Opinion by: Hazem Mulhim

A recent DIFC Fintech conference provided some interesting insights into the current situation in terms of regulations and cryptocurrencies, including:

• Some 95% of regulators have a team working on crypto regulations now.
• The crypto industry is lobbying to push for clear regulations, as it sees regulations as a positive development that will skyrocket the industry.
• When global cryptocurrency exchange Binance introduced know-your-customer (KYC) verifications, more than 96% of its customer base complied.
• The SEC imposed approximately $2.35 billion in total monetary penalties against digital asset market participants in 2021.
• Of the 20 SEC enforcement actions in 2021, 65% alleged fraud, 80% alleged unregistered securities offering violation, and 55% alleged both.

The Financial Action Task Force (FATF) recently defined virtual asset service providers to include cryptocurrency exchanges, stable coin issuers, DeFi protocols, and non-fungible tokens (NFT) marketplaces. 

This definition helps set the tone for regulation, with laws and directives following. As a result, the current global outlook for crypto regulations is buoyant and developing.

For example, the UK and the US are actively developing regulations to control cryptocurrencies. The UK’s HM Treasury states that: “HM Treasury expects financial crime including anti-money laundering requirements will apply to all wallets and issuers and that these will also have to register under AML [anti-money laundering] registration for their activities in relation to all types of crypto-assets.”

Read entire copy: https://www.weforum.org/agenda/2022/09/why-crypto-businesses-need-anti-money-laundering-regulations/