US Treasury Secretary Mnuchin Announces Regulations to Crackdown Cryptocurrency Misuse
- US Treasury Secretary Steven Mnuchin announced the plans to regulate cryptocurrencies
- The crypto and blockchain industry is one of the most sought after topics in the 2020 election agenda. Even after crypto supporter Democrat, Andrew dropped out of the race of the US Presidential elections.
- Trump administration is seeking more transparency in crypto transactions
With a significantly rising number of crypto companies, patent applications, blockchain projects in the US markets, the crypto industry is on top of the economic and political agenda in 2020.
The Trump Government has planned to introduce regulations for crypto-assets that will crack down the misuse of cryptocurrencies for money laundering and other illegal activities.
On Wednesday, the Treasury Secretary Steven Mnuchin disclosed that the U.S. Government will announce new regulations for crypto- assets and digital payment systems. Though he did not reveal the details about the upcoming policy.
At a Senate Finance Committee hearing which was about the 2021 budget, Senator Maggie Hassan who supports President Trump’s $4.8 trillion proposal asked Secretary Steven Mnuchin about how the Treasury Department’s proposed increase in budget will tackle the monitoring of cryptocurrency transactions and the secret financing to terrorists and criminal organizations?
Replying to this question, Mnuchin informed that the Financial Crimes Enforcement Network (FinCEN) department is in a process to frame additional rules to bring more transparency in the crypto- transactions. The regulations framework will also be used to reduce the anonymity shield that is being used in secret crypto bank accounts to combat crypto-related frauds.
Mnuchin quoted, “We will be rolling out new regulations to be very clear on greater transparency so that the law enforcement can be seen where the money is going and that this isn’t used for money laundering.”
He further said, “We want to make sure that technology moves forward; on the other hand, we want to make sure cryptocurrencies aren’t used for the equivalent of old Swiss secret number banking.”
Financial Crimes Enforcement Network (FinCEN) works to combat terrorist financing activities, money laundering, and other finance-related crimes.
The thriving Crypto and blockchain industry in the US
There is a growing interest to embrace blockchain technology among various sectors. Military contractors too are willing to explore blockchain solutions and are supporting blockchain-related firms.
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CBW - External Analyst