Cryptocurrency Use in Financing Terrorism ‘a Growing Problem,’ Yellen

According to US Treasury Secretary Janet Yellen, the use of cryptocurrencies for drug trafficking and  financing terrorism is a “growing problem.”

February 11, 2021 | AtoZ Markets – During a roundtable on policy innovation in the financial sector, US Treasury Secretary, Janet Yellen warned that cryptocurrency-related crime and cyber attacks are on the rise.

I see the promise of these new technologies, but I also see the reality: cryptocurrencies are being used to launder the proceeds of online drug dealers and as a tool for terrorist financing,” she said.

Digital Assets in Financing Terrorism is a Growing Problem, Yellen says

Yellen cited the Anti-Money Laundering Act passed by Congress last December, which became part of the National Defense Act. The new law requires the US government to update its anti-money laundering and terrorist financing measures. Yellen noted that the existing regulatory framework was created in the 1970s and has not been updated since then.

“The legal framework was updated at the most opportune time. As you all well know, we live in an environment of dramatic increase in the risks of fraud, money laundering, terrorist financing and data privacy, ”she said.

In January, Yellen stated that cryptocurrencies are a particular problem for law enforcement and that they can improve the efficiency of the financial system. She said this week that the Treasury Department, along with its regulators, “can better stop the flow of dark money.”

“We will have more power to prevent attackers from hacking into our government offices or interfering with our elections,” she added.

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