Since 2013, the Financial Crimes Enforcement Network (FinCEN) has received more than 47,000 suspicious activity reports (SARs) that mention bitcoin or virtual currency with half of these filed by virtual currency exchangers or administrators themselves. If your institution forgoes more robust Know Your Customer (KYC) rules for anti-money laundering efforts, you could be significantly impacted. The positive, Mandelker noted, was that forthcoming Financial Action Task Force (FATF) guidance could arrive as early as June which will help crystalize how to handle cryptocurrency in the AML quagmire.
Around cryptocurrency, there is a need for more guidance from regulatory agencies.
The Consensus conference also demonstrated that avid interest in understanding the blockchain space persists. While I have spent the better part of the last three years discussing blockchain and cryptocurrency with law firms of all sizes in the US, the UK, the UAE, and Australia, the thirst for learning is not quenched.
Steve Quirk, TD Ameritrade’s executive vice president for trading and education, spoke candidly that the interest in this area spans across all generations. He noted that attendance has been “off the charts” at the bitcoin education events facilitated by TD Ameritrade, which is exactly what I have found when presenting to law firms and corporate counsel. Within the legal ecosphere, lawyers seek to know more about the technology around blockchain, and what impact it will have on their clients and their business. The SEC Weighs In on IEO
Another theme emerging at Consensus was the eager discussion concerning Initial Exchange Offerings (IEOs) which is similar to Initial Coin Offerings (ICOs), but in this instance the cryptocurrency exchange is the one responsible for running the financials.