Fraud Management & Cybercrime
3 Experts Discuss Regulatory Changes for the Cryptocurrency Industry
The cryptocurrency industry has come together and formed a group called the Cryptocurrency Compliance Cooperative. What is the aim of this group, and how will it help the industry? Three experts – Ari Redbord, head of legal and government affairs, TRM Labs; Seth Sattler, Bank Secrecy Act officer, Digital Mint; and Michael Fasanello, director of training and regulatory affairs at the Blockchain Intelligence Group – share their insights.
“Regulations, AML controls and fraud controls were not designed to address the industry as a whole. We are out to get all the voices in the room that can make an impact in getting this small but emerging aspect of the cryptocurrency industry more influence over the regulatory environment for cryptocurrency,” Sattler says.
“We are seeing people take funds that are the proceeds of an illicit activity and make small deposits in various locations, and they are basically laundering it to bitcoin ATMs,” Redbord says.
Fasanello says he would like the industry to get some more guidance from the regulators: “By the end of the year, FinCEN also has to get some sort of unbiased regulations on the books as part of the 2020 Anti-Money Laundering Act.”
In a video panel interview with Information Security Media Group, the panelists also discuss:
- The action items for the cooperative in 2022;
- Expectations from the regulators in the coming year;
- Why the cryptocurrency industry needs a new set of regulations.
Sattler, a certified anti-money laundering specialist, is director of compliance at DigitalMint. He is responsible for designing and implementing DigitalMint’s compliance program, which is viewed as the standard within the Bitcoin point-of-sale industry.
Redbord is the head of legal and government affairs at blockchain intelligence company TRM Labs. Prior to joining TRM, he was senior adviser to the deputy secretary and the undersecretary for terrorism and financial intelligence at the U.S. Department of the Treasury.
Fasanello is an experienced counterthreat finance and compliance professional with over a decade of experience in the public and private sectors. He served in various posts within the U.S. departments of Justice and Treasury, including the Office of Foreign Assets Control and the Financial Crimes Enforcement Network – or FinCEN – before joining private sector financial institutions.