- DOJ publishes 83-page report detailing plan regulate cryptocurrency usage
- DOJ already seizing crypto accounts used by hackers and charging crypto exchanges with fraud
DOJ Cybercrime Taskforce hopes to increase regulation of cryptocurrency platforms
Since 2010, the line between traditional financial crime and cybercrime has grown increasingly blurry – a problem compounded by the advent of the COVID-19 Pandemic. In response to this new wave of cybercrime, the U.S. Secret Service has merged its Electronic Crimes Task Force and Financial Crimes Task Force into a new entity called the Cyber Fraud Task Force (CFTF).
The CFTF was created in the aftermath of a move by lawmakers in Congress to move the Secret Service back to its roots as a branch of the Treasury Department. Placing the organization in a better position to investigate Cyber-enabled financial crime. In the DOJ’s 83-page report, titled “Cryptocurrency Enforcement Framework,” the CFTF explains the reasoning behind the move:
“Current terrorist use of cryptocurrency may represent the first raindrops of an oncoming storm of expanded use that could challenge the ability of the U.S. and its allies to disrupt financial resources that would enable terrorist organizations to more successfully execute their deadly missions or to expand their influence.”U.S. Attorney General William Barr
The DOJ’s report follows on the heels of the DOJ’s decision to file criminal charges and civil suit against BitMEX. BitMEX, a prominent crypto exchange, is charged with failing to implement fraud prevention measures. This is in addition to the DOJ’s seizure of 280 crypto accounts linked to North Korean hackers.
The report is the second of its kind issued by the CFTF and outlines the DOJ’s cybersecurity policy and procedure, including but not limited to areas such as data protection, emerging technologies, and Cryptocurrency.
The report, divided into three parts – begins by outlining the legal and illicit uses of cryptocurrency. The report – divided into three parts – begins by outlining the legal and illicit uses of cryptocurrency. The report then goes on to talk about Web 3.0 and the unprecedented degree of data protection it offers to its users. The second part of the report discusses legislation that dictates the use of cryptocurrency, and the challenges presented to lawmakers by cryptocurrency’s decentralized nature.
The third part of the report examines a global push to regulate cryptocurrency exchanges. They hope by doing so that they can mitigate cryptocurrencies use in money laundering schemes.