Cryptocurrencies are increasingly becoming a safe haven for “malicious actors” such as terrorist groups.
That depends certificate on Tuesday (April 9) by US Deputy Treasury Secretary Wally Adeyemo, who spoke before the Senate Banking Committee.
“Our problem is that actors are increasingly finding ways to hide their identities and transfer resources using virtual currency,” Adeyemo said.
He testified that these actors include both terrorist organizations and adversaries of the United States such as North Korea. Russia has also begun using a stablecoin linked to the dollar pregnancy Adeyemo said that Iran is evading sanctions and “financing its war machine.”
A report on the deputy secretary's testimony by Barron's included a statement from Tether saying he was working with lawmakers to address Illicit crypto financing.
“We look forward to continuing our cooperation with the US government and law enforcement on this matter to foster a safer and more secure digital asset ecosystem,” Tether said.
Barron's report notes that previous crackdowns have led to a decline in cryptocurrency prices, pointing to the FBI's prosecution of Silk Road, which led to a 20% decline in Bitcoin. The report added that some cryptocurrency lobbyists are concerned that regulation will further harm their sector, by isolating parts of the industry from the larger banking system.
However, Baron adds, fears of being linked to illicit finance could be one of the few things preventing large investors, such as sovereign wealth funds, from investing more heavily in the cryptocurrency space.
Meanwhile, PYMNTS argued in a report earlier this year that “the lack of reliability in cryptocurrencies continues to impact.” Obstructing the sector’s attempts To integrate itself into the broader financial system.
even when Security and Exchange Commission The Securities and Exchange Commission (SEC) approved bitcoin exchange-traded funds (ETFs) in January — something crypto proponents say will happen. Leads to wider usage The agency was clear that it does not endorse Bitcoin itself.
“Although we are neutral, I would like to point out that…Bitcoin is primarily a speculative and volatile asset that is also used for illicit activities.” Including ransomware“And money laundering, sanctions evasion, and terrorist financing,” SEC Chairman Gary Gensler wrote at the time.
“What's amazing to me is that we, as an industry, are still talking about this —” PYMNTS CEO Karen Webster said in 2018. Bitcoin, now crypto, blockchain – as if its potential to revolutionize our global financial system, and the way money moves between parties around the world, is just around the corner.
