How does MLR 2019 build upon MLR 2017?

The correct answer highlights how MLR 2019 addresses the evolving landscape of cryptocurrencies by providing a more complete regulatory framework surrounding them. MLR 2019 builds upon MLR 2017 by recognizing and responding to the rapid development and increased usage of cryptocurrencies in financial transactions. This update was necessary to ensure that regulations were adequate to mitigate risks associated with money laundering and terrorist financing linked to digital assets.

While the 2017 regulations laid a foundation, MLR 2019 expands the scope and detail regarding how cryptocurrencies are treated within the regulatory framework, thereby enhancing compliance measures for entities dealing with these assets. This reflects the growing acknowledgment of cryptocurrencies as an integral component of the financial system that requires a robust regulatory response.

The other options, while relevant to the context of the regulations, do not accurately capture the significant advancements introduced with MLR 2019 concerning cryptocurrencies. Instead of excluding cryptocurrencies, MLR 2019 incorporates them into the regulatory schema, ensuring that they are governed in a comprehensive manner. It does not entirely replace MLR 2017 but rather builds upon it, maintaining the foundational principles while extending the regulatory reach. Penalties for negligent property handling, while important, are not the focus of how MLR 2019 further develops the