Clifford Chance

FinCEN and DOJ signal increased scrutiny of cryptocurrencies

30 November 2020

US authorities are closely scrutinizing the anti-money laundering (AML), terrorist financing, and sanctions compliance risks associated with the use of cryptocurrencies. While US authorities including the Financial Crimes Enforcement Network of the US Treasury (FinCEN) and the US Department of Justice (DOJ) have been tracking the rise in use (and potential for misuse) of cryptocurrencies for years, 2020 saw a flurry of new developments that indicate that cryptoassets are now center stage.

Recent guidance and enforcement actions against companies and private individuals make clear the need for US and non-US cryptocurrency sponsors, trading platforms and other intermediaries that facilitate cryptocurrency transactions involving US persons to adhere to applicable US legal and regulatory requirements, including registration.

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