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Cointelegraph: How US Authorities are Using Old AML Tools to Crack Down on Crypto

October 24, 2020

O’Melveny counsel Braddock Stevenson is quoted in this Cointelegraph article on how the Financial Crimes Enforcement Network (FinCEN) is utilizing anti-money laundering laws from the Bank Secrecy Act to combat the illicit use of crypto currency.

This year, the Department of Justice made it clear they are paying attention when they pressed criminal charges against BitMEX’s executive team over the exchange’s facilitation of money laundering.

Stevenson, former Deputy Associate Director of FinCEN’s Enforcement Division, told the publication that what we are seeing is an effort “to drive commerce into the regulated sector, into the exchanges, because that’s where the transparency is and that’s where FinCEN’s able to get the reporting.”

However, FinCEN is not likely to start fining every crypto exchange that does not live up to the standards the BSA sets out for banks, Stevenson noted. “We haven’t seen an action that’s been based on just pure lack of transparency issues without an additional nexus to more suspicious activity.”

Read the full article here.