Komal Joshi · Oct 29, 2020 . 5min read
US Attorney General commissioned Cyber-Digital Task Force releases its Crypto Enforcement Framework
The Crypto Enforcement Framework report details the "threats and enforcement challenges" on the growing usage of cryptocurrencies.
By Victor Ugochukwu · Oct 9, 2020 . 6min read
The Attorney General of the United States has released the Crypto Enforcement Framework report detailing the “threats and enforcement challenges” on the growing usage of cryptocurrencies and how the Justice Department can tackle the menace that arises from it.
The 83-page long report details the findings by the Cyber-Digital Task Force on how criminals are cashing-in on the base technology to evade law enforcement radar.
Attorney General William P. Barr in a statement unveiling the enforcement framework 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 Crypto Enforcement Framework outlines the illicit use cases of cryptocurrencies in three parts. The first bothers on financial transactions associated with the commission of crimes. The second part covered money laundering and the shielding of legitimate activity from tax, reporting, or other legal requirements. The last part includes crimes, such as theft, directly implicating the cryptocurrency marketplace itself.
Subsequently, in Part 2 of the report, the DOJ outlines the various regulatory tools available for the government. These include the Securities and Exchange Commission, the Commodity Futures Commission, and agencies within the Department of the Treasury, among others. And to show how competent these bodies are, the report cited different cases where relevant regulatory agencies enforced the law to bring erring parties and criminal to book. Hence, part of these includes SEC’s win over Telegram where the latter was forced to shut down its cryptocurrency ambition.
The Cyber-Digital Task Force’s report also covered shady business models crypto criminals engage in.
Furthermore, Part 3 of the report covered the challenges the United States government faces while trying to uncover and stem illicit crypto activities. The Crypto Enforcement Framework talked about business models such as pump and dump schemes among many others. The DOJ even referenced coin mixing as part of the strategies criminals to evade sanctions. It also cited that some exchanges in “jurisdictional arbitrage” where they look “friendly” jurisdiction in to operate as a challenge. The BitMEX saga with CFTC and DOJ is a good reference to jurisdictional arbitrage.
The report clearly shows the DOJ is not backing down on the war of illicit activities cybercriminals and terrorists perpetuate. As we reported earlier, the DOJ scored significant points against the terrorists using cryptocurrencies to launder money.
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