New paper defining risk schema for digital asset-based businesses provides basis for classification and risk-based tiering in this complex and volatile space.
NASHVILLE, Tenn., Apr. 13, 2023 - CRB Monitor has expanded its securities database to include coverage of securities issued by digital asset-related businesses (DARBs). The move is aimed at assisting financial institutions to identify and manage their exposure to risks associated with bitcoin and other digital assets.
CRB Monitor has published a paper titled "Defining 'Digital Asset-Related Business'" in the anti-money laundering policy journal ACAMS Today, which provides the basis for the methodology used for security identification and risk-based tiering in this complex and volatile investment space. The paper highlights the importance of effective compliance programs and encourages regulated institutions to adopt a risk-based approach in assessing individual customer relationships.
The CRB Monitor database provides coverage of more than 1,200 DARBs, including proprietary risk-monitoring resources such as industry-linked risk tiers, exchange listings and tickers, and sector classification. The addition of DARBs to the CRB Monitor securities database is a year-long project that aims to create the "gold standard" in identification and risk classification of DARBs. Custodian banks, broker/dealers, and asset managers can use the data provided by CRB Monitor for pre-trade compliance, risk management, index construction, and portfolio analytics.
It is important for financial institutions to have a clear understanding of digital assets and DARBs and to have well-constructed policies and procedures in place to manage the associated risks, particularly in light of the recent volatility in digital asset values. CRB Monitor's efforts to provide comprehensive coverage of DARBs will help institutions better identify and manage their exposure in this ever-changing and risky investment environment.
Interested financial services professionals can download a copy of “Defining Digital Asset-related Business” at CRBMonitor.com or request a copy at email@example.com.
CRB Monitor Contact:
Steve Kemmerling, CEO