Fintech PR
Token Recovery acknowledges proposed regulations on digital asset wallets but urges for enforcement of regulatory compliance via technical means
ZUG, Switzerland, Dec. 15, 2023 /PRNewswire/ — Token Recovery, the pioneering digital assets recovery company, acknowledges Senator Elizabeth Warren’s initiative intended to bring regulatory clarity and legal certainty to wallets in the digital assets space. However, we recommend adopting a cautious and balanced approach when it comes to disproportional measures such as an outright ban of non-custodial wallets, which will not add security and improvement in the prevention of illicit financing activities.
Marcin Zarakowski, CEO of Token Recovery, commented, “Our experience to date has shown that it is almost impossible to recover lost or stolen digital assets from non-custodial wallets. This hinders mass adoption of blockchain technology, the tokenisation of financial instruments and real-life assets. AML regulations and property laws already cater sufficiently for the restriction and avoidance of illicit activities, such as money laundering and terrorist financing, but require native technical solutions on the blockchain protocol level to allow for the enforcement of appropriate legal actions.”
The team at Token Recovery advocates a balanced, data-informed, proportional, and globally compliant approach towards non-custodial wallets, taking into consideration internationally agreed best practices in line with the FATF Recommendations and jurisdictions that adopted a strict FATF-compliant approach (e.g. EU Transfer of Funds Regulation). This strategy on behalf of the US lawmakers will foster competitiveness and growth opportunities for the US innovation ecosystem, within a solid regulatory framework ensuring investor and consumer protection, market integrity, and security.
Alex Fisun, CEO of Global Ledger (blockchain analytics and crypto investigation partner of Token Recovery) added, “In the realm of blockchain legislation, it is crucial to recognise that cryptocurrency, unlike cash, offers a high level of traceability, and blockchain is a reliable source of evidence for law enforcement. Despite recent episodes of successful freezing of stablecoins in non-custodial wallets, we share the urgency of nuanced blockchain native technical solutions for freeze and recovery rather than an outright ban on non-custodial wallets, embracing a pragmatic approach to addressing concerns in this evolving landscape.”
For more information, please visit www.tokenrecovery.com
About Token Recovery:
Token Recovery are experts in the recovery of lost and stolen digital assets. Unlike blockchain analytics companies that focus on providing pure analytics and investigative services, we offer an end-to-end solution assisting in the attempt to recover your lost and stolen tokens. One that pairs professional blockchain expertise with legal backing. Ultimately, our goal is to give confidence in tokenisation of financial instruments and real-life assets and enable the enforcement of legal and regulatory compliance within the industry that can be trusted.
