U.S. Treasury Secretary Steven Mnuchin has revealed that his department’s Financial Crimes Enforcement Network (FinCEN) is currently working on new cryptocurrency rules designed to enhance transparency and reduce the risk of money laundering, Bloomberg reports.
Mnuchin’s remarks came during an appearance before the Senate Finance Committee on Wednesday. While he was there to discuss the latest administration budget proposal, he provided new details about FinCEN’s plans in response to lawmakers’ questions. According to him, the goal is to increase transparency while preserving the industry’s ability to innovate and improve the technology:
“Specifically, on cryptocurrencies, we are spending a lot of time on this, on both an inter-agency basis and with the regulators.
We are about to roll out some significant new requirements at FinCEN. We want to make sure that technology moves forward. On the other hand, we want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts.”
Mnuchin suggested that the new rules would enhance law enforcement’s ability to track cryptocurrency transactions, a critical aspect of money-laundering prevention.