The US Treasury Department came to the fore with a new cryptocurrency statement. The institution, which does not look favorably on this area involving Bitcoin and altcoins, maintains this attitude. Because it is claimed that cryptos undermine security. Here are the details…
Cryptocurrency statement from the US Treasury Department
The U.S. Treasury Department is pushing for a significant expansion of its authority to regulate and crack down on foreign crypto asset providers, citing growing concerns about the role of foreign crypto providers in facilitating illicit activities and undermining national security. In his written testimony before the Senate hearing, US Treasury Undersecretary Adewale Adeyemo painted a worrying picture, underlining that malicious actors are increasingly turning to cryptocurrencies to circumvent sanctions, finance terrorism and launder money.
Adeyemo’s remarks come amid growing concerns about the potential misuse of cryptocurrencies. Particular concerns include:
- Avoiding sanctions: According to Adeyemo, Russia is actively using stablecoins such as Tether’s USDT to circumvent economic sanctions imposed in response to its aggression in Ukraine. This statement underscores the urgency of finding ways to prevent cryptocurrencies from becoming a haven for sanctioned countries.
- Financing of terrorists: Adeyemo noted that terrorist organizations such as Al Qaeda have thwarted efforts to track and disrupt funds by leveraging the anonymity offered by crypto transactions to move funds outside the traditional financial system.
Solutions to the problems are also suggested
To combat these threats, Adeyemo proposes the implementation of a “secondary enforcement tool” that would give the United States the authority to target foreign cryptoasset providers who knowingly facilitate transactions that violate U.S. sanctions or national security interests. This tool could include freezing assets or restricting access to the U.S. financial system.
On the other hand, the Treasury Department is seeking clear legal authority to oversee key players in the crypto-asset ecosystem, such as cryptocurrency exchanges. This will allow them to more stringently enforce Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, similar to those imposed on traditional financial institutions.
The department is also seeking the authority to target American cryptocurrency platforms if they knowingly engage in activities that undermine U.S. national security. This could potentially include fines, license suspensions, and even criminal charges. Adeyemo emphasized the importance of these reforms in creating a “fair playing field” for US-based crypto asset service providers (VASPs). By establishing clear regulations and enforcement mechanisms, the United States can foster an environment where legitimate businesses can thrive while also mitigating the risks associated with cryptocurrencies.
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