Regulatory Series on Cryptocurrencies: US-Cryptocurrency Companies to Fall Under FinCEN’s Purview

The US Securities and Exchange Commission (SEC) and its staff “have spent a significant amount of time” focusing on the blockchain and crypto-assets with a slightly reluctant mode and that is a trend lingering currently.

The U.S. SEC’s eagle eye on the crypto regulation has prolonged while having embraced the market even while fighting to fend off fraud.

The pioneer cryptocurrency (Bitcoin), along with other peers among the digital currency space, has been the prime talk of the town ever since the inception during the global financial crisis, however, the federal governments did not raise their eyes to take meticulous steps toward defining them. 

The essence of Bitcoin has been perceived as a viable currency, in conjunction with the idea of investment opportunity. Thereby, the governments began shedding some light on Bitcoin except to state that it is not a recognized currency. 

Under certain circumstances, the US-companies who deal into the cryptocurrency-avenue, are expected to register with the FinCEN (Financial Crimes Enforcement Network) for money service business. Usually, the formal registration process is a relatively basic process, could be done via online, but other norms to follow.

The current state of the cryptocurrency avenue has been luring investors’ attention significantly on the prospects of the future products and events, including the possible approval of the Bitcoin ETF applications that is currently awaiting the U.S. Securities and Exchange Commission’s (SEC’s) approval.

While SEC commissioner who seems to be both meticulous and optimistic on cryptocurrencies so far, but for now, raised caution for investors against lingering optimism on this event, adding stance that it is unwise to blow this event out of the proportion as this could be a long time before a Bitcoin ETF is approved.

The US regulator seemed little passive on the Bitcoin’s possibilities by suspending all trading in securities of Bitcoin Generation (BTGN), the first publicly traded cryptocurrency exchange.

Currency Strength Index: FxWirePro's hourly BTC -182 (bearish), hourly USD is flashing at 52 (which is bullish) while articulating (at 06:05 GMT). 

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