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US: DOJ Cryptocurrency Enforcement Framework

US: DOJ Cryptocurrency Enforcement Framework

This Cryptocurrency Enforcement Framework is a culmination of the efforts behind the Cyber-Digital Task Force established by Attorney General Jeff Sessions within the U.S Department of Justice (DOJ) in 2018. Their initial report recommended that “the Department should continue evaluating the emerging threats posed by rapidly developing cryptocurrencies that malicious cyber actors often use.” 

This year’s Framework examines illicit uses of cryptocurrency, which fall into three categories: (1) financial transactions associated with the commission of crimes; (2) money laundering and the shielding of legitimate activity from tax, reporting, or other legal requirements; or (3) crimes, such as theft, directly implicating the cryptocurrency marketplace itself. 

Among the most scrutinized threats facing cryptocurrency firms, which have recently led to subsequent enforcement action by the regulatory authorities, are money laundering, transactions involving proceeds of illegal activity and the failure to comply with the Bank Secrecy Act requirements. 

 

ViP: Our Validus platform has quickly become the go-to platform for digital asset market centers that cater to a wide range of participants, including institutional investors. It is now used by a host of major digital asset market centers globally, leveraging the various capabilities Validus offers including trade surveillance, market risk management, AML and transaction monitoring.