DeFi Is Used to Launder Money and Needs Regulation, Says U.S. Treasury Department

DeFi Is Used to Launder Money and Needs Regulation, Says U.S. Treasury Department

The U.S. Treasury Department released the 2023 DeFi Illicit Finance Risk Assessment today, saying that DeFi is now used by bad actors to launder money and needs regulation.

Brian E. Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence, said, "our assessment finds that illicit actors, including criminals, scammers, and North Korean cyber actors, are using DeFi services in the process of laundering illicit funds. Capturing the potential benefits associated with DeFi services requires addressing these risks. The private sector should use the findings of this assessment to inform their own risk mitigation strategies and to take clear steps, in line with AML/CFT (anti-money laundering and countering the financing of terrorism) regulations and sanctions obligations, to prevent illicit actors from abusing DeFi services."

According to the assessment, "the primary vulnerability that illicit actors exploit stems from non-compliance by DeFi services with AML/CFT and sanctions obligations." In addition, it includes recommendations for U.S. government actions to mitigate the illicit finance risks associated with DeFi services. These include:

  • strengthening U.S. AML/CFT regulatory supervision
  • considering additional guidance for the private sector on DeFi services' AML/CFT obligations
  • assessing enhancement to address any AML/CFT regulatory gaps related to DeFi services

 

TokenInsight is dedicated to covering the most important and cutting-edge trends in the world of crypto. If you have information to share with us, please feel free to contact our email news@tokeninsight.com. Your trust will be well respected.

Source

DeFi

Policy and Regulation

Related News
'He signs whatever I say': LIBRA token 'facilitator' Hayden Davis claims he paid Argentine Pres. Milei's sister for influence: report 'He signs whatever I say': LIBRA token 'facilitator' Hayden Davis claims he paid Argentine Pres. Milei's sister for influence: report
Argentinian President Javier Milei charged with fraud over $LIBRA token scandal: AP Argentinian President Javier Milei charged with fraud over $LIBRA token scandal: AP
Wildcat, the decentralized credit platform built by Crypto Twitter mainstay Laurence Day, launches new version on Ethereum Wildcat, the decentralized credit platform built by Crypto Twitter mainstay Laurence Day, launches new version on Ethereum
Bitwise files Dogecoin ETF registration, firm confirms Bitwise files Dogecoin ETF registration, firm confirms
Trump-backed World Liberty Financial swaps approximately $90 million worth of stablecoins for ETH, LINK and other tokens Trump-backed World Liberty Financial swaps approximately $90 million worth of stablecoins for ETH, LINK and other tokens
Latest News More More
13 Hours Ago 0xbow unveils ‘Privacy Pools,’ a new blockchain privacy tool drawing from Vitalik Buterin’s research
5 Days Ago Ethereum edges closer to deploying Pectra on mainnet with successful upgrade on Hoodi testnet
5 Days Ago MEXC Extends DEX+ Platform to Binance Smart Chain Users
March 25 Binance suspends employee for allegedly profiting off of insider information
March 25 BlackRock launches bitcoin ETP in Europe following US success
delate
Use TokenInsight App All Crypto Insights Are In Your Hands
Open