FinCEN Withdraws Proposed Crypto Travel Rule Expansion in Separate November Move

TL;DR: FinCEN and the Federal Reserve are withdrawing a proposed expansion of US recordkeeping and Travel Rule requirements that would have covered certain convertible virtual currency transfers and lowered a cross-border transfer threshold. The withdrawal removes a proposal; it does not cancel existing anti-money-laundering obligations. Two announcements issued by the same US agency on November 6 point in different regulatory directions. While FinCEN imposed a targeted financial restriction on MEXC Global, it also announced that it was withdrawing a previously proposed update to the Recordkeeping and Travel Rule for funds transfers. According to FinCEN’s release, the proposal would have amended requirements relating to convertible virtual currencies and certain digital assets. It would also have lowered a threshold for transfers beginning or ending outside the United States. The Federal Reserve Board joined the withdrawal. A withdrawn proposal is not a repeal of the Travel Rule This distinction is central to understanding the announcement. A proposal describes changes regulators are considering. Withdrawing it means those proposed changes will not proceed through that rulemaking i...