Cryptocurrencies are becoming a safe haven for “bad actors” such as terrorist groups.
according to it testimony By Wally Adeyemo, Deputy Secretary of the United States Treasury, speaking before the Senate Banking Committee on Tuesday (April 9).
“Our problem is that attackers are increasingly finding ways to use cryptocurrencies to hide their identities and move resources,” Adeyemo said.
He testified that these actors include both terrorist organizations and adversaries of the United States such as North Korea.Russia also started using dollar-pegged stablecoins. tether Adeyemo said it was to evade sanctions and “fund the war machine.”
Barron's reporting on the deputy's testimony included a statement from Tether saying it was working with lawmakers to address the issue. illegal virtual currency lending.
“We look forward to continuing our collaboration with the U.S. government and law enforcement agencies on this issue to promote a safer and more secure digital asset ecosystem,” Tether said.
The Barron's report points out that past crackdowns have led to declines in cryptocurrency prices, citing the FBI's Silk Road prosecution that led to a 20% drop in Bitcoin prices. Some crypto lobbyists fear that regulation will further hurt their sector by cutting off parts of the industry from the larger banking system, the report added.
However, Barron's added that concerns about links to illegal finance may be one of the few factors preventing large investors such as sovereign wealth funds from investing heavily in the crypto space. .
Meanwhile, PYMNTS claimed in a report earlier this year that the “lack of trustworthiness” in cryptocurrencies persists. hinder sector attempts It is about integrating themselves into the broader financial system. ”
parable securities and exchange commission The (SEC) approved a Bitcoin exchange-traded fund (ETF) in January, but crypto advocates say it will become a reality. Leads to wider use — It was clear that the authorities did not support Bitcoin itself.
“While we are merit-neutral, we note that Bitcoin is a primarily speculative and volatile asset, and is also used for illegal activities. Contains ransomwaremoney laundering, sanctions evasion, and terrorist financing,” SEC Chairman Gary Gensler wrote at the time.
And as PYMNTS CEO Karen Webster said in 2018: Bitcoin, now a cryptocurrency, blockchain It seems as if the potential to revolutionize our global financial system and the way money moves between parties around the world is just around the corner. ”
