It comes as no shock that the U.S. Treasury has began viewing cryptocurrencies as a evolving threat. So much so that they currently keeping a watchful eye out for dealer that might be being used for illegal activities.
Treasury has recently established a partnership with the Internal Service examiners. This move has permitted them to inspect 100 established digital currency providers, along with ones that aren’t even registered. Treasury has also established bonds with the Justice Department so that they could tackled any cases of money laundering. Sigal Mandelker stated in a prepared testimony before the Senate Banking Committee that they’d be aggressively pursuing dealers who don’t comply.
Amidst the regulations placed on cryptocurrencies by China and South Korea, bitcoin and many other coins have dwindled from the near records highs they reached back in December. Amongst them, Japan, Australia and the U.S. are also regulating cryptocurrencies. Payments and exchange options are somewhat limited when compared to other countries.
“Part of our effort to update the AML/CFT regime includes staying ahead of evolving threats. We lead the world in mitigating the illicit finance risks of emerging technologies, such as the use of virtual currencies. We stand at the regulatory and supervisory forefront of this emerging industry. Currently, the United States, Japan, and Australia are among the few countries regulating virtual currency payments/exchange activities, including in particular decentralized convertible virtual currency, for AML/CFT purposes.” Stated Mandelker in her testimony.
As of Wednesday, Bitcoin hit it’s biggest low since December. It has dropped below $10,000
In reference to regulations, Signal Mandelker stated, “To ensure that virtual currency providers and exchangers know the rules and follow them, FinCEN has prioritized engagement with – and examination of – these entities, focusing both on the approximately 100 that have registered with FinCEN as money transmitters as required, as well as those that have not. As part of the examination process, FinCEN, working with delegated Internal Revenue Service (IRS) examiners, has recommended virtual currency providers and exchangers take certain actions to improve their compliance activities.”