# FinCEN withdraws its unhosted-wallet transaction reporting proposal

> FinCEN withdrew its December 2020 proposal for additional reporting, recordkeeping, and customer verification by banks and money services businesses for digital-asset transactions involving unhosted or otherwise covered wallets.

- URL: https://riadefi.com/regulation/2026-10-06-fincen-unhosted-wallet-transaction-reporting-proposal-withdrawal/
- Posture: Proposal · not in effect
- Authorities: Financial Crimes Enforcement Network
- Event date: 2026-10-06
- Effective: 2026-10-06
- Version: 1, published 2026-10-06 (first published 2026-10-06)
- Advisor-relevant: no

This entry records a proposal. It does not change the law unless it is adopted.

## What changed

FinCEN withdrew its December 2020 proposal for additional reporting, recordkeeping, and customer verification by banks and money services businesses for digital-asset transactions involving unhosted or otherwise covered wallets. The withdrawal takes effect October 6, 2026, and FinCEN will take no further action on this NPRM. It closes a proposed rulemaking rather than repealing an implemented reporting requirement.

## Who it affects

- Banks and money services businesses handling covered digital-asset transfers
- Advisers evaluating client wallet transfers and digital-asset service providers

## What is still open

- Whether FinCEN will pursue a different wallet-related proposal
- Which existing BSA and sanctions requirements apply to a particular transfer or service provider

## What it means for an advisor

- Update diligence files and regulatory tracking to mark this proposal withdrawn
- Distinguish the abandoned proposed thresholds from requirements that independently apply to the provider or transaction

## Sources

1. [Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets; Withdrawal](https://www.federalregister.gov/documents/2026/10/06/2026-20430/requirements-for-certain-transactions-involving-convertible-virtual-currency-or-digital-assets) · Financial Crimes Enforcement Network · 2026-10-06 · effective 2026-10-06


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.