The New Cryptocurrency Regulation Framework

Published:
Updated:
Category:

News

doj_cryptocurrency_regulation_thumbnail

William Barr, The U.S. Attorney General had unveiled a framework developed by the Department of Justice. The framework developed by the DOJ is for cryptocurrency enforcement. This framework was built around the Attorney Generals Cyber-Digital task force. The goal of the Department of Justice is to combat crypto enabled cyber-crime. This framework mainly focuses on enterprises that target illicit goods and citizens.

The Cyber-Digital task force was created for a reason. Its goal is to investigate and emerging threats and challenges in law enforcement. This is as far as new technology and wide cryptocurrency adoption is concerned.

The Cryptocurrency Enforcement Framework

The framework for enforcing cryptocurrency was published by the DOJ very recently. The document is 83 pages long and talks in depth about all aspects of enforcement. The paper mentioned the strategies that will be employed by law enforcement to fight all forms of crimes. This included blockchain and digital currency related crime.

The document consists of three main parts. The first sector provides a clear image into the role that blockchain technologies. This involved things like the affect of cryptocurrencies on modern economies. The first section also mentions contracts, digital wallets and initial coin offerings. The transfer of virtual currency between different entities is also mentioned in this section.

Illegal Cryptocurrency Applications

The report takes an in-depth look into illicit cryptocurrency applications. The applications were divided into three main categories. Monetary exchange that is related to criminal activities is the first one. The practice of money laundering and various forms of tax evasion is the second and most common one. Financial theft is the third and most uncommon category.

The report talks about the widely-known truth about cryptocurrency. The truth is that it helped grow illicit activity. Cryptocurrency does facilitate international and organized crimes but regulations can stem that.

Particularly, the report mentions something interesting. It mentions where the criminal interest in cryptocurrency comes from. It says that the fact that digital assets provide the possibility to transfer cash that can be seen in fiat currency is that reason. It has never been easier to transfer funds this quickly and under the radar was the conclusion. This of-course is changing, with new blockchain surveillance techniques.

Additionally, the report mentions a few of the problems law enforcement agencies face. The use of anonymous transactions and privacy coins makes it significantly harder to track. This can allow criminals to move large sums of money across international borders. The report mentions how this can be done to enable child exploitation and terrorism.

The report also mentions how crypto-centric the dark web is. Markets have appeared that allow users to purchase drugs, weapon and even cyber tools. These cyber-tools can then be used to infect victims computers. All this crime is also enabled by cryptocurrencies.

Tools to Fight Cryptocurrency Enabled Crime

The second section of the report highlights all the current legal structure. This includes regulatory mechanisms that are used by authorities to target any such crime.

The article then goes on to mention some of the methodologies used by agencies to fight such crime. This involves the imposition of a number of charges that can pin down crypto criminals. This includes wire fraud, securities, money laundering and more. Unlicensed transfer of money and unauthorized computer access is also in the list.

It is also important to note that law enforcement agencies and the DOJ have an extra trick up their sleeve. Both have the power to confiscate cryptocurrency. They also have permission to seize domains believed to be associated with crime.

Challenges Facing Cryptocurrency Enforcement & Regulations

The third section of the document focuses on present and future challenges. These challenger are surrounding the enforcement and regulation of cryptocurrency. This includes new technologies that will be more commonly used by criminals to stay off the radar.

Regulatory bodies have added mandatory rules that apply to all cryptocurrency stakeholders. A set of rules that users are meant to adhere to such as AML and KYC are in place. This framework is being laid out to flush out any criminal elements. This will make it harder for users to hide behind cryptocurrencies.

This framework also acknowledges the potential of cryptocurrencies enabled international crime. The report prescribes a number of of recommendations to ensure regulators and law enforcement agencies work hand in hand. This will allow agencies to combat international crime more easily.

Conclusion

This report shows a big leap in cryptocurrency regulation. For cryptocurrency stakeholders, this is a win since crypto can now be treated as a legitamate currency. Bitcoin ATMs, crypto Casinos, and other platforms will now be easier than ever to operate. On the other hand, this does not put an end to cryptocurrency fueled crimes. Criminals are expected to switch to privacy coins making it harder for agencies to track.

Leave a comment

Captcha