U.S SEC, CFTC FinCEN Warned Crypto Dealers to Obey Banking Laws

It's the government's responsibility to see where the rules are not followed by the people or institutions or by other identities. And warn them or take action against those who not care about these actions. Now several governments taking strict action against violation of market or economic laws by the crypto industry. In the same way, U.S Sec warned about the crypto dealing and to obey banking laws. It's after joint statements signed by different departments include Commodity Futures Trading Commission (CFTC), Financial Crimes Enforcement Network (FinCEN) and the Securities and Exchange Commission (SEC) Chairman.

The statement says: “As such, regardless of the label or terminology that market participants may use, or the level or type of technology employed, it is the facts and circumstances underlying an asset, activity or service, including its economic reality and use (whether intended or organically developed or repurposed), that determines the general categorization of an asset, the specific regulatory treatment of the activity involving the asset, and whether the persons involved are ‘financial institutions’ for purposes of the BSA.”

Director of FinCEN said about BSA (Bank Secrecy Law)“As set forth in the 2019
CVC Guidance, a number of digital asset-related activities qualify a person as an MSB [money services business] that would be regulated by FinCEN,” more Blanco said that. “FinCEN’s BSA regulations also provide that any person ‘registered with, and functionally regulated or examined by, the SEC or the CFTC,’ would not be subject to the BSA obligations applicable to MSBs, but instead would be subject to the BSA obligations of such a type of regulated entity.”

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