US FinCEN preparing rules for the crypto industry
The Wild West attitude of the crypto space is soon going to end
Digital currencies continue to be at the center of attention of US agencies that regulate financial aspects, and a new ruleset will be introduced soon for cryptocurrency and digital payment systems. Treasury Secretary Steven Mnuchin informed a Senate Finance Committee hearing yesterday about how the Financial Crimes Enforcement Network (FinCEN) is working on these new rules, which he referred to as “significant new requirements” to bring more transparency to the crypto ecosystem. The intention is to avoid people or companies using cryptocurrencies as “secret bank accounts.”
“We will be rolling out new regulations to be very clear on greater transparency so that law enforcement can see where the money is going and that this isn’t used for money laundering,” said Mnuchin. FinCEN is tasked with the prevention of money laundering, financial crimes, or any kind of funding to terrorists and has been very active along with its director, Kenneth Blanco, in warning businesses operating in the crypto industry, that current regulations also apply to them, specifically the anti-money laundering rules.
Mnuchin also talked about how the Federal Reserve Chairman, Jerome Powell, doesn’t think the US needs a central bank-issued digital currency for now, though it might be considered later on. “Every major central bank in the world right now is doing a deep dive on digital currencies,” said Powell to the Senate Banking Committee earlier on Wednesday.
Mnuchin added, “We want to make sure that technology moves forward but, on the other hand, we want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts.”