Cryptocurrency Regulations May Arrive in the United States Earlier Than Expected



The United States’ Financial Crimes Enforcement Network (FinCEN) will continue to closely monitor the digital currency industry as one of its primary concerns to tackle violations such as illegal tax evasion. FinCEN officially said on Thursday that “virtual money contemplations” or tasks involving digital currencies like Bitcoin (BTC), will be among its main public needs to tackle the funding of psychological oppression and ensure legitimate approaches to justice. fight against money laundering (AML).

“The basis for these needs is intended to assist all organizations called upon in their efforts to meet their commitments” under related laws and guidelines, the comptroller said. FinCEN explained that it will soon issue guidelines on how monetary institutions should integrate these needs into their anti-money laundering programs.

FinCEN recognizes that not all Priorities will be relevant to every Covered Institution, but each Covered Institution should, on the date of entry into force of future regulations to be promulgated in relation to those Priorities, consider and incorporate, as appropriate, each priority according to the broader risk-based AML program, ”the authority noted.

Referring to digital currencies as “convertible virtual currencies” or CVCs, FinCEN drew attention to the fact that these resources have become the “currency of preference in a wide variety of illicit online activities”. The agency then highlighted a wide range of use of CVC by criminals, claiming it to be a “preferred type of payment” for the purchase of illegal products such as ransomware devices or , in any case, for exercises such as “atomic weapons aspirations”.

The news is consistent with the latest comments from Brian Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence. During a Senate hearing in late June, Nelson said he would push for the implementation of the AML Act of 2020, including “new guidelines for digital currency.”

FinCEN’s growing interest in the crypto industry comes long after President Joe Biden froze the FinCEN-sponsored rule to screen crypto on self-facilitating wallets as one of the main official activities in power. The post presented the proposal in late 2020 under former U.S. Secretary of Deposit, Mnuchin, intending to require all banks and treasury organizations to submit reports and confirm the character of clients engaged in the exchanges. of crypto wallets.

The FinCEN update also follows other recent activity that is shaping the way cryptography is approached in the United States. The House Financial Services Advisory Group held a consultation for lawmakers and an observer council on Wednesday to review the country’s digital currency guidelines, calling on key observers to comment. before Congress on the dangers and opportunities of blockchain innovation. It’s clear that many on Capitol Hill still don’t understand the cryptocurrency space.

Representative Brad Sherman, a prominent person on the House Financial Services Committee, was not keen on investing resources in cryptocurrency to put something aside for retirement. He said: “Cryptocurrency is something you can bet on, but if people want to have animal spirits to take risks, I would rather they invest in the stock markets to support business creation. Americans, or the California lottery to support schools. in my state. He also joked that the California Lottery would make a higher “bet” than the blockchain.

However, Representative Tom Emmer, another senior council official, was more concerned that the administrative impedance was preventing Americans from taking full advantage of the crypto business. He said, “Over the past few years, I have been fortunate enough to meet many great crypto and blockchain innovators. A common refrain during our discussion is that they are so eager to develop their crypto and blockchain ideas here in the United States. But they don’t because of the lingering uncertainty with crypto regulation.


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