Department of Justice Publishes Cryptocurrency Enforcement Framework: “We see criminals using cryptocurrency to try to prevent us from following the money”

Crowdfund Insider | | Oct 8, 2020

US image - Department of Justice Publishes Cryptocurrency Enforcement Framework: “We see criminals using cryptocurrency to try to prevent us from following the money”Attorney General William P. Barr announced today the publication of the “Cryptocurrency: An Enforcement Framework.” The publication was created by Barr’s Cyber-Digital Task Force. The document outlines the Department of Justice’s approach to crypto and its challenges. The Framework states:

“… despite its relatively brief existence, this technology already plays a role in many of the most significant criminal and national security threats our nation faces. As the Task Force has found, illicit uses of cryptocurrency typically fall into three categories:

(1) financial transactions associated with the commission of crimes;

(2)money laundering and the shielding of legitimate activity from tax, reporting, or other legal requirements; or

(3) crimes, such as theft, directly implicating the cryptocurrency marketplace itself.

Task Force member John C. Demers, Assistant Attorney General for the National Security Division explained that they will adapt their strategy and tools to 21st-century financing, including to combat the use of cryptocurrencies to evade enforcement and harm our national security.

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Specific issues mentioned in the Framework include crimes like pump-and-dump schemes, terrorist financing, malicious cyber activity, and money laundering.

“the ongoing challenges the government faces in cryptocurrency enforcement—particularly with respect to business models (employed by certain cryptocurrency exchanges, platforms, kiosks, and casinos), and to activity (like “mixing” and “tumbling,” “chain hopping,” and certain instances of jurisdictional arbitrage) that may facilitate criminal activity.”

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The Framework notes that the digital infrastructure of the blockchain “almost always transcends territorial boundaries” and some of the largest cryptoasset exchanges operate outside of the United States making enforcement challenging.

Throwing down the gauntlet, the DOJ outlines its intent:

“As this Enforcement Framework makes clear, the challenges are significant. But so, too, are the resources that the U.S. Department of Justice, as well as the U.S. government as whole, are dedicating to the effort, in collaboration with our international partners.”

 

Attorney General Barr issued the following comment on the Framework:

US dept justice Crypto enforcement framework Oct 2020 - Department of Justice Publishes Cryptocurrency Enforcement Framework: “We see criminals using cryptocurrency to try to prevent us from following the money”

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“Cryptocurrency is a technology that could fundamentally transform how human beings interact, and how we organize society.  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. I am grateful to the Cyber-Digital Task Force for producing this detailed report, which provides a cohesive, first-of-its kind framework for those seeking to understand federal enforcement priorities in this growing space.”

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NCFA Jan 2018 resize - Department of Justice Publishes Cryptocurrency Enforcement Framework: “We see criminals using cryptocurrency to try to prevent us from following the money” The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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