Anticipating Money Laundering, US Requires Crypto Companies to Open Transaction Data

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Anticipating Money Laundering, US Requires Crypto Companies to Open Transaction Data


To anticipate money laundering, the United States government requires crypto and financial technology (fintech) companies to disclose where their funds flow.

On Thursday (17/2), Bloomberg reported that 18 companies were preparing platforms to meet these requirements.

The US Treasury Department requires financial companies to submit information including customer names, account numbers, and the date of the fund transfer transaction.

Gemini Crypto Platform Compliance Head Elena Hughes said the association had held meetings with American governments and global regulators about their plans.

“We believe that the solution will enable top-level compliance for the rules that are still being processed, and we are looking to get support from the authorities,” Hughes said in an interview.

Crypto companies say the rules are out of date and the existing regulators don't have the expertise to oversee the sector. Meanwhile, regulators are pushing for tighter controls.


Commodity Futures Trading Commission chairman Rostin Behnam and Securities and Exchange Commission chairman Gary Gensler, for example, called for more aggressive oversight.

As is known, Travel Rule Universal Solution Technology (Trust) is a separate platform from the blockchain used to transfer cryptocurrencies. Fidelity Digital Assets, Kraken and Paxos are part of the Trust network.

Coinbase Chief Legal Officer Paul Grewal confirmed that there would be no central balancing of personal data and investor information being sent directly from one member to another.

“What makes Trust unique is that it is the most widespread solution in the industry to this problem. This is an excellent example of an industry really coming together to solve this problem on its own.”

He added that private software makers offer several compliance solutions. Crito association members regard the offer with a positive response.

The rules for financial transactions in America have been around since 1996. In 2020, the US Department of Financial Crime Enforcement Network proposed amendments that expand the scope of these rules to crypto transactions.



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