As cryptocurrencies become one of the significant sources of investments, the need for crypto regulations gets more important to curb fraudulent activities.
The US Treasury is of the similar opinion that the US and its associates should work together to form standard crypto regulations making it difficult for any fraudulent activities to go unnoticed.
In a press release, the Treasury states, that bumpy regulations, and administration beyond the control will pave the way for crimes and increase the risks of financial instability in turn this will lower the protection for consumers, investors, traders, and markets.
It’s just not this, lack of crypto regulations will also see an increase in money laundering and terrorist financing across the globe making it difficult for the US to track illegal offshore transactions through payments such as Ransome payments.
Need For Shared Standard Regulations
Recently, international cooperation framework creation and the transparent standard setting of regulations was one of the significant topics that were put forth by President Joe Biden. In the course of government-wide strategy setting for digital currencies, the Treasury was asked to create a framework with the help of agencies like the State and Commerce department under the supervision of the March executive at the White House.
In order to lead the dialogue on central bank digital currencies or CBDCs and digital payments, the US should effectively work with international agencies.
Though it’s a known fact that the Federal Reserve has been looking into the possibility for the US CBDCs, the final decision on the said matter is still pending.
The Treasury is seen quoting that any such international operations should pick up the threads and continue to look into the issues and challenges faced by virtual currencies, policies protecting investors, traders, and markets along with curbing activities like money laundering, and financing terrorist activities, and other fraudulent activities.
However, it’s stated that the Treasury will continue working along with several other firms like G7, G20, and Economic Cooperation and Development.
Was this writing helpful?
Source: https://coinpedia.org/regulations/standard-crypto-regulations-is-the-need-for-an-hour-claims-us-treasury/