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This is a balanced article on the regulation of digital assets and its benefits. Highlighting that regulation will come to the asset class from various sources. In this case the Financial Action Task Force (FATF), the global AML and Terrorist Financing inter-government watchdog, focused on Anti-Money Laundering and terrorist financing. Like traditional forms of finance and asset management, digital assets attract criminals that are exploiting digital assets for ransomware and money laundering. Leading regulators to pay attention to the market as prices in crypto currencies have increased beyond reasonable market expectations and NFTS have attracted investors.
Whilst there are concerns that regulation will stifle the industry, the volumes of money pouring into these unregulated asset classes has got regulatory attention. Enforcing money transfer regulations to be applied to crypto assets. That for Permissionless distributed networks that rely on anonymity, may create a headache from asset creation through to asset transfer.
In my view this sits along-side recent US Department of Treasury (DoT) announcements on the consequences under OFAC, of paying ransomware and the use of digital currencies. The UK and EU are also moving towards the implementation of the ‘travel rule’, requiring any asset transfers to include the details detailed personal information of both the originator and beneficiary. (https://lnkd.in/dz7xAHrF)
Is regulation starting to catch up with digital currency? Virtual assets including digital currencies and NFTs are a major contributor to innovation and have demonstrated their ability to disaggregate traditional forms of finance. But will they have to fall in line with other regulated markets and what will this mean for the crypto currency market?
Dean Armstrong QC Richard Cardrick
#cyberlegal‚Â #legal‚Â #generalcounsel‚Â #cybersecurity‚Â #cyberriskmanagement‚Â #compliance‚Â #regulatorycompliance‚Â #cyberregulation‚Â #ransomeware‚Â #nist‚Â #cyberinsurance #digitalcurrency #cryptocurrencies #cryptoregulation
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