The US Justice Department recently released a report discussing the emerging threats of enforcement challenges arising out of the crypto industry. It mentions the establishment of a Cryptocurrency Enforcement Network.
Authorities interested in cryptocurrency regulation
As the interest in cryptocurrencies is growing in the US and the world, authorities are faced with a challenge to enforce existing legal and regulatory guidelines on the industry. In the latest report by the US Justice Department, US Attorney General William Barr said that cryptocurrencies could transform human interaction and the organization of society in fundamental ways. He said,
“ensuring that use of this technology is safe and does not imperil our public safety or our national security is vitally important to America and its allies.”
FBI Director Christopher Wray said that the agents have witnessed the threats of criminal usage of cryptocurrencies. He added that the technology is promising but is sometimes used to conduct illegal activities. Criminals use cryptocurrencies to hide their tracks across a number of investigations which include the trade of illegal goods on the dark web. Wray also noted that cryptocurrencies are being used to demand ransom payments.
Cryptocurrency Enforcement Network
To address the problems borne out of digital currencies, there is a 71-page report by the Cyber-Digital Task Force that demands more education and outreach. It also calls for closer cooperation between the private and public sectors. It suggests a direct engagement with financial institutions and banks alongside the crypto community.
The authors of the study note that all stakeholders of the industry, ranging from regulators to average users, have to take steps to uphold public safety and national security. One of the biggest issues in the Bitcoin payments network is that payments are irreversible. This makes it an appealing option for scammers as users cannot ask an authority to get their money back. Scams in the crypto industry are also very common. The Cryptocurrency Enforcement Network will aim to tackle these issues and make the technology safer.