US officials propose new FinCEN cryptocurrency Directive, which would focus agency’s attention on examining how digital currencies can be used for illegal activities.
26 July, AtoZ Markets – The US government officials have filed the new FinCEN Improvement Act. The act urges the Financial Crimes Enforcement Network (FinCEN) to examine how cryptocurrencies might be used in terrorism or other illegal activities.
US Officials Propose New FinCEN Cryptocurrency Directive
Reportedly, a new Congressional bill would update the mandate of the FinCEN with a new focus on cryptocurrencies. The US Congressmen Ed Perlmutter (D-CO) and Steve Pearce (R-NM) have filed the act that calls for FinCEN to look into the ways cryptocurrencies might be used for illegal activities, in addition to working with tribal law enforcement agencies;.
To be specific, the act mentions “matters involving emerging technologies or value that substitutes for currency, and similar efforts.” It reads:
“Although the use and trading of virtual currencies are legal practices, some terrorists and criminals, including international criminal organizations, seek to exploit vulnerabilities in the global financial system and are increasingly using emerging payment methods such as virtual currencies to move illicit funds.”
FinCEN is operating under the US Treasury Department. The network is created to “safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.”
FinCEN Crypto Regulations
Steve Pearce has stated that the new directives would enable FinCEN to “continue their vitally important mission in the dynamic world environment.” The suggested act emerges years after the network has issued a guidance concerning money transmitters using cryptocurrencies. Companies in the US that utilize such practices are obliged to register with FinCEN.
Ed Perlmutter has been quoted as saying:
“This is an important step in modernizing FinCEN and ensuring our law enforcement and intelligence communities can detect and prevent criminals and terrorist networks from using virtual currencies to move illicit funds or carry out cyber warfare.”
The FinCEN has stated that cryptocurrency exchanges that manage tokens sold during ICOs also should comply with its regulations.
Think we missed something? Let us know in the comments section below.