US Treasury Department will implement regulation of unhosted wallets

This move is designed to prevent the use of cryptocurrencies for illicit financing

13.06.2022 - 08:55

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What’s new? US Deputy Treasury Secretary Wally Adeyemo confirmed at the Consensus 2022 conference that authorities have made progress in combating illicit financing using digital assets. One of the important measures will be the implementation of the regulation of unhosted wallets.

Press release on the US Treasury Department’s website

What other statements have been made? Adeyemo stressed that his agency continues to work to address the risks associated with the use of unhosted wallets. According to him, such wallets are “effectively just addresses on a blockchain.” Their owners are difficult to identify and this creates opportunities for abuse of increased anonymity.

The Treasury Department is actively working to ensure that financial institutions can understand who they are transacting with and make sure they are not providing payment services to criminals or sanctioned entities. Adeyemo added that the Treasury Department will create a regulatory architecture that will protect the financial system from illegal activities while providing space for further innovation.

Earlier, US Senators Cynthia Lummis and Kirsten Gillibrand published a bill aimed at totally incorporating cryptocurrencies into the US financial system. It provides for the creation of a self-regulatory institution that will be responsible for overseeing cryptocurrencies and other digital assets. The institution will also have to be registered with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

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