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The US Treasury Department candidate for terrorism and financial intelligence said during a confirmation hearing that he will focus on related regulations for cryptocurrencies.
The US Treasury Department candidate for the head of the terrorism and financial intelligence division, Brian Nelson, made a statement on the crypto market during a confirmation hearing in the Senate. Nelson has said he will make disregarding AML laws using cryptocurrencies a priority.
Cybercrime and cryptocurrencies
Nelson was asked about the anti-money laundering law of 2020, and he responded by saying that he would work on currency regulation afterwards, whatever form they might take. Specifically, he said,
If confirmed, I will prioritize the implementation of this legislation, including new regulations regarding cryptocurrency.
U.S. officials have raised the issue of cybercrime as it relates to crypto in recent months, following a report that the Biden administration was in the process of creating a regulatory framework for cryptocurrency. Authorities have also made it their business to discuss the use of cryptocurrency in cybercrime, with reports released just before the G7 summit.
The company that runs the U.S. colonial pipeline has also been hacked by hacking group DarkSide. The group demanded a ransom in bitcoin, which the company was forced to pay. However, US officials have recovered the vast majority of the funds. Such incidents have stimulated regulation and scrutiny of the cryptocurrency market.
Global cooperation and ongoing action
Other governments and groups are also concerned about how cryptocurrencies can be used to facilitate illicit activity. Among these is the Financial Action Task Force (FATF).
The FATF is a global body that deals with the implementation of laws that would prevent the financing of terrorism, among others. Officials from the organization have reportedly spoken to Maltese authorities, concerned about potential oversights in the country’s regulatory framework. Malta, known as ‘Blockchain Island’ for its crypto-friendly environment, was one of the first countries to put in place a broad regulatory framework to attract entrepreneurs and businesses.
The story continues
The cryptocurrency industry is currently facing heavy regulation and investigation from governments around the world. Actions taken by countries like China, Canada, the United States and the United Kingdom have all affected various aspects of the industry.
Securities regulation has been a big deal in the news in recent weeks, with the Ontario Securities Commission targeting KuCoin and Poloniex, among others. This follows in the footsteps of the United States, where the SEC is involved in a case against Ripple, having previously forced the Telegram Open Network (TON) to shut down.
China, meanwhile, has turned to the mining industry, ordering operations in several regions to shut down. More importantly, however, he called on banks to stop facilitating cryptocurrency-related transactions, which seriously rocked the market.
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