Featured Product

    US Treasury Briefing on Regulatory Issues Related to Cryptocurrencies

    July 15, 2019

    In a White House press briefing, Secretary Steven Mnuchin of the U.S. Treasury spoke about the concerns associated with digital assets, including crypto-currencies such as Bitcoin or Libra. Recently, the representatives of Facebook’s Calibra Project were expected to go to Capitol Hill to discuss their proposal for a crypto-currency, the Libra. At the Treasury Department, across the U.S. government, and with the international financial community, there has been a great deal of recent activity related to the regulation and the treatment of digital assets and crypto-currencies. Mr. Mnuchin gave some brief explanatory remarks about what the Treasury has been doing on this front.

    Last month, the Libra Association—a consortium of 28 businesses, including a Facebook subsidiary—announced that it is developing a crypto-currency called the “Libra.” The Treasury Department has expressed very serious concerns that Libra could be misused by money launderers and terrorist financiers. Crypto-currencies, such as Bitcoin, have been exploited to support billions of dollars of illicit activity in the form of cyber crime, tax evasion, extortion, ransomware, illicit drugs, and human trafficking. Many players have attempted to use crypto-currencies to fund their malign behavior. This is indeed a national security issue. 
    The United States has been at the forefront of regulating entities that provide crypto-currency. The United States will not allow digital asset service providers to operate in the shadows and will not tolerate the use of crypto-currencies in support of illicit activities, said Secretary Mnuchin. The U.S. welcomes responsible innovation, including new technologies that may improve the efficiency of the financial system and expand access to financial services. With respect to Facebook’s Libra and other developments in crypto-currencies, the overriding goal is to maintain the integrity of financial system and protect it from abuse. The U.S. Treasury takes very seriously the role of the U.S. dollar as the world’s reserve currency and it will continue its efforts to protect country and secure the U.S. and global financial systems.
     
    The U.S. Treasury has been very clear to Facebook, Bitcoin users, and other providers of digital financial services that they must implement the same anti-money laundering and countering financing of terrorism—known as AML/CFT—safeguards as traditional financial institutions. Money transmitters of crypto-currency must comply with the relevant Bank Secrecy Act obligations, known as BSA, and register with the Financial Crimes Enforcement Network, known as FinCEN, which is a bureau of the U.S. Department of Treasury with the mission to safeguard the financial system from illicit use, combat money laundering, and promote national security through the dissemination of financial intelligence. As money service businesses, crypto-currency money transmitters are subject to compliance examinations just like every other U.S. bank. He said, "To be clear: FinCEN will hold any entity that transacts in Bitcoin, Libra, or any other crypto-currency to its highest standards."
     
    Mr. Mnuchin highlighted that he also recently established the FSOC Working Group on Digital Assets. This FSOC group enables U.S. financial regulators, such as FinCEN, FED, OCC, CFTC, CFPB, SEC, and other key stakeholders to work together to combat risks posed by crypto-currencies. Given the international nature of crypto-currencies, we are also going to great lengths to ensure that effective regulation does not stop here at the U.S. border. Last month, led by the United States, the Financial Action Task Force, known as FATF, the global standard-setter for AML/CFT, adopted comprehensive measures on how countries must regulate and supervise activities and providers in this space. This was a major step toward harmonizing international regulations concerning crypto-currencies. There has been extensive work at the G20 and this issue will be addressed again this week at the G7 Finance Minister in France.

     
    Related Link: Statement

     

    Keywords: Americas, US, Banking, Crypto Assets, Libra, Facebook, Fintech, AML/CFT, US Treasury

    Related Articles
    News

    PRA to Elaborate on Approach to Transposition of CRD5 by Mid-December

    PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.

    November 30, 2020 WebPage Regulatory News
    News

    SRB Sets Out Work Program for 2021-2023

    SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.

    November 30, 2020 WebPage Regulatory News
    News

    EIOPA Consults on KPIs on Sustainability for Non-Financial Reporting

    EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.

    November 30, 2020 WebPage Regulatory News
    News

    ECB Publishes Guide on Management of Climate and Environmental Risks

    ECB finalized guidance on the way it expects banks to prudently manage and transparently disclose climate and other environmental risks under the current prudential rules.

    November 27, 2020 WebPage Regulatory News
    News

    BCBS Amends Capital Treatment of Non-Performing Loan Securitizations

    BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.

    November 26, 2020 WebPage Regulatory News
    News

    BoE to Move Statistical Data Collection to BEEDs Portal

    BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.

    November 25, 2020 WebPage Regulatory News
    News

    APRA Updates Reporting Standards and Guidance for EFS Data Collection

    APRA published the updated reporting standards and guidance for the collection of Economic and Financial Statistics (EFS), following a consultation process. Also published was a response letter to the feedback received on the proposal for amending the EFS reporting standards and guidance.

    November 24, 2020 WebPage Regulatory News
    News

    EC Consults on Criteria for Environmentally Sustainable Activities

    EC is consulting on a draft delegated regulation to supplement the Taxonomy Regulation (2020/852) by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as environmentally sustainable.

    November 20, 2020 WebPage Regulatory News
    News

    IFRS Examines Incorporation of Climate Risk Issues into IFRS Standards

    The IFRS Foundation published material highlighting the ways in which existing requirements in IFRS standards require companies to consider climate-related matters when their effect is material to the financial statements.

    November 20, 2020 WebPage Regulatory News
    News

    FSB Report Outlines Progress on Interest Rate Benchmark Reform

    FSB published a progress report on the implementation of reforms to major interest rate benchmarks, including the London Inter-bank Offered Rate (LIBOR) benchmark.

    November 20, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6167