Crypto Use in Terrorism ‘a Growing Problem,’ Yellen Says

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Cryptocurrencies made use of for illegal functions are a “growing problem,” Treasury Secretary Janet Yellen claimedWednesday

“I see the promise of these new technologies, but I also see the reality: cryptocurrencies have been used to launder the profits of online drug traffickers; they’ve been a tool to finance terrorism,” she claimed in her opening statements.

She referenced the Anti-Money Laundering Act entered regulation by Congress last December, a component of the National Defense Authorization Act that calls for the UNITED STATE federal government to upgrade its anti-money laundering/countering the funding of terrorism (AML/CFT) regulations. Yellen claimed the existing governing structure was produced in the 1970s and also has actually not been upgraded a lot considering that.

“The update couldn’t have come at a better time. As this group knows very well, we’re living amidst an explosion of risk related to fraud, money laundering, terrorist financing, and data privacy,” she claimed.

This is the 3rd time Yellen has actually talked in public regarding crypto this year. During her verification hearing in January, she informed the Senate Finance Committee that crypto use in terrorism was “a particular concern.” In later on, created, statements, she softened her tone, claiming cryptocurrencies might be advantageous to the existing monetary system also.

Yellen’s statements come a week after the United Nations (UN) published a report claiming cryptocurrencies have actually been made use of to fund ISIS and also Al-Qaeda

That record referenced police activities in France and also the UNITED STATE Last September, French authorities apprehended 29 people charged of helping with a complex system to money terrorists making use of cryptocurrency vouchers.

Earlier in the year, the UNITED STATE Department of Justice revealed it had actually taken apart 3 different projects to fund Al-Qaeda, Hamas and also ISIS that made use of cryptocurrencies.

UNITED STATE legislators are likewise asking whether crypto streaming system DLive, a subsidiary of BitTorrent and also the Tron Foundation, was made use of to promote crypto contributions to people existing at the insurrection.

The Treasury Department, together with governing firms in its umbrella, “can better stem the flow of dark money,” Yellen claimed onWednesday

“And we’ll be better positioned to stop adversaries from hacking our institutions or interfering in our elections,” she included.