FinCEN fines US Bitcoin trader $35,000 for violating AML laws

posted 4 months ago
The Financial Crimes Enforcement Network (FinCEN) has for the first time penalized a “peer-to-peer cryptocurrency exchanger” for breaking AML rules. The US regulator said California resident and Bitcoin trader Eric Powers failed to comply with the Bank Secrecy Act’s registration and reporting requirements during 2012–2014.

While conducting the business of buying and selling bitcoins on the internet, Powers did not register himself as a money transmitter or as a money services business, FinCEN said. Powers conducted around 160 transactions in Bitcoin worth about $5 million, and the regulator said he did not file a single currency transaction report. According to the agency, Powers has admitted to the violations. As a result, Powers has been fined $35,000 and is barred from providing money transmission services.
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