Director of FinCEN Acknowledges Surge of Surveillance in Cryptocurrency Sector
Login

Director of FinCEN Acknowledges Surge of Surveillance in Cryptocurrency Sector

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:
The Director of the Financial Crimes Enforcement Network, Kenneth Blanco has stated that the cryptocurrency sector is beginning to adhere to the organization’s laws on money transmission services.

Blanco mentioned this in a lecture at the American Bankers Association/ American Bar Association Financial Crimes Enforcement Conference which was held on the 10th of December. The Director explained that the May 2019 guidance code was starting to have a favorable effect on the cryptocurrency sector.

Exponential Increase in SARs Since May
Sometime in May, the FinCEN published a guidance code for cryptocurrency-related companies to use as a guide. The guidance code illustrates how its laws concerned with Money Services Businesses relate to specific business models in the cryptocurrency sector.

Blanco explained that since its release, the organization has witnessed a substantial increase in Suspicious Activities Reports, which totaled at 11,000.

7,000 of those reports are related to cryptocurrency transactions such as kiosks, exchanges, and peer-to-peer exchanges. He stated that this increase marks a 100% increase in SARs received by the organization.

He added that it has been observed that cryptocurrency-related companies are becoming more open to internalizing key advisory terms and are even going as far as using these terms in their filings. He said that this was a clear sign that the sector was adopting the FinCEN’s laws and was reporting suspicious activities promptly.

More Suspicious Activities Getting Flagged
Since the implementation of the law, an increase in reports of users who execute cryptocurrency transactions using wallets that are associated with darknet marketplaces, and activities that seem to have characteristics of a scam, has been noticed.

Blanco’s lecture is a confirmation to his August lecture where he recounted that the FinCEN was witnessing a surge in SARs, with reports reaching 1,500 monthly at the time.

Also in August, he made a direct plea to casinos that facilitate crypto payments to look into ways of which they could carry out due diligence on their customers and comply with the guidance code.

Some months ago, the US House of Representatives passed a bill that required the Director of FinCEN to carry out surveys on the adoption of new technologies, including blockchain, within the organization.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News