The meaning of money in the United States is about to undergo major changes, and it’s not an easy thing. According to the Treasury Department, the government has committed to subjecting digital currencies to the same rules as traditional cash.
That’s because cryptocurrencies must follow the same rules as fiat currencies without exception. This would be part of a broader program to combat money laundering and terrorist financing.
The US Treasury Department is not alone. Big names like FinCEN (Financial Crimes Enforcement Network) are also stepping in to ensure that these changes don’t just stay on paper but are fully implemented.
FinCEN has prepared a set of proposed rules. Key measures include a new law under the Money Laundering Act of 2020.
This is tied to the Corporate Transparency Act, which requires financial institutions to be more careful in identifying their customers.
But that’s not the whole story. The government isn’t just interested in cryptocurrencies. They’ve expanded their reach to other sectors as well. FinCEN plans to introduce new rules for residential real estate transactions, specifically non-bank transfers of real estate to legal entities or trusts.
This means that if you’re planning on moving money into real estate, you’ll need to be prepared to report every step of the way. Investment advisors are also an exception here. FinCEN is currently developing a final rule to establish minimum standards for anti-money laundering programs for certain investment advisors.
These advisors, like banks and other financial institutions, are required to report any suspicious activity directly to FinCEN. FinCEN is also updating its definitions to include crowdfunding portals.
Crypto in the Spotlight
The Federal Reserve Board and FinCEN are working together to ensure that the definition of “currency” in the Bank Secrecy Act includes cryptocurrencies.
They plan to submit a revised proposal that will clarify that domestic and cross-border transactions in “convertible virtual currency” will be treated the same as traditional money transfers.
But that’s not the whole story. This new definition also includes digital assets that have the legal status of money. Whether your digital currency is an alternative to the dollar like Bitcoin or simply a fiat equivalent, the government is in control.
Finally, FinCEN is introducing legislation aimed at professionals in the antiquities industry. Anyone dealing in antiquities is now considered a financial institution under the Bank Secrecy Act and must follow the same strict rules.
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