Third, crypto-assets – especially unbacked crypto-assets, which are used to make ransomware payments owing to the anonymity and money laundering possibilities they offer[10] – need to be strictly regulated. [11] Similarly, crypto-asset transfers must be traceable.
The proposed EU Regulation for Markets in Crypto-Assets (MiCA) and revision to the Regulation on information accompanying transfers of funds, which extends the “travel rule”[12]to crypto-assets, are important steps. However, to be effective and prevent regulatory arbitrage, regulation must be stepped up globally. [13]Implementation of the Financial Action Task Force (FATF) guidance for crypto-assets and its enforcement at international level are therefore crucial.