US financial crimes unit will closely monitor cryptocurrency platforms for AML compliance

18 January 2018

According to the report by Reuters, the financial crime unit under the US Treasury Department is taking actions to enforce anti-money laundering policies among the cryptocurrency exchanges both inland and overseas.

Sigal Mandelker, undersecretary for terrorism and financial intelligence at the US Treasury Department, reported to the Senate Banking Committee that the unit will be taking control over the digital asset platforms both located in the United States and outside the nation to bind them to comply with the anti-money laundering regulations. The unit will be checking the trading platforms for availability of proper security measures at place, including documented reports of any suspicious activity on the accounts. According to the report so far about 100 platforms have been registered with the Financial Crimes Enforcement Network.

The undersecretary noted that while the United States is enforcing the AML regulation inside the country, other nations also need to follow the move and do the same.

Last summer the US Treasury cracked down on the BTC-e bitcoin exchange based in Russia charging it with the fine of $100 million on allegations of participating in illegal activity including hacking, ransomware and drug trafficking.

This week Bitcoin dropped sharply below the benchmark of $11,000, two-fold decrease since its record highs before the New Year on concerns that governments across the globe are implementing stricter regulations to monitor, restrict or ban cryptocurrency trading.

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