The bitcoin traders are seen complaining at two major aspects. One of their complaints is that bitcoin arenas that did not asked for credentials earlier, are now asking for such documents. Secondly, a lot of sites have restricted the entry of inhabitants from other countries.
It should be noted that if the users of bitcoin show their aggression towards the companies, you will automatically realize that such behavior is fostered by the force and intimidation that is imposed on them by the monitoring body. The United States is a perfect example of the fact that it does not follow in any circumstance, the national limitations of services that lack centralized monitoring.
The department in US Treasury’s Office of Terrorism and Financial Intelligence that is directed by Kenneth A Blanco has blatantly expressed his department’s standpoint regarding bitcoin on Thursday. The major aspect of his declaration that emerged from his views was that US centralized authority is liable to take the necessary actions against anyone whom they deem is acting within its domination, irrespective of any influence.
The director further elucidates upon the claim that all services that revolve around the transfer of money must adhere to some aspect of AML/KYC principles. He also asserts that monitoring and control protocols should be conducted at all the payments where the companies are trading authorizations and bitcoin. In addition to this, protocols should also cover the business deals that make use of bitcoin exchange.
So, in order to conform to such requirements as mentioned above, businesses are expected to become accredited with the FinCen, uphold the principles and guidelines of AML plug-in and make use of such methods that maintains the tracking of financial activities by either entering data in ledgers or documents in file and report them.
He stresses upon the fact that it is necessary for all parties to abide with these regulations. It is important to realize that such requirements are applied on an equal footing to both national and foreign cryptocurrency programs that are exchangeable. If this foreign body is not present in United States, it can continue its business activities as long as it abides to the principles of bitcoin trading given by the FinCen.Interesting facts and figures
Blanco has also made public some statistical information regarding the crimes associated through bitcoin transactions. He claims that since 2014, FinCen and IRS and investigated the business activities of more than 30% of the bureaucrats and exchangers that are all accredited with FinCen. At present, however they receive reports each month that depicts the evidence of doubtful activity that revolves around cryptocurrency.
The main focus of the director’s speech was on the businesses in the crypto space that were indulged in spread of money. Nevertheless, he also narrowed his focus on some key elements. He also included the concept of mixers as those parties that provide unidentified services and strive to hide the source of the spread of bitcoin also come under the category of money transmitters. As they fall in that category, upon them monitoring principles also apply.
Kenneth Blanco, in his speech has isolated those ventures that make use of dealings related to Initial coin offerings. He claims that although the activities regarding ICO and the configuration of them differ considerably from the crytptocurrency, the FinCen is adamant on one rule throughout. He asserts that FinCen and all its allies at SEC and CFTC assume that all businesses that make use of Initial Coin Offerings must abide to the rules and principles that surround the AML program given by FinCen.
If such principles are not undertaken with utmost concern by these businesses then the US department that controls financial activity will step in to take necessary actions against them. If these actions are not carried out then the possibility that the US financial system will dismantle is extremely high. They cannot afford to associate any risk with the US financial department.
So, the director narrowed all the contents in his speech with an imminent warning to the businesses who are indulged in trading through virtual currency. He makes them beware with a dire fate that Fincen will antagonistically treat those parties and individuals who strive not to abide by US law on a serious note while carrying out their crypto activities. They will be under the department’s bull's eye hence will be forced by them to abide by the law.