notice: and benefits of the proposed rule. As
FinCEN reviewed and considered 7,506 DATES: Comments and related material
indicated in the supplementary
comments submitted in response to the must be received by the Coast Guard on
information, FinCEN intends to use a
December Notice prior to January 8, or before April 15, 2021.
form similar to the existing CTR form
2021. Commenters included financial ADDRESSES: You may submit comments
and requests further comment in light of
institutions and companies that provide identified by docket number USCG–
this additional information.
services related to CVC or LTDA, 2020–0123 using the Federal
academics, trade organizations, With respect to the additional 45 days eRulemaking Portal at https://
cryptocurrency development groups, for comments on the proposed www.regulations.gov. See the ‘‘Public
non-profit organizations, customers and recordkeeping requirements and the Participation and Request for
employees of companies that provide proposed requirement to report Comments’’ portion of the
services related to CVC or LTDA, and counterparty information, FinCEN is SUPPLEMENTARY INFORMATION section for
cryptocurrency owners and other providing a longer period in light of the further instructions on submitting
individuals (both domestic and foreign), somewhat greater complexity of those comments.
as well as anonymous sources. aspects of the proposed rule and various FOR FURTHER INFORMATION CONTACT: For
Commenters addressed a range of issues identified in comments received information about this document, call or
considerations, including implications during the original comment period. email Lieutenant Kimberly Gates, Vessel
for technological development and other and Facility Operating Standards
Kenneth A. Blanco,
forms of innovation, the economics of Division (CG–OES–2), U.S. Coast Guard,
the digital asset industry, U.S. economic Director, Financial Crimes Enforcement
Network.
2703 Martin Luther King Jr. Avenue SE,
competitiveness, compliance matters, Washington, DC 20593; telephone 202–
data security and privacy, utility to law [FR Doc. 2021–01016 Filed 1–14–21; 8:45 am]
372–1455, email kimberly.m.gates@
enforcement, and procedural aspects of BILLING CODE 4810–02–P uscg.mil.
the December Notice (including the
length of the comment period). SUPPLEMENTARY INFORMATION:
Determination to Reopen the Public Table of Contents for Preamble
Comment Period: FinCEN appreciates
the substantial response from I. Public Participation and Request for
Comments
commenters during the original II. Abbreviations
comment period, and FinCEN welcomes III. Background
further comment in the reopened IV. Advance Notice of Proposed Rulemaking
comment periods. With respect to the Discussion
additional 15 days for comments on the V. Information Requested
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