The year 2019 has seen US Congress delve quite deeply into the topic of cryptocurrency and this mainly is due to the fact that Facebook launched the white paper for the Libra token which brought cryptocurrency discussion to the forefront of regulatory bodies across the globe and was summoned by US Congress to explain the implications of the token, how user data would be protected and how Facebook intended to prevent the use of their token for illegal activities.
Despite all of these, some think that the US Congress should do even more to regulate the crypto industry as the Financial Integrity Network (FIN) has urged US Congress to regulate the industry through the Bank Secrecy Act (BSA).
This information was made public via a published testimony ahead of a September 3, 2019 hearing in which the network states that Congress should regulate virtual asset service providers depending on what services they provide and should also place emphasis on system-wide regulation for the industry.
The reason for this, according to FIN representatives, is because many virtual asset service providers are currently regulated as currency transmitters while some are not regulated at all and this means that there is not enough oversight in today’s virtual asset industry and this needs to be corrected.
“Even for those VASPs currently regulated as money transmitters, the regulations are insufficient to protect virtual assets from exploitation,” FIN’s vice president for product development and services, David Murray.
Naturally, this sort of regulation will mean that certain aspects of the industry will find it more difficult to operate and Murray himself has admitted that certain blockchain-based payment firms will not be able to continue business should this new regulation be put in place. However, he stated that it is not the job of the financial industry to accept all forms of businesses and that while some would have to go under, it is for the greater good.
Even before now, the crypto industry had sought clarification on certain laws as well as proper oversight that would allow them to operates seamlessly within the mainstream financial world. While some progress was made, there are still several aspects of the crypto industry that have not yet gotten this clarification and are still waiting for it.