FinCEN offers Cryptocurrency Guidelines for the Battle against Money Laundering and Enforcement of Unhosted Wallets

Spread the love

The Financial Crimes Enforcement Network (FINCEN), which serves as an anti-money laundering arm under the US Treasury Department, has introduced regulatory legislation for companies operating cryptocurrencies, such as exchanges.

Pursuant to FinCEN’s plan, unhosted wallets or self-hosted wallets should be tracked and cryptocurrency transactions should comply with anti-money laundering (AML) legislation. Reports for transactions of $10,000 or more originating from FinCEN should be provided by crypto trading platforms. This will mean that cryptocurrencies would be subject to the same regulations as cash deposits and withdrawals currently in effect.

FinCEN also recommends that transactions of $3,000 or more originating from unhosted wallets should be checked – in other words, companies dealing with cryptocurrencies should verify the identity of the buyer, such as the name and address of the customer, the sum of the payment, the time of the transaction, the value of the transaction and any information related to the transaction.

In addition, the Financial Crimes Unit indicates that unhosted wallets originating in blacklisted countries such as North Korea and Iran should be identified. However, this can be a heavy duty, as digital geolocations are not always verifiable.

RECOMMENDED READ:  Tron, Litecoin, Elrond Price Movement Analysis for 30th January 2021

US to regulate stablecoins, but is it moving fast enough?

FinCEN’s decision to crack down on the role of digital currencies in cyber-crime-related transactions comes at a time when US financial regulators have made progress in developing rules for stablecoins. According to the paper, the Treasury Department, along with the CFTC and the SEC, hopes to “manage risk effectively and maintain the stability of the US domestic and international financial and monetary systems.”

Since crypto innovation was a massive 2020 sound, the US has been struggling to control cryptocurrencies, beginning with XRP. Previously, it was criticised for not getting on the blockchain and crypto train as fast as its peers, including countries in the APAC region such as Japan and China.

 

Image source: Shutterstock

 326 Interactions,  2 today

READ ALSO:
Romanian university intends to consider cryptocurrency payments for admissions fees.

The academic college, which has about 11,000 students, stated that the inclusion of crypto payments was part of a campaign Read more

Fidelity’s Tom Jessop on why Crypto has reached a “tipping point.”

The crypto market has gained traction as a result of low interest rates and fiscal stimulus, according to a Fidelity Read more

How arrests for attempting to obtain a hitman and a nuclear bomb demonstrate that the dark web is not always anonymous.

Paying with cryptocurrency does not guarantee your safety. Most of the criticisms levelled at cryptocurrencies is that its difficult-to-trace existence Read more

Bitcoin, BTT, Dogecoin Price Movement Analysis for 7th April, 2021

Bitcoin was expected to remain above the $55,800-support, a level that coincided with its 200-SMA. BitTorrent Token was projected to Read more

The cryptocurrency market cap has surpassed $2 trillion, making it as valuable as Apple.

For the first time, the total market value of all cryptocurrencies exceeds $2 trillion. According to Goingecko numbers, the total Read more

Why crypto analyst Ben Armstrong says, ‘He Very Confident Bitcoin Will Reach $300K This Year.’

Recently, blockchain expert and influencer Ben Armstrong mentioned Bitcoin in a video posted to his highly popular YouTube channel “BitBoy Read more

RECOMMENDED READ:  Will Bitcoin Hit $288,000 by December of 2021? New Poll Reveals Crypto Trader Sentiment on BTC
Binance Coin, Dogecoin, SushiSwap Price Movement Analysis for 4th April, 2021

Binance Coin predicted that fresher record thresholds will be set in the coming days due to solid technicals. Following a Read more

Tron Price Movement Analysis for 4th April, 2021

In the cryptocurrency industry, excessive uncertainty has had a long-term effect on the price of the digital commodity. This uncertainty Read more

Ethereum Price Movement Analysis for 4th April, 2021

Ethereum, the second-largest cryptocurrency, has entered a volatile zone, which could drive the digital asset's price even higher. In the Read more

Chainlink, DigiByte, Enjin Coin Price Movement Analysis for 4th April, 2021

Bitcoin faced some selling pressure just above the $59k mark, leading it to slip to $56,600. The majority of the Read more

Bitcoin fell by more than 4%, causing many other cryptocurrencies to plummet drastically.

The world's most expensive cryptocurrency fell 4.1 percent, bringing several other coins down with it, sending the economy into the Read more

Leave a Reply

Contact Us