US to Crackdown on International Unregulated Platforms
Cryptocurrency traders more often complain about two specific factors related to cryptocurrency platforms that previously failed to demand valid identification are now making sure that each user presents this information and that additional locations are denying certain residents of a few countries service.
As criticism and severe outrage occur from those denied services, a fact to remember is that these services are often denying their customers due to government regulators, for example, the US government has made it clear that unregulated services will be pursued no matter where they operate from.
Law is law
On the 9th of August, the FinCEN director, Kenneth Blanco, spoke about how the agency was tackling issues related to crypto. The key aspect of his speech was that the United States government has shown the willingness to crack down on any unregulated service within its territory without any concern for jurisdiction.
As he stated, any money transfer service providers must fully comply with Anti-money laundering and know your customer protocols and that both fiat-crypto and crypto-crypto trading falls under the regulations set in place.
To accept and comply with these conditions, registration with FinCEN is required for all companies and a proper AML system, as well as bookkeeping is required. He stresses the importance of fully understanding these conditions apply not only to local companies but international ones as well, regardless of what country they operate out of.
In addition to his speech about cryptocurrency exchanges, he focused some attention on certain parts of his speech by referring to what is known as mixers or tumblers, essentially concealment services offered by businesses to keep monetary and cryptocurrency senders and recipients anonymous will also fall under mandated regulations.
He also spoke about startups that launch their own initial coin offerings, or ICOs, stating that even though ICOs differ from one another and based on how they’ve been developed, regardless of anything else, the agency as well as the US Securities and Exchange Commission expect each ICO launched by a business to fully comply with AML and KYC laws. He then sent out a threat to all unregulated businesses, stating that any company or individual that fails to comply with regulations and directly violate US law will be pursued “aggressively.”