DIGITAL ASSETS: AML AND SANCTIONS COMPLIANCE BEST PRACTICES

R&C: Could you provide an overview of the increasing prevalence of digital assets, including cryptocurrencies, across the world’s financial markets?

Bach: The prevalence and desire for cryptocurrencies in global financial markets continue to ascend, as seen by the introduction of Bitcoin exchange-traded funds (ETFs) and the rise of stablecoins. Bitcoin ETFs – funds that track the price of Bitcoin and are traded on traditional exchanges – represent a significant bridge between conventional investment mechanisms and the burgeoning world of cryptocurrencies. This development improves accessibility for a broader range of investors and signals a growing acceptance of cryptocurrencies within the institutional frameworks of global financial markets. Stablecoins, which are cryptocurrencies designed to minimise volatility by being pegged to a stable asset like the US dollar, offer a more predictable avenue for transactions in the crypto space. Their growing adoption underscores the financial market’s receptiveness to leveraging blockchain technology for more reliable and easily tradeable digital currencies in everyday transactions.

Jul-Sep 2024 Issue

BDO USA, P.C.

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