Financial Integrity Network (FIN) – a Washington, D.C.-based consulting firm. – asked the US Congress to regulate cryptocurrency companies in accordance with the Bank Secrecy Act (BSA).
In a copy of the FIN testimony published before the hearing on September 3, FIN recommended that providers of virtual asset services (VASPs) be regulated based on the services they offer. Currently, their activity is relatively unattended.
FIN Vice President David Murray mentioned that some providers are regulated as money transmitters within the BSA, while others are not regulated at all. Murray emphasized:
“Even for those VASPs currently regulated as money transmitters, the regulations are insufficient to protect virtual operating assets.”
BSA regulations could hinder operations for companies in the crypto sector
BSA regulations would make certain types of crypto companies no longer able to function as they currently do. This is especially true for blockchain payment processors, Murray says.
Murray believes, however, that the purpose of the BSA and the global financial transparency regime is not to adapt to any type of financial products and services, but the situation should be the opposite.
US regulators continue to express concern about cryptocurrencies. US Treasury Secretary Steven Mnuchin and President Donald Trump expressed concern about the use of cryptocurrencies to fund illicit activity. They also argued that FINCEN should step up its efforts to investigate whether the activity of crypto companies complies with the laws in force.