FinCEN Crypto Complaints Exceed 1,500 Reports from Financial Institutions per Month

FinCEN Receives About 1,500 Crypto-Related Complaints Per Month

The Financial Crimes Enforcement Network (FinCEN) receives a total of about 1,500 complaints from financial institutions regarding cryptocurrencies per month. The director of the entity, Kenneth Blanco, has recently talked at the Chicago-Kent Bank Tech Conference and discussed how the agency is able to regulate the cryptocurrency market.

According to him, while the digital assets can be very beneficial in some cases, they also enable bad actors who want to scam other people to have more opportunities for doing so, which increased the activity of online scams.

More Than 1,500 Complaints In A Single Month

The director of the regulator emphasized that the Suspicious Activity Report (SAR) findings are very important for the institution. The SARs are documents that financial institutions have to file in order to report incidents of fraud or activities related to money laundering. According to the number cited by Blanco, the agency receives a high number of them: more than 1,500 per month.

These reports, however, does not come only from traditional financial institutions, as one might think, but also from cryptocurrency exchanges. According to him, both banks and virtual exchanges have been doing their part to help and they been critical for law enforcement.

Some of this information is about ownership of assets, activities that can be considered suspicious, jurisdictional information and some leads that have helped the FinCEN so far.

The Role of The FinCEN

Blanco discussed the role of the entity during his presentation. He has a broad experience working in the crypto space as a regulator for years and his focus is on the exchanges, administrators and the people who are involved in the actual money transmission. He also stated that there is a 2011 rule from the FinCEN that regards cryptos as money.

Also, the director has affirmed that the FinCEN is working closely with other agencies the U. S. Securities and Exchange Commission (SEC) and the U. S. Commodity Futures Trading Commission (CFTC) to develop policies and to discover how to deal with this emerging market.

Another topic that was referenced by Blanco was the Initial Coin Offerings (ICOs). According to him, this area is growing faster and have achieved a lot of attention from the public recently, as well as a lot of scams.

According to him, while the arrangements of each ICO may vary a lot, they mostly depend on the structure of the program and different authorities may have to regulate them. ICOs are not all the same, as the product that they are selling during their fundraisers is also not, too.

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