FIN: US authorities should add crypto rules under BSA

Posted 03 September, 2019

The consulting company Financial Integrity Network (FIN) has reportedly sent a recommendation to the US Congress saying that it should create a new category of financial institutions in line with the Banking Secret Act that will deal with the regulation of crypto companies.

According to the media reports, the company believes that the US authorities may consider expansion of the VASP list with a new category of suppliers, which will be subject to the regulation depending on provided services.

"Congress should create a new class of financial institution under the BSA to cover firms involved in convertible virtual currency transactions: virtual asset service providers (VASPs), which are firms involved in convertible virtual currency transactions. VASPs should include cryptocurrency service providers that are already covered by the BSA as well as virtual asset services that currently fall outside the scope of the BSA," as it was stated in the letter.

FIN highlights that stronger crypto regulation will make financial organizations be more careful. For now, it is hard for the authorities to isolate fraud companies from the American financial system.

The consulting company is going to read its recommendations at the hearing that is expected to take place on September 3.

It should be mentioned that the US Secretary of Treasury Steven Mnuchin earlier said that the US regulators would create new rules for crypto market striving to prevent negative crypto impact on the financial system.

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