Digital asset reform to be debated at SEC public hearing

The Securities and Exchange Commission (SEC) has launched a public hearing on introducing the Travel Rule for digital assets, a move aimed at improving the traceability of digital asset transactions and bringing the country’s regulatory framework into line with international standards.

- NUNTAWUN POLKUAMDEE

As the regulator seeks to strengthen anti-money laundering (AML) oversight, the proposed rules would require licensed digital asset business operators to collect, verify and transmit information accompanying digital asset transfers.

The measures would enable authorities to better monitor suspicious transactions and reduce the risk of cryptocurrencies being used for money laundering, terrorist financing, cybercrime and other illicit activities, the SEC said in a statement.

The move is part of the SEC’s broader efforts to strengthen cooperation with government agencies and the private sector in combating financial crime. It follows a resolution by the sub-committee on Financial Data Connectivity for Enhancing the Monitoring of Suspicious Financial Transactions, under which the SEC and the Anti-Money Laundering Office (Amlo) agreed to introduce interim regulatory guidance while Amlo develops more comprehensive regulations under the Anti-Money Laundering Act.