U. S. Treasury Secretary Janet Yellen” “misappropriation” of cryptocurrencies like bitcoin is a “growing problem,” a sign that lawmakers are stepping up their review of virtual assets.
However, the Treasury Secretary, who took in January, also said she saw the “promise” of cryptocurrencies in the opening address of the Treasury’s innovation policy roundtable published Wednesday night.
Interest in cryptocurrencies has increased in recent days after Elon Musk’s electric car company, Tesla, revealed that it had bought $1. 5 billion in bitcoins and intended to settle for it as payment.
But cryptocurrency fever has attracted regulators and policy makers.
Yellen said at the Treasury monetary sector innovation policy roundtable that “misuse of cryptocurrencies and virtual assets is a developing problem. “
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She added: “I see the promise of these new technologies, but I also see the reality: cryptocurrencies have been used to launder the profits of drug traffickers; have been a tool to finance terrorism. “
Her words echoed her comments in her audience on the role of the Treasury Secretary in January, when she said, “I think we want to take a look at tactics to reduce the use [of cryptocurrencies] and make sure that cash laundering doesn’t happen through those channels. “
Supporters of bitcoin and other cryptocurrencies, which are not regulated through a central authority, say that immediate market expansion means that illicit transactions are playing a smaller role.
They also argue that the US government’s complaint is a big one. But it’s not the first time It is hypocritical, as big banks and the government play a much more important role in financing illegal activities.
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The British watchdog is now forcing crypto corporations to log in with him as per his anti-money laundering regulations.
Neil Wilson, a market-leading analyst on the Markets. com trading platform, said adopting cryptocurrencies through giant institutional investors like BNY Mellon will likely bring “more regulatory oversight. “
“While it’s smart to allow bitcoin to be used for cash laundering and drug trafficking, it’s another story when corporations like BNY offer child care,” he said.