The emergence of cryptocurrencies into the mainstream this past year came at a meteoric rate, attracting the attention of the investing public and financial institutions. As with any emerging market, regulators in the US and abroad are now playing catch up, tasked with protecting the investing public and maintaining market stability while not going so far as to stifle innovation.
Going forward, we expect to see new guidance from the US regulators as well as a continued increase in enforcement actions. While it remains to be seen whether a new regulatory framework emerges within the US or abroad, ICO issuers, trading platforms, and other firms that deal with cryptocurrencies should begin enhancing their AML, anti-fraud, cybersecurity, and reporting programs as regulatory scrutiny in these areas will only increase.
This Regulatory brief outlines (a) the United States’ regulatory approach toward cryptocurrency, (b) the approach taken by global regulators, and (c) the outlook for the rest of 2018.
A publication of PwC's financial services regulatory practice