New Crypto Regulations Set Forth by FinCEN

Steven Mnuchin, the US administrations Treasury Secretary, revealed that the United States’ Financial Crimes Enforcement Network (FinCEN) will set forth new regulations on digital currencies. He detailed that FinCEN has increased its anti-terror funding measures, a.k.a they have taken measures to cut down on terror funding means, which include cryptocurrencies since digital coins are untraceable and are in theory the perfect way to finance terrorist groupings and operations,

“specifically on cryptocurrencies, we are spending a lot of time on this, on both an inter-agency basis and with the regulators…We want to make sure that technology moves forward, but on the other hand, we want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts” Mnuchin has said.

He has also pointed out that the agency is very invested in this endeavor, and is currently on its way to prepare a framework of operations. Furthermore, the department is working with US based regulators, whose names have been left out for obvious security reasons.

Mnuchin has previously voiced his concerns. Last July (2019) he called attention to regulating the loose digital asset,

“Cryptocurrencies, such as Bitcoin, have been exploited to support billions of dollars of illicit activity like cybercrime, tax evasion, extortion, ransomware, illicit drugs, human trafficking,”

The first steps have already been taken- last December a new bill was introduced. Named the “Crypto-Currency Act of 2020”, this legislation's main goal is to specify under which federal agencies the responsibility of regulating the digital assets fall. This is undoubtedly a step in the right direction.

If these agencies are able to make an impact, there might be a new front on which the west can confront terrorist groupings while reducing the number of casualties.