US Government Steps Up Oversight of Cryptocurrency Platforms to Combat Illicit Activities - Financial Times
Justice Department Targets Crypto Industry to Curb Money Laundering and Criminal Exploitation
As the world of digital currencies continues to evolve, so does the US government's approach to monitoring and regulating their activities. According to an exclusive report from the Financial Times, the US is significantly expanding its oversight of cryptocurrency trading platforms to counter illicit activities within this burgeoning sector.
The US Department of Justice (DOJ) has focused on the crypto industry, which is directly involved in illegal activities or provides an environment that facilitates actions such as money laundering. Eun Young Choi, the leader of the Department of Justice's National Cryptocurrency Enforcement Team (NCET), shared these insights with the FT. Choi expressed concern about the role of these platforms in allowing criminal elements to turn their ill-gotten gains into assets, exacerbating the problem. She said: "By targeting such platforms, we hope to create a ripple effect."
In a notable development earlier this year, the DOJ filed identity theft and money laundering charges against Minh Quoc Nguyen, a Vietnamese national, alleging his flagrant disregard for financial regulations through his involvement with the ChipMixer crypto platform.
This increased oversight signifies the Justice Department's commitment to strengthen its oversight role, with the goal of sending a clear warning to companies that have previously evaded anti-money laundering and customer identification requirements or failed to implement robust enforcement measures. compliance and risk management, according to Choi. .
While not referring to any particular company, Choi clarified that the size of the organization would not influence the Justice Department's consideration when deciding potential charges.
In addition, the DOJ is shifting its focus towards crimes related to decentralized finance, particularly "chain bridging," a feature that allows users to exchange various digital tokens. In addition, the department is paying attention to emerging projects with code vulnerabilities that can be exploited for illicit purposes, Choi added.
