US Treasury Secretary Janet Yellen Says 'the Misuse of Cryptocurrencies Is a Growing Problem' – Regulation Bitcoin News

US Treasury Secretary Janet Yellen Says ‘the Misuse of Cryptocurrencies Is a Rising Downside’ – Regulation Bitcoin Information


Janet Yellen, the brand new U.S. Treasury Secretary, has warned about “a rising drawback” from “the misuse of cryptocurrencies.” She emphasised that “cryptocurrencies have been used to launder the earnings of on-line drug traffickers; they’ve been a instrument to finance terrorism.”

Janet Yellen Warns of Cryptocurrency Dangers

The U.S. Division of the Treasury hosted its inaugural Monetary Sector Innovation Coverage Roundtable on Feb. 9 and 10. “The Roundtable introduced collectively policymakers and regulators with consultants from the non-public sector to alternate views for collaborating on coverage points and modern applied sciences,” the division described.

Treasury Secretary Janet Yellen briefly talked about cryptocurrencies throughout her opening remarks on the occasion. “We’re dwelling amidst an explosion of threat associated to fraud, cash laundering, terrorist financing, and knowledge privateness. Because the pandemic has moved extra of life on-line, crime has moved with it,” she opined. One of many issues she outlined considerations cryptocurrency.

Yellen asserted:

The misuse of cryptocurrencies and digital property is a rising drawback, too. I see the promise of those new applied sciences, however I additionally see the truth: cryptocurrencies have been used to launder the earnings of on-line drug traffickers; they’ve been a instrument to finance terrorism.

“From my time on the Fed, I do know the essential position your establishments play in combating crimes like these,” she advised the occasion individuals. “The non-public sector invests monumental sources, discovering methods to cease unhealthy actors from misusing present applied sciences. You additionally develop new ones.”

At her Senate affirmation listening to, Yellen triggered fairly a stir within the crypto group by saying that cryptocurrencies are “primarily for illicit financing.” Nevertheless, a report by blockchain analytics agency Chainalysis exhibits that solely 0.34% of all crypto transactions final 12 months had been associated to felony actions. Many additionally identified that almost all of cash laundering actions are achieved through fiat currencies, significantly the U.S. greenback.

Yellen subsequently clarified her place concerning cryptocurrencies and promised “efficient” crypto regulation. In the meantime, the pro-bitcoin U.S. Senator Cynthia Lummis has talked to Yellen about cryptocurrencies and is planning to persuade the Treasury Secretary that bitcoin is “an awesome retailer of worth.”

What do you consider what Yellen mentioned about cryptocurrencies? Tell us within the feedback part under.

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