Even though it was initially dismissed as being a fraudulent or simply a fad technology, blockchain has gone on to prove itself on the world stage and this goes beyond just cryptocurrency, which is its most famous product as it has been applied in several industries and is being used for more efficient systems worldwide. Besides the rise of cryptocurrency itself, there is the belief that blockchain will also become one of the most dominant technologies in the next few decades on par with the Internet. This is evidenced by the fact that more and more world governments are seeing the benefits of a blockchain and applying it.
A new bill was passed by the US House of Congress on September 19, 2019, called “Advancing Innovation to Assist Law Enforcement Act”. This law will require Financial Crimes Enforcement Network (FinCEN) carry out a study on emerging technologies such as blockchain which is believed to be beneficial in their fight against criminal activities across the country.
The bill will also require Kenneth Blanco, who is the director of the Financial Crimes Enforcement Network to lead the study into blockchain along with the network itself.
“The Director of the Financial Crimes Enforcement Network (“FinCEN”) shall carry out a study on […] whether AI, digital identity technologies, blockchain technologies, and other innovative technologies can be further leveraged to make FinCEN’s data analysis more efficient and effective,” the bill says.
In the past, Blanco has shown enthusiasm towards cryptocurrency as he has urged casinos to carry out the stipulated guidelines of the FinCEN towards convertible virtual currencies and to report all suspicious activities. This is because blockchain and cryptocurrency are now being used more commonly to cover up crime and cryptocurrency in particular has been used for money laundering services both for drug dealers and over the deep web. By studying blockchain at its core and properly understanding the technology, agencies such as the FinCEN will better be able to combat the activities of these criminals.
“I encourage casinos to closely review both documents on FinCEN’s website to see how we are addressing this industry and its interactions with others in the financial sector. Casinos should be filing SARs when they encounter suspicious CVC activity and any cyber events that affect, facilitate, or conduct transactions. We know that casinos are targets for cyber and cyber-enabled criminal activity such as ransomware attacks and business e-mail compromise schemes,” he said.