Davis Polk partner Dan Stipano was quoted in American Banker discussing anti-money laundering regulation for cryptocurrency. Dan noted that Fincen made certain crypto businesses subject to the Bank Secrecy Act by including them in the definition of a money services business, but unlike banks and broker-dealers, for example, they are not subject to the full universe of regulations. Dan also explained that the perpetrators of ransomware schemes almost always demand payment in bitcoin, because they believe that affords them greater anonymity, and although the payments are tracked on a public ledger, it’s greater anonymity than a wire transfer would provide. He added that it is this perception of anonymity that makes cryptocurrency attractive to criminals.

“Will AML rules be extended to crypto?” American Banker, (August 9, 2021) (subscription required)

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