October 20, 2020

SEC, CFTC and FinCEN issue a joint statement for crypto industry participants

The heads of three US financial regulators in a joint statement warned participants the cryptocurrency industry about the need to comply with various regulatory requirements. This was reported on the website of the Commission for derivatives trading (CFTC).

The statement was signed by CFTC CEO Heath Tarbert,Kenneth Blanco, director of the Financial Crimes Prevention Network (FinCEN); and Jay Clayton, chairman of the US Securities and Exchange Commission (SEC) Heads of departments urged companies not to forget about the rules of law governing banking and other financial services, regardless of what they call their digital assets - cryptocurrencies or tokens. In particular, departments refer to the law “On Bank Secrecy”, which regulates the requirements for registration of companies in regulatory bodies.

“For example, something called a“ stock exchange ”may or may not be recognized as such for the digital asset market, as the term is used in federal securities laws.”, The statement said.

According to officials, the classification needs to take into account the economic nature of the asset, user cases and the underlying technology.

“A number of activities related to digital assets can be interpreted as a business in the field of payment services that is subject to the regulation of FinCEN”- emphasized Kenneth Blanco.

SEC head Jay Clayton noted that broker dealersand mutual funds should adhere to anti-money laundering policies and report suspicious activity. According to him, these requirements apply not only to activities related to security tokens.

Recall recently consulting companyThe Financial Integrity Network recommended that the US Congress create a new category of financial institutions in accordance with the Bank Secrecy Act to regulate the activities of cryptocurrency companies.