Since 2013, more than 70.000 reports of suspicious activity (SAR) relating to cryptocurrencies have been submitted. However, the U.S. Financial Crimes Enforcement Network (FinCEN) has issued a stern warning that some offshore companies may not be doing enough to eliminate illegal behavior.
Half of the reports were sent by the crypto companies themselves
FinCEN director Kenneth Blanco said that about half of these reports were sent by the same cryptographic companies. This allowed FinCEN to build a useful and valuable map of IP addresses and wallets linked to potential criminals.
However, the figure represents only 0,59% of the more than 12 million reports received by FinCEN between 2014 and 2019 (2013 data were not available).
In December 2019, Blanco confirmed that FinCEN received a total of 11.000 SARs relating to cryptocurrencies, of which 7.100 deposited by the same crypto companies, between May and December 2019.
In August 2018 FinCEN reported that it was receiving up to 1.500 reports per month from investors. FinCEN collects and analyzes data from across the financial sector in order to strengthen stringent anti-money laundering (AML) regulations in the United States.
Although advanced monitoring by traditional financial institutions, as well as FinCEN's greater competence in covering the space itself, have favored effective control of the cryptographic space, Blanco said that the self-declaration of the same protagonists in the sector remains "fundamental".
Anyone who wants to do business in the United States must follow the rules of the United States
But some unsolved problems remained. Some offshore cryptocurrency companies have operated as unregistered money services businesses (MSB), without an adequate AML policy or commitment to report suspicious activity.
"We are increasingly concerned that companies located outside the United States will continue to attempt to do business with U.S. people without respecting our rules," said Blanco. “If you want to access the United States financial system and the United States market, you need to follow the rules. We are serious about enforcing our regulations. "
FinCEN is also starting to take a close look at privacy coins and any companies that offer them. Blanco added that officials will also begin to inspect companies by monitoring the application of the Anti-Money Laundering law and the Countering Financing of Terrorism Act (AML / CTF) in place to ensure that exchanges act in full compliance with anti-money laundering and anti-terrorism rules. .
"If you plan to take advantage of the U.S. financial system from abroad, you shouldn't consider it a viable competitive advantage if you do not engage in the financial integrity practices that make this financial system so powerful," he warned.
And what do you think, have you ever sent reports? If you use automatic trading software like Bitcoin Pro, which are safe and regulated, you definitely won't need it! Let us know in the comments what you think!
