In this episode of Compliance Clarified Helen Chan, regulatory intelligence expert in Hong Kong speaks to Rachel Wolcott, a senior editor in the UK about the current state of stablecoin regulation and financial crime trends in stablecoins and crypto. They unpick attempts at putting a dollar value on illicit crypto flows, and try to pin down the global approach to stablecoin regulation.

Helen and Rachel discuss stablecoins use in superapps like South East Asia’s Grab and the use of tether in Telegram. Will these use cases run into the same financial crime
issues as traditional finance has with open banking? They also highlight the risks and concerns stablecoins paired with weak know-your-customer and financial crime systems and controls pose to tradfi.

Links:

Steno Research on tether: https://stenoresearch.com/crypto-moves/the-european-unions-mica-removes-tether-from-the-market/

Alison Jimenez on challenges assessing the scale of illicit crypto flows: https://docs.house.gov/meetings/BA/BA21/20231115/116579/HHRG-118-BA21-Wstate-JimenezA-20231115.pdf

UK Financial Conduct Authority’s stablecoin discussion paper: https://www.fca.org.uk/publications/discussion-papers/dp23-4-regulating-cryptoassets-phase-1-stablecoins

UK snap election leaves crypto regulation in limbo (paywall): https://signon.thomsonreuters.com/?productId=TRRIP&returnto=https%3A%2F%2Fregintel.thomsonreuters.com%2F%23login%2F%257B%2522redirect%2522%253A%2522ri%252Fresolve%252Fshorturl%252F%25257B%252522shortUrl%252522%25253A%252522PimebR%252522%25257D%2522%257D&bhcp=1

United States of America vs Enhua Fang (pre-trial detention motion): https://www.linkedin.com/feed/update/urn:li:activity:7188558094350589952/

Tether partners with Telegram press release: https://tether.io/news/tether-collaborates-with-ton-foundation-and-oobit-to-create-seamless-crypto-payment-solution/

Clarity for Payment Stablecoins Act of 2023 (U.S. Bill): https://www.congress.gov/bill/118th-congress/house-bill/4766

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Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.