Financial Crimes Enforcement Network (FinCEN) has received over 7,100 SAR (Suspicious Activity Report) messages from the cryptocurrency industry participants since May. The statistic was provided by the director of FinCEN Kenneth Blanco during the annual ABA/ABA Financial Crimes Enforcement Conference.
In total, over 11 thousand SAR reports on cryptocurrency transactions came to FinCEN during this period.
Blanco emphasized that a significant increase in the number of SARs regarding transactions with virtual currencies occurred after the publication of a guide this May where the regulator outlined the principles for applying the Bank Secrecy Act to the latest developments in financial innovation.
He noted that dozens of cryptocurrency companies that had never reported before began sending messages about suspicious transactions.
According to Blanco, SAR reports point to Venezuela as one of the hotbeds of suspicious cryptocurrency activity. Also, the number of reports from American companies concerning the darknet, fraud, and activities aimed at people with limited knowledge about cryptocurrencies, including the elderly, is also growing rapidly.
Earlier, FinCEN, together with the SEC and CFTC, warned participants of the crypto industry about the need to comply with regulatory requirements.