Cryptocurrency and the Law: What You Need to Know
Is Cryptocurrency Covered by the Bank Secrecy Act and Anti-Money Laundering Laws?
Yes, cryptocurrency transactions are covered by the Bank Secrecy Act and anti-money laundering laws. The Anti-Money Laundering Act of 2020 codifies prior Financial Crimes Enforcement Network (FinCEN) regulations and requires cryptocurrency exchanges to register with FinCEN and implement anti-money laundering and know-your-customer (KYC) programs.
Can the Government Legally Regulate Cryptocurrency?
Yes, the government can legally regulate cryptocurrency through sales regulations such as securities law and money transmission laws. These regulations can help protect investors and consumers from fraud and abuse.
Is Cryptocurrency Mining Legal in the US?
Yes, cryptocurrency mining is legal in every state of the country. However, individual states may impose certain limits to crypto mining, such as noise or energy consumption restrictions.
Is the Sale of Cryptocurrency Regulated?
The sale of cryptocurrency is generally only regulated if the sale:
- Constitutes the sale of a security under state or federal law
- Is considered money transmission under state law
Sanctions Risks of Facilitating Ransomware
On September 21, 2021, the US Treasury Department's Office of Foreign Assets Control (OFAC) issued an updated advisory about the sanctions risks of facilitating ransomware. OFAC warned that individuals and entities that facilitate ransomware payments may be subject to sanctions, even if they are not directly involved in the ransomware attack.
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