The Financial Crimes Enforcement Network (FinCEN) is preparing to issue crypto regulations, said Secretary of the Treasury.
However, Steven Mnuchin added that FinCEN wants to make sure that the blockchain technology is moving forward before issuing the crypto regulations.
His statement came in response to a question raised by Senator Maggie Hassan about cryptocurrency while defending Trump’s budget proposal:
“How will the Treasury’s proposed budget increase in monitoring suspicious cryptocurrency transactions and prosecuting terrorists and other criminal organizations financing illicit activities with cryptocurrency?”
Most importantly, the number of blockchain-related patents and companies in the US market rises, marking an economic issue in 2020.
“FinCEN and the Treasury Department more broadly are “spending a lot of time on this,” the secretary said.
However, he did not unveil the entities that will regulate the crypto market but the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have been active in the crypto industry.
“We want to make sure that technology moves forward but, on the other hand, we want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts,” Mnuchin said.
Cyber crimes to be investigated under Trump’s new budget
Earlier, Cryptolydian reported that President Donald Trump’s 2021 budget proposal of $4.8 trillion aims to solidify the Secret Service with the Treasury Department to improve the investigations into cyber and financial crime.
In a related context, Jamal El-Hindi, head of FinCEN said social media crypto firms should not ignore money laundering risks.
The official made this statement during SIFMA’s Anti-Money Laundering conference held in New York on February 6.
In addition, El-Hindi said the social media crypto firms should safeguard their systems and be alert about illegal transactions.
In addition, the social media networks must comply with the same obligations as conventional players in the financial sector.
The agency will closely oversee any entity seeking to enter the global financial system. Moreover, it will review whether the companies seeking to enter the cryptocurrency realm abide by the applicable crypto regulations.