Cryptocurrency Regulation: FinCEN Issues Updated Convertible Virtual Currency GuidanceSullivan & Cromwell LLP - June 14, 2019
On May 9, 2019, FinCEN, the Financial Crimes Enforcement Network, issued interpretive guidance addressing the applicability of the Bank Secrecy Act and its implementing regulations to persons engaged in certain activities involving convertible virtual currencies. The Guidance marks FinCEN’s first significant foray into virtual currency regulation in over five years and reflects an effort by FinCEN to more clearly outline its jurisdiction in the arena of virtual currency regulation. Much of the Guidance summarizes pertinent aspects of existing FinCEN regulations, guidance, and administrative rulings. The guidance provides some assistance in assessing existing and emerging virtual currency activities to identify possible FinCEN jurisdiction and in identifying risks associated with certain customers operating in the virtual currency space.