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Digital asset market participants face a complex set of existing and emerging rules—and all roads are leading toward additional and enhanced risk management expectations for firms. Our multidisciplinary community of solvers—comprising industry professionals, former regulators and technical specialists—can help you navigate the complexity with an enterprise risk framework and strategy that can enable you to stay ahead of the regulatory curve.
Globally, regulators are refining regulatory compliance expectations and firms transacting in digital assets should expect to receive additional oversight and supervisory expectations.
It really depends on the type of activity and/or product you are considering offering, and where you intend to offer it (i.e., globally? in the US? in which states?). It also depends on your regulatory status and what licenses or charters you hold, or don’t hold.
This depends on the type of service you intend to offer, and whether your target market will require a qualified custodian under the Investment Company Act of 1940 (the “40 Act”). States and the federal regulators offer different types of custody charters and the unique needs of the business offering should drive the custody charter chosen. If you are seeking to service retail customers, you may be able to provide safekeeping services through state money service business licenses, depending on the jurisdictions in which you seek to operate. A full assessment of strategic goals and offerings should be reviewed relative to the chartering options.
Financial, commercial and regulatory due diligence should be conducted on digital asset strategies. Senior management and the Board should be acutely involved and be prepared to demonstrate this extensive involvement for the regulators. Generally, new products committee charters exist for this purpose, and their procedures should be followed closely.
The evolution of the market and its continued maturation require robust regulatory compliance and enterprise risk management programs. We anticipate that this enhanced focus will lead traditional financial institutions to expand their digital asset offerings and are positioned to assist with the proper level of due diligence and industry insights to promote the successful integration of these products and activities. PwC has extensive experience in building out suitable risk management and compliance programs and can bring industry-leading practices to firms that seek sustainable business development and growth.
Principal, Risk and Regulatory, PwC US
Managing Director, PwC US
Managing Director, Cyber, Risk, Regulatory and Financial Crimes, PwC US