Amy Bell of Teal Compliance started with an overview of Anti–Money-Laundering (AML), Know Your Customer (KYC), and Customer Due Diligence (CDD), stressing how they are related but different things.
Rob Knight, Mattereum Co-Founder, then opened a discussion on the various types of regulatory compliance in the cryptocurrency space and considerations for customers and firms operating within the industry. Rob’s question on the compatibility of the anonymous/pseudonymous features that have come to define cryptocurrencies with the existing regulatory landscape led to consideration of criminal activities involving these assets and how bad actors will continue to find new ways to maintain secrecy. When Rob proposed a hypothetical scenario of someone unknowingly transacting with a criminal with cryptocurrency, Amy traced where liability lies between the parties, unpacking the notion of “adequate consideration” in financial transactions. The rest of the discussion covered the reach of regulation, the responsibility of the customer versus the service provider, and to what extent the pace of innovation will affect compliance overall.