The US Government Warns Crypto Companies to Act on Illicit Finance Threats
Deputy Treasury Secretary Issues Stark Warning to Crypto Industry
The U.S. government has issued a stark warning to cryptocurrency companies, threatening to sever their ties to the broader U.S. economy if they do not take action to block and report illicit money flows. Deputy Treasury Secretary Wally Adeyemo delivered the warning on Wednesday, urging the industry to step up its efforts in combating illicit finance.
Crypto Companies Urged to Take More Responsibility
Adeyemo emphasized the need for crypto companies to do more to curtail the flow of illicit finance, highlighting the potential risks posed to the U.S. by the lack of action within the sector. He stressed the government’s commitment to utilizing all available tools to safeguard national security, signaling a firm stance on the issue.
Biden Administration Seeks New Legislation for Crypto Regulation
The Biden administration has requested new legislation from Congress, seeking to grant the Treasury the authority to police crypto marketplaces used by entities deemed illicit by the U.S. government. This move comes in response to the need for increased oversight and regulation within the crypto space.
U.S. Government’s Crackdown on Illicit Financing
The U.S. government’s recent actions include sanctions aimed at disrupting funding for Palestinian militant group Hamas, with a specific focus on a Gaza-based cryptocurrency exchange. Additionally, Binance chief Changpeng Zhao pleaded guilty to breaking U.S. anti-money laundering laws and stepped down as CEO as part of a $4.3 billion settlement.
Binance’s Compliance Issues with U.S. Laws
Prosecutors revealed that Binance had violated U.S. anti-money laundering and sanctions laws, failing to report over 100,000 suspicious transactions involving organizations described as terrorist groups. Despite Binance’s efforts to enhance platform security, the incident underscores the importance of compliance with regulatory requirements.
By Hannah Lang