Home » Dogecoin » US regulator to seek feedback on DeFi's impact on financial crime

A financial system regulator in the United States has sought feedback from commercial banks to understand how decentralized finance (DeFi) harms our unremitting efforts to dissuade financial crimes.

FinCEN shows that it has "carefully analyzed" DeFi, but Himamauli Das, the agency's acting director, said that the digital asset ecosystem and digital currency are the "important priority industries" of the institution.

Das delivered a prepared speech at the Financial Crime Inspection Meeting of the American Institute of Financiers on December 6.

The Acting Director added that the agency had "carefully considered" its compliance management (AML) and counter-terrorism support (CFT) architecture for digital currency and digital assets to decide whether "additional policies, regulations or specific guidance are necessary"

"We are in touch with relevant stakeholders in the US government," Das said. "We warmly welcome the industry - including the banking sector - to participate in order to better understand your assessment of vulnerability and risk."

In particular, the regulatory authority expressed concern that DeFi "is likely to or reduce the effectiveness of clearing financing intermediaries", which will be particularly important for its compliance management and anti-terrorism financing work.

Das said that it realized that DeFi "will continue to endanger the financial industry" and that the institution must mitigate "the hidden dangers of illegal finance and national security caused by misuse of digital assets"

FinCEN's assessment of AML and CFT structures is a part of the Administrative Regulations on Ensuring Responsible R&D of Digital Assets issued by US President Joe Ban Ki moon on March 9.

The result of this administrative regulation is the "Plan for Dealing with the Risks of Illegal Financing of Digital Assets" of the US National Treasury Department

In other priority practices, this plan proposes to promote stakeholder participation according to "publish government documents, thoughts and financial plans, and promote public and private resource sharing"

  • #Laws and regulations
  • #FinCEN Enterprise
  • #United States
  • #AML Enterprise
  • #Terrorism
  • #Offences
  • #Anti terrorist equity financing
  • #DeFi Enterprise
  • #Policies and regulations
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