Deputy Treasury Secretary Wally Adeyemo recently discussed the use of cryptocurrency and digital assets by terrorist groups. Adeyemo aims at struggling against crypto crime by creating a stable regulatory environment . Before the Senate Banking Committee Adeyemo said:
“As we take steps to cut terrorist groups and other malign actors off from the traditional financial system, we are concerned about the ways these actors are using cryptocurrencies to try and circumvent our sanctions. For example, five years ago, al-Qaeda and affiliated terrorist groups, largely based out of Syria, operated a Bitcoin money laundering network using social media platforms to solicit cryptocurrency donations. After receiving virtual currency, they laundered the proceeds through various online gift card exchanges to be able to purchase what they needed to advance their violent agenda.”
Us Deputy proposals include secondary sanctions aimed at foreign providers of digital assets involved in illicit financing, extraterritorial jurisdiction to pursue companies undermining national security, and the introduction of a new secondary sanctions tool. These measures aim to enhance authorities' ability to combat financial crimes in the cryptocurrency sphere and address the increasing use of digital assets for illegal funding.
The first proposal's goal is to prevent these suppliers from facilitating illegal activities and cut off their access to the international banking system. By increasing the accountability of digital asset platforms and service providers, this policy aims to make it more challenging for individuals to exploit cryptocurrencies for unlawful purposes.
Adeyemo's second proposal calls for extending jurisdiction beyond national borders in cases where companies using digital assets to undermine national security are abusing the financial system. This expansion would enable US law enforcement to pursue and punish foreign criminals utilizing cryptocurrencies for illegal activities, regardless of their location. The intention is to ensure that entities and individuals involved in illicit financing cannot evade accountability by exploiting the global nature of digital assets, thereby reducing jurisdictional gaps.
These proposed reforms reflect a concerted effort by the US Treasury Department to bolster enforcement mechanisms against the misuse of cryptocurrencies for criminal purposes. By targeting both foreign providers and those abusing digital assets to undermine national security, the aim is to create a more robust regulatory framework to combat financial crimes in the cryptocurrency space.
SOURCES: CNBC, Blockchain News
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Ilaria Vanni is a TV journalist for italian broadcasting and coordinator of The Meta Economist portal. She has a philosphy degree and she's now studing the economic and technological issues connected to the new frontiers of the metaverse.
