FIN to Provide Congress With Regulation Advice

Financial Integrity Network proposed US Congress to regulate the activities of crypto companies in accordance with the Banking Secrecy Act
03 September 2019   502

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.
 

David Murray

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.

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   233

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.

 

Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.