The US Department of the Treasury has revealed a sharp increase in the misuse of cryptocurrencies by criminals, revealing new problems in the financial sector. In 2024 national risk assessmentThe Department is delving into urgent issues such as money laundering, terrorist financing and proliferation financing, which are very complex situations that need to be addressed urgently.
Cryptocurrency abuse is on the rise
However, the results revealed a clear shift towards virtual assets among criminals and fraudsters. This shift has led to a more general phenomenon of digital financial abuse, with cryptocurrencies increasingly being used as money laundering conduits associated with a variety of illegal activities such as fraud, drug trafficking, human smuggling, and corruption. is highlighted.
of Ministry of Finance report This highlights the growing anxiety surrounding cryptocurrencies, which stands in stark contrast to traditional laundering techniques that involve cash-based operations associated with drug trafficking proceeds.
Regulatory challenges and DeFi conundrums
The report also highlights issues such as: VASP and DeFi platforms. Despite a regulatory framework aimed at regulating illicit financial flows, compliance remains difficult. Some VASPs circumvent U.S. regulations or fail to register properly.
of DeFi sectorSome services that fall within the definition of a financial institution under the Bank Secrecy Act do not meet AML and CFT obligations, creating particular challenges. This neglect allows illegal actors to abuse these platforms, further complicating the regulatory landscape.
Online gaming and terrorist financing
Treasury's assessment also includes the emerging online gaming industry, which is rapidly growing and innovative, but introducing new routes for money laundering. The online gaming environment, characterized by high levels of anonymity and enormous scale, has become an ideal environment for money laundering activities to thrive and represents a new and complex aspect that adds weight to digital financial regulation. Masu.
Additionally, the report reveals that terrorist networks not only continue to use these traditional financial channels, but also turn to virtual assets as a means of transferring money. Importantly, demand for stablecoins is increasing among these groups, which is why they are making tactical moves towards more stable digital currencies.
Based on these results, US Treasury is preparing to issue a strategic plan to address the vulnerabilities and risks identified in the 2024 assessment. This upcoming plan will provide detailed recommendations that demonstrate a proactive approach to preventing digital financial abuse. But the department's actions represent a broader commitment to protect the integrity of the U.S. financial system while addressing the complex challenges of the digital age.
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