The NYS Department of Financial Services (DFS) took an uncommon approach in encouraging cryptocurrency firms to enhance their risk management practices – in guidance issued in late April, they stated that firms “must” implement certain RegTech solutions. The DFS guidance focused on three areas: (1) augmented KYC… Read More »NY State Setting Standards for Crypto Monitoring
The regulatory focus on cryptocurrency firms continued on April 21, when the Office of the Comptroller of the Currency (OCC) issued a Consent Order against Anchorage Digital Bank regarding the bank’s failure to adopt and implement a compliance program that adequately covers the required Bank Secrecy Act/anti-money… Read More »Digital Bank Fails to Meet OCC Expectations
Highlighting the U.S. Department of the Treasury’s continued focus on cybercrime and digital assets, OFAC sanctioned the world’s largest and most prominent darknet market, Hydra Market (Hydra), along with Garantex, a cryptocurrency exchange that executed over $100 million in cryptocurrency transactions associated with darknets, including $2.6 million… Read More »OFAC Sanctions Russian Darknet & Crypto Exchange
For those who may have missed it, on March 30, the @Securities and Exchange Commission’s Division of Examinations announced its 2022 examination priorities. In line with President Biden’s March 9 Executive Order on Crypto, examinations will include emerging technologies, and crypto assets. As stated by SEC Chair… Read More »SEC Announces its 2022 Examination Priorities
On April 7th Secretary of the Treasury Janet L. Yellen delivered remarks on digital assets policy, innovation, and regulation at American University. Consistent with President Biden’s recent Executive Order, Secretary Yellen pointed out the need to focus on the opportunities that digital assets bring, as… Read More »Secretary Yellen Remarks on Biden Administration’s Approach to Digital Assets
The Consumer Financial Protection Bureau (CFPB) announced earlier this week that it intends to leverage a largely unused legal provision to examine nonbank financial companies and seeks comments on updated procedures. The CFPB believes using this inactive authority will enable them to hold nonbanks to the same… Read More »CFPB Plans To Target FinTechs
The Department of Justice (DOJ) arrested the two 20-year-old founders of the “Frosties” NFT project for wire fraud and money laundering. The duo raised approximately $1.1 million of Ether by selling 8,888 NFTs of ice-cream-scoop themed characters (Frosties) in an hour, only to execute a… Read More »DOJ Launches First NFT Fraud Case
Ripple and the U.S. Securities and Exchange Commission (“SEC”) have been embroiled in a lawsuit as to whether Ripple’s XRP cryptocurrency is a security. The SEC’s decision to treat XRP as a security significantly impacted Ripple’s ability to operate RippleNet in the US. RippleNet is… Read More »Say “No” To Regulation By Enforcement
The Financial Crimes Enforcement Network (FinCEN) announced that it assessed a $140 million penalty against USAA Federal Savings Bank (USAA) for violations of the Bank Secrecy Act (BSA), despite committing to the OCC in 2017 that their AML program would be improved. This however was not the… Read More »FinCEN announces $140 Million Penalty
As the Biden administration focuses on enhancing rules around cryptocurrencies to strengthen the impact of the Russian sanctions, the SEC looks to be taking efforts to in part regulate one of the fastest-growing markets globally – NFTs. Sales of NFTs grew from an estimated $95… Read More »SEC Taking Aim at NFTs
