Posted 11 months ago | by Catoshi Nakamoto
Financial Crimes Enforcement Network or FinCEN has announced that it has appointed Michele Korver as its first-ever Chief Digital Currency Advisor.
Korver previously worked for the Department Of Justice (DOJ) serving as a digital currency adviser for the agency’s criminal division. She also advised the Treasury Department’s Financial Stability Oversight Council as well as and the Financial Action Task Force (FATF) and developed policies around cryptocurrency seizing and relinquishment.
Korver will be developing “FinCEN’s leadership role in the digital currency space by working across internal and external partners toward strategic and innovative solutions to prevent and mitigate illicit financial practices and exploitation,” the agency announced the new position on Friday.
Korver was also a prior assistant attorney in the Office of the United States Attorney for 10 years, where she prosecuted numerous cases of cybercrime and national security crimes.
FinCEN’s acting director Michael Mosier commented on Korver’s experience drafting digital currency legislation:
“Michele brings a wealth of digital currency expertise, and will be a tremendous leader in coordinated efforts to maximize FinCEN’s contribution to the innovative potential for financial expansion of opportunity while minimizing illicit finance risk,” Mosier said.
Besides hiring Korver, FinCEN also proclaimed that it has hired Jayna Desai, who was formerly involved with the U.S. Customers and Border Protection, as the agency’s first director of strategic communications.
This follows a comment made by FinCEN expressing the misuse of cryptocurrencies is a national priority for the agency focused on Counter-Terrorist Financing (CTF) and Anti-Money Laundering (AML.) For the reader’s knowledge, FinCEN is an agency under the umbrella of the U.S. Treasury Department which has taken a focus on cryptocurrency in recent months.
However, most are unaware but FinCEN isn’t just a U.S. agency, it is an international standards-setting body that helps shape laws globally.
As Bitboy Crypto first reported last year under the Trump administration, both FinCEN and the FATF are seeking to control unhosted or non-custodial wallets. FATF and FinCEN have both expressed in their view transactions using unhosted wallets increase AML/CTF risks. For those new to crypto, an “unhosted” wallet is a software where you generate your keys and you are in control of your funds. This embodies the entire ethos of cryptocurrency, stemming from the phrase, NOT YOUR KEYS, NOT YOUR CRYPTO.
If the cryptocurrency regulations in the U.S. do go into effect, as Bitboy Crypto warned from two insider sources in September of last year, it would mean crypto businesses would be forced to know every person their users’ crypto transactions, keeping logs, and verifying identities (KYC) even before a transfer can go through for sending crypto.
In December 2020, FinCEN issued a proposal of guidance called “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets,”
According to the proposal, if a single transaction or combined transactions exceed $10,000 within a 24-hour period, the bank, MSB, or Virtual Asset Service Providers (VASPs) will have to file a report with FinCEN and include information in relation to the transaction, the counterparty if applicable including their name and physical address as well as verification of the identity of its customer. In addition, If a transaction exceeds $3,000, banks and MBSs will be required to keep records of the transaction as well as verify the identity of the customer.
The U.S. SEC (Securities And Exchange Commission) has also recently announced its own intentions in the crypto space, with SEC’s Gary Gensler telling lawmakers that investor protections that apply to traditional securities and financial services should apply to crypto exchanges.
Meanwhile, as Bitboy Crypto reported, Congress is also focused on digital assets, at both the federal and state level. Bitcoin and cryptocurrency, in general, has attained the eyes of regulators worldwide, and the U.S. no exception.
In early June, the Biden administration unveiled its strategy to combat cryptocurrency ransomware in a White House press briefing, after JBS and Colonial Pipeline were both ransomed in Bitcoin. Something that obviously doesn’t make much sense, as if you are smart enough to hack, you are smart enough to know Bitcoin is a public ledger and not private like Monero or another privacy coin, which is more suited for ransom payments.
“Combating ransomware is a priority for the administration,” White House Principal Deputy Press Secretary Karine Jean-Pierre said. “President Biden has already launched a rapid strategic review to address the increased threat of ransomware to include four lines of effort.”
According to a report from the U.S. Treasury Department as recently as May, the administration wants to put new provisions in place that would make it easier for the government to see money moving around, including digital currencies. As CNBC noted the report stated that cryptocurrencies pose a “significant detection problem,” allowing people to dodge or evade taxes. This same report noted that there should be mandatory reporting requirements for $10,000 to the IRS.
Even before the transition to the Biden administration, in March 2020, the U.S. Treasury had convened a meeting of industry thought leaders and compliance experts to “discuss supervisory and regulatory challenges facing digital assets, including cryptocurrency.”
Bitcoin is currently trading at [FIAT: $34,570.35] DOWN -0.5% in the last 24 hours according to Coingeco at the time of this report.