U.S. TREASURY RELEASES ACTION PLAN TO ADDRESS ILLICIT FINANCING RISKS OF DIGITAL ASSETS

Money Laundering.  According to Treasury, ransomware cybercriminals, drug trafficking organizations, and fraudsters are using virtual assets, among other methods, to launder illicit proceeds.  Yes, Treasury Secretary Yellin, however, criminals prefer cash because it leaves no trail on a blockchain.

Proliferation Financing.  The Action Plan takes both sides of the issue my Clanity friends.  First it says digital assets could be used to buy a weapon of mass destruction but in the same sentence says there is no evidence to that affect.  Thus, begging the question, which is it?

Terrorist Financing.  Treasury say U.S. authorities have identified several instances where terrorist groups and their financial supporters solicited funds in virtual assets, but such cases are still less prevalent than those involving traditional financial assets.  At Clanity we aren’t surprised because public blockchains use distributed, open source, publicly transparent ledgers.

CrossBorder Nature and Gaps in AML Regimes across Countries.  Treasury says it is concerned virtual assets could be used to transfer value across borders very quickly.  That is what Clanity and countless other crypto blockchain companies want to do.  What is the problem?

AnonymityEnhancing Technologies 

Treasury claims criminals are increasingly using anonymity enhancing technologies on an opaque blockchain.  We are not in a position dispute the veracity of Treasury’s statement, but at Clanity we are not interested in anyone using our digital asset to commit crimes. 

Disintermediation 

Treasury listed disintermediation last to minimize the point, but disintermediation is the point!  Blockchain in general, and Clanity being no exception, represent a re-tooling of the financial infrastructure away from mega-centralized financial institutions. Hooray!

Issue Guidance.  Treasury starts their list of government actions by listing numerous interpretive and clarifying guidance and policy statements since 2013. Clanity and crypto universe hear the words but let’s be straight, the US Government has not established clear crypto laws, regulations, or legislation. Everyone knows that.

Law Enforcement.  Treasury claims law enforcement initiatives and sanctions designations, to expose and disrupt criminals misusing virtual assets and their facilitators, somehow equals efforts to set clear standards.  At Clanity we don’t agree.  Law enforcement is not the way to set crypto policy.  Law enforcement follows the policy not vice versa.

International Coordination.  Treasury pats itself on the back by saying the United States led efforts at the Financial Action Task Force (FATF), the global intergovernmental body that sets international standards to prevent and address illicit financing, to develop and adopt the first international standards on virtual assets during the United States’ FATF presidency. But again, where is the policy?  Please tell us Clanity followers on what government website, Treasury Department or any federal department, can we click to read the official government policy?  Nowhere that we could find.