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

    OSFI Issues Results of Pilot on Climate Risk Scenario Analysis

    The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.

    January 20, 2022 WebPage Regulatory News
    News

    EC Issues Regulation on Adjustments to K-Factor Coefficients Under IFR

    The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).

    January 20, 2022 WebPage Regulatory News
    News

    ECB Issues Opinions on Green Bonds Standard and CRR Proposals

    The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.

    January 19, 2022 WebPage Regulatory News
    News

    ESRB Explores Policy Response to Risks Arising from Digitalization

    The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.

    January 18, 2022 WebPage Regulatory News
    News

    HKMA Consults on FIRO Code, Revises Policy on Foreign Exchange Risk

    The Hong Kong Monetary Authority (HKMA) is consulting on the draft Financial Institutions (Resolution) Ordinance (Cap. 628), or FIRO, Code of Practice chapter on liquidity and funding in resolution, until March 14, 2022.

    January 18, 2022 WebPage Regulatory News
    News

    FI Publishes Multiple Regulatory and Reporting Updates

    The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.

    January 17, 2022 WebPage Regulatory News
    News

    EU Authorities Address COVID-19 Reporting, MCD, and PSD2 Issues

    The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.

    January 17, 2022 WebPage Regulatory News
    News

    BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance

    The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.

    January 16, 2022 WebPage Regulatory News
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7881