The Treasury Undersecretary proposed that Congress give the Treasury a new secondary sanctions tool against exchanges that support terrorism.
These statements came on the same day that the Treasury imposed sanctions on cryptocurrency mixer Sinbad for facilitating the laundering of funds for the North Korea-based Lazarus Group.
The year 2023 has been a year of ups and downs for cryptocurrencies. Despite the general increase in prices, there have also been a number of bankruptcies and scandals that have shaken the market.
One of the most notable events was the historic fine imposed on Binance, a leading cryptocurrency exchange platform, and the subsequent resignation of its CEO and founder, Changpeng Zhao. Besides, Sam Bankman-Friedfounder of FTX, He faced trial for his role in the platform’s collapse a year ago.
These developments have led the US Treasury Department to ask Congress for new tools to increase control over the cryptocurrency space. At the Blockchain Association Policy Summit, Undersecretary of the Treasury, Wally Adeyemo, asked US lawmakers for a set of recommendations to expand Treasury authorities and resources in pursuing illicit activities in the digital assets space, including outside the United States. This would include the possibility of completely isolating an entity and its partners from the US financial system.
Cryptocurrencies and terrorist organizations
Adeyemo He noted that ways of raising and moving money are constantly evolving, and many of the current authorities have not been updated in decades. He noted that terrorist groups such as Hamas are using virtual methods to move and hide their funding flows.n, including the use of cryptocurrencies and transaction mixing services.
The Treasury Undersecretary proposed that Congress give the Treasury a new secondary sanctions tool against exchanges that support terrorism. These measures would seek to prevent these actors from finding refuge in the digital asset ecosystem. Adeyemo also emphasized the importance of taking regulation in the cryptocurrency sector seriously.citing the recent case of Binance, which allowed transactions related to sexual abuse of minors, drug trafficking and financing of terrorism.
Additionally, Adeyemo warned of the danger posed by non-US stablecoin issuers that use the dollar as backing for their tokens, making specific reference to Tether (USDT), the largest stablecoin on the market. He noted that these providers cannot be allowed to use the dollar without taking responsibility for preventing abuse of their platform by terrorists.
In conclusion, Adeyemo made it clear that the Treasury will not tolerate those who believe they are above the law in the digital assets sector. He promised that steps will be taken to find and hold accountable those who promote assets and services that facilitate criminal activities. These statements came on the same day that the Treasury imposed sanctions on cryptocurrency mixer Sinbad for facilitating the laundering of funds for the North Korea-based Lazarus Group.
Source: Ambito
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