FinCEN Files: Crypto Industry Condemns 'Global Systemic Failure'

Tuesday 22 September 2020, 11:37 PM AEST - 1 month ago

shutterstock_10289933771-gID_6.jpgThe crypto industry responds to the FinCEN Files. Image: Shutterstock.

  • The legitimacy and competence of governments and regulators have been questioned after the FinCEN Files expose systemic corruption.
  • The crypto industry has condemned the lack of progress seen in the fight against financial crime.
  • Some crypto pundits have emphasised how blockchain technology can help address international shortcomings.

The crypto industry has denounced the failings of governments and regulators after the FinCEN Files exposed mass global corruption and a toothless regulatory environment.

The worlds biggest banks and largest financial centres have been implicated in a litany of scandals, including HSBC allegedly moving millions of stolen funds, and London reportedly giving Russian mobsters safe haven for their dirty money. Crypto pundits have taken notice, criticizing the very foundation of the global financial system.

What is in question today is the legitimacy and even competence of governments and regulators, Juan Llanos, compliance executive and advisor at crypto-focused firm Juan Llanos Advisors, told Decrypt.

Llanos added that the FinCEN Files were the result of a global systemic failure that has to do with poor design, distorted incentives and our flawed human nature.

Getting regulated by a broken system

With faith in the integrity of regulations and their enforcement seemingly hitting a new low, crypto enthusiasts have drawn a line in the sand between their camp and traditional finance.

Fuck banks, enter Bitcoin, tweeted Pavol Rusnak, co-founder and CTO of Satoshi Labs.

This frustration also portrays a loss of patience. Before the FinCEN Files, other major financial leaks like the Panama Papers and Paradise Papers made it obvious financial crime was rampant, yet there has not been enough progress in keeping dirty money out the system.

The main point is to apply criminal law to criminals—irrespective of them working in large institutio ...

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