The US authorities will strictly enforce regulations on cryptocurrencies. The US Financial Crimes Enforcement Network (Fincen) will require crypto exchanges and wallet service providers to share information about their customers under the “travel rule.” Earlier, the international authority Financial Action Task Force had published guidelines for regulating crypto exchanges.
“Travel rule” will be enforced.
The Director of Financial Crimes Enforcement Network (Fincen), Kenneth Blanco, said that travel ravel as purposed by FATF applies to (convertible virtual currencies) and the authorities expect crypto companies to comply, as reported by Reuters. The “travel rule” requires crypto exchanges to verify their customers’ identities, identify the original parties and beneficiaries of transfers $3,000 or higher. It also requires to transmit that information to counterparties if they exist.
Blanco also revealed that the travel rule is the most common violation for money service businesses engaged in cryptocurrencies.
US Federal Reserve asks regulations for stablecoins
In its latest financial stability report, the Fed acknowledged the potential of dollar-pegged stablecoins but warned that if they are not appropriately regulated, they could pose a risk to financial stability. The US government’s moves came as cryptocurrency crime soared over the last few years. According to Ciphertrace report, crypto thefts, scams, and fraud may exceed more than $4.3 billion this year.
If these regulations are set in place, it will become challenging for cryptocurrency users to remain anonymous.