The
US
Treasury
Department
intends
to
place
a
significant
emphasis
on
addressing
the
risks
posed
by
cryptocurrencies
and
other
emerging
technologies
in
the
coming
months
via
comprehensive
regulation.
The
Treasury
has
made
digital
assets
a
key
area
of
focus
in
its
2024
National
Strategy
for
Combating
Terrorist
and
Other
Illicit
Financing
report.
The
strategy
outlined
a
comprehensive
approach
to
mitigate
illicit
actors’
misuse
of
these
technologies
while
promoting
a
transparent
and
secure
financial
system.
Closing
regulatory
gaps
The
Treasury’s
report
highlighted
the
evolving
threat
environment,
with
criminal
organizations
increasingly
leveraging
crypto
and
other
digital
assets
to
facilitate
illegal
activities
such
as
money
laundering,
terrorist
financing,
and
cybercrime.
The
2024
Strategy
aims
to
close
regulatory
gaps,
enhance
enforcement
actions,
and
strengthen
international
cooperation
to
combat
these
threats
effectively. The
Treasury
intends
to
implement
comprehensive
regulations
for
digital
assets
and
virtual
asset
service
providers
(VASPs).
Additionally,
the
Treasury
will
propose
rules
to
mandate
anti-money
laundering
and
countering
the
financing
of
terrorism
(AML/CFT)
programs
for
investment
advisers
and
increased
transparency
in
non-financed
real
estate
transactions.
It
will
also
monitor
and
adapt
rules
for
emerging
technologies
like
DeFi
to
prevent
criminals
from
exploiting
them.
The
report
also
said
that
enhancing
the
operational
effectiveness
of
law
enforcement
and
other
government
agencies
remains
crucial.
The
strategy
includes
initiatives
to
provide
robust
training,
leverage
advanced
technologies
like
AI
and
blockchain
analytics,
and
foster
public-private
partnerships
to
share
vital
information
on
illicit
activities.
The
Treasury
emphasized
the
importance
of
international
collaboration
to
tackle
illicit
finance,
working
with
global
partners
to
strengthen
AML/CFT
standards
and
share
intelligence
to
disrupt
cross-border
criminal
networks.
Responsible
technological
advancement
The
Treasury
will
also
prioritize
supporting
responsible
technological
advancements.
The
strategy
advocated
for
developing
secure
digital
identity
solutions
and
promoted
innovation
in
AML/CFT
compliance
technologies
within
the
private
sector.
The
Treasury
aims
to
finalize
these
regulations
and
continue
addressing
vulnerabilities
in
sectors
not
currently
subject
to
comprehensive
AML/CFT
measures.
The
report
highlighted
the
critical
need
to
remain
vigilant
and
responsive
to
new
threats.
The
ongoing
modernization
of
the
AML/CFT
regime
ensured
that
both
the
public
and
private
sectors
could
effectively
address
the
most
significant
illicit
finance
risks.
Despite
significant
advancements,
the
Treasury
acknowledged
ongoing
challenges
in
combatting
illicit
activity.
It
added
that
the
increasing
sophistication
of
illicit
actors,
particularly
in
the
virtual
asset
space,
requires
continuous
adaptation
and
innovation
in
regulatory
and
enforcement
frameworks.
The
Treasury
called
for
additional
resources
and
legislative
support
to
bolster
its
efforts
in
supervising
and
enforcing
compliance
among
non-bank
financial
institutions
and
new
market
entrants.
The
2024
Strategy
reaffirmed
the
US
government’s
commitment
to
maintaining
a
secure
and
transparent
financial
system.
By
addressing
the
risks
associated
with
digital
assets
and
fostering
international
collaboration,
the
Treasury
aims
to
create
a
resilient
environment
that
deters
illicit
activities
and
supports
legitimate
financial
innovation.
Go to Source
Author: Assad Jafri
