USA make changes to the rules on cross-border crypto trading

A rule that forces financial services companies to disclose their cross-border crypto transactions will be updated changed soon. The U.S. Commerce Department of the Bureau of Economic Analysis (BEA) wants to change this rule in the mandatory questionnaire.

BEA wants to change the rule and introduce a new one that would offer a better understanding and disclosure of foreign crypto transactions.

From the survey, the BEA will determine the feasibility and application of the newly proposed rule. After the survey, the new rule on cross-border crypto trading will take effect.

Data will be used to monitor financial organizations

According to Stein, the collected data and information will be beneficial in monitoring both U.S. and international market organizations.

He said the new rule is an opportunity to set the benchmark for international transactions on cryptocurrency. According to BEA, about 7,000 respondents will participate in the survey, which will include financial advisors, private equity funds, and brokerages.

According to the rule change, “BEA will add a single question asking respondents to identify, of their 2019 cross-border financial services reported in the required transaction categories, any that were related to cryptocurrency activities.”

However, the new questionnaire will not request for individuals’ transaction information. Christopher Stein, head of BEA’s Services and Surveys Branch said brokerages have to tell whether it carried out cross-border trade.

He said the BEA is not interested in collecting data about physical currency assets. Rather, the main concern is on the international trade of cryptocurrency. Henceforth, as the new rule will indicate, all exchanges will be required to disclose details about any cross-border crypto trading in their platform.

The last time the BE-180 questionnaire was distributed was in 2015. The questionnaire is designed to clarify issues as cryptocurrency and crypto trading continues to take shape in the economy, BEA wants to make sure the rules regarding international crypto trading is clarified.

Stein said that cryptocurrency is a new and evolving area in the financial services market. The main goal of the survey is to clarify requirements through information gathering and distribution.

He further stated that the proposed rule change will give BEA the chance to align its statistics with international rules on cryptocurrency.