Crypto Suspicious Used For Illegal Activities, US Government Tightens Digital Asset Rules

The US government will tighten crypto regulations. (Photo; Doc. Yellowblock)

JAKARTA - In an effort to address threats related to the use of crypto assets for financing illegal activities including terrorism, the Joe Biden administration encourages the US Congress to issue strict new regulations.

The latest report from The Wall Street Journal expressed concern that militant groups, including Hamas, had used these digital assets to raise funds that could be used in their attacks.

Deputy Minister of Finance, Wally Adeyemo, recently revealed that the Treasury Department has discussed with lawmakers about potential legislative actions that can tackle terrorism financing through crypto.

"There are several places where we think Congress needs to act. We will work with Congress to get more tools needed in this endeavor," said Adeyemo.

Strict Supervision

Given this potential threat, Congress and the government have encouraged stricter oversight of the use of crypto assets. The Treasury Department recently identified an international crypto mixer platform as a money laundering hub that aids terrorism financing. Additional information, this mixer can provide anonymity to users, thereby facilitating the use of cryptocurrencies in illegal activities.

Adeyemo also stressed that apart from legislative action, crypto companies must also be responsible for managing themselves. He appealed to the industry to ensure that their platform was not exploited for criminal purposes. This effort has the support of some 100 members of Congress recently

On the other hand, not all parties agree with tighter scrutiny of the crypto industry. Some cryptocurrency advocates argue that the role of digital assets in financing terrorism is exaggerated.