Special Highlights: FTX filed for bankruptcy on November 11, 2022. What does this mean for cryptosphere, what are Merkle Proof of Reserves and how will the regulators respond ?
On November 8, 2022, the US Department of Treasury announced that it is "redesignating" Tornado Cash as a sanctioned entity, overtly alleging that North Korea has used the crypto mixing service to support its weapons of mass destruction (WMD) program. While the implications of redesignation are still sinking in the Web3 industry is once again spurred into compliance.
The OFAC had originally sanctioned Tornado Cash in August 2022, which had given rise to burning questions including several direct/ indirect risk exposure, the consequences this policy decision will have on smart contracts, decentralization, and neutrality of technology as well as on users’ privacy.
With the U.S. Treasury doubling down on sanctions compliance there is a rising need for the Web3 industry to put in place a robust and effective sanctions screening and compliance program.
Learn more about the FTX-fuelled crypto contagion, how it can be avoided, Merkle Proof of Reserves as a gold standard for compliance and will the industry see overregulation?
Watch “Merkle Meets” where Jeff Bandman along with industry regulators and compliance experts discuss a range of topics including:
- Impact of the recent Tornado Cash sanctions and compliance guidelines
- How to implement an effective transaction monitoring program and build a robust sanctions compliance program?
- How to assess sanctions exposure — direct and indirect — with an increased focus on geolocation tagging
- Potential litigation actions associated with Tornado Cash sanctions in addition to the existing lawsuits involving novel legal claims under the Administrative Procedure Act and the U.S. Constitution