US: FinCEN Issues Guidance on Application of Its Regulations to Certain Business Models Involving Convertible Virtual Currencies

On May 9, 2019, the Financial Crimes Enforcement Network (FinCEN) published interpretive guidance reminding persons subject to the Bank Secrecy Act (BSA) how its regulations relating to money services businesses (MSBs) apply to certain business models involving money transmission denominated in value that substitutes for currency, specifically, convertible virtual currencies (CVCs).

The guidance does not establish new requirements, but consolidates the existing administrative rulings and guidance issued since 2011. The guidance intends to help financial institutions to comply with their obligations in accordance with the BSA as they relate to current and emerging business models involving CVC by describing FinCEN’s existing regulatory approach.

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