What Does the Bank Secrecy Act Mean for ICOs?

Regulators have taken a keen interest in Initial Coin Offerings (ICOs) and it now appears as if token issuers have some additional considerations before launching a sale. In a letter dated February 13, 2018 the U.S Department of the Treasury’s FinCEN indicated that virtual currency exchanges and businesses involved in ICOs must comply with the Bank Secrecy Act (BSA). For issuers contemplating an ICO it would be wise to understand the BSA and how it will impact an offering. What is the Bank Secrecy Act? The Bank Secrecy Act was passed in 1970 and requires U.S. financial institutions to assist U.S. government agencies in detecting and preventing money laundering and the financing of terrorism. To meet the objective of the Act, financial institutions are required to file the following reports[1]: Currency Transaction Report (CTR) Reports cash transactions >$10,000 in one day Suspicious Activity Report (SAR) Any cash transaction where the individual appears to be trying…

Read more detail on Recent Banking and Finance Law posts –

This entry was posted in Banking and Finance law and tagged , , , . Bookmark the permalink.

Leave a Reply