Criminal use of crypto is one of the most damaging aspects of cryptocurrencies. And even though the fraction of criminal use of crypto is tiny as compared to the excellent part, it is still pointed out. This is why the US Senator wants stricter prosecution of the criminal use of crypto. She has cited her concern regarding the increasing use of crypto for illegal purposes.
The steps against criminal uses of crypto
The US Senator has recently sent a letter to the Attorney General Merrick Garland talking about her concern regarding the same. She wants the authorities to take more steps to make sure that the criminal use of crypto could be limited. Now, this is important as crypto in itself generates a bad name, and the negative uses just boost that.
The letter of the US Senator was also forwarded to the DHS, IRS, SEC and FinCEN, showing that steps could be taken soon. If that happens, we could see stricter regulations from the government. While that is good it is important that transparency is maintained, which is something the SEC doesn’t like to do.
The use of crypto for illegal things
Last month the government lost $2.3 million to a cyberattack, and all the funds were converted to crypto. And since the nature of the currency is very opaque, it was not possible for the government to track the transaction. Crypto is also being extensively used for drug sakes, in the dark web, tax evasion and even terrorism. All this means there is some serious need for oversight from the government.
At the same time, the DeFi exchanges that are more opaque in terms of customer identity also needs to be regulated, according to the US Senator. This is because they have a much lousy KYC policy. It is also something the government needs to work on and make sure that the exchanges implement it properly. So, all in all, the regulation of crypto is a good thing and means that the government is not all against it.
What are your thoughts on the stricter prosecution the US Senator wants? And do you think this will help reduce crimes in crypto? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.