Many have called the long-rumored rules an existential threat to peer-to-peer transactions.
The Treasury has released its long-awaited proposal to restrict money services businesses, including US-registered crypto exchanges, from dealing with self-hosted wallets.
In a Friday evening announcement, the Treasury's Financial Crimes Enforcement Network, or FinCEN, announced proposed rules requiring registered crypto exchanges to verify the "identity of their customers, if a counterparty uses an unhosted or otherwise covered wallet and the transaction is greater than $3,000."
The rule is currently just a proposal.