US Treasury sees ‘potential benefits’ of DeFi following risk assessment

US Treasury Department opens to the public for the first time DeFi Fraud Financial Risk Assessmentanalyzes decentralized financial (DeFi) services and their vulnerabilities to “illegal activities”.

In this assessment, “cybercriminals, ransomware attackers, scammers, and North Korean hackers” used DeFi services for “violations” of anti-money laundering (AML) and terrorist financing (CFT) regulations. I found out that they are laundering money.

Brian E. Nelson, the Treasury Department’s Undersecretary for Terrorism and Financial Intelligence, stressed that addressing these risks is essential to harnessing the “potential benefits of DeFi services.”

The private sector is being asked to use findings to develop its own risk mitigation strategies and comply with AML/CFT regulations. Nelson said:

“The private sector should use the results of this assessment to inform its own risk mitigation strategies and take clear steps in line with AML/CFT regulations and sanctions obligations to prevent illegal actors from abusing DeFi services. must be prevented.”

The U.S. government will also “strengthen AML/CFT regulatory oversight,” issue “guidance” to the private sector, and fill gaps in AML/CFT regulation. Additionally, the Treasury Department is seeking input from the private sector to inform future steps.

This release does not provide links to private sector inputs.

CryptoSlate’s editorial team is currently working through the 42-page report and will report back on the content in due course.

The post that the U.S. Treasury Department is looking at “potential benefits” of DeFi following a risk assessment first appeared on CryptoSlate.

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