The director of the Financial Crime Prevention Network (FinCEN) has warned participants in the cryptocurrency industry that their non-compliance with laws is closely monitored by the regulator.
In particular, Kenneth Blanco noted that cryptocurrency companies should be mindful of the Bank Secrecy Act (BSA) and other anti-money laundering regulations when doing business, as the regulator carefully monitors this.
This Blanco said during a speech at Georgetown University as part of the first day of DC Fintech Week. He said companies have no excuse for not knowing the law.
“We tell everyone this – if you are going to innovate, you better make sure that you comply with the laws before you start to introduce these innovations or before entering the market,” Blanco said. “First you must make sure that you comply with the law, and then you can enter the market. If this does not happen … I will tell you this – if you cannot fulfill the requirements of the BSA, you will have problems. You must comply with the laws, and we, as the main regulator and administrator of the BSA, will do our best to complicate your life in case of non-compliance with the rules. “
According to him, FinCEN will not agree that the company “cannot” comply with the law. No firms that are unable to comply with BSA requirements should enter the market. Despite warnings issued by the industry, Blanco praised the idea of innovation, although he warned of potential threats to national security throughout his speech.
“Some of the innovations are really exciting,” he said. “It impresses me that we can protect society in many ways or get more job growth based on such inventions and ideas.”
However, he is scared by the possibility of using some of these ideas by scammers. It is unscrupulous industry participants who inspire the development of laws such as the BSA. Society must protect older people and other vulnerable groups of citizens who are vulnerable to cyber fraud and other digital crimes.
Blanco said FinCEN is not against new technologies. The agency is neutral about innovation, and despite warnings for the industry, he believes that technology should continue to evolve, but under the supervision of regulators.
“Innovation must be implemented responsibly and reasonably. You cannot just create a car that only moves 190 mph and say “change the speed limit”. It doesn’t work like that. Your car will have to be adapted or we will not allow it on the road. This is our philosophy. ”
Blanco’s comments come at a time when industry observers are awaiting enforcement by cryptocurrency companies, partly due to a recent joint statement
Commodity Futures Trading Commissions (CFTC), the Securities and Exchange Commission (SEC) and the Financial Crime Network. Recall that in the spring FinCEN also introduced
New recommendations on applying AML rules to crypto assets.
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