What Is FinCEN?

FinCEN was founded in 1990 with the goal of fighting money-related crime. The agency analyzes financial transaction information with the goal of combating terrorism financing, money laundering, and other financial crimes.

Some specific areas related to FinCENs focus on cryptocurrency:

* Potential illicit finance and fraud regarding initial coin offerings or ICOs

* Crypto businesses need to meet CTF/AML obligations

* The use of “mixers” or “tumblers” to conceal the source and destination of crypto funds

What is the Latest Regulatory Developments?

In a speech delivered to the 2018 Chicago-Kent Block Legal Tech Conference, Director of the FinCEN Kenneth A. Blanco told the public his investigative arm receives over 1,500 cryptocurrency related complaints each month.

Classified as Suspicious Activity Reports (SARs), complaints have continued to grow throughout the year.

Blanco was overall positive about cryptocurrencies and blockchain technology. He began his speech discussing how crypto can be used to optimize businesses and conduct more efficient international transactions.

FinCEN is Launching a FinCEN Exchange Program

Blanco also reportedly explained that the agency is launching a FinCEN exchange program to facilitate information sharing across the crypto community.

FinCEN is setting up a virtual currency-focused FinCEN Exchange program in partnership with the private sector and law enforcement. This platform will allow FinCEN to engage with industry developments and concerns while also sharing risks and threats.

Overall, FinCEN’s stance and Blanco’s speech is expected. FinCEN will continue to work to ensure all financial transactions abide to US law and cryptocurrencies are no exception. The fact that we see such a growth in complaints and focus from regulatory agencies highlights the fact that the cryptocurrency industry overall is growing in all directions.


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