US government strictly enforcing cryptocurrency rules
- The Financial Crimes Enforcement Network will be combating money laundering and safeguard the country’s financial system.
- Travel rule requires companies to conduct full verification of customers and all involved in transactions of $3,000 and higher.
The U.S. government will be strictly enforcing the rules on cryptocurrencies similarly to the standards recommended by the Financial Action Task Force (FATF).
The Financial Crimes Enforcement Network has reconfirmed that its “Travel” rule applies to cryptocurrencies. This department will strictly enforce anti-money laundering (AML) rules on cryptocurrencies, according to the Director Kenneth Blanco.
FINCEN is a bureau of the U.S. Department of the Treasury with its aim to be combating money laundering and safeguard the country’s financial system from illicit use. The bureau requires cryptocurrency firms engaged in money service businesses, including crypto exchanges and wallet service providers, to share information about their customers.
Specifically, the “Travel” rule requires them to verify their customers’ identities, identify the original parties and beneficiaries of fund transfers that are $3,000 or higher, and transmit that information to counterparties if they exist.
Author
Ken Chigbo
Independent Analyst
Ken has over 8 years exposure to the financial markets. He started his career as an analyst, covering a variety of asset classes; forex, fixed income, commodities and equities.
