US to Rigorously Implement Anti-Money Laundering in Crypto

  • Richard Marley
  • November 19, 2019
  • 2 minutes read
  • 3810

A rule requiring cryptocurrency firms to share data about their customers will be strictly implemented by the US government. The rule is for such cryptocurrency companies that are involved in money service businesses such as digital asset exchanges and wallet service providers. 

The “travel rule” demand the cryptocurrency exchanges to verify their customer’s identities as well as identify the original parties and beneficiaries of transfers $3,000 or higher. The travel rule also includes the transmission of information to counterparties if they exist. The travel rule is part of anti-money regulations. 

On November 15, The director of the Financial Crimes Enforcement Network (FinCEN) said, 

“It (travel rule) applies to CVCs (convertible virtual currencies) and we expect that you will comply period. […] That’s what our expectation is. You will comply. I don’t know what the shock is. This is nothing new.” 

Blanco also informed further that the information required is not hard to obtain. He said, adding, “All we’re asking for is name, address, account number, transaction, recipient, and amount.”  

He also added, 

“So when you tell me you don’t know who’s on the other side, you’ve got a big problem. Because you are required to know, and that is what our expectation is going to be.”

The US government’s move comes after it was reported that the cryptocurrency crime soared into billions of dollars. Global investigators have been engaging with major money laundering hubs that are the center of the virtual currency. In a recent report released in August by Ciphertrace, cryptocurrency thefts, scams and fraud may exceed more than $4.3 billion this year.