U.S. Treasury Department Announces Cryptocurrency Regulations (19’05)
Recently American Bitcoin remittance company received $35,000 fine + business suspension measure for not fulfilling AML obligation!

Punishment Case for Violation of Cryptocurrency AML Regulations

In April 2019, FinCEN confirmed the sentence for Eric Powers, who ran the P2P cryptocurrency business from 2012 to 2014 without complying with anti-money laundering (AML) regulations. FinCEN confirmed he was found to deliberately not have complied with AML-related obligations. It fined 35,000 dollars and suspended the business.

Recently, FinCEN, the Financial Crimes Enforcement Network under the U.S. Treasury Department, officially announced a new set of legal guidelines for the Bank Secrecy Act, an anti-money laundering law in the United States. The guidelines provide a clear definition of cryptocurrency and regulatory content. Let’s take a look at the highlights!

Cryptocurrency (CVC) handling company regulation

 “CVC-handling companies shall fulfill the anti-money laundering (AML) obligations required by the Banking Secrets Act. “The registration procedure required by FinCEN shall be carried out within 180 days from the time of CVC handling.”

“The anti-money laundering obligations for CVC apply equally to domestic companies and overseas cryptocurrency handlers whose business, in whole or in large part, operates in the United States.”

Example of a cryptocurrency service providers
cryptocurrency exchanges, wallet services, DApp services, cryptocurrency payment companies, online casinos, anonymous transactions, etc.

DApp Regulation Scope
If any transfer of value or funds occur, it is subject to the Bank Confidentiality Act.

In the U.S., and globally the anti-money laundering laws continue to be strengthened. It’s a good idea to have an accurate compliance system as soon as possible, right? Work with ARGOS for legal consulting and KYC•AML solutions :]

In need for KYC•AML? ARGOS is with you.

Author Austin Mitchell Lewis

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Join the discussion 2 Comments

  • Corpelia says:

    While today’s guidance did not change any existing policy, it represents the first truly clear statement from FinCEN that they have no intent to regulate non-custodial wallets, multi-sig providers, DEXs, and the developers of privacy-preserving cryptocurrencies. There are a few ambiguous sections that deserve further analysis and, perhaps, clarification, but Coin Center counts this as a good step forward toward sensible policies for which we’ve long advocated.

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