FinCEN Says It Now Receives 1,500 Crypto Complaints a Month
The Financial Crimes Enforcement Network (FinCEN) receives more than 1,500 reports per month on cryptocurrencies from financial institutions.
FinCEN's Kenneth Blanco, speaking at the Chicago-Kent Block (Legal) Tech Conference, discussed the role that his agency needed to regulate cryptocurrencies. He pointed out that although cryptocurrencies can be useful for certain use cases, they can create opportunities for bad actors such as financial criminals, terrorists and malicious nations.
Blanco emphasized the importance of the Suspicious Activity Report (SAR) report. This is the type of document that a financial institution must submit after an incident suspected of money laundering or fraud. FinCEN receives more than 1,500 SARs per month for suspicious activity related to cryptocurrency transactions.
The report comes from a traditional financial institution and a decryption exchange, he said.
"It was the paperwork of banks and other virtual currency exchanges that provided important clues to law enforcement, including effective ownership information, additional activity by exchange that was not previously known, jurisdiction information, The agency has obtained everything from the SARs and the financial documents submitted by the financial institutions. "
Blanco has been working in the field of cryptocurrency for many years with a focus on the "people involved in exchange, administration and remittance" related to cryptocurrency and discussing Finisher's role in the crypto space more broadly.
He justified the legal status of the agency by pointing out that the cryptocurrencies, which replace currency, are subject to the 2011 FinCEN rule, which was issued on the fund services business that provides remittance services.
Blanco has also worked closely with other regulators, such as the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) on policy development and regulatory approaches related to the CFTC.
Blanco, referring to the "Early Coin Offering" (ICO), noted that "this fast-growing area has attracted a lot of public attention." He specifically focused on scams surrounding how to raise money.
FinOKEN, SEC and CFTC partners expect ICO-related businesses to meet their [anti-money laundering/combating the financing of terrorism] obligations. We promise that these obligations are not a top priority and that we will take appropriate action when the US financial system is at risk. "
US Government / Kenneth Blanco images via Flickr
CoinDesk, a leader in block-chain news, is a media outlet that pursues the highest standards of journalism and adheres to strict editorial policies. CoinDesk is an independent operating subsidiary of the Digital Currency Group, which invests in cryptocurrencies and block-chain startups.
(f.fbq) return; n = f.fbq = function () n.callMethod?
n.callMethod.apply (n, arguments): n.queue.push (arguments); if (! f._fbq) f._fbq = n;
n.push = n; n.loaded =! 0; n.version = & # 39; 2.0 & # 39 ;; n.queue = ; t = b.createElement (e); t.async =! 0;
t.src = v; s = b.getElementsByTagName (e) ; s.parentNode.insertBefore (t, s)} (window,
Document, & # 39; script & # 39 ;, & # 39; // connect.facebook.net/en_US/fbevents.js');
fbq (& # 39; init & # 39 ;, & # 39; 472218139648482 & # 39;);
fbq (& # 39; track & # 39 ;, & # 39; PageView & # 39;);