ICOs May Need to Follow Bank Secrecy Rules

Tokensale campaigns can face new regulatory restrictions
07 March 2018   153

The organizers of the ICO campaigns may be required to follow the provisions of anti-money laundering and terrorist financing laws requiring reporting of any suspicious investor activity to the authorities. This is reported by Bloomberg.

In December 2017, Senator Ron Wyden appealed to the US Treasury  Financial Crimes Enforcement Network (FinCEN) with a request to report on the work done in the area of ​​establishing control over the sphere of crypto-currencies. FinCEN's answer to the senator was published this Tuesday.

In its letter, the agency explains that companies that conduct ICO, from the point of view of the law, can be considered as services for the money transfers. Thus, they can be presented with all the requirements designed to combat the financing of terrorism and money laundering in this area specified in the law on bank secrecy.

FinCEN explains that these requirements apply to all projects related to convertible virtual currencies, which are either equivalent to real currencies, or can be used to replace real currencies. Depending on the conditions of the specific ICO, such companies may be regulated by either the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

In accordance with the requirements of the law, the organizers of the ICO must register with FinCEN, and then report any suspicious activity of investors to the relevant services.

Although some ICOs have already begun to register, while waiting for the introduction of new requirements, most have not yet done so. According to the law on bank secrecy, the latter can wait up to 5 years in prison.

States that have not yet developed their own legislation to regulate the digital currencies can use the FinCEN letter as a guide for decision-making in the future, requiring that the new ICOs receive a license as companies operating in the field of money transfers.

Although some consider this message as old news related to the Ministry of Finance decree issued five years ago, and welcome the establishment of legal certainty in the ICO area, others note the lack of specificity in the message of FinCEN.

Particular problems may arise in startups, operating in the US, but registered abroad. Although they do not directly fall under the requirements of FinCEN, they may also be required to report suspicious investor activity. In addition, small projects, perhaps, will not be able to conduct ICO at all because of the costs associated with the new requirements.

TOP-3 Ongoing ICO 14 - 21 Mar According to Our Readers

Let’s check which ongoing ICOs from 14th to 21st March are considered the best according to our readers
22 March 2018   88

Our readers are dedicated cryptocurrency enthusiasts and fans of blockchain technology. We provide them with the ability to express their opinion regularly. Let’s check top three ongoing ICO according to our readers.

1. BitCar

Hyper car asset tokenization. BitCar is the first platform in the world that will allow you to P2P trade fractions of exotic cars using your crypto. Owners can peg their crypto to these hard assets for protection during times of high crypto volatility. Users will have access to this historically outperforming asset class for the first time through BitCar. BitCar will then also seek to provide fractional ownership services to the very large automotive industry using this new decentralized blockchain technology.

Bitcar ICO
Bitcar ICO

At the moment of press, tokens worth SGD 9.2 Million were sold during ICO. Great result!

2. Datarius

Datarius cryptobank is a decentralized partially closed system. As a P2P platform, the system enables users to decide themselves whether to use any of variable services and applications. This in turn allows to almost completely reduce transaction costs. Datarius serves as a direct link between lenders, borrowers, and the related services – managers, analysts, insurance companies, funds, trading terminals.

Datarius ICO
Datarius ICO

At the moment, $888 737 raised during the Datarius ITO. Good result!


The ADAMANT project is made to respond to the question of trust in private data transfer security, since it is based on a proven to be robust Blockchain conception, and its program code is open and public. The project uses modern encryption methods and unique Blockchain technology and provides a high guarantee of confidentiality of the information transfers among all users within the system.

Adamant ICO
Adamant ICO

Adamant team was able to reach soft cap! $532 949 raised! And the sale is still going!

We will keep our eye on these campaigns and we hope that their projects will be successful. We are really grateful to our readers for your opinion expression. Please, check the updated Top Ongoing ICO and take part in new poll!