Regulatory and industry focus
Innovative new financial services offerings are already in consumers' hands and adoption is increasing. Six segments of digital assets are expected to draw the majority of consumer and investment interest.
Risk and compliance considerations and resources
Innovative new financial services offerings are already in consumers' hands and adoption is increasing. Six segments of digital assets are expected to draw the majority of consumer and investment interest.
Securities regulators continue to monitor crypto markets for products and activities that run afoul of registration requirements and other securities regulations.
Many U.S. and global regulatory authorities have stated that stablecoin issuers should be regulated similar to banks.
The scope of NFT’s on the market is increasingly incorporating more traditional financial products such as real estate.
Custody and exchange activities trigger money transmission requirements of U.S. and foreign jurisdictions.
Lending/ borrowing of digital assets is enticing for traditional financial institutions, but large concerns loom for the safety of retail investors.
Rapid evolution in blockchain technologies will prompt continued regulation and analysis of web product governance.
Current KPMG Financial Services Regulatory and Compliance Risk (FSRCR) activity in the cryptocurrency space acts as a first line of approach for companies, drawing in a multitude of KPMG service lines.
As cryptocurrency becomes more widely adopted, there is a growing need for various KPMG services, including license application and compliance assessment, risk and control assessments for banks engaging in cryptocurrency activity, BSA/ AML program development, cybersecurity consultations, audit support, and tax services.
Since the fall of 2021, regulatory authorities have been announcing their intent to solidify regulatory authority and create clearer expectations for cryptoassets and the entities interested in participating in related activities. An example of regulatory clarity provided, on November 18, 2021, the Office of the Comptroller of the Currency (OCC) released interpretive letter #1179, stating it is permissible for a bank to engage in cryptocurrency activities if the bank can justify to the OCC that they have controls in place to conduct the activity in a safe and sound manner.
KPMG is actively working with crypto-native and traditional FSIs to establish and adapt compliance and risk management programs to integrate additional risk considerations into existing enterprise frameworks.
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Capability Development
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Production
KPMG has extensive experience assisting institutions in the development and implementation of wide-ranging, business-as-usual compliance programs for their digital asset-related activities.
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Key Risk Areas Addressed
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Accelerators Used