March 4, 2024

Head of FinCEN: stablecoin issuers must register with us

Financial Crimes Enforcement Network (FinCEN) Director Kenneth Blanco said that stablecoin issuersare engaged in money transfer services and therefore should be regulated by its organization. It is reported by CoinDesk.

“It doesn’t matter if the stablecoin is supported by currency, goods or supported by an algorithm - the rules are the same”“Blanco said during the Chainalysis Links conference in New York.

The head of FinCEN also insists thatissuers of stable coins were registered in his organization as providers of financial services (Money Services Business, MSB). Such companies must comply with KYC and AML in accordance with the provisions of the Bank Secrecy Act.

Recall that last month the heads of SEC, CFTC and FinCEN in a joint statement warned the participants of the cryptocurrency industry about the need to comply with various regulatory requirements.