FinCEN Director Blanco Concerned About Bad Actors Hijacking Crypto

Published on by Cointele | Published on

The head of the agency that enforces the Bank Secrecy Act and KYC requirements in the U.S. says the agency aims to help crypto innovate responsibly.

Listen to article In a May 27 interview sponsored by Chainalysis, Director of the United States Financial Crimes Enforcement Network Kenneth Blanco was adamant that the regulator is not the enemy.

FinCEN is the governing body that enforces the Bank Secrecy Act in the U.S., requiring financial institutions to provide know-your-customer information.

It's a contentious topic within crypto, so it is no surprise that Blanco was careful to portray FinCEN as a part of the environment.

Many in the crypto sphere are skeptical that agencies like FinCEN are operating in the best interests of the industry.

Interviewing the FinCEN director was Jesse Spiro, the global head of policy for crypto analytics firm Chainalysis.

A major recipient of grant money from the U.S. government, Chainalysis has attracted criticism from crypto advocates opposed to state involvement.

Blanco rejected the notion of crypto operating outside of normal financial rules.

The question of whether KYC heightens safety is controversial.

Chainalysis recently published research suggesting that just over 1% of crypto transactions last year were for illicit purposes, the elimination of which is the stated purpose of KYC requirements.

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