The Financial Crimes Enforcement Network (FinCEN) is making leadership changes that could potentially affect the cryptocurrency space. The regulator agency is proposing certain unpopular regulations to the crypto space in the United States, but the change in leadership could affect all of that.
FinCEN changes leadership
The Financial Crimes Enforcement Network (FinCEN) announced a change in leadership yesterday. Director Kenneth A. Blanco announced that he would be leaving the regulatory agency on April 9th after serving as the Director for three and a half years.
Michael Mosier, former FinCEN Deputy Director and current Counselor to the Deputy Secretary of the Treasury, is slated to return to FinCEN as Acting Director. Furthermore, AnnaLou Tirol, former Associate Director of FinCEN’s Strategic Operations Division, will occupy the role of FinCEN Deputy Director. Mosier is popular in the cryptocurrency space as he is a former executive with blockchain firm Chainalysis.
Director Blanco expressed his excitement for the work he has done with the regulatory agency over the past three years. He stated that “Serving as FinCEN’s eighth Director has been a wonderful and rewarding experience for me. I am proud to have led an incredible organization with an important national security mission that has a profound effect on the lives of so many people, especially the most vulnerable in our society. I have every confidence in Mr. Mosier and Ms. Tirol’s ability to lead the bureau forward and continue the progress of ensuring our national security and protecting people from harm.”
The new appointees will resume office on April 11th and will get to work right away. The acting Director and deputy Director have vast experience in the public and private sectors and are expected to to an excellent job of leading the regulatory agency.
New leadership could impact proposed crypto regulation
Late last year, the FinCEN proposed a new anti-money laundering (AML) model designed to eliminate the anonymity allowed by certain types of crypto transactions. According to the proposed rules, financial institutions like banks, money services businesses, and credit unions have to submit reports, keep records, and verify the identity of customers conducting cryptocurrency transactions and holding cryptos in digital wallets not hosted by a financial institution.
The regulation would also require banks and fintechs to report some customer information to the agency for cryptocurrency transactions above $10,000 made on their platforms relating to unhosted wallets.
The cryptocurrency community has pushed back against the proposed regulations, and the agency is still hearing public opinion before making a final decision. Mosier’s appointment could be in the favor of the crypto space due to his connection with the sector.