Funds Travel Rule Compliance Obstacles Facing Crypto Firms

Equally as significant, unlike the fiat banking system, cryptocurrency firms are decentralized: There are many different cryptocurrencies, created and …
Law360 (August 31, 2020, 6:10 PM EDT) — Long considered a potential game-changing maverick for global business and crime, cryptocurrency is facing in the U.S. and globally so-called funds travel rules — a potential yoke in the form of compliance requirements.

In a speech before the Chainalysis Blockchain Symposium in November 2019 and a speech before the Consensus Blockchain Conference in mid-May 2020, Financial Crimes Enforcement Network Director Kenneth A. Blanco made clear that cryptocurrency exchangers are expected to comply with FinCEN’s funds travel rule, which requires banks and money services businesses, including crypto exchangers, to share the names, addresses and account numbers of both the originators and beneficiaries…