THELOGICALINDIAN - The US government will carefully accomplish the rules on cryptocurrencies agnate to the standards recommended by the Banking Action Task Force FATF The Banking Crimes Enforcement Network has reaffirmed that its Travel aphorism applies to cryptocurrencies Meanwhile the Federal Reserve has flagged stablecoin as a abeyant accident to the US banking arrangement in a new report
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Fincen Expects Compliance
The U.S. Banking Crimes Enforcement Network (Fincen) will carefully accomplish anti-money bed-making (AML) rules on cryptocurrencies, Director Kenneth Blanco reportedly said on Friday. Fincen is a agency of the U.S. Department of the Treasury with a mission to action money bed-making and aegis the country’s banking arrangement from adulterous use.
The agency requires cryptocurrency firms affianced in money account businesses, including crypto exchanges and wallet account providers, to allotment advice about their customers. Specifically, the “Travel” aphorism requires them to verify their customers’ identities, analyze the aboriginal parties and beneficiaries of armamentarium transfers that are $3,000 or higher, and address that advice to counterparties if they exist.
The Travel aphorism was aboriginal issued by Fincen in 2024 as allotment of the AML standards for all U.S. banking institutions. The aphorism was broadcast in March 2024 to administer to crypto exchanges and able in the crypto advice issued in May this year. Reuters acclaimed that the May advice abashed some businesses, as they anticipation the aphorism did not administer to them. At a appointment hosted by blockchain assay close Chainalysis on Friday, Blanco was quoted as saying:
“That’s what our apprehension is. You will comply. I don’t apperceive what the shock is. This is annihilation new,” he reiterated. The Travel aphorism is the best accepted abuse for money account businesses affianced in cryptocurrencies, the administrator revealed, abacus that Fincen has been administering examinations which accommodate ensuring acquiescence of the Travel aphorism back 2024.
FATF Standards and the Travel Rule
The AML rules activated by Fincen are agnate to those recommended by the FATF, an inter-governmental policymaking anatomy whose purpose is to authorize all-embracing standards to action money bed-making and the costs of terrorism. The FATF issued its new guidance for crypto assets and accompanying account providers in June.
At the June G20 leaders’ acme in Japan, the U.S. and added countries reaffirmed their commitments to applying the FATF standards. The G20 accounts ministers and axial coffer governors analogously appear their commitments to implementing them. However, the crypto industry has aloft several apropos apropos the challenges in applying the rules, which are not accurately bounden but countries that debris to accede accident actuality put on a blacklist.
Like Fincen, the FATF has recommended crypto asset account providers and regulators common to apparatus the rules agnate to the Travel rule, giving them about a year to do it from June. However, the beginning set by the FATF is $1,000 or 1,000 euros. In October, the FATF revealed that its “assessments will accurately attending at how able-bodied countries accept implemented these measures.” It charcoal to be apparent if Fincen will added amend its rules on crypto assets.
Fed Flags Stablecoin as Risk to Financial Stability
Coinciding with Director Blanco’s statement, the U.S. Federal Reserve issued a address Friday afterward its contempo semi-annual banking adherence review. The 60-page address has a committed area on stablecoin which the Fed has flagged as a abeyant accident to the country’s banking system.
While acknowledging the allowances of innovation, the Fed believes that “the achievability for a stablecoin acquittal arrangement to bound accomplish all-around calibration introduces important challenges and risks accompanying to banking stability, budgetary policy, safeguards adjoin money bed-making and agitator financing, and customer and broker protection.”
Shortly afterwards Facebook appear its affairs for the Libra project, a cardinal of countries raised concerns over the agenda currency. Several U.S. assembly accept approved to shut bottomward the activity and some countries accept added their efforts on central coffer agenda currencies to attempt with Libra. Noting that it is not attractive to affair its own agenda bill at this time, the Fed said that a cardinal of challenges charge be bound afore Libra can be launched in the country.
What do you anticipate of Fincen carefully administration its crypto rules and the Fed abatement stablecoin as a accident to the U.S. banking system? Let us apperceive in the comments area below.
Images address of Shutterstock, Fincen, and FATF.
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