New Scrutiny Wave Hits Binance: Fresh Letters Sent To DOJ And FinCEN Over Ira...
Democratic Senator Richard Blumenthal is increasing his scrutiny of Binance as new questions emerge about the exchange’s handling of Iran-related transactions. The Connecticut senator has been pursuing the issue since February, when he first launched a formal inquiry into whether the cryptocurrency exchange violated US and international sanctions involving Iran. On Friday, April 17, Blumenthal […]
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The Financial Crimes Enforcement Network (FinCEN) has sent out warning letters to bitcoin-related businesses notifying them that they must comply with federal money transmission laws, according to reports. FinCEN, a unit of the US Treasury Department, has sent out "industry outreach" letters regarding anti-money laundering practices. Around a dozen letters have been delivered to bitcoin businesses so far. Back in November, Jennifer Shasky Calvery, the head of FinCEN, suggested at a Senate hearing that virtual currency exchanges and administrators should do three things: register with....
This week, FinCEN ( The Financial Crimes Enforcement Network) passed two rulings that provided clarification on digital currency business models that now must register with FinCEN as a money service business. These businesses are now subject to FinCEN's compliance obligations. It is also known that SEC (the Securities and Exchange Commission) has issued a large amount of action letters to companies in the digital currency sector. Many digital currency companies will need to take both proactive and reactive actions in response to the letters. Also read: SEC Sends Inquiry Letters to Hundreds....
Binance, one of the world’s largest cryptocurrency exchanges, continues to experience a wave of executive departures as it grapples with regulatory challenges and legal scrutiny in the United States and Europe. According to a Reuters report, the recent resignation of Mayur Kamat, Binance’s global head of product, adds to the growing list of critical figures […]
The Financial Crimes Enforcement Network (FinCEN) has released new guidance for custodial bitcoin exchanges and payment processors, ruling that such companies may be considered money services businesses under US law. In a response to twin letters submitted in late 2013, the chief US money laundering and terrorist financing regulator explained that bitcoin exchanges may be money transmitters, even if they only match buyers and sellers on their platform. Further, the letters suggest this is true, even if the exchanges behave more like traditional securities or commodities exchanges, where no....
The United States Treasury's FinCEN (Financial Crimes Enforcement Network) has sent letters to a number of bitcoin-related businesses that serve as warnings to be compliant with anti-money laundering regulations set forth by United States federal and state legislation. This letter, described as an "industry outreach" essentially requests more information about the recipients' business and operating models, and intimidatingly suggests that operating around the bitcoin cryptocurrency is somewhat of a "gray area," and as such, business owners should "err on the side of caution". What that....