NEW YORK (Reuters) – The U.S. government will be strictly enforcing a rule that requires the cryptocurrency, companies that deal with money service businesses, such as digital-asset-exchange and wallet service providers, to share information about their customers, and Kenneth White, the director of the Financial Crimes Enforcement Network (FinCEN), said on Friday
FILE PHOTO: A bitcoin logo is seen at the position of the Youth and Sports Ministry, in Caracas, Venezuela, February 23, 2018. REUTERS/Marco Bello
As a part of the anti-money laundering regulations, and the “travel rule” requires the cryptocurrency exchanges in order to verify their customers’ identities, and the identification of the original parties to, and beneficiaries of the transfers of $3,000 or more; and provide such information to the counterparties as they are composed.
“It (the travel rule) can be applied to security programs (in convertible virtual currencies, and we expect that you will be period of time,” Blank said at a conference that was organized by the Chainalysis, a New York-based blockchain analysis of the company.
“That’s what our expectation is. You will have to comply with. I’m not sure what the shock is. This is not a new thing,” he added.
The U.S. government’s move came as a cryptocurrency, crime has increased in the billions of dollars of the world, researchers are struggling with a major money-laundering hubs in the middle of the virtual world. Ciphertrace, in a recent report, released in August, said the cryptocurrency is theft, scams and fraud on the part of more than $4.3 billion this year.
The travel line is for the first time, issued by FinCEN, in 1996, as part of the anti-money laundering standards which apply to all U.S. financial institutions. FinCEN extended the rule to cover, in March of 2013, in order to protect crypto-exchange, and in May of this year, the Treasury unit has been confirmed that the coaching programme.
The government’s action comes on the heels of guidance issued in June by the U.s. Treasury-led Financial Action Task Force (FATF), an inter-governmental international organization, devoted to fighting money laundering and the financing of terrorism. COURT also directed a crypto stock exchanges and regulators all over the world, in order to comply with the travel rule, so they would have a year to do so as of June of this year.
“FinCEN is conducting the research in accordance with the funds to travel the line since 2014,” Blank said, adding that it is the most often cited infraction related to the money-service companies that are active in the virtual currency.
FinCEN Can be the guidance in the travel line, created confusion within the computer industry, which believes that the rule does not apply to them as well.
In an earlier interview, Dave Jevans, the chief executive officer of the U. S. blockchain forensics company CipherTrace, he said that the people in the computer industry, were surprised, and FinCEN’s recent actions, and because the digital currency has never been classified as cash and it was considered that the travel rule does not apply to them as well.
Reporting by Gertrude Chavez-Dreyfuss; Editing by Andrea Ricci)