US Treasury Department Meets With Industry leaders To Discuss Crypto Regulatory Challenges

News / 03.03.2020
  • The US Treasury has met with leading players in the crypto space to discuss ways to regulate the industry better
  • This comes as the US pushes for better transparency of digital assets to combat illicit activity.
  • The Treasury has also flagged suspects who aided the Lazarus Group  launder money to North Korea

On March 3, 2020, the US Treasury Department convened a meeting with major industry leaders and finance watchdog experts to look into supervisory and regulatory challenges facing digital assets, including crypto.

‘The US welcomes responsible innovation, including new technologies that may improve the efficiency of the financial system.’ said Treasury Secretary Steven T. Mnuchin.

He added that there was an urgent need to protect US national security and maintain the integrity of the financial system.

Treasury is focused on preventing the misuse of virtual currencies by money launderers, terrorist financiers, and other bad actors.

The United States plans to be at the forefront of regulating entities that provide crypto, and will not tolerate the use of cryptocurrencies in support of illicit activities.

Just last Wednesday, Secretary Mnuchin had announced that the US would soon unveil new guidelines related to crypto and digital remittance networks.

Mnuchin told the Senate Finance Committee Treasury, via the Financial Crimes Enforcement Network, is working on regulations that will boost transparency in the use of crypto in order to halt money laundering and terrorist financing.

US Treasury Leading The Way Towards Transparent Crypto Regulation

Mr. Mnuchin has long been pushing for regulations that would entail greater transparency so that law enforcement could see where money was going and ensure that it was not being used to aid money laundering.

In fact, after playing down the risks of cryptos at the beginning of Trump’s presidency, Mnuchin changed his tune last summer, claiming that digital assets posed a national security threat.

The latest meeting over crypto regulation may be a way forward to allow the development of well-thought rules that encourage transparency while clamping down on the illicit use of crypto.

The US Charges Two Chinese Nationals For Laundering Crypto

On March 2, 2020, the Department of Justice (DOJ) also indicted the two Chinese nationals on money laundering related charges. They are accused of helping North Korean hackers launder crypto that was stolen during hacks of two cryptocurrency exchanges.

The US treasury also weighed in on the matter in a press conference, claiming that the hackers were helping North Korea evade international sanctions by raising money via the use of ransomware and hacks of banks, ATM networks, and crypto exchanges.

Featured image courtesy of Shutterstock. Source: Cryptopress.

Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.