U.S. Deputy Treasury Secretary Calls on Crypto Industry to Combat Illicit Finance
U.S. Deputy Treasury Secretary Wally Adeyemo has issued a warning to the crypto industry, urging it to take action against illicit finance. Speaking at the 2023 Blockchain Association Policy Summit, Adeyemo emphasized the need for self-regulation within the digital assets sector. He stated that if the industry does not crack down on illegal financial activities, regulators will be forced to impose stricter measures on the nascent sector.
Treasury Department Recommendations
The Treasury Department recently provided Congress with recommendations on how to combat bad actors in the crypto industry. The first recommendation is the development of new sanctioning tools to restrict the movement of crypto assets owned by terrorist organizations. Secondly, regulatory agencies are urged to update their terms to align with virtual currencies. Lastly, the Treasury Department aims to collaborate with the Financial Action Task Force (FATF) in order to curb offshore financial providers that assist bad actors in evading US law.
Industry Reforms and Sustainable Growth
Adeyemo believes that implementing these reforms will not only help combat illicit finances but also level the playing field for responsible and beneficial innovation in the industry. By taking action against illicit finance, the crypto industry can ensure sustainable growth and facilitate its integration into the broader economy.
Hot Take: U.S. Government Sends Clear Message on Illicit Finance
The warning issued by U.S. Deputy Treasury Secretary Wally Adeyemo emphasizes the importance of addressing illicit finance within the crypto industry. The government expects self-regulation from industry participants to prevent money laundering and protect national security. Failure to take action may result in stricter regulations and limitations imposed by regulators. By collaborating with regulatory agencies and international organizations like FATF, the industry can foster responsible innovation and sustainable growth while curbing illicit activities. It is crucial for the crypto industry to proactively combat illicit finance in order to maintain its credibility and secure its future.
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