FinCEN to Set New Regulations for Cryptocurrencies

The United States Financial Crimes Enforcement Network (FinCEN) is set to release new regulations for digital currencies, Steven Mnuchin, the US administration's Treasury Secretary, revealed.

While speaking before the Senate Finance Committee, Mnuchin detailed that the agency has increased its spending on anti-terror funding measures, "specifically on Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term."

Mnuchin said the Treasury was "spending a lot of time on this, on both an interagency basis and with the regulators."

"We're about to roll out some significant new requirements [for cryptocurrencies] at FinCEN," he added.

Mnuchin's statements came in response to concerns raised by Senator Maggie Hassan (D-N.H.) over the budget increase in monitoring suspicious digital currency transactions and illicit activities using the cryptocurrency.

Multiple regulators after crypto

The Treasury Secretary also detailed that the department is seriously looking in digital currencies and "spending a lot of time" on preparing a framework. The department is also working with other regulators in the country.

"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," Mnuchin added.

This is not the first time he voiced his concerns in regards to cryptocurrencies. In a speech last July, he pointed out the urgency in bringing regulations for cryptocurrencies.

"Cryptocurrencies, such as Bitcoin, have been exploited to support billions of dollars of illicit activity like cybercrime, tax evasion, extortion, ransomware, illicit drugs, human trafficking," he said then.

Meanwhile, a new bill named the "Crypto-Currency Act of 2020" was introduced in the House in December to clarify which federal agencies are responsible for the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term of digital assets.

It also categorizes and defines various types of digital currencies, a definite positive approach towards regulating the industry.