The Treasury was critical of a regulatory framework “inadequate”which encourages money laundering and “financial terrorism”. The problem, which is present in several countries, makes it difficult for the United States to investigate transactions in case the money is transferred abroad.
The need to establish shared standards regarding these digital assets was included within a document that the Treasury sent to President Joe Biden, and that the White House requested last March.
Similarly, the agency considered that the United States should continue to be “a leader in discussions about digital currencies issued by central banks.”
The Federal Reserve (FED) explored in recent months the possibility of a digital dollar but has not yet reached a final decision, while the European Central Bank (ECB) began a 24-month investigation for one euro in that format in July last year.
“Joint international work must continue to seek solutions to all the problems and challenges that digital assets comprise, including financial stability, consumer and investor protection, money laundering, sanctions evasion and other illicit activities,” Treasury said.
The entity promised to continue working together with other organizations, such as the G7, the G20 and the Organization for Economic Co-operation and Development (OECD).
The International Monetary Fund (IMF), although it highlighted the possibilities of banking and the speed of payments offered by cryptocurrencies, warned of risks to financial stability.
“The anonymity of crypto assets creates data gaps for regulators and can open doors to money laundering and terrorist financing,” the Department warned in October.
The European Union agreed regulations
The companies of cryptocurrencies they will need a license and guarantees for clients to issue and sell digital tokens in the European Union, under innovative new rules agreed by the bloc to rein in the volatile “Wild West” market.
Globally, crypto assets are largely unregulated and EU national operators are only required to show controls to combat money laundering.
Representatives of the European Parliament and the EU states reached an agreement late on Thursday last week on the Cryptoactive Markets Law (MiCA).
“Today we bring order to the wild west of crypto assets and establish clear rules for a harmonized market,” he said. Stefan Bergera center-right lawmaker who led the negotiations on behalf of Parliament.
Source: Ambito
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