Regulatory Tracker

22 November, 2022

Washington published a Comprehensive Framework for Digital Assets and host the Second International Counter Ransomware Initiative (CRI) Summit.

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On September 16, 2022, the White House released its “First-Ever Comprehensive Framework for Responsible Development of Digital Assets”. Following President Joe Biden’s Executive Order, agencies across the United States government have worked together to develop policies, recommendations, and frameworks relating to digital assets.

The six key priorities identified in the Executive Order released on March 9, 2022, are: Ā 

  1. Consumer and investor protection
  2. Promoting financial stability
  3. Countering illicit finance
  4. S. leadership in the global financial system and economic competitiveness
  5. Financial inclusion
  6. Responsible innovation

Outlining an inter-agency coordination approach to address risks resulting from the growth of digital assets and blockchain technology while supporting responsible innovation.Ā 

The Framework for Responsible Development of Digital Assets fact sheet is organized around seven main recommendations with respect to cryptocurrencies:Ā 

Protecting consumers, investors, and businessesĀ 

  • Chase investigations and enforcements actions against unlawful practicesĀ Ā 
  • Monitor consumers complaintsĀ Ā 
  • Lead public awareness about the risk involved with digital assetsĀ Ā 

Promoting financial inclusionĀ 

  • Use of innovative technologies by payment providersĀ Ā 
  • Regulate non-bank payment providersĀ Ā 
  • Improve efficiency of cross border paymentsĀ Ā 
  • Ensure that the crypto ecosystem is designed to be usable, inclusive, equitable and accessible by allĀ Ā 

Countering illicit financeĀ 

  • Update the Bank Secrecy Act regulations including digital asset exchanges and nonfungible token (ā€œNFTā€) platformsĀ 
  • Enhance dialogue with the private sectorĀ 
  • Strengthen US AML/CFT supervision of virtual asset activitiesĀ 

Reinforcing US financial leadership and economic competitivenessĀ 

  • Increase collaboration with agencies in foreign countriesĀ 
  • Expand leadership roles on digital assets work at international organizationsĀ 

Fostering Financial StabilityĀ 

  • Mitigate cyber vulnerabilitiesĀ Ā 
  • Work other international agencies like the OECD and the FSB to identify and analyze emerging risksĀ Ā 

Advancing responsible innovationĀ 

  • Research to develop methods of informing the public on safe and responsible digital asset useĀ Ā 
  • Track and mitigate the environmental harm impacts around digital assetsĀ Ā 

Exploring a US central bank digital currency (CBDC)Ā 

A U.S. CBDC (digital form of the U.S. dollar) could bring significant benefits. However, the Federal Reserve is encouraged to continue its ongoing CBDC research, experimentation, and evaluation before implementing.Ā Ā 


Governments against ransomware:Ā 
Ā 

The members of the International Counter Ransomware Initiative (ā€œCRIā€) met in Washington at the end of October 2022 to debate on the prevention of cyberattacks, ransomware and money laundering using digital assets.Ā Ā 

The CRI members published a joint statement with goals to achieve including:Ā Ā 

  • Combat ransomware actors’ ability to profit from illicit proceeds by implementing and enforcing anti-money laundering and countering the financing of terrorism (AML/CFT) measures for virtual assets and VASPs
  • Collaborate in disrupting ransomware by sharing information to ensure national cyberinfrastructure is not being used in ransomware attacks
  • Hold ransomware actors accountable
  • Disrupt and bring to justice ransomware actors and their enablersĀ 

How Apex can helpĀ 

  • VASP / CASP Due diligence
  • Crypto/Virtual Asset/ VASP- CASP Licensing
  • Crypto AML & Compliance supportĀ 
  • Crypto AML Business Risk Assessment (AML BRA)
  • Crypto Risk managementĀ 
  • Crypto Training
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