Global fintech and funding innovation ecosystem
January 24, 2022   Blockchain, Crypto, Digital Assets Regulations, Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Metaverse, NFTs, Cyber Security, Hacks, Fraud Alerts, Risks, InsurTech, Enterprise, Entrepreneurs, Start-ups, Small Businesses, Fintech International, Legal Issues, Regulation, Consultation, Payments, Transfers, Rewards, Stories   No comments

US Government Accountability Office Urges Crypto Regulations to Counter Human Trafficking and Drug Cartels

Mayer & Brown |Sean P. McDonnell and Gina M. Parlovecchio | Jan 13, 2022

crypto for bad use - US Government Accountability Office Urges Crypto Regulations to Counter Human Trafficking and Drug CartelsOverview

  • On January 10, 2022, the US Government Accountability Office (“GAO”) issued an 84-page report warning of the role that virtual currencies continue to play in human and drug trafficking and urging tighter regulation of certain kinds of virtual currency transactions.
  • The report specifically identifies gaps in registration requirements for virtual currency kiosks—commonly described as “Crypto ATMs”—that may hamper law enforcement’s ability to investigate money laundering, drug and human trafficking and other criminal activity.

See:  SEC Regulation: Constructing a Crypto Regulatory Framework – New Tech, Old Rules

  • To address this issue, GAO recommends that the Financial Crimes Enforcement Network (FinCEN) and Internal Revenue Service (IRS) review the existing registration requirements applicable to virtual currency kiosks and begin to require additional data from registered kiosk operators.
  • Given GAO’s role as a key federal watchdog agency, its report is likely to further bolster ongoing efforts by the Biden administration and the US Treasury Department to implement more stringent regulations of virtual currencies across a variety of settings.
  • Clients who are operating or considering operating money services businesses that facilitate virtual currency transactions should be building compliance programs and enhancing internal controls now to anticipate and prepare for increased regulatory and law enforcement scrutiny.

Looking forward

Based on the foregoing, we anticipate that FinCEN, IRS and other components of the US Treasury Department will continue to ramp up regulatory scrutiny of virtual currency exchanges and kiosk operators, including by strengthening existing MSB registration requirements. We also expect federal law enforcement agencies will devote increasing amounts of resources to examining those operators that they perceive to be skirting the rules.

See:  US House Committee on Financial Services Provides Insight into Regulatory Needs of Crypto Industry

Indeed, the DOJ has already begun to criminally charge unlicensed operators of virtual currency kiosks who fail to meet FinCEN and US Treasury’s registration and reporting requirements. Clients who are operating or considering operating MSBs that facilitate virtual currency transactions should be building compliance programs and enhancing internal controls now to anticipate and prepare for this increased regulatory and law enforcement scrutiny.

Continue to the full article --> here

 

NCFA Jan 2018 resize - US Government Accountability Office Urges Crypto Regulations to Counter Human Trafficking and Drug Cartels The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - US Government Accountability Office Urges Crypto Regulations to Counter Human Trafficking and Drug CartelsFF Logo 400 v3 - US Government Accountability Office Urges Crypto Regulations to Counter Human Trafficking and Drug Cartelscommunity social impact - US Government Accountability Office Urges Crypto Regulations to Counter Human Trafficking and Drug Cartels

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - US Government Accountability Office Urges Crypto Regulations to Counter Human Trafficking and Drug Cartels




 

Leave a Reply

Your email address will not be published. Required fields are marked *

four × 4 =