FinCEN to Set New Regulations for Cryptocurrencies

The agency also contributed to a draft of a crypto bill introduced recently in the House.

The United States Financial Crimes Enforcement Network (FinCEN) is set to release new regulations for digital currencies, Steven Mnuchin, the US administration’s Treasury Secretary, revealed.

While speaking before the Senate Finance Committee, Mnuchin detailed that the agency has increased its spending on anti-terror funding measures, “specifically on cryptocurrencies.”

Mnuchin said the Treasury was “spending a lot of time on this, on both an interagency basis and with the regulators.”

“We’re about to roll out some significant new requirements [for cryptocurrencies] at FinCEN,” he added.

Mnuchin’s statements came in response to concerns raised by Senator Maggie Hassan (D-N.H.) over the budget increase in monitoring suspicious digital currency transactions and illicit activities using the cryptocurrency.

Multiple regulators after crypto

The Treasury Secretary also detailed that the department is seriously looking in digital currencies and “spending a lot of time” on preparing a framework. The department is also working with other regulators in the country.

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“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 added.

This is not the first time he voiced his concerns in regards to cryptocurrencies. In a speech last July, he pointed out the urgency in bringing regulations for cryptocurrencies.

“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,” he said then.

Meanwhile, a new bill named the “Crypto-Currency Act of 2020” was introduced in the House in December to clarify which federal agencies are responsible for the regulation of digital assets.

It also categorizes and defines various types of digital currencies, a definite positive approach towards regulating the industry.

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