Cryptocurrency Move from the Treasury Department: Requested Comment!

Cryptocurrency Move from the Treasury Department: Requested Comment!

The US Treasury Department has asked the public for help with cryptocurrencies. It asked for comments on how it could be used for financial crimes and the risks it poses. The request for comments follows three reports from the Treasury discussing the future of payments, the impact of crypto on consumers and preventing crypto-related financial crimes.

Treasury asks the public to speak out about cryptocurrency crimes As we have reported, the US Treasury Department is seeking public assistance in the field of cryptocurrency. In this context, it is seeking the public's help to determine how to prevent financial crimes. The government's finance office issued a request for comment on Monday. It invited the public to share their perspectives on digital assets and the role they can play in illicit finance.

The announcement refers to President Biden's executive order on "Ensuring the Responsible Development of Digital Assets," which was signed into law in March. It comes on the heels of three crypto reports from the Treasury released on Friday, covering the future of payments, the potential impact of the technology on consumers and businesses, and ways to reduce financial crime. On the same day, the White House also released its first comprehensive framework for regulating the space. In today's statement, Treasury asked the public to voice their views on five topics.
  • Illicit financing risks.
  • Money laundering (AML).
  • Counter-terrorist financing (CTF) regulations.
  • Implementing global AML and CTF standards.
  • Engaging with the private sector on AML and CTF regulations.

Treasury highlights DeFi, NFTs, CBDC

The Treasury's note contains a series of questions asking the public whether it has 'comprehensively identified the illicit financing risks associated with digital assets'. It also asks the public to advise on potential 'illicit financing risks' associated with DeFi and NFTs.

Other questions include possible ways the government could work to prevent crypto-related cybercrime and ransomware, how the Treasury could use its analytics tools to prevent illicit finance, and how it could apply AML and CTF 'controls' to a US Federal Reserve Digital Currency. Updates from the White House and Treasury last week hinted at the possibility of multiple digital dollars. However, no such currency has yet been approved. The Treasury is ready to assess the implications of launching a CBDC. However, it has also tasked the Fed with ongoing research on how it could be designed.

Recent developments from the Biden Administration suggest that the Treasury is paying close attention to the cryptocurrency sector. But it is still unclear how it plans to weigh in. According to today's update, it also does not yet know how it plans to handle regulating the technology. In Friday's update, Treasury Secretary Janet Yellen pointed to "significant opportunities" in the crypto space. But the reports also sharply focused on potential risks. Today's notice, covering illicit finance concerns, reiterates this point. This suggests that the department is creating a downside for cryptocurrency. It also proves that it has a possible positive approach.

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