The Government Accountability Office has recommended that the Internal Revenue Service and Financial Crimes Enforcement Network reassess their money service business registration requirements for virtual currency exchanges and virtual currency kiosk operators and initiate measures, such as requiring those operators to routinely provide information on the physical addresses of those kiosks.
Having information on specific locations of kiosks could help the IRS and FinCEN monitor high-risk kiosk operators for compliance and enable law enforcement officials to identify and trace potential illicit transactions, GAO said in a report publicly released Monday.
GAO interviewed officials and reviewed agency documentation and data and found that virtual currency has been increasingly used in drug and human trafficking.
The congressional watchdog noted that the number of suspicious activity reports that involve drug trafficking and the use of the digital currency filed by financial institutions with FinCEN rose from 252 in calendar year 2017 to 1,432 in calendar year 2020.
On Jan. 27, the Potomac Officers Club will bring together distinguished government and industry leaders to discuss the national security aspect of digital currencies. National Cyber Director Chris Inglis will deliver the keynote speech at POC’s Digital Currency and National Security Forum.
Register now for this virtual event via the POC Events page.
