Guest Posted September 7, 2016 Share Posted September 7, 2016 https://bol.bna.com/hogan-lovells-partner-on-digital-currency/ Quote Big Law Business: As a former lead attorney at the agency, Can you tell us about enforcement trends at FinCEN? Lisa: If you look over the last five years in FinCEN, there’s been a lot more attention and emphasis to non-compliance. In 2012, they had two enforcement actions. In 2013, they had another two. In 2014, they had eight, and in 2015, they had 12. I do not think it is just with traditional financial institutions, like banks and money transmitters — MoneyGram and Western Union. But it has also been in some areas where there has not been a lot of attention in the past — things like digital currencies and casinos. I think there is much more concern by the government about terror financing and transnational organized crime. Also, in 2013, FinCEN created a new enforcement division as part of an agency reorganization. The Office of Compliance and Enforcement has since brought some cases that have had an impact. In May 2015, I was the lead prosecutor that brought the first civil enforcement action against a virtual currency space, Ripple Labs. It was a parallel civil-criminal enforcement action with the U.S. Attorney’s Office for the Northern District of California. Ripple Labs operated a virtual currency exchange and did so without having proper anti-money laundering controls in place. + more about law/regulations around digital currencies Link to comment Share on other sites More sharing options...
thinlyspread Posted September 7, 2016 Share Posted September 7, 2016 7 minutes ago, tomxcs said: Ripple Labs operated a virtual currency exchange and did so without having proper anti-money laundering controls in place. So it was over the exchange itself? Or that they themselves provided entry to it? I thought the latter, which was why they asked for KYC at the entry point (wallet) into the protocol. But then will Stellar face the same issues as a US company, since they also have an exchange, albeit one nobody uses and that there are no fiat exchanges for (that I know of). Link to comment Share on other sites More sharing options...
Mercury Posted September 7, 2016 Share Posted September 7, 2016 So it was over the exchange itself? Or that they themselves provided entry to it? I thought the latter, which was why they asked for KYC at the entry point (wallet) into the protocol. But then will Stellar face the same issues as a US company, since they also have an exchange, albeit one nobody uses and that there are no fiat exchanges for (that I know of).If an example is to be made it is best to go for one in your jurisdiction with actual users. . . The dual investigation and small but strong user base, and potentially ironically having a company history of compliance (they will work with and not contest investigators) makes a nice target if a regulator is looking to establish a precedentSent from my LG-K210 using Tapatalk Apollo 1 Link to comment Share on other sites More sharing options...
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