What are the legal requirements for a digital currency exchange to be considered a money transmitter by FinCEN?

3 answers

• saul santiagoSep 13, 2023 · 2 years ago
  To be considered a money transmitter by FinCEN, a digital currency exchange must comply with the Bank Secrecy Act (BSA) and its implementing regulations. This includes registering with FinCEN as a Money Services Business (MSB), implementing an effective anti-money laundering (AML) program, and filing Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs) as required. Failure to meet these requirements can result in severe penalties and legal consequences.
  479

  240
• Brix TeagueAug 05, 2020 · 5 years ago
  Meeting the legal requirements to be considered a money transmitter by FinCEN involves thorough compliance with the BSA and its regulations. This includes conducting customer due diligence, implementing a risk-based AML program, maintaining records of transactions, and reporting suspicious activities. It is crucial for digital currency exchanges to stay updated with the evolving regulatory landscape and ensure strict adherence to these requirements to operate legally and maintain the trust of their users.
  510

  170
• JMowery007Aug 19, 2023 · 2 years ago
  As an expert in the digital currency industry, I can tell you that to be considered a money transmitter by FinCEN, a digital currency exchange must comply with a range of legal requirements. These include registering with FinCEN as an MSB, implementing robust AML and Know Your Customer (KYC) procedures, and reporting any suspicious activities. Failure to meet these requirements can result in significant fines and even criminal charges. At BYDFi, we prioritize compliance and work closely with regulatory authorities to ensure that we meet all the necessary legal obligations to operate as a money transmitter.
  613

  154