The U.S. Treasury Department has asked Congress for more tools and powers. Deputy Secretary Wally Adeyemo shared this request during the Blockchain Association's Policy Summit. He stressed the urgent need to update measures against illicit finance to match the changing landscape of the digital asset ecosystem.
Adeyemo highlighted the importance of adapting to changing challenges within the digital asset space. Specifically, he called for the establishment of a secondary penalty system, seeking a strong mechanism that not only severs ties between a firm and the U.S. financial system but also exposes entities collaborating with penalized parties to similar consequences.
This move is aimed at preventing groups like Hamas from finding sanctuary within the digital asset realm. The Treasury's recent imposition of sanctions on Sinbad.io, a crypto mixer aiding a North Korean-sponsored cyber hacking group, emphasizes the pressing need for enhanced measures against illegal activities in the crypto landscape.
Even with increased regulations, Adeyemo is urging the digital asset industry to work closely with the government. He emphasizes the need for both parties to come together to create new tools and put preventive measures in place. The aim is to stop the misuse of cryptocurrencies by illicit actors. By working together, they hope to quickly address and eliminate any attempts by harmful entities to gain a presence in the digital asset space.
Adeyemo acknowledged the industry's potential in combating illicit activities and expressed hope for a cooperative collaboration between the government and digital asset stakeholders.
"We cannot allow dollar-backed stablecoin providers outside the United States to have the privilege of using our currency without the responsibility of putting in place procedures to prevent terrorists from abusing their platform," Adeyemo asserted. He also underlined the necessity of preventing offshore financial service providers from using jurisdiction-avoidance strategies to sidestep compliance with U.S. laws.
Additionally, Adeyemo underscored the need for a strong framework that ensures accountability and compliance with regulatory standards in the global financial landscape.
In short, the Treasury is asking Congress for more rules to deal with illegal activities in digital assets. At the same time, there's a new way of thinking in the industry that supports working together and self-regulation to make sure people use cryptocurrencies responsibly. This balanced approach recognizes the need for security without slowing down the exciting growth of the digital asset world.
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