Blockchain & The Finance Sector

Blockchain & The Finance Sector The Chamber of Digital Commerce submitted a letter to FinCEN. New and emerging technology is revolutionizing the financial system – allowing transactions at the speed of the internet. It is exciting to see FinCEN engage the private sector. A few highlights on the use of blockchain intelligence like:

 “Blockchain technology has the potential to revolutionize certain aspects of the US AML regime and BSA reporting and information sharing rubrics, and FinCEN should recognize and seize this opportunity.”

 “Digital assets can exist on the “open ledger,” the collection of timestamp, currency, address, and service information that allows one user to send a token of currency to another. Each transaction is verified and logged in this open, distributed ledger and marked with an immutable activity record. This data is public and accessible to anyone on the blockchain. Blockchain intelligence (also known as blockchain analytics) makes it possible to map trends and patterns of activity as they occur and to reveal links to off-chain data points and other attributes that could be indicative of risk.”

“Oversight can be conducted across multiple blockchains, revealing the percentage of trade linked to high-risk activities. Collection of data directly from the blockchain is precisely the sort of risk- based and agile regulatory practice. One that would increase efficiency and effectiveness for both regulators and regulated entities.”

“A revised regulatory approach using blockchain analytics would benefit both regulators, digital asset providers, and, hopefully in the future, others. The availability of raw blockchain data, unprecedented both in quantity and quality. Gives regulators the ability to instantly access relevant information without the lag time or filtering mechanism inherent in relying on intermediaries to submit SARs. In turn, providers would be freed from some of the burden of subjectively assessing if and when to submit an SAR. Automated monitoring combined with direct access for regulators reduces the inefficiencies of manual monitoring of low-risk transactions. In addition, entities increases the likelihood that high-risk activities will be flagged, tracked, and easily investigated by the relevant authorities.”

Lastly, check out the entire letter here:

Rebellion Research

Blockchain & The Finance Sector