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73 Ark. L. Rev. 397 (2020-2021)
Do We Need KYC/AML: The Bank Secrecy Act and Virtual Currency Exchanges

handle is hein.journals/arklr73 and id is 417 raw text is: DO WE NEED KYC/AML: THE BANK SECRECY ACT AND VIRTUAL CURRENCY EXCHANGES Stan Sater* Technology is moving faster than government or law can keep up. It's moving faster than you can keep up: you should be asking the question of what are your rights and who owns your data. - Gus Hunt 2013 CIA Chief Technology Officers I. INTRODUCTION The Currency and Foreign Transactions Reporting Act, com- monly referred to as the Bank Secrecy Act (the BSA), is the U.S. government's 800-pound gorilla when it comes to regulating vir- tual currency.2 It has been expanded, transformed, and updated since its initial passage in 1970 to keep pace with new develop- ments in global terrorism and money laundering, all the while only being challenged twice on its constitutional merits.3 The BSA, as notably amended by the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), im- poses financial recordkeeping and reporting requirements, know your customer (KYC) requirements, and requirements to * Associate, Founders Legal Bekiares Eliezer, LLP; J.D. 2019 Tulane University Law School. 1. EDWARD SNOWDEN, PERMANENT RECORD 248 (2019) (quoting Ira Gus Hunt) (quotation marks omitted and alteration adopted). 2. Currency and Foreign Transactions Reporting Act, Pub. L. No. 91-508, 84 Stat. 1118 (1970). 3. United States v. Miller, 425 U.S. 435, 441, 443 (1976); Cal. Bankers Ass'n v. Shultz, 416 U.S. 21, 54 (1974); see PETER VAN vALKENBURGH, ELECTRONIC CASH, DECENTRALIZED EXCHANGE, AND THE CONSTITUTION 7 (2019), [https://perma.cc/LG8E- NSM8]; BSA Timeline, FIN. CRIMES ENFORCEMENT NETWORK, [https://perma.cc/N5NJ- AMP7] (last visited Nov. 28, 2019). Most recently, the U.S. Supreme Court declined to overrule Miller in its Carpenter decision. Carpenter v. United States, 138 S. Ct. 2206, 2220 (2018) (We do not disturb the application of Smith and Miller ....).

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