Strategic consulting company Financial Integrity Network (FIN) recommended that the US Congress create a new category of financial institutions in accordance with the Banking Secrecy Act (BSA) to regulate the activities of cryptocurrency companies. It is reported by The Block.
In particular, FIN proposes to highlight a new type of virtual asset service provider (VASP), which should be regulated depending on the features of the services they provide.
Some VASPs are currently regulated as money transmitters under the BSA. Others are not regulated at all. Even for those VASPs currently regulated as money transmitters, the regulations are insufficient to protect virtual assets from exploitation.
Vice president for product development and services, FIN
He is also convinced that tightening cryptocurrency regulation will force financial institutions to “be more cautious,” since the current system makes “isolating fraudulent companies from the US financial system” difficult for the authorities.
FIN will present its proposal at a hearing of the subcommittee on national security, international trade and finance under the US Senate Committee on Banking, Housing and Urban Affairs today, September 3.
Recall that at the end of July, the Senate Banking Committee held hearings on the regulation of the crypto industry.
In addition, in the summer, US Treasury Secretary Stephen Mnuchin said that American regulators are likely to develop new rules for cryptocurrencies in order to avoid their negative impact on the country's financial system.