FinCEN Deputy Director: “Social networks must comply with the laws when issuing cryptocurrencies”

Deputy Director of the US Financial Crimes Enforcement Network (FinCEN) said that issuerscryptocurrencies social networks must protect their systems from criminals.

Jamal El-Hindi stated thisat an anti-money laundering conference this week. FinCEN's deputy director said these "new payment technologies" must meet the same AML standards as existing financial institutions. Then there will be no loopholes for criminals to get into the financial system. El-Hindi did not specify which social networks he was talking about.

“Social networks, messaging platforms andother similar companies that are now focused on creating cryptocurrencies cannot turn a blind eye to illegal transactions,” — he said.

El hindi said the financial sector is locatedin an “evolutionary state” due to the emergence of alternatives, for example, crypto assets. Regulators, starting with his agency, as well as developers, should keep track of possible crimes related to cryptocurrencies.

“We will judge new financial institutionsby how resistant their systems are to being used for money laundering, terrorist financing, sanctions evasion, human and drug trafficking, and other illegal activities,” — he said.

In December, FinCEN Director Kenneth BlancoBlanco) stated that since May 2019, it has received 11,000 complaints related to cryptocurrencies. He also previously noted that any company issuing stablecoins provides money transfer services. In November, Blanco said the cryptocurrency industry needed to comply with anti-money laundering regulations.

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