FinCEN (Financial Crimes Enforcement Network)

FinCEN, under the U.S. Treasury Department, regulates crypto entities as Money Services Businesses and Virtual Asset Service Providers under the Bank Secrecy Act framework, requiring comprehensive anti-money laundering compliance programs and regulatory filings.

Obligations include MSB registration every two years using FinCEN Form 107, AML program maintenance covering policies, procedures, internal controls, designated compliance officers, and employee training, Suspicious Activity Report and Currency Transaction Report filings for suspicious or large transactions, and adherence to Customer Due Diligence and Beneficial Ownership requirements.

FinCEN's 2020 and 2022 guidance clarified that exchanges, wallet providers, and NFT trading platforms qualify as financial institutions when facilitating convertible virtual currencies. The agency distinguishes between money transmitters requiring registration and users engaging in transactions for their own account who are exempt. FinCEN expects crypto businesses to implement transaction monitoring systems, sanctions screening against OFAC lists, recordkeeping for five years, and reporting of cross-border currency transportation. Violations can result in civil monetary penalties, criminal prosecution, and prohibition from financial services industry. FinCEN coordinates with federal prosecutors, IRS, and other agencies on crypto enforcement actions targeting unlicensed exchanges, darknet market facilitators, and mixing service operators.