US Treasury Department Urges Crypto Firms to Combat Terrorist Financing
The US Treasury Department has warned that cryptocurrency firms are not doing enough to prevent illicit funds from reaching terrorist organizations, and if they fail to take action, the US and its allies will intervene. Speaking at the Royal United Services Institute in London, Deputy Treasury Secretary Wally Adeyemo stated that some players in the crypto space prioritize innovation without considering the consequences, including the risk of facilitating illicit financing.
Adeyemo emphasized that his department is actively engaging with financial institutions and crypto companies to find ways to prevent terrorists from accessing funds. The US government expects these entities to be proactive in their efforts to combat illicit financial flows. If they do not take action, the US and its partners will step in.
US Expects Crypto Firms To Be Proactive
Adeyemo expressed the expectation that financial institutions, crypto companies, and others in the virtual currency ecosystem will proactively prevent terrorists from accessing resources. He warned that if they fail to act against illicit financial flows, the US and its partners will take action themselves.
In response to a recent attack by Hamas on Israel, the US has already taken measures to disrupt the militant group’s financial network. This includes imposing sanctions on key Hamas members, operatives, and financial facilitators. Additionally, a Gaza-based virtual currency exchange and its operator were sanctioned for their role in facilitating fund transfers for multiple terrorist groups.
The US Treasury Department has also targeted virtual currency mixers as a primary concern for money laundering activities by terrorist organizations. Specifically, it has sanctioned Tornado Cash for its involvement in money laundering. These actions aim to address the systemic risks posed by virtual currency mixing services that are often exploited by illicit actors.
Hot Take: US Treasury Department Calls for Stronger Anti-Terrorist Financing Measures in Crypto Industry
The US Treasury Department has issued a stern warning to cryptocurrency firms, urging them to enhance their efforts in preventing terrorist financing. Deputy Secretary Wally Adeyemo emphasized the need for proactive measures by financial institutions, crypto companies, and other players in the virtual currency ecosystem to prevent terrorists from accessing funds. Failure to do so may result in intervention by the US and its allies.
In response to recent attacks by Hamas, the US has already taken actions such as imposing sanctions on key members and operatives of the group. Additionally, virtual currency mixers have been targeted as a primary concern for money laundering activities. These measures demonstrate the US government’s commitment to combatting illicit financing in the crypto industry.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies.Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.
