In an official blog post published on the 27th of January, the US White House Administration has released a roadmap for the Administration to minimize the risks associated with crypto assets. The blog post stated that the previous year presented a difficult phase for the crypto assets as several implosions took place one after the other. Several regular investors who believed in the crypto firms went through extreme losses.
White House Administration Releases a Roadmap to Reduce Crypto-Related Risks
Nonetheless, it added that the impact of the respective turmoil has slightly influenced the wider financial system up till now. The Administration clarified that though the cryptocurrency assets are considered to be unique, some crypto firms’ behaviour and the hazards posed by it are not new at all, the post added. As per the Administration, they are focused on consistently ensuring that crypto assets cannot damage financial stability. This is to shield the investors and catch any malicious actors for their accountability.
The Administration disclosed that the experts operating under it have established the earliest agenda to create digital assets responsibly and securely while coping with the risks posed by them. As per it, the crypto firms neglect the valid financial regulations as well as the essential risk controls responsible for shielding the economy, businesses, and households of the country.
Along with this, it added, the firms often mislead their customers, defraud them, or do not make appropriate disclosures. Such a poor situation of cybersecurity within the market has permitted the Korean authorities to drain more than $1 billion for their destructive missile project’s funding. On the other hand, the Administration revealed, the agencies are increasing the enforcement measures along with providing necessary guidance.
Nevertheless, it indicated that the enormous episodes of the previous year require much more to be done to confront the fraud. In the words of the Administration, additional resources are being allocated by the enforcement bodies to fight illegal operations related to digital assets.
The Administration Says It Supports Accountable Technological Innovations
It also asserted to release the research & development-related priorities thereof in the next months. The Administration also persuaded Congress to take adequate actions in this respect with suitable legislation and strict check and balance while dealing with entities exposed to crypto. In the end, the Administration assured that it open-heartedly backs accountable technological innovations to make financial services cost-effective.