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US Treasury Seeks Public Comments on Crypto-Related Illicit Finance and National Security Risks

US Treasury Seeks Public Comments on Crypto-Related Illicit Finance and National Security Risks

The U.S. Department of the Treasury is seeking public input on “digital-asset-related illicit finance and national security risks.” The department warned: “The growing use of digital assets in financial activity heightens risks of crimes such as money laundering, terrorist and proliferation financing, fraud and theft schemes, and corruption.”

US Treasury Wants Public Comments on Crypto-Related Illicit Finance

The U.S. Department of the Treasury published a notice Tuesday inviting “interested members of the public to provide input pursuant to The Executive Order of March 9, 2022, ‘Ensuring Responsible Development of Digital Assets.’” The notice adds:

The department invites comments on the digital-asset-related illicit finance and national security risks as well as the publicly released action plan to mitigate the risks.

“Treasury welcomes input on any matter that commenters believe is relevant to Treasury’s ongoing efforts to assess the illicit finance risks associated with digital assets as well as the ongoing efforts to mitigate the risks,” the notice adds. Comments must be received on or before Nov. 3.

“The growing use of digital assets in financial activity heightens risks of crimes such as money laundering, terrorist and proliferation financing, fraud and theft schemes, and corruption,” the Treasury detailed. “These illicit activities highlight the need for ongoing scrutiny of the use of digital assets, the extent to which technological innovation may impact such activities, and exploration of opportunities to mitigate these risks through regulation, supervision, public-private engagement, oversight, and law enforcement.”

The Treasury requested answers to a list of questions concerning illicit finance risks relating to digital assets, non-fungible tokens (NFTs), decentralized finance (defi), and peer-to-peer technologies.

The questions focus on illicit finance risks; anti-money laundering and countering the financing of terrorism (AML/CFT) regulation and supervision; global implementation of AML/CFT standards; private sector engagement and AML/CFT solutions; and central bank digital currencies (CBDCs).

One of the questions asks how the Treasury can “most effectively support consistent implementation of global AML/CFT standards across jurisdictions for digital assets.” In addition, the Treasury asked whether there are specific countries or jurisdictions where the U.S. government should focus its efforts “to strengthen foreign AML/CFT regimes related to virtual asset service providers.” The full list of questions can be found here.

What do you think about the U.S. Treasury seeking comments on crypto-related illicit finance? Let us know in the comments section below.

Nasdaq Establishes Crypto Unit — Sees Increased Demand for Digital Assets Among Institutional Investors

Nasdaq has announced the launch of “Nasdaq Digital Assets” citing increased demand for digital assets among institutional investors in recent years. Initially, the new crypto unit will offer custody solutions for bitcoin and ether to institutional investors. Nasdaq Establishes Crypto Unit Nasdaq (Nasdaq: NDAQ), the world’s second-largest stock exchange, announced Tuesday the launch of a::Listen

Nasdaq has announced the launch of “Nasdaq Digital Assets” citing increased demand for digital assets among institutional investors in recent years. Initially, the new crypto unit will offer custody solutions for bitcoin and ether to institutional investors.

Nasdaq Establishes Crypto Unit

Nasdaq (Nasdaq: NDAQ), the world’s second-largest stock exchange, announced Tuesday the launch of a new business called “Nasdaq Digital Assets.” Initially, Nasdaq Digital Assets will develop an institutional-grade custody solution, the announcement details, adding:

Nasdaq’s custody solution will bring together the best attributes of hot and cold crypto wallets.

Tal Cohen, head of North American Markets at Nasdaq, told Bloomberg that the new crypto group will initially offer custody services for bitcoin (BTC) and ether (ETH) to institutional investors.

Ira Auerbach, who ran prime broker services at cryptocurrency exchange Gemini, will lead the new unit. Nasdaq’s offering is subject to regulatory approval in applicable jurisdictions.

Adena Friedman, president and CEO of Nasdaq, explained: “Nasdaq Digital Assets builds upon the successful solutions we have introduced in recent years to serve the digital assets ecosystem, including marketplace technology for digital asset exchanges, crypto-native anti-financial crime offerings, and crypto-related index solutions for tradable products.”

Cohen noted:

Demand among institutional investors for engaging in digital assets has increased in recent years, and Nasdaq is well-positioned to accelerate broader adoption and drive sustainable growth.

Nasdaq also announced Tuesday the expansion of its “anti-financial crime technology with new capabilities and coverage for the cryptocurrency ecosystem.”

The company detailed:

Through its Verafin and Surveillance product offerings, Nasdaq has launched a comprehensive suite of crypto-specific detection capabilities.

The new tools will allow the company “to effectively mitigate risks and provide continuous monitoring of anti-money laundering, fraud detection, and market abuse across traditional and digital assets, fiat and crypto, and on- and off-chain activities,” the announcement notes.

“As the world of digital assets evolves and converges with traditional finance, it is crucial to provide the necessary portfolio of technology solutions designed to safeguard participants across the financial ecosystem,” said Jamie King, head of Anti-Financial Crime at Nasdaq.

What do you think about Nasdaq establishing a crypto unit? Let us know in the comments section below.

US Treasury Seeks Public Comments on Crypto-Related Illicit Finance and National Security Risks

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