US Treasury Calls for Expanded Powers to Pursue Crypto Companies
Date: 2023-12-04 Author: Dima Zakharov Categories: IN WORLD
US Treasury's Request for Expanded Authority
The US Department of the Treasury has urged Congress to grant the agency broader powers to address unlawful financing facilitated by cryptocurrencies. Deputy Secretary of the Treasury, Wally Adeyemo, approached Congress with a proposal to expand the tools and resources of the agency for pursuing offenders within the cryptocurrency sphere. Adeyemo emphasizes the necessity for the agency to apply its authorities well beyond the borders of the United States and monitor transactions not linked to American citizens.
Evolving Financial Methods and Security Concerns
"Avenues for collecting and moving money continue to evolve, and our authorities have not been updated for decades. Terrorist groups, including HAMAS, are utilizing new virtual methods to move and store funds, as well as to obscure financial flows. These could involve cryptocurrency services and mixers," as stated in the US Treasury's appeal.
Adeyemo has urged Congress to grant the Treasury Department "new secondary sanctions tooling" against exchanges supporting terrorism. This move would enable the government to apply measures to Virtual Asset Service Providers (VASPs) similar to those applied to correspondent banking accounts. The official emphasized that in case of violations, this action would not only sever the violating firm from the US financial system but subject any organization continuing to work with those under sanctions to a similar fate.
Proposed Expansion of Treasury's Authority
Lawmakers are also urged to broaden the Treasury's powers under the Bank Secrecy Act (BSA), allowing the agency to target cryptocurrency organizations and services facilitating terrorist financing. Adeyemo believes it's necessary to establish a new category of financial institutions under the BSA, encompassing cryptocurrency exchanges, wallets, node validators, decentralized finance (DeFi) projects, and other VASPs.
Recently, Adeyemo accused cryptocurrency companies of being uncooperative in aiding authorities in combating terrorism financing and money laundering through digital assets. The official cautioned that if industry companies fail to take action themselves, US authorities will intervene on their behalf.
