Foreign Regulators Issue Crypto Guidance, Act Against Unregistered VASPs

Last week, the European Central Bank (ECB) published a press release addressing "crypto-asset activities and services" in the European Union. According to the press release, "the finalisation of several regulatory initiatives at European and international level[s] ... will lay down the broader regulatory framework under which crypto activities are allowed, and how banks should manage the risks they pose." Among other things, the press release notes that in evaluating bank activities involving cryptocurrencies, the ECB will focus on risks related to cybersecurity, the use of third-party providers, and anti-money-laundering efforts/combating the financing of terrorism. According to the press release, the ECB is assessing "banks' digital transformation, including the role of crypto technologies, that will result in horizontal analysis by the end of 2022."