U.S. Attorney General Releases Crypto Enforcement Framework for Public and National Safety
U.S. Attorney General William Barr’s Department of Justice (DOJ) has released a cryptocurrency framework document called “Cryptocurrency: An Enforcement Framework” on Thursday, October 8, 2020.
The document describes what cryptocurrencies are and their possible use cases, which include sections on both legal and illegal uses and much more.
Crypto Technology Can Transform How Human Beings Interact
The report is divided into three segments. First is a summary of the cryptocurrency world and its ongoing illegal uses. The second is about the regulations and administrative agencies that supervise the cryptocurrency world, and the third is deals on current difficulties and possible approaches to address them.
In a report, Attorney General William Barr said,
“Cryptocurrency is a technology that could fundamentally transform how human beings interact, and how we organize society. Ensuring that use of this technology is safe, and does not imperil our public safety or our national security, is vitally important to America and its allies.”
The report has also warned that cryptocurrencies are more challenging for prosecutors and investigators to find than earlier tools for accomplishing crimes, calling pump-and-dump schemes as one case. The three categories of illicit uses of cryptocurrency are:
- financial payments involving criminal activity
- money laundering or evasion of tax and/or other legal requirements
- theft and other similar crimes involving cryptocurrency exchanges or marketplaces
FBI Director Christopher Wray had stated that the FBI has seen “first-hand” the perils when criminals maximize the capabilities of the technology for their own malicious ends. Wray further added that,
“The cybercriminals behind ransomware attacks often use cryptocurrency to try to hide their true identities when acquiring malware and infrastructure, and receiving ransom payments. The men and women of the FBI are constantly innovating to keep pace with the evolution of criminals’ use of cryptocurrency.”
The Report Compiles The U.S. Government’s Efforts Over The Past Few Years
The report also compiles the U.S. government’s efforts over the past few years. This includes criminal cases filed by the DOJ, civil cases filed by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC)
The Cryptocurrency Enforcement Framework also focuses on the “Ongoing Challenges and Future Strategies,” still, the DOJ remarked that some exchanges operate “jurisdictional arbitrage,” and always look for the most favorable jurisdiction to work. This can hurt law enforcement agencies’ attempts to stop the criminal activity that includes cryptocurrencies.