US and UK Sanction Trickbot, UK Enforces Travel Rule, G20's Crypto Regulation, China Pushes Digital Yuan, and Scorechain at Token2049 Singapore!
US and UK Sanction Trickbot Cybercriminals
The United States, in collaboration with the United Kingdom, has sanctioned 11 individuals affiliated with the Russian Trickbot cybercrime group. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed these sanctions, coinciding with the U.S. Department of Justice (DOJ) unveiling indictments against nine individuals linked to Trickbot malware and Conti ransomware schemes, including seven of those sanctioned.
During the height of the COVID-19 pandemic in 2020, the Trickbot group launched a wave of ransomware disruptions against hospitals and other healthcare centers across the United States. The Trickbot group’s preparations in 2020 aligned them with Russian state objectives and actions taken by the Russian intelligence services. This included targeting the U.S. Government and U.S. companies.
Trickbot, initially identified in 2016, morphed from the Dyre trojan into a versatile malware suite used globally, including ransomware attacks on U.S. healthcare facilities during the pandemic. These designated individuals, including Andrey Zhuykov and Maksim Galochkin, face asset freezes and restrictions on U.S. dealings, with potential repercussions for foreign financial institutions facilitating their transactions. This action underscores ongoing U.S.-UK collaboration in tackling ransomware and Russian cybercrime.
UK Enforces Travel Rule for Crypto
The United Kingdom's crypto asset businesses are now obligated to comply with the new Travel Rule for crypto, effective as of 1 September 2023. Introduced by the Financial Conduct Authority (FCA) on 17 August, these regulations are aimed at virtual asset service providers (VASPs) operating within the UK. Under these guidelines, UK-based VASPs must "collect, verify, and share information" regarding crypto-asset transfers.
In instances where a VASP receives an incoming payment from an overseas entity or individual residing in a jurisdiction that has not implemented the Travel Rule, they must conduct a risk-based assessment to determine whether to release the crypto assets to the intended recipient.
The Travel Rule aligns the practices of crypto asset businesses for sending and receiving transactions with standards applied in other financial service sectors, following the recommendations of the Financial Action Task Force (FATF). The FATF has urged other jurisdictions to swiftly adopt the Travel Rule, emphasizing the challenges stemming from differing timelines and delays in its global adoption.
G20 Embraces Crypto Regulation and CBDC Debate
G20 leaders have issued a declaration after their summit in New Delhi, focusing on crypto-assets and central bank digital currencies (CBDCs). They endorsed the Financial Stability Board's (FSB) recommendations for regulating crypto-assets and stablecoins and stressed the importance of consistent global implementation to prevent regulatory arbitrage.
The leaders welcomed several reports, including the IMF-FSB Synthesis Paper and the BIS Report on The Crypto Ecosystem, providing insights into the crypto landscape and associated risks. They also noted discussions on CBDCs' macro-financial implications, particularly for cross-border payments and the global financial system.
The G20 expressed commitment to advancing these discussions and anticipated the IMF's report on CBDC macro-financial implications. They endorsed the crypto-asset reporting framework (CARF) and urged its swift implementation, enabling information exchange on crypto transactions between jurisdictions from 2027. Several countries, including G20 members, will be affected by this framework, enhancing transparency and regulatory oversight in the global crypto space.
China Pushes for Digital Yuan Adoption in Retail Transactions
On September 3, Mu Changchun, director of China's Digital Currency Research Institute, emphasized the necessity of utilizing digital renminbi for all retail transactions during the China International Financial Annual Forum 2023. Mu Changchun explained that the digital Yuan represents a significant upgrade to the currency issuance and payment system, incorporating the attributes of cash, including property rights and anonymity, with the convenience, portability, and traceability of electronic payment tools. This transformation positions digital Yuan as a versatile payment tool suited to the evolving digital economy.
The initial phase of this upgrade targets retail scenarios, where digital Yuan will become the primary payment method for all retail transactions. Wallet providers like WeChat, Alipay, and commercial bank apps are required to comply with regulations, obtain the necessary financial licenses, and adhere to supervision. In the short term, technical standards, such as QR code standards, will be unified for barcode mutual recognition, with gradual payment tool enhancements. Meanwhile, wholesale payment scenarios will continue to operate seamlessly alongside digital renminbi, boosting efficiency through smart contract-enabled payment versus payment (DVP) and payment delivery (PVP) settlement methods.
Scorechain at Token2049 Singapore!
Leading blockchain transaction monitoring provider, Scorechain, is set to participate in Token2049, a prominent crypto event taking place in Singapore on September 13-14, 2023. Scorechain team will be sharing in-depth exploration of global crypto trends, regulatory developments, and the challenges related to crypto crimes.
With the expanding adoption of cryptocurrencies, it becomes increasingly crucial to understand and mitigate the risks linked to digital assets. Scorechain's presence at Token2049 demonstrates the commitment to staying at the forefront of blockchain developments and contributing to a more secure and regulated crypto ecosystem.
Meet us there!
?? Dates: September 13-14, 2023
?? Location: Marina Bay Sands, Singapore
#TOKEN2049 #SingaporeEvent #CryptoCompliance #Blockchain
About Scorechain?
Scorechain provides a blockchain analytics and transaction monitoring platform for crypto assets. As a leader in crypto compliance, the Luxembourgish company has helped over 200 customers in 45 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branches, digital assets, customers onboarding, audit and law firms, and some LEAs.
Scorechain’s platform provides identifying data and risk assessment for 30+ blockchains. The platform connects to different sources and block lists to provide risk scoring on crypto assets, transactions, addresses, and entities. The risk assessment methodology applied by Scorechain has been verified and is fully customizable to fit all jurisdictions. Customers can monitor infinite possibilities of risk scenarios with a wide range of parameters provided so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.