Cook Islands Braces for Tougher Crypto Regulations to Combat Financial Crime

The Cook Islands is set to introduce a new law aimed at combating money laundering, financing of terrorism, and proliferation of weapons of mass destruction through the use of cryptocurrencies. The 2023 Tainted Cryptocurrency Recovery Bill will be tabled in Parliament this week, despite concerns from the crypto community.

Focus on Detecting and Forfeiting Tainted Cryptocurrencies

According to its explanatory notes, the Bill focuses on detecting, investigating, seizing, and forfeiting cryptocurrency that is or represents the proceeds of proscribed conduct, achieved through civil forfeiture. This includes protecting the country’s citizens and economy from scammers and tainted cryptocurrencies.

Crypto Enthusiast Group Welcomes the Bill

Teariki Olah, founder of a local crypto enthusiast group, has welcomed the Bill, calling it a “pretty good idea” that aims to protect the Cook Islands and its citizens from scammers and tainted cryptocurrencies. Olah sees the Bill as a positive initial step towards protecting Cook Islanders from negative aspects of crypto, such as scams and terrorism funding.

Members of Parliament Undergo Special Workshop

Members of Parliament underwent a special workshop yesterday to familiarize themselves with the Bill before its presentation in Parliament today. Clerk of Parliament Tangata Vainerere confirmed that MPs were briefed by facilitator Tim Arnold, Crown Law, and the Cook Islands Financial Intelligence Unit (FIU).

Tainted Cryptocurrency Recovery Bill to be Referred to Special Select Committee

Vainerere also announced that the Tainted Cryptocurrency Recovery Bill will be referred to a Special Select Committee to be established today. Meanwhile, three Constitution Amendment Bills and three other Bills will be presented in Parliament today, although they cannot all be passed before the year-end.

Background: Growing Concerns about Financial Crime and Terrorism Funding

The introduction of this new law comes as a response to growing concerns about financial crime and terrorism funding through cryptocurrencies in the Cook Islands. The government hopes that the Bill will help to combat these issues and protect the country’s citizens from potential harm.

Key Points

• The 2023 Tainted Cryptocurrency Recovery Bill aims to detect, investigate, seize, and forfeit tainted cryptocurrencies
• The Bill focuses on protecting the country’s citizens and economy from scammers and tainted cryptocurrencies
• Members of Parliament underwent a special workshop to familiarize themselves with the Bill
• The Bill will be referred to a Special Select Committee for further discussion and review
• The Cook Islands government hopes that the Bill will help to combat financial crime and terrorism funding through cryptocurrencies