Chapter 6 of the report, focuses on Countering Illicit Finance in the digital assets space, making key recommendations on the US AML/CTF framework covering digital assets.
Key recommendations include:
➡️Rapid Treasury adoption of the Guiding and Establishing National Innovation for the U.S. Stablecoins act which would require stablecoin issuers to be treated as financial institutions under the Bank Secrecy Act;
➡️The Financial Crimes Enforcement Network should consider how guidance relates to the digital assets sector, making amendments where necessary;
➡️Legislation should consider specific AML/CTF obligations for actors throughout the decentralised finance #DeFi ecosystem;
➡️Where necessary, clarifying guidance should be provided to traditional FIs providing services to digital asset actors; and
➡️The Treasury should consider the way forward regarding proposed regulation for Convertible Virtual Currency mixing.
✅Firms should review the recommendations made to further understand the current administration’s legislative priorities and potential changes to the existing regulatory framework.
💡Plenitude’s Digital Assets Service provides advice to clients on regulatory obligations applicable to crypto firms and training on regulatory expectations and risk management to enhance efficiency and maintain compliance. Visit our website for more information: https://www.plenitudeconsulting.com/services/digital-assets-practice