US Accuses Crypto Firms for Serving as Money Laundering Hub

The US Treasury’s department targeted the crypto mixers to combat internationally operated financial crimes and claimed the virtual assets firms are the money laundering hub. 

The US takes rigid steps to prevent financial crimes through crypto firms. The Treasury Department proposed regulations to require additional transaction monitoring and reporting on the suspicious crypto mixer. Government administration specified all international cryptocurrency service provider platforms as threats to national security and assigned them the money-laundering hub. The Treasury Department proposed laws for all the national and international banks to report all the transactions that involve any crypto platform. This significant improvement in the financial sector indicates the future of the global economy is going to change. The deputy Treasury secretary, Wally Adeyemo, stated, “Today’s action underscores Treasury’s commitment to combating the exploitation of convertible virtual currency mixing by a broad range of illicit actors, including state-affiliated cyber actors, cybercriminals, and terrorist groups. More broadly, the Treasury Department is aggressively combating the illicit use of all aspects of the CVC ecosystem by terrorist groups.”

The FiNCEN unveiled the new rigid regulations and stated these are open to public opinion for 90 days before the implementation. Those who have targeted an opportunity to make an amendment may even result in their release from the penalties. Users can easily swap cryptocurrencies utilising crypto platforms without revealing their original identity. In recent months, the US officials have sanctioned these sites and charged their founders in response to increased regulatory scrutiny of these virtual service providers.

The Treasury officials claimed that focusing on anonymity could assist in reducing money laundering and terrorist financing risks whilst allowing the fintech industry to expand. Security officials claim that blockchain technology for banking could also be a very effective tool for authorities to track down criminals involved in illicit activities, disrupting and stopping fraud due to blockchain’s permanent paper trail if they adequately conduct a risk assessment. The Treasury Department stated in the statement, “The lack of transparency surrounding international mixing activity is an acute money laundering and national security risk. Increasing transparency in connection with this activity is crucial to denying illicit actors access to the U.S. and global financial systems.”

Suggested Reads; 

US CRYPTO INDUSTRY FACES PUSHBACK ON IMPLEMENTATION OF CRYPTO-FRIENDLY LEGISLATION
US TREASURY DEPARTMENT DISCLOSES LATEST BENEFICIAL OWNERSHIP INFORMATION (BOI) GUIDE
US AUTHORITIES IMPOSE ANTI-MONEY LAUNDERING CRACKDOWN ON OFFSHORE LENDERS