Crypto Alert: Treasury Calls for Action Against Illicit Finance
U.S. Deputy Treasury Secretary Wally Adeyemo emphasized the urgency for the crypto industry to take proactive measures against unlawful financial activities during his speech at the 2023 Blockchain Association Policy Summit.
He highlighted the necessity for the digital assets realm to adopt self-regulation to prevent illicit finance, cautioning that failing to do so could lead regulators to intensify their crackdown on this burgeoning sector.
Adeyemo underscored the industry’s potential to develop innovative solutions that combat money laundering while safeguarding individuals’ legitimate interests. He also stressed the industry’s capability to dissociate from entities neglecting measures to deter illicit financial activities.
Expressing concern over the escalating inflow of unlawful proceeds into the digital asset sphere, Adeyemo warned of potential restrictions and exclusions from the broader economy if the industry does not take decisive action. He affirmed the government’s unwavering commitment to leveraging all available tools to ensure national security.
The Treasury Department recently presented Congress with proposals to enhance measures against malevolent actors within the crypto industry. These include introducing new tools for sanctioning to impede the movement of crypto assets affiliated with terrorist organizations.
Additionally, regulatory agencies are urged to revise outdated terms to align with virtual currencies, while efforts are underway to curb offshore financial entities aiding unlawful practices in circumventing U.S. regulations in collaboration with the Financial Action Task Force (FATF).
Adeyemo highlighted that these reforms aim not only to combat illicit finances but also to create a level playing field for responsible innovation, fostering sustainable growth within the industry.