The US Treasury's Financial Crimes Enforcement Network (FinCEN) is increasing its focus on cryptocurrencies.
The organization named Michele Korver, who previously worked for the Department of Justice, to be FinCEN's first chief digital currency advisor.
Its function will be to prevent “illicit financial practices”, according to the institution itself, which recently proposed new rules to better monitor cryptocurrency transfers.
More Rules, Less Privacy
More recently, FinCEN proposed a rule that would require cryptocurrency exchanges to perform KYC checks on users' wallets.
The rule, which is undergoing further revision, could lead to the exposure of entire user transaction histories, violating nonprofit digital privacy.
As the crypto sector gains more space, government institutions are beginning to expand their efforts to control the market. While regulation brings legal certainty, we must always be careful not to lose the right to privacy.