There is no ambiguity: crypto startups must follow U.S. anti-money-laundering laws or else suffer the consequences, said the nation's top AML regulator.
Kenneth Blanco, director of the Financial Crimes Enforcement Network, warned the crypto industry Monday to take heed of the Bank Secrecy Act and other AML regulations when setting up businesses - because his agency certainly will.
Blanco, who spoke at Georgetown University as part of the first day of DC Fintech Week, told moderator Chris Brummer that companies have no excuse for not knowing the law.
"What we tell everybody is if you're going to innovate, you better make sure that you're complying with your regulations prior to executing that innovation or prior to going to market," Blanco said.
"You have to make sure that you comply with the law first and then you can execute and get to market. Otherwise that's not happening I'll tell you if you can't comply with your BSA, you're going to have a problem you must comply and we as a regulator, as the primary regulator and the administrator of the BSA, we will make sure that you do and you're going to have a hard time if you don't."
FinCEN won't accept that a company "Can't" comply with the law either, he said.
Any firms which do not believe they are able to fulfill the requirements in the BSA should not come to market, Bianco said.
Blanco's comments come at a time when industry observers expect enforcement actions around money laundering, due in part to a recent joint statement FinCEN published with the Securities and Exchange Commission and Commodity Futures Trading Commission.
Warnings aside, Blanco praised the idea of innovation, though he warned of potential national security risks throughout his speech.
"Your car is going to have to adapt. Otherwise, it's not coming on the road, bottom line, and that's the message."
FinCEN Director Warns of 'Hard Time' for Crypto Firms That Don't Follow Law
Published on Oct 22, 2019
by Coindesk | Published on Coinage
Coinage
Recent News
View All
First Mover: What's Next for Bitcoin as Wall Street Gets Vaccine Booster
Bitcoin was higher for a second day, staying in a range of between roughly $15,200 and $15,600, as news of progress in developing a coronavirus vaccine appeared to touch off a rally in U.S. stocks.
Market Wrap: Bitcoin Fails to Break $15.9K; Over 50K ETH Staked on Eth 2.0 Contract
Bitcoin gained Wednesday while Ethereum 2.0 staking has been ramping up.
Citibank Analyst Says Bitcoin Could Pass $300K by December 2021
A senior analyst at U.S.-based financial giant Citibank has penned a report drawing on similarities between the 1970s gold market and bitcoin.
Blockchain Bites: Data Unions. Hard Forks. And One Citi Analyst's Case for $300K BTC.
A Citibank managing director thinks bitcoin could hit $318,000.