FinCEN Director Notes Improved Oversight of Cryptocurrency Industry

The director of the Financial Crimes Enforcement Network (FinCEN) says the cryptocurrency industry has begun to fall in line with the agency’s regulations on money transmission services.

In a speech delivered at the American Bankers Association/American Bar Association Financial Crimes Enforcement Conference on Dec. 10, Kenneth A. Blanco claimed that FinCEN’s May 2019 guidance was having a marked and positive impact on its oversight of the crypto space.

Crypto reporting has significantly increased since May

In May, FinCEN published guidance for crypto businesses that clarified how its regulations relating to money services businesses (MSBs) apply to certain business models in the crypto industry and carry specific obligations under the United States Bank Secrecy Act.

In his remarks, Blanco noted that since its publication, the agency has seen a significant increase in Suspicious Activity Reports (SAR): a total of 11,000, of which roughly two thirds (7,100) are from crypto…