The Watercooler at the ICO Pitch Competition

Good to run into crowdfunding platforms, entrepreneurs and a number of anti-money laundering experts at Disruptive’s Blockchain ICO Pitch Competition. A good reminder to ICOs (and the rest of this business ecosystem, including the exchanges) of the importance of anti-money laundering compliance, a concern that’s been flagged in Canada by the Canadian Senate committee and FinTRAC.

Rules labelling virtual currency exchanges as money services businesses and thereby bringing them within the AML regulatory regime have been created in Canada. In the United States, with respect of cryptocurrency exchanges, the Financial Crimes Enforcement Network has effectively done the same, back in 2014 first ruling that custodial bitcoin exchanges and payment processors may be considered money services businesses.

Internationally, ICOs and their proximity to money laundering, are being watched, and watched closely, not just by regulators but by intelligence and security agencies like the FBI.