US Regulator Checks DeFi for Financial Crime
2022.12.08 01:51
US Regulator Checks DeFi for Financial Crime
Budrigannews.com – A financial regulator in the United States is seeking input from the banking industry regarding the potential impact that decentralized finance (DeFi) may have on the bureau’s efforts to combat financial crime.
The Financial Crimes Enforcement Network (FinCEN) stated that it is “looking carefully” at DeFi, and the digital asset ecosystem and virtual currencies are a “key priority area” for the agency, according to Himamauli Das, the acting director of the organization.
Das gave arranged comments on Dec. 6 at the American Brokers Affiliation’s Monetary Wrongdoings Requirement Meeting.
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In order to determine whether “additional regulations or guidance are necessary,” the acting director stated that the agency is “taking a close look” at its Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) framework for cryptocurrencies and digital assets.
Das stated, “In this effort, we are engaging with relevant U.S. government stakeholders.” We welcome interaction with the business community, including the banking community, to better comprehend your assessment of the risks and vulnerabilities.
DeFi’s “potential to reduce or eliminate the role of financial intermediaries,” which are essential to its AML and CFT efforts, was a particular source of concern for the regulator.
Das stated that the agency will need to reduce the “illicit finance and national security risks posed by the misuse of digital assets,” and it acknowledges that DeFi “will continue to impact the financial services industry.”
The Executive Order on Ensuring Responsible Development of Digital Assets, which was issued on March 9 by United States President Joe Biden, includes FinCEN’s evaluation of its AML and CFT frameworks.
A consequence of the Chief Request was the U.S. Depository Division’s “Activity Intend to Address Unlawful Supporting Dangers of Computerized Resources.”
“The publication of official documents, discussions, and Treasury programs that enable public-private and private-private information sharing” was one of the plan’s other recommendations for priority actions.
