Will The U.S. Gov’t Expand The Bank Secrecy Act To Include Bitcoin Miners To Fight Money Laundering?
Cryptocurrencies have the potential of revolutionizing the financial world soon. The only problem is that it is widely used for criminality and other illegal acts like drug trade and even human trafficking. Due to these heinous acts, the federal government could bring a 50-year-old law into action.
The Bank Secrecy Act demands that all US-based financial firms come up with policies that will enable the government to track illegal acts. There is a possibility that the U.S. government could stretch out the law such that it covers Bitcoin and other cryptocurrencies.
Augmenting Governance Methods
The Financial Integrity Network vice president, David Murray, talked about this matter in Washington D.C. He recommended that the people in authority should tighten cryptocurrency regulations by having a new category of financial institution. It should be like a virtual asset treaty validators.
Murray argued that the lack of strict regulations on cryptocurrencies is what facilitates the many illegal transactions surrounding Bitcoin and the rest. The deficiency also makes it difficult for the government to track the unlawful pacts and apprehend the culprits involved.
His arguments are based on the anonymity of Bitcoin. Whereas one may argue that cryptos are not that anonymous, it is not easy to track down the traditional financial systems. There are other assets such as privacy coins which are even harder to trace.
From the look of things, the Act would come into play anytime. Cryptocurrency exchanges and other financial businesses will have to report any suspicious dealings for the government to follow up.
Bitcoin Miners to Synchronize Transactions?
Murray sentiments are ideally to regulate the Bitcoin miners. It is not an easy task as miners are spread all over the world and not just in the United States. They cannot be easily identified, and it would beat the logic of mining anyway.
Miners are also not that concerned on validating transactions as they are tasked with only ensuring it goes via the ledger. Therefore asking them to report suspicious acts is almost impossible.
However, Peter Van Valkenburgh, who is Coin Center's director of research, says that the Treasury Department could have the Bank Secrecy Act extend to even cryptocurrency miners.