by the US Treasury, Iran, Russia and North Korea cryptocurrency It attracted attention by asking for more powers to combat the increasing “evil purposes” in its use.
According to a report shared by Bloomberg, Deputy Minister Adewale Adeyemo, in written testimony before a Senate hearing, argued that the government faces challenges posed by people who are “increasingly finding ways to hide their identities and move their resources using virtual currencies.”
Adeyemo suggested that terrorists and similar bad actors are looking for new ways to move their resources in response to efforts to restrict their access to traditional financial systems.
As Koinfinans.com reported last year, the Quds Force, a branch of the Iranian military, claimed that they were using cryptocurrencies to finance groups such as Hamas in Gaza and Palestinian Islamic Jihad. He also mentioned that other state actors, including North Korea and Russia, are also turning to crypto to circumvent sanctions.
A new secondary enforcement tool will help the Treasury improve its targeting capabilities and take into account technological changes that are making tools that are highly effective in the context of traditional payments less effective against virtual currencies. -Adewale O. Adeyemo
While details of the secondary enforcement tool remain unclear, it is thought that the US Treasury aims to target overseas cryptocurrency exchanges that could pose a threat to national security while exploiting the US financial system.
US authorities attracted attention by investigating transactions exceeding $20 billion passing through the Russian-approved crypto exchange Garantex. These transactions, carried out using the Tether (USDT) stablecoin, have come under scrutiny due to concerns about potential violations of sanctions against Russia. However, it remains unclear whether the US Treasury will seek additional sanctions powers against Garantex’s counterparties.
