According to Bloomberg News, the US and its foreign allies should be working in tandem to create shared standards for regulating cryptocurrencies. The aim is to make it difficult for the scam artists to escape after committing crimes, as revealed by the Treasury on Thursday.
Why Crypto Needs Constant Regulation?
In a news release, the Treasury said that uneven regulation, compliance, and irregular supervision are ideal for offering arbitrage opportunities and, in turn, enhance the risk to consumers’ financial stability. It also puts the protection of consumers, markets, businesses, and investors at stake.
Inadequate rules related to money laundering across various nations make it more challenging for the United States to investigate illicit transactions when money starts flowing offshore, such as ransomware payments, as stated by the department.
In the framework for international cooperation, one crucial aspect discussed was the need for a setting with shared standards, as revealed by the department. The same was delivered on Thursday to President Joe Biden.
The Treasury has been asked to build the framework, in tandem and coordination with the other agencies, such as State and Commerce Departments, as per the March executive order of the White House, calling for digital assets’ government-wide strategy.
Bloomberg News reports that the Treasury said that the US should continue working with the overseas partners and lead the discussions related to CBDCs or central banks’ digital currencies and digital architecture of payment in a general way.
The Federal Reserve is exploring the probability of a US CBDC, but no final decision has arrived yet.
The department also stated that international work of this type must continue to address the broad spectrum of challenges and issues put forth by digital assets, including investor and consumer protection, financial stability, business risks, sanctions evasion, money-laundering, and other illegal activities.
The Treasury has committed that it will continue to work within many vital intergovernmental organizations, including Organization for Economic Cooperation and Development, G7, and G20.
