Great insights by Justin Muscolino
Week 3 - The World of Digital Assets! We are halfway through our six-week Regulatory Compliance Training Series. This week we are going to submerse ourselves in the wonderful world of digital assets. It’s exciting to know where we could go and the potential in the future with digital assets. But, before we get too far, the industry remains pretty much desperate for regulations and some type of framework to operate within. The U.S. is behind Europe, certain parts of Asia and other jurisdictions in putting formal crypto regulations. governance and compliance standards together. Will 2024 be the year the US catches-up? The answer really depends on a few factors. 1️⃣ Will enforcement actions stimulate the urgency for new regulations soon than later? The SEC & CFTC are going to continue with their crypto enforcement agenda. 2️⃣ Will the IRS proposal be a good start for taxing crypto? 3️⃣ Will Congress finally pass the Digital Asset AML Bill and the Responsible Financial Innovation Act? 4️⃣ Will regulators be more motivated due to new investors pouring into Bitcoin ETFs and that we are so far behind other countries? 5️⃣ Will examinations uncover more issues? Do the answers to these questions matter so much for Compliance Officers right now? No, we must live in the present and prepare for the future. There are many unknowns for this year, and we should know more by the end of Q1. With the pace of innovation in cryptocurrencies and blockchain technology, it necessitates a solid framework for financial institutions! For Compliance Officers, this is important as governments and regulators around the world develop regulations around digital assets that could impact you this year and years to come. We need to prepare relevant staff by educating them on the basics of digital assets and the regulations that do exist now. With Fraud on the rise and money laundering risks heightened, these are two other areas where staff should have their knowledge refreshed, including understanding the current risks in the atmosphere. Great read: Earlier this month, the UN released a report on Casinos, Money Laundering, Underground Banking, and Transnational Organized Crime. Casinos and cryptocurrency: major drivers of money laundering, underground banking, and cyberfraud in East and Southeast Asia (unodc.org). Check the link in the comment. This is only the beginning of digital assets. There is more in store. For more detailed insights and training opportunities, follow JTM Compliance Training. #RegulatoryCompliance #DigitalAssets #CryptocurrencyRegulation #AML #JTMComplianceTraining