Tisha Patel

IR I 10GT
May 6th, 2020
Data Collection Analysis
For my data collection, I reviewed the laws that governed or had a hold on the regulation of
cryptocurrency. Overall, when studying these laws, there was a clear theme of catastrophe.
There were many contradicting sections of laws that are used. Moreover, in my paper I
mentioned a solution to the harsh and confusing regulation, the RICO laws were suited better
to be implemented for cryptocurrency as they more closely align with the crimes that can be
committed through the use of cryptocurrency.

Citations:
31 U.S. Code § 5312
31 CFR § 1010.200-1010.220
31 CFR § 1010.230
31 USC Subtitle IV Chapter 53 Subchapter III §§ 5340-5355
31 USC Subtitle IV Chapter 53 Subchapter II §§ 5311-5332
18 USC Chapter 96

Annotations:
31 U.S. Code § 5312
This USC title deals with the definitions for the law and the background of how financial
institutions operate. Because cryptocurrency is not explicitly mentioned, it is up to the courts to
determine how the coins versus the platforms operate and it can be interpreted in many
different ways depending on the use. This source is reliable because it comes directly from the
USC which governs and outlines all national laws of the United States.

31 CFR § 1010.200-1010.220
These sections of the CFR ensure that cryptocurrency companies are not exempted financial
institutions as defined in this chapter and therefore are accountable for abiding by the laws
outlined in the chapter. This also highlights the flow of money in and out of a country and how
that is regulated. This source is reliable because it comes directly from the CFR which governs
and outlines all international laws of the United States’ foreign relations.

31 CFR § 1010.230
This section of the CFR highlighted the Know-Your-Customer aspects of international regulation
and what pieces of personal information must be provided by international buyers in order to
be able to track international financial crimes through the use of cryptocurrency. This source is
reliable because it comes directly from the CFR which governs and outlines all international
laws of the United States’ foreign relations.
31 USC Subtitle IV Chapter 53 Subchapter III §§ 5340-5355
This section of the USC states what areas are exempted or given special consideration because
they are centers of international commerce. A popular example is New York City. Otherwise,
there are indicators that show when there is likely a moving of illicit funds and must not be
stopped. Essentially there is a cap on how much money can be moved through a certain part of
the country before it becomes suspicious with the exception of these international commerce
areas because large sums of money flow in and out of these cities consistently. This source is
reliable because it comes directly from the USC which governs and outlines all national laws of
the United States.

31 USC Subtitle IV Chapter 53 Subchapter II §§ 5311-5332

This section if the USC highlights what standard of personal information must be maintained by
financial institutions and recordkeeping on all customers to identify illicit users and expresses
the measures the United States must take to combat the funding of global terrorism, including
establishing reports on their progress every year. This source is reliable because it comes
directly from the USC which governs and outlines all national laws of the United States.

18 USC Chapter 96
This title of the USC deals with the Racketeering Influenced Corrupt Organizations (RICO) laws
of the United States. These laws address the crimes that are used with the money being
transferred outside of the United States. These crimes are treated more harshly and are given
more strict standards in a court of law to ensure the conviction of the right person or group
responsible. This source is reliable because it comes directly from the USC which governs and
outlines all national laws of the United States.

Chart:
Title 31 U.S. 31 CFR § 31 CFR § 31 USC 31 USC 18 USC
Code § 1010.200- 1010.230 Subtitle IV Subtitle IV Chapter 96
5312 1010.220 Chapter 53 Chapter 53
Subchapter Subchapter
III §§ 5340- II §§ 5311-
5355 5332

Control 1: Definitions Cryptocurr With

AML for the law ency cryptocurre
and regular companies ncy, any
are not area can
background
exempt now be an
Bitcoin from AML area for an
companies and KYC internation
can be regulation al center of
considered s as commerce
defined in as stated
domestic
this earlier in
financial chapter the law
institutions itself. If
under the one affects
definitions another,
presented cryptocurre
in 31 U.S. ncy is
subjected
Code §
to heavier
5312. regulation
to protect
American
values and
lessen the
funding of
terrorism.
However,
there are
many
issues that
this heavy
regulation
arises, such
as the
hindrance
of
innovation
which must
occur in
order to
help these
problems
essentially
resolve
themselves
by trusting
our
companies
to create
 safe and
legal
technologi
es that can
adhere to
AML laws
and
prevent
illicit uses
within the
technology
itself.

Control 2: Definitions A common

BSA, KYC for the law standard of
and identificati
guidelines. on must be
Know- maintained
Your- in order to
Customer adequately
Laws identify the
require all user and
covered find those
financial accused of
institutions financial
to disclose crimes
the name, through
address, financial
date of institutions
birth, that may
Social unwittingly
Security be
and/or exploited.
passport Moreover,
numbers this
for all informatio
people that n can be
may be transferred
considered from 1
beneficial federal
owners. agency to
another
but can
 only be
used for
the sole
purpose of
detecting
financial
crimes in
order to
not scare
others
away from
providing
this
informatio
n and being
able to
utilize the
technology
. (More
analysis
included on
other
chart)

Control 3: These laws

RICO are more
strict and
align more
with the
crimes that
cryptocurre
ncy is being
used to
complete
as opposed
to the
financial
crimes that
are often
only used
for
personal
gain.