May 19, the Financial Crimes Enforcement Network (FinCEN) awarded several federal agencies in the United States, whose joint probe led to the seizure of $22 million worth of cryptocurrency from the darkenet operators. 12-16% cashout fee This is an annual award whereby FinCEN recognizes law enforcement agencies for using Bank Secrecy Act reporting to successfully pursue and prosecute criminal investigations. The investigation involved Immigration and Customs Enforcement-Homeland Security Investigations, United States Postal Inspection Service, and United States Secret Service: “Investigative results identified dark web vendors sending illicitly earned Bitcoin with a physical receiving address via an encrypted email to conduct …

On May 19, the Libra Association, the organization behind Facebook’s Libra stablecoin project, announced the appointment of Robert Werner as its general counsel, in what seems to be a continuing strategy to reconcile with regulators. Werner brings vast experience from both the public and private sectors, including serving as the director for the Finance Crimes Enforcement Network (FinCEN) and overseeing both HSBC and Goldman Sachs’ enterprise executive for policy and regulations. Former FinCEN head joins Libra In its latest high-profile appointment, Robert Werner has been announced as general counsel to the Libra Association. Werner is also the founder and former …

While global cryptocurrency firms increasingly come to Singapore to benefit from its crypto-friendly ecosystem, some local firms are also expanding their operations beyond local jurisdiction. Bitget, a Singapore-headquartered digital asset platform, has obtained regulatory approval from the United States Financial Crimes Enforcement Network (FinCEN), the primary regulator for money service businesses in the country. MSB license is part of Bitget’s strategy to be compliant in “as many regions as possible” According to public records, the FinCEN granted Bitget a Money Service Business License (MSB), authorizing the Singaporean company to act as a money transmitter or foreign exchange dealer in the …

Running up against limited experience and resources for monitoring potentially illegal use of digital assets, United States authorities delegate sanctions monitoring to cryptocurrency exchanges and industry players. But do current practices do more harm than good? Who will watch the watchlist? Within the U.S. Treasury, the Office of Foreign Asset Control (OFAC) is responsible for sanctioning individuals and entities the country considers threats to national security. Earlier this month, OFAC added two Chinese nationals accused of laundering money for North Korea’s infamous Lazarus Group. Notably, OFAC’s designation included crypto addresses for these individuals, a measure OFAC first introduced near the …

A United States congressman is the latest working to clarify and determine which U.S. regulator is responsible for which digital assets. On March 9, Representative Paul Gosar (R-AZ) introduced the “Crypto-Currency Act of 2020,” a bill that looks to choreograph a wide range of digital assets to answer to the appropriate regulator. The proposed regulatory schema As Will Stechschulte, Gosar’s legislative assistant, explained to Cointelegraph, “the bill looks to provide not only clarity, but legitimacy to crypto assets in the United States.” Gosar’s proposal divides digital assets into three categories: crypto-commodity, crypto-currency and crypto-security. Respectively, the three categories would be …

Earlier this week, the word “cryptocurrency” made it to the text of one of the United States government’s most consequential strategic documents: the Trump administration’s budget proposal for the 2021 fiscal year. However, the budget does little to enhance blockchain-powered innovation, as it included no additional taxpayer dollars in funding. The premise for mentioning digital currencies was, in fact, quite the contrary: the need to step up measures against financial crimes. To that effect, the White House is proposing to bring the U.S. Secret Service — the agency tasked with both protecting the nation’s leaders as well as safeguarding its …

The deputy director of the United States Financial Crimes Enforcement Network (FinCEN) says the cryptocurrency sector must not abet a “slide backward” in money laundering prevention. FinCEN deputy director Jamal El-Hindi made his remarks during a speech at the Securities Industry and Financial Markets Association 20th Anti-Money Laundering (AML) and Financial Crimes Conference in New York City on Feb. 6. FinCEN won’t allow AML oversight to “slide backward” El-Hindi opened his speech noting the particular complexity of the securities and futures industry, which comprises a dense web of transactions and interactions between inter-related parties. This “amazingly complex” landscape includes but …

The Monero Compliance Workgroup has stated that the Monero (XMR) network is not subject to U.S. Financial Crimes and Enforcement Network (FinCEN) guidelines regarding the Funds Travel Rule, in a Dec. 5 blog post. What is the Funds Travel Rule? The Funds Travel Rule requires financial institutions who are sending and/or receiving funds to store and transmit certain information about the transfer if it is valued at over $3,000 or equivalent amount. However, in its May 2019 guidelines, FinCEN states that: “If a given transmission protocol is unable to accommodate such information, the obligated person may provide such information in …

The director of the Financial Crimes Enforcement Network (FinCEN) says the cryptocurrency industry has begun to fall in line with the agency’s regulations on money transmission services. In a speech delivered at the American Bankers Association/American Bar Association Financial Crimes Enforcement Conference on Dec. 10, Kenneth A. Blanco claimed that FinCEN’s May 2019 guidance was having a marked and positive impact on its oversight of the crypto space. Crypto reporting has significantly increased since May In May, FinCEN published guidance for crypto businesses that clarified how its regulations relating to money services businesses (MSBs) apply to certain business models in …

The United States Financial Crimes Enforcement Network (FinCEN) Director Kenneth Blanco said that Anti-Money Laundering (AML) laws will be strictly enforced in the world of cryptocurrencies. On Nov. 15, Reuters reported that Blanco made it crystal clear that cryptocurrency companies engaged in money service businesses will have to comply with AML laws and share information about their customers. Travel rule also applies to crypto Speaking at a conference hosted by Chainalysis, a New York-based blockchain analysis company, Blanco told the audience that the so-called travel rule also applied to digital currencies and that the government expects crypto firms to comply. …

For better or for worse, the cryptocurrency space is coming of age. Since Bitcoin’s rise to mainstream prominence in 2015, there has been increasing recognition of digital assets from government agencies around the world. In turn, new regulations are being imposed to control the way cryptocurrency companies operate and do business globally. Most recently, the Financial Action Task Force issued new guidelines on how digital assets should be regulated. In order to raise awareness around these requirements, the blockchain security company CipherTrace hosted a conference and hackathon this week in San Francisco dedicated entirely to discussions on the FATF guidelines, …

The United States Financial Crimes Enforcement Network (FinCEN) Director Kenneth Blanco spoke at the University of Georgetown where he made it clear that Anti-Money Laundering (AML) laws apply to everyone. On Oct. 21, banking trade publication American Banker reported that Blanco said that fintech firms offering cryptocurrency users anonymity must comply with AML laws “just like everyone else.” Blanco highlights responsibilities and the Bank Secrecy Act Blanco seemed to direct his comments toward anonymous crypto payment systems that could conceal criminal activity and or enable users to anonymously engage in criminal behavior. The FinCEN head pointed in his speech to …