Overcoming the Money Laundering Risks Posed by Decentralized Finance
Regulators need to consider how they can regulate digital networks, currencies and assets without being too heavy-handed. The digital economy has the disruptive power on commerce that the internet did on consumerism. It’s an incredibly exciting time, but also a dangerous one for the financial system and the societies it supports. A lot of innovation from the private sector is going to be needed to really see or discover new methods of detecting crime and the sort of methodologies used by them to further regulation. Regulators need to modernize their approach, away from antiquated rules and processes that no longer help institutions understand and combat the challenges they face to instead focus on a holistic risk and customer behavior view.